Residual Income

Residual income is recurring income that continues to come to you long after the work you've done to produce it has ended. There are lots of ways to produce residual income. But many people don't understand it. Others have never thought about or been exposed to it. And unfortunately, many ways of producing it are out of reach for 'average' people.

Successful authors, actors, musicians, and insurance agents are some of the more familiar avocations that produce residual income. Probably the simplest and best example of passive residual income is interest earned on money in the bank or other investments. It gets paid or credited to you without you having to invest any more time to produce it.

Using the "virtual millionaire" concept I will explain below, if you had a million dollars in the bank earning 6% interest, that would produce about $60,000 of annual income (before taxes). So if you have any source of passive residual income producing $60,000 or more a year, you are a "virtual millionaire".

And with the right business, that can be much easier to accomplish than trying to overcome all the roadblocks to accumulating a million dollars in the bank. Instead of government fighting you all the way (taxing all your income), government actually becomes an active partner by giving you all kinds of tax breaks and incentives to succeed.

There are only two sources of money:

1. People at Work
2. Money at Work

The simple goal of Retirement & Financial Planning is to make sure you accumulate enough money (or income producing assets), so that when you decide or are forced to retire, it will produce enough PASSIVE RESIDUAL INCOME for you to enjoy the lifestyle you choose for as long as you live.

The same concept holds true in Network Marketing. But Leverage, and Duplication or Geometric Progression, can help you build it much faster in the RIGHT Network Marketing program.

One of the first questions I often ask prospects is:

"If you had the choice of doing a job and earning $500 once, or getting paid $100/mo for the rest of your life, which would you choose?"

You'd be surprised at how many answer $500! These people either, 1) are not good prospects or, 2) need some education. That question is one quick and simple way to pre-qualify people. Those who don't understand that principle may never achieve their true potential.

Many people have a hard time understanding this FACT and mistakenly chase false promises of quick or easy money. That's why there will always be crooks and con artists in the world pitching "get rich quick and easy". Successful people ignore them. Naive or greedy people usually get burned.

Residual income is NOT about "get rich quick", even though with the right opportunity it's possible to produce a small fortune in a relatively short time.

If you're especially talented or have the time and money to invest, you may have some success in less than a year. And many people do. But without a major investment of time or money it takes most 'typical' people a year or two of part time work to generate a decent income, and another year or two to really hit the big time. But achieving success with 2 - 4 years of part-time effort beats the widely accepted 'standard' plan of slaving 20 - 40 years working for someone else to make them wealthy!

Most people who fail at network marketing either choose the wrong company or just give up too soon and quit because they expect INSTANT results. But because the real beauty of residual income is on the back end, not the front, once you build it you have the financial security and time freedom to do anything you want the rest of your life!

The RIGHT network marketing opportunity allows anyone, with no prior experience, special skills, or large capital outlay, to build long term, passive residual income.

A critical component to building long term residual income is offering high quality, high demand, value-priced, 'consumable' products or services that people use and re-order month after month.

Because of this simple fact, the top industry in Network Marketing by any measurable standard is Nutritional Supplements and Personal Care products. Some people refuse to consider this industry because they don't take supplements themselves or don't understand the 'Big Picture' and successful business model of this industry.

Do you think Burger King and McDonald franchise owners invest hundreds of thousands of dollars because they like to eat fast food burgers? Not hardly! They understand human nature and trends in society. We're a convenience oriented society, and a large part of the population would rather eat low cost convenience food, even if we know it's not good for us.

But there's also a booming trend toward improving your health, improving your life, and developing personal and time freedom. Many 'opportunity seekers' completely miss or ignore these trends in society. If your business is in front of multiple long term trends, you dramatically increase your chances for success.

(Part Three...)