Residual income is also known as passive income. Passive income is acquired on a regular basis and with little effort. Examples of this type of income, royalties from a book, income from rental property, income from licensed intellectual property, ads or music, affiliate marketing, network marketing, dividends on investments, pensions and so much more.
For the purpose of this blog, I’d like to discuss Network Marketing. Network marketing is a great way to leverage time and money optimally to receive passive income. You will hear MLM and Network Marketing used interchangeably so stay aware so that you don’t get confused with these terms.
Network marketing is where direct selling companies compensate their distributors for the products they sell and also for more business partners they introduce to the business. In this business model, everyone wins; the company does not have to spend enormous amounts of money on advertising costs but can instead compensate the distributors who market the products on a more personalized basis. So customers can get the products at a great price and we as distributors can claim a share of the company’s revenue; who’s complaining?
This business model is so great for creating income and is not a “get rich quick scheme”, so you can work your job while building your business part time until you get it to the point where you can do it full time, sometimes this can take 2 to 3 years or less depending on what you put in. Keep in mind that the first 5yrs of any brick and mortar store is not usually profitable and in network marketing you are not paying to rent a space, employee salary, etc., as you would with a physical store for example.
Network marketing is a virtual business you can do from anywhere in the world with a computer, telephone and notebook, the overhead is very little compared to renting physical space and other leases. So you are starting a business for pennies on the dollar; who wants in?
Depending on the products and services offered, you can do something once and create passive income, so think about building a large team all of whom will be marketing the products and each one getting residual income. So for example over the years you built a team of 18,000 people, yes this is real, and let’s say you make 50cents off of each one per month; can you tell me what’s your income per month? How many of you make 9k per month working 60hrs per week? Now imagine making this income putting in maybe 2 to 3hrs a day, hmmm, who’s interested in making residual income?
Spend time with your family and friends, doing the projects you always wanted to do, you deserve it. The key is to keep your team together with training and mentoring. Team work makes the dream work so come with passion.