It is often and quite loudly lamented by ex-network marketers that the whole residual income thing is just a scam, or it only works for people at the top, or it just doesn't work for me. But why is this? Why are some people so successful and create an incredible income while others fail?
What is residual income?
Residual or passive income is the type of income where work is done once which results in the person being paid again and again and again. Types of income include:
•Dividend and Interest – eg: back account interest, yearly dividends from shares & investment portfolios
•Rental Income – eg: where you rent out a property, or car, or other asset, you receive regular payments for the use of that asset.
•Royalties and Rights – eg: Actors and musicians receive royalty payments every time their product is played or aired. Authors also receive royalties every time their book is sold.
•Advertising earnings – eg: Adsense ads on websites receive payments every time they are clicked
•Sales/Brokerage – eg: a Mortgage broker gets paid a commission by the bank when a client signs up. They also receive ongoing commissions for as long as the customer stays with them.
•Affiliate commissions & Network Marketing – eg: A representative may be paid commissions for the customers and activity generated by the representatives that they signed into the business opportunity.
What are the benefits?
This type of income is so sought after because when it is achieved, it allows the person to apply very little to no effort to maintain it – it effectively pays them while they sleep. In this way it gives people the time to do other pursuits, reliable income streams, and financial freedom.
Top 3 reasons why it doesn't work for network marketers
1.Effort – Applying effort or taking action is important to success in this industry. Many people fail as they don't take action in building up their team or in building a customer base
2.Focus – There are those who take lots of action, but they apply their effort in all the wrong areas. They focus on team building, learning their products, attending meetings and conferences but never actually get around to contacting their prospects. Another area of focus they can fail in is in contacting the WRONG prospects – they take a scattergun approach and contact hundreds of people, most of who don't want what they got.
3.Consistency – marketers who don't apply consistent focused effort to their business often wonder why their income stopped growing or even worse, went backwards.
How can residual income work?
A consistent and focused effort to build up an income is the key to success for network marketers, affiliates and brokers. Part of this is having the right training and leadership, but the biggest part is knowing that residual income can take a long time to build up, but if you have the dedication to keep at it every day, eventually it will work. See my free report in the author info link to get more information on how to generate your own residual income.
Article Source: http://www.abcarticledirectory.com
Kira-marie is an entrepreneur helping people create wealth. Click here: klaverty.tkr.me/residual for more information on how she can help you earn residual income.
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