Did you write that musical hit that the world couldn’t resist? And because of your musical talents, do you receive a music royalty check in the mail for thousands of dollars each month?
No? No musical talent? No skill at writing hit records?
Well, are you a famous novelist?
Are you interviewed on all the television talk shows? Do publishers bid record amounts of money for the rights to your next mystery novel? And, because of your captivating writing talent, do you receive thousands of dollars in royalties from your publisher every month?
Or, do you own a couple million dollars worth of high grade stocks and bonds? And, every month do you receive a dividend check for thousands of dollars, conveniently sent to you from your broker?
Or, did you arrange to be adopted by a rich family? And did that family leave you thousands of dollars in monthly inheritance income from their many trust funds?
Or, do you have to work for a living?
If you are like most people, you have to work for a living. If you don’t work, you don’t get paid.
What’s different in the above examples? Well, if you were a successful rock star, novelist, rich investor, or lucky heir, you would receive money every month even if you didn’t go to work. That’s called residual income.
What’s residual income?
It’s a lot different than linear income, the kind most people have. You see, linear income continues only as long as you continue the work.
* If you are a surgeon, you get paid whenever you perform a surgery. If you don’t perform a surgery, you don’t get paid.
* If you are a construction worker, you get paid when you work. If you decide not to work for the next 12 months, chances are your employer is not going to pay you.
* If you drive a bus, you get paid. If you quit driving buses, you don’t get paid.
That’s how linear income works. You receive income when you work. When you stop working, the income stops coming.
Residual income is different.
The best way to describe residual income is that when do something right just one time, you get paid over and over again for what you did.
So, you wrote a hit song ten years ago. Every time it plays on the radio somewhere in the world, you get a little royalty. Even though you completed writing your song ten years ago, every month you receive a royalty check from people who play your tune. You did it right one time, and now you collect every month.
When you wrote that hit novel five years ago, you finished your work. Now, you receive regular royalty checks from continuing sales of your book from your friendly publisher. You did it right one time, and now you collect every month.
You invested the few million dollars you had lying around in your checking account six years ago into high grade stock and bonds. Now, every month you look forward to your monthly dividend checks. You did it right one time, and now you collect every month.
You called every duke, queen, business magnate, and rich sports star twenty years ago and asked to be adopted. Finally, one accepted your proposition. Every month your inheritance check reminds you that the adoption letter campaign of twenty years ago really paid off.
You did it right one time, and now you collect every month.
Residual income sounds nice, doesn’t it? Unfortunately, most people have trouble developing a residual income.
Why? We can’t sing or write music. We don’t have publishing contacts for our hit novel. We don’t have a few million dollars sitting in our checking account waiting to be invested. And, worst of all, we can’t find any rich people in failing health ready to adopt us.
However, there is hope.
There is another way to develop residual income. There’s a way to get monthly checks for thousands of dollars so that we can do the things we want in life, so that we can achieve our dreams. And best of all, almost anyone can develop this residual income.
Tens of thousands of people have already developed lifelong residual incomes through the power of network marketing . . .
************
If you enjoyed the above story, you might have what it takes to be a network marketing leader.
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Pillar 4: Does the Compensation Plan Pay Part-Timers?
• 95% of networkers are part-time people.
Make sure that people can make a decent income working a few hours per week.
• Beware of companies that advertise how many millionaires they have created.
Make sure it’s not at the expense of those “at the bottom”. Everyone should be able to benefit.
• Take the Comp Plan Test – Ask yourself this question:
• “How many people do I need on my Team to earn a recurring income check of $500 per month?”
• There are companies out there that require as many as 500 and as few as 20.
• It’s not unusual to see well-established companies that require 150 to 350 people and
they are still able attract new distributors – Amazing! They must be sold on the product!
• If your upline won’t or can’t answer this basic question, You should Run.
• If you are making only 5% to 8% commissions on product, You are being extremely underpaid.
• If a company stresses “Recruit, Recruit, Recruit!”, You should “Run, Run, Run!”
• The purpose of any business is moving product from the company to the end-consumer.
• The majority of your commissions MUST come from product sales; otherwise, it is a SCAM.
