What Is Residual Income And How Can You Earn It?
Ask any business professional and they will tell you that the best kind of income is the kind that keeps flowing in as the result of work you did a long time ago… this is Residual Income.
For example, if you set up a customer on your online sales website and you get a commission every time that customer comes back and buys another product or more of the same product, that is residual. The income continues to flow even though you may not have spoken to the customer recently or sold the customer product directly. Imagine setting up hundreds of customers and collecting that kind of income… That is a big part of the allure of network marketing!
When it comes to residual income, it is hard to beat network marketing. There are several sources of residual monies in an Network Marketing program.
These sources include:
- product sales
- new member bonuses
- team sales
- team building bonuses
- and more!
One of the first things a network marketing professional does when he or she sets up their business is to try and sign up as many buying customers as possible and recruit others that may want to start their own business doing the same too (we’ll get to this second part shortly). They make the buying process easy and help new customers choose which products and/or enrollment packages are best for them. Once they have a client set up and buying their products, they can then spend their time developing the relationship so that the customer is happy, kept current on the company’s product line or promotions, etc. to ensure that the customer keeps buying products… and the residual income continues to roll in.
The great thing about the internet and advances in technology is that many of the latter tasks can be automated and systems “do the marketing” for businesses 24/7!
NEW MEMBER BONUSES
The way that a network marketing company grows is through adding more marketing professionals. Each time that you sign up a new network marketing associate, you receive a bonus on their initial enrollment package (which is simply a higher percentage of commission on their first purchase!).
Here’s the most attractive part of this business… you’ll not only earn residual income on subsequent product purchases your team member makes, but you’ll also earn a residual income on everything that member sells to others. And you’ll earn an income stream from the members that become part of your member’s network.
TEAM BUILDING BONUSES
Many network marketing companies additionally give bonuses to those who help others to build their own teams! This is usually a percentage of team sales on top of the residual income already earned!
This provides plenty of inspiration for network marketing professionals to actively recruit new associates and keep the network growing. The more networked associates a marketing professional has out there selling, the more money that professional will make.
Residual income is considered a handsome reward for hard work. When you spend your time making the right connections and utilizing the proper selling techniques, then you will enjoy the benefits of an ongoing income.
And the bigger your network grows, the more money that you can earn. It is the ideal kind of business for an ambitious person to start that wants to see success and wants to reap the rewards of his hard work for many years to come.