The Beauty Of Residual Income

I think most of us know that in an ideal world, the Network Marketing model of business is the ultimate way to earn money. Simply put, you do the work once and get paid for life! It is the way of big business, to leverage the work of others to build your empire and personal fortune.

If you have been in this industry for any length of time, you will also know that the dream is not often realized. There are perhaps millions who have joined a Network Marketing “opportunity” and left financial worse off and disillusioned. While this is happening to you, there are those people who now have huge mansions, fast cars, and amazing lifestyles, paraded in front of you regularly. I mean who wouldn’t want to earn a million a year from the efforts of others?

Something I have observed in my 14 years of success in this industry is the credibility gap between most distributors and the big boys. The question I would ask is, “Do you really have to earn $10k or more a month to benefit from Network Marketing?

The answer, of course, for most of us is no. Even a few hundred dollars every month above our expenses would make a great deal of difference to our lives, if we didn’t have to spend too many hours to get it. This is where I think there is a big challenge to bridge the gap between failure and success.

Small Business

Here I am not talking about employers, but operations that perhaps involve family members or two or three people. Typically you have an idea you think could take off. You invest a lot of money creating your product, web sites, marketing materials, and then go out into the market place and try to establish yourself.

The reality of this model is that in 1-5 years you will probably run out of capital, get depressed that everyone else doesn’t love your product as much as you do, and quit sacrificing your house, family or superannuation in the process.

If you make it, great, many do. Unfortunately, I have mainly seen the scenario I just related. I ran my own festivals for several years. These events would have up to 50 stall holders, and 2,000 or more attendees. We provided free lectures and entertainment. Most stallholders would disappear after 2-3 years and be replaced by someone else with a dream. A couple are now very rich. One who attended all my shows now has over 20 stores and has expanded to the US.

Achieving Residual Income With Network Marketing

My model was simple. I would first engage good presenters. We would have 2-3 headline acts plus myself. Their reward was a workshop we organized that they received the money for. In addition it helped build their reputation and they got ongoing business. A good presenter could make $1,000 or more for a few hours work with no risk.

Then I would call stallholders and book the space. This was the toughest bit, although usually all spaces were filled with paying stall holders by the time we held the show. Next I would create a flyer and send this and posters to every retail and community space I could find. As we built our patronage, we mailed these to everyone who attended previous events.

Finally would go for at least a one page spread in the local paper plus TV or radio advertising. We had some standard ads we modified for each event. Generally, we received some news coverage and editorial content thrown in and would trade sponsorship for logos on our promotional material.

We had 30% of attendees come because they had been there before! This is a bit like your MLM team. The rest were new business. The money spent on flyers and postage easily created the largest portion of income.

Why Residual Income Is So Good.

I started my Network Marketing businesses by leveraging my success with the festivals. It provided a constant source of new prospects for the business and products. That extra residual income helped pay the bills. As time moved forward, the residual income from Network Marketing grew, and eventually it was clear that less effort was required to grow this business than to operate the festivals. I switched my activities to Network Marketing.

Today my business model is essentially the same. Now I use the internet to find potential prospects and customers. The volume created by product sales fuels the income for my new recruits. Those who apply themselves consistently, start receiving larger and larger residual payments.

If I Didn’t Have The leverage, I Would Be Out Of Business

This is the truth. Typically I will sell maybe $2-3,000 in products a month. This provides $5-6,000 in commission, plus any profits on product sales. By working out pricing so I recover my costs from sales of products, the commission goes in the bank. If I was not involved in Network Marketing, I would have to sell maybe $20,000 or more worth of products to make the same money. This is why MLM makes sense.

Over To You

My business methods have evolved over time. Starting out with personal contact, I moved to advertising, then the internet. Recently, it has become more challenging to get noticed on line, but I continue to get good traffic to my sites. If you can build a regular clientele, plus some business builders you mentor to success, Network Marketing can make a big difference to your life, even if the contribution is only an extra $1k a month.

If you want the details on what I do, take a look at my MLM Profit Booster training.

My wish is that you have learned something here to encourage you to keep going until you experience that money that comes whether you are working, sleeping or playing. You have to earn it, but it is great on the other side.

It is not too late to build residual income through network marketing. You just have to do it better than the rest. The answer lies in using solid, proven marketing principles, not chasing the latest magic bullet product that does everything for you. It has worked for me, and others. You can learn more about my system at http://mlmprofitbooster.com