• And if you work a plan that Does Not pay on product volume,
somewhere in the process You will lose money!
• More important: You will lose Credibility Too!
If you seek the answer to the question on how many you need on your team to make $500 a month I can help you, there is a huge difference in many companies start your free training by CLICKING HERE!
Pillar 2: Has the company passed the “early failure” Time Line? Are the company’s Products timed with the beginning of a massive trend of consumer demand?
• Beware of “ground floor opportunities” and start-up companies.
• There should be no rush to get in on the “ground floor”.
• 99% of companies don’t last two years.
• If the company is good today, it will be great tomorrow.
• Most people don’t make money in the first two years while the company is dealing with start-up issues.
• Profit comes AFTER two years. Join then.
• Avoid companies which have passed beyond their “momentum phase” and have become household names.
(The realistic potential for big growth in gone)
• Do not join a company with a product that has no profit margin! (i.e – a long distance service or a vinyl record company)
TOO EARLY TOO LATE, YOU’VE SEEN SOME SOCIAL NETWORKS THAT HAVE AFFILIATE PROGRAMS CHANGE THEIR NAMES IN THE LAST MONTH, WHY? THINK ABOUT IT…..THAN READ OUR FREE NETWORK MARKETERS GUIDE FOR SUCCESS BY CLICKING HERE
Want success? How hard have you worked? Still seem like there’s a piece or 2 missing? There is, follow the next 5 posts and you might find whats missing. Ask me I will help you find the catch to your success.
Pillar 1: Does the company management have personal experience building their own networking organization? Have they done it with Integrity?
• Search Google for the owners of the company.
• Do the owners have Integrity? Add the word ‘Scam’ to your search.
• Do the owners have a Corporate background or an in-the-field Network Marketing background?
• Read your “Policies & Procedures” and “Terms & Conditions”;
both are part of your Legal Contract.
• Look for the word “Ongoing”.
• Look for policies that strike you as “Unreasonable”. Like “Termination, with or without cause”.
• Ask yourself “Does this contract protect me or the company?” “Is it clear which way it leans?”
• Does the company charge you for training or a company web site?
• Does the company charge you for each paycheck they send you?
• Rules of Thumb:
• The longer the contract, the greater the possibility that the policies important to you
are being hidden in “Legalese”!
• If it’s a “Cash Only”business…It’s a Scam!
• If you can buy a position at the top…It’s a Scam!
• If you are offered a “Special Deal”…the playing field isn’t level for all.
• If the products are sold on eBay at a greatly reduced price…Buy there instead.
• If a company is publicly traded, Financial Decisions Will be made in Favor of the
Stockholders at the Expense of the Distributors.
• Check these two websites: www.MLMwatchdog.com and www.MarketWaveInc.com. ?
These few things WILL make the difference between failure and success for you. I can give you tons of free training!
Thanks to Tom Schreiter here’s a realistic view of MLM income, watch out for the guy’s that promise you a 6+ figure income per year…..
Good question. Lots of answers.
Group 1.
You can simply participate in MLM just to save money on your personal purchases. Buying products and services at wholesale prices makes sense. Buying product and services at retail won’t make you rich. In fact, if everyone knew they could purchase at the wholesale price, just for becoming a distributor, why wouldn’t everybody already be an MLM distributor? Because they don’t know. Become one of the smart consumers. Save money. Become an MLM distributor and purchase at the distributor wholesale price.
Group 2.
Most people want a little more out of life. They want another car, a newer car, a different house, more vacations, and extra money for bills, retirement, or the fun activities available to people with available cash. You can have this extra money by working part-time in your own MLM business.
How much extra part-time income can you expect? Do you want $500 extra per month? $1,500 extra per month? Or, $5,000 extra per month? You be the judge. It depends on the time you are willing to invest, and your skill.
Let’s look at your time. Everyone has 24 hours in a day. Some people complain, “I don’t have time for anything!” That’s not true. These people have the same 24 hours a day that you do. The secret is how people choose to allocate their time.
If you allocate eight hours a day for cable TV, you won’t have time to build your part-time business. If you allocate four nights a week to bowling, your available time will diminish.
Time is one-half the formula for your MLM success. The more time you can devote to your business, the more money you’ll make. Some people allocate 3-5 hours a week to their business, others spend 10-12 hours a week. It’s your decision how much time you can invest in building a permanent part-time income.
The other half of your formula calls for skill. Skill can be learned. When you join, you will have several mentors who can help you learn and improve your skills. Your sponsor, your sponsor’s sponsor, and other upline leaders have a financial stake in your future. The more you are successful, the more they are successful. You’re on the same team. Use your team members to help you succeed.
Your part-time business requires sweat equity (time and training). You’re not risking thousands of dollars on a franchise or business, but you can still get the rewards. Maybe you build your business to $300 a month and feel comfortable. Would $300 a month make a difference in your lifestyle? It sure could.
The $50 Payoff
I know of one instance where a $50 monthly bonus check made all the difference in the world for one distributor. I had lunch with the young man several years ago. He was a vegetable farmer from Missouri. When his $50 bonus check arrived in the mail, he was so excited he couldn’t stop talking about it. I couldn’t figure out why, so I asked him, “Why all this excitement over a $50 bonus check?”
He answered,
“You see, I’m a vegetable farmer. After all my expenses, I end up with about $5 a month that I can call my own. That’s it. Just $5. Well, I got this $50 bonus check, and that’s 10 times more spending money that I usually have. I can take the family to a movie, have dinner out, or a dozen different choices I never had before.”
He got me thinking. If your regular job pays all your day-to-day expenses, then any bonus check your receive for your part-time business is “fun money.” It’s not spoken for. So, if you have an extra $500 bonus check a month, WOW! You could use it to make payments on a brand new car. Or, get a larger house. Or, take a cruise every two or three months. Set up an investment program and retire early. Or, ???? Hmmm. Extra money really means more once your everyday expenses are covered by your salary.
The $100,000 Problem
Sometimes the part-time bonus checks even exceed your full-time salary. My good friend, Tom, had a problem.
His regular job earned him $50,000 a year. After working his MLM business part-time for three years, his part-time MLM bonus income neared $100,000 a year. Now, I wouldn’t think he had a problem, but he came to me with a worried face and said,
“Tom, I’m just getting too busy. I’m afraid I won’t be able to service both my job and my part-time business fairly, unless I give up one of them. I like giving good service and doing things first class.”
Well, my friend had good MLM skills, his part-time income certainly was exceptional, but I really questioned his business sense.
I said, “If you are making twice as much part-time in MLM as your full-time salary, I think it would make sense to quit your full-time job and enjoy your $100,000 part-time income.”
He agreed. Now his part-time MLM income continues to increase and he has time to work out at the gym, spend time with his family, visit friends on the telephone, travel, and yes, he still fits in his MLM business. While he may have been confused originally on which career to give up, it does prove that you don’t have to be a nuclear scientist to build large incomes in MLM.
Another friend, Bob, used a conservative investment strategy to build a fortune from a relatively modest MLM monthly bonus check of only $500.
How did he do it?
He said to himself, “My monthly job earnings pays all my bills, so I’ll just use the extra $500 a month to pay off my house mortgage faster. In only four years time his house was completely paid off. Now, he had an extra $1,000 a month free because there were no more mortgage payments, and the additional $500 a month MLM bonus check. With the $1,500 total free monthly spendable cash, where should he invest it?
Bob purchased the house next door. The tenants’ rent payment paid the monthly mortgage. Bob invested the extra $1,500 of his monthly cash flow to accelerate his mortgage repayment schedule. In about five years, the house next door was completely debt free.
Now Bob’s financial picture looked like this. His regular job paid all his living expenses, plus he had $1,000 a month free because he had no mortgage on his personal residence. Rental income from the house next door added an additional $1,000 of monthly cash flow. And, Bob’s bonus check still averaged and extra $500 a month. So what did Bob do with his extra $2,500 in extra cash flow?
He purchased another house down the street. The tenants’ rent paid the monthly mortgage plus Bob added an additional $2,500 a month in principal reduction.
