Let’s talk about how to develop a residual income. On second thought prior to talking about how to create it, let’s first answer the question of what it is residual income.
Residual income is an income stream which flows to you continually over time as the result of some body of work you’ve completed once. An example of this might be a recording artist who creates a new CD. They complete the CD once and it then is sold for years thereafter providing the artist with a consistent stream of income.
When you see the power of residual income I’m certain you’ll want to get yourself some too!
Let’s first have a look at earned income which is what the majority of people rely upon for their bread and butter. Earned income flow is dependent upon your physical involvement. A job is a perfect example. What happens when you stop working at your job? The income stops too.
The most insecure form of income is earned income. We’ve seen all the evidence we need to see about this, haven’t we? With millions of people having been recently laid off from a job anybody can see that an earned income stream can be taken away in an instant.
So you see earned income is a always a dead end while residual income is the way to secure future. It will free you from the never ending treadmill of a job and set you up for a brighter future.
So how is it done? How does an average person go about creating residual income? Realistically, there aren’t too many of us who can produce a bestselling CD.
For most everyone, the answer to this question lies within the network marketing profession. Stay with me now and you will see that a home based network marketing business creates the best opportunity for the everyday man or woman to create residual income.
Commonly referred to as MLM or multi level marketing, network marketing is responsible for creating more work from home millionaires over the past few decades than any other industry – there isn’t even a close second. The history of MLM is loaded with home based success stories of individuals just like yourself.
The entire pay structure of a network marketing company is set up on the concept of residual income. Getting started with network marketing means you’re developing your very own business. Your level of income is tied directly to your own efforts and success. No one else can put a cap on your income. How well you do is determined entirely by you.
Here’s the really cool part; the business you form in network marketing gives you a residual income stream deep into the future. With minimal direct involvement from you, once you grow your organization, you will continue to be paid for those efforts.
And, because starting an MLM business generally requires a reasonable start up cost, building a residual income stream with this type of business is a reality for all.
This all sounds great but what is the downside to network marketing? There is a downside because everything has one.
Network marketing is an industry mostly littered with those who have tried and failed. Everybody who’s started an MLM business has done so with a desire for real wealth. Why then do so many people fail in this profession?
Despite what you may have heard, succeeding in network marketing is not an easy thing to do. So many people dive head first into this industry with no clue as to how to really build a business. When things begin to get difficult the much larger number of the folks who get involved will quit and then scream that network marketing is a farce; that it does not work.
What these people don’t realize is that people will always fail if they throw in the towel when the difficulties arise. You will fail 100% of the time if you don’t have the nerve to stick it out when the going gets difficult.