Finding the RIGHT vehicle for YOU to earn Residual Income

Let's start off this week by asking some important questions. Where do you see yourself in three years? How about in five years? Is there something you would REALLY like to do in three years? How about in five years? Do you have a plan (a REAL plan, not just a thought)? If you continue doing what your doing, are you going to arrive at the destination you are seeking? Insanity has been defined as "Doing the same thing over and over and expecting different results". Are you willing to see your dreams fade away because you aren't willing to explore new ways to reach those goals?


Last week the financial independence offered by Residual Income was the topic. This week we will look at how you will be able to take advantage of the benefits of Residual Income.


Developing a source of Residual Income is not difficult if you develop a plan and have the persistence to stick with the plan. Most people who fail at their first attempt to build a Residual Income generator don't have a specific business plan and therefore become discouraged. AND THEN THEY QUIT!!! Winners NEVER QUIT and Quitters NEVER WIN!!! If they would have had a business plan that led to success one step at a time, they would have been much more inclined to continue one step at a time until they had reached their goal.


Let's begin our business plan by defining what qualities a company should have for us to be willing to put our reputation on the line by endorsing the company and using the products.


(1) The company must have been around long enough to have a history of reputable service and products. Too many new companies fail. You don't want to invest your time and reputation in a company that's not going to be there, when you get your business built!


(2) The company must be committed to developing cutting edge new products. For a company to sustain long term growth, new products are a must.


(3) Companies with consumable products; products that consumers consider a necessity; will provide true Residual Income more dependably than companies that depend on selling the customer a new "Super Duper Gizmo" each month. True Residual Income is only generated if a substantial percentage (25% to 40%) of your customer base purchases products each month.


(4) The company needs to be oriented around a growing area of the economy, with the forecast for the primary demographic that the company serves, showing growth in that part of the population for the foreseeable future.


(5) The company's marketing plan must include back end marketing (monthly catalogs, newsletters and promotions) supplied by the company. You need to be concentrating on building your business, not delivering catalogs and newsletters.


(6) The business plan must be designed so that the average person can be successful. You aren't going to find very many "super salesmen" that are interested in joining your team.


(7) Find a program that DOES NOT require you to do COLD CALLS. Most people are very uncomfortable doing cold calls, in fact, after making a couple they will QUIT. A program that will lead you to success will provide contacts that are expecting you to call and, in fact, want to hear from you.


(8) Finally, the business model should allow you to build your business with a small monthly investment in the beginning, with the business becoming self-sustaining within a short period of time. Large initial startup costs will discourage too many good prospects from becoming part of your business.


After deciding on a company, there is one more very important decision to be made. Who are you going to partner with in this endeavor? Developing a plan that will result in success will be substantially easier if you find the right people to work with you. Your new undertaking will be much more likely to succeed, if you find a marketing TEAM that will be dedicated to your success. Experience does make a difference in this business and success will come quicker and easier, if you have someone to work with that cares about your success.


As was discussed last week, the primary reason most people don't pursue some form of Residual Income is that they were raised to believe that linear income (wages, salaries, one time commissions, etc.) was the best way to provide income for them and their families. The next stumbling block has been that they had no idea how to begin to develop a form of Residual Income. Following the strategy outlined here, and being willing to look at new possibilities, can take you to that dream we talked about at the beginning of this article.


Here's a quote from a man that started with nothing; had more challenges than anyone I personally know; and is now one of the wealthiest men on the planet:
"Never give up, shut up or let up until God takes you up" Peter J. Daniels

Residual Income - Can the average person take advantage of it?

Is Financial Independence Possible for YOU?

Most people earn wages, salaries, commissions or fees in direct proportion to the number of hours they work. The more hours they work the more compensation they earn; this type of structure is called linear income. People receiving some form of linear income rarely achieve what would be defined as true wealth; there simply aren’t enough hours in the day to earn enough money. Think about the wealthiest people in the world. Did they find financial security by earning a higher annual salary, or did they seek a raise in the hourly rate that they were being paid? Of course not! More money per hour and higher salaries will never provide true financial independence, only an incrementally higher standard of living. If working really hard won’t earn enough to become one of the rich and famous, how do people who are not born into riches ever achieve real wealth? There is a better way - earning what’s called “residual or passive income” - and it’s easier than you might think. Residual income is earned when you stop trading time for money, and start thinking like an entrepreneur. The people who have discovered how to have true financial independence get paid MORE THAN ONE TIME for the work they do.

Now for the million dollar question, how does the average person begin to earn residual income? Most of us were taught to work hard and try to climb up the ranks in whatever profession we chose, working toward the next pay level, hoping to earn a little more disposable income. Then we promptly disposed of that income and began to work towards the next pay raise. Breaking away from the earning model we have embraced for our entire working life is mostly a psychological exercise. There are many opportunities available which allow you to begin to build a source of residual income; however these sources are going to be foreign to the average wage earner and will probably cause some anxiety in the beginning.

Let’s look at some ways to develop a source of residual income:

·        Become an actor and receive residual income from movies, commercials and/or endorsements.

·        Become a famous athlete using your extraordinary skill in the sport of your choice.

·        Allow an oil company to drill an oil well on your property and receive royalty payments.

·        Publish a book and receive income from the continual sales.

·        Purchase rental property and collect rent or lease payments.

·        Invest your extra linear income and receive interest or dividends.

·        Invent a gadget that is patentable and sell the production rights for a percentage of the revenue.

·        Develop a business selling consumable products that people need and depend on, receiving commissions from the repeat sales.

A vast majority of the population is not able to take advantage of the first seven methods of acquiring that elusive residual income we have been discussing. However, the eighth method listed above is a definite possibility for the average person. With a small investment and serious commitment, in what we will call direct sales, success is far easier than most people believe. The secret, or at least what most people don’t realize, to you being successful is finding the right company and team to partner with.