Soon Bob’s financial picture looked like this. His regular job paid all his living expenses, plus he had $1,000 a month free because he had no mortgage on his personal residence. Rental income from the house next door added an additional $1,000 of monthly cash flow. Rental income from the house down the street added an additional $1,000 of monthly cash flow. And, Bob’s bonus check still averaged and extra $500 a month. So what did Bob do with his extra $3,500 in extra cash flow?
Well, you get the picture. Bob never earned more than an average $500 bonus check, yet now, he is financially secure. Even if Bob were to lose his job and his MLM company go out of business, his monthly rental collections would support him nicely. As of today, his monthly net income is over $5,000 from rental payments alone.
Group 3.
Finally, there is a full-time career in MLM. It takes time, you have to develop and learn the skills, and it probably won’t happen overnight. In fact, some people with great part-time MLM incomes never quit their jobs because they love their jobs. They love what they do. The extra money from their part-time income guarantees they will always have choices. Their choices.
However, many people jump at the chance to leverage their MLM incomes even higher by making MLM their full-time career. What incomes do these experienced, skilled, full-time professionals make? A lot. If you pay your dues, you should expect to be rewarded. Many times you’ll hear of certain MLM professionals earning unbelievable incomes of six figures a month. Well, these people are the exception. The real full-time success stories in MLM are those leaders who have time with their families, time for their church, time for their hobbies, and time for whatever they desire because they receive a four- or five-figure monthly MLM bonus check and now have the time to enjoy it.
Thanks Bob and Anna!!! What great mentors we have in mentoring for free!!!
Binary compensation plans are attractive because they offer commissions on unlimited depths, and ’spillover’ as your upline builds one of your legs. But beware …
We recently looked at a binary plan with the following features:
Each rep purchases 100 points ($150) per month on autoship.
Each rep ‘activates’ his/her position by personally sponsoring one person on the left and one person on the right, making him/her eligible for commissions.
A ‘cycle’ is achieved with a balanced total of 900 points, 300 in one leg, and 600 in the other.
Each time you ‘cycle’, the company sends you a check of $54.
When analyzing any pay plan you are offered, be sure to ask your sponsor or upline the question “What do I have to do to earn a check?”
Let’s follow each step as you build your new business …
You send the company $150 each month for 100 points in product. No check yet.
You activate by sponsoring Alice and Bill who each send the company $150. Total revenue $450. No check yet.
Alice activates her position with Carol and Dave who send the company $150 each every month. Total revenue $750. No check yet.
You now have 300 points in your left leg (Alice, Carol, and Dave) so let’s start building your right leg.
Bill activates by sponsoring Ethel and Fred who each send the company $150 per month. Total revenue $1050. 300 points in your right leg. No check yet.
Ed activates with Gail and Henry who send $150 each to the company. Total revenue $1350. 500 points in your right leg. No check yet.
Finally, Fred sponsors Irene, who sends $150 to the company. Total revenue $1500. 600 points in your right leg. A cycle!
The company sends you a check for $54 and you’re on your way!
Let’s take a look at what has happened here.
You are responsible for bringing the company $1500 in revenue and have earned a commission of $54. That’s 54/1500 or 3.6%! On the total points of 900, that’s 54/900 or 6% commissions.
For some reason, most people think that online is different from downtown, but ask yourself if you would work in, say, a furniture store where you would be paid $54 for selling a $1500 sofa?
Or would you accept 6% commissions when there are MLM companies where you start at 20% and quickly move to 40%?
Also remember that to sell the sofa, you did not have to involve anyone else. In this case, you have brought Alice and Bill and Carol and Dave and Ethel and Fred and Gail and Henry and Irene into business with you and so far in our scenario, none of them has earned a check!
If you would like some help figuring out how hard you and your team will have to work to earn a dime, just let me know! I look forward to helping you any way I can!
Tom "BigAl" Schreiter
http://fortunenow.com
One of my Mentors, among many. If your going to follow someone follow someone that wants you to succeed. Join me in success!!! Learn from the top generic MLM trainer in the world, just a regular guy, you'd be amazed how simple success is! Now Tom is a green personality, NO HUGGING ALLOