Residual IncomeMyth vs Reality The first step is to understand the term "residual income." Whenever an episode of Friends plays in reruns, those actors get paid. The income is "residual" because the work was actually done a long time ago. They had laid the groundwork for the money that was to follow.
Fortunately, network marketing provides a good opportunity. Stay the Course
If you type “residual income” into any search engine, you will come up with pages and pages of results. It seems that everyone and their cousin wants to turn you on to the secrets of their method of wealth building. There’s a lot of hype out there. Lets get clear. This is not Hollywood.
If someone promises you a six-figure income in six weeks, I hope they will be writing you a personal check! Below are five essential factors necessary to build residual income through network marketing:
Many people can conjure up some combination of the first four factors on the list. • They may have a great vehicle, but lack a good mentor, or have no upline support. Therefore their marketing efforts may fizzle. • Or maybe they’ve got the first three, but are expecting it all to just fall into place. Their effort is lacking. • And for some folks, they nail the first four, get impatient and don’t stick around to see their work through. If you have all five factors going for you, the results of your efforts will translate to income. You Can Tip the Scale
Building steady residual income that grows to a substantial amount is quite possible. There is a snowball effect. Let me explain. When you work for someone else and essentially trade time for dollars, the scale you see above would balance. One hour of work for one hour of pay. No comment or whether or not you are paid what you're worth. In network marketing, you begin by building your team. At that point you are at square one, and the scale would weigh heavily on the side of time. You spend a lot of time to make a little bit of money. As you steadily build your team, the scale begins to balance out. You make a reasonable income for the amount of time you spend working. You breathe a sigh of relief. And then something else happens. The scale begins to tip the other way. Now that you have a steadily growing organization, with many people continually working to build it, you spend less time to make more money. Like an actor from a sitcom in reruns, you make money when you're not even working. That's the snowball effect. When that snowball gets rolling, it can get really big. Although to your neighbor this might look like overnight success, you know that it isn’t. You know exactly what kind of time and effort you put into developing what has now become a rapidly growing income stream. And you're still building it, now leading the way. Yes, it is possible to build substantial residual income. Math Is Fun!
Even if you were never that interested in math in school, you will probably really like the look of the numbers in network marketing. Compensation plans will vary from company to company. The multi level structure, however remains the basis of it all. The illustration below shows four examples of potential team-building numbers, as new members are enrolled. Each member regularly purchases products, and commissions are paid on those purchases.
In the example in the first column, you enroll 2 people, represented by the top red number. Then each of those people enrolls 2 people, and then those new members each enroll 2, going just 4 levels deep. Add up all the red numbers, and you now have 30 people in your organization. You personally enrolled just 2. Second Column: Each enrolls 3 Last Two Columns: Each enrolls 4 or 5 You do the math. Hint: you'll need a calculator. Fun, isn’t it?
Admittedly, each of the columns represents a perfect scenario, with each person on the team contributing equally to building the entire organization. In the people world, it doesn’t quite play out that way. Some team members will bring in new members left and right, while others may drop off entirely. Go ahead and make some adjustments to the numbers, accounting for the “people factor.” They still look good. Really good. While the math is fun, this is not a numbers game, it's a people business. Wherever you have people, there is always a need for leadership. Learn, Teach, Lead
As you build your team in network marketing, you become the leader. As you learn, you take that knowledge and those skills, and teach others. You become the mentor for those who follow. It’s a beautiful system. Teamwork is the key to building a large organization. Good leadership is what makes the team grow. Building a large organization is the key to substantial residual income.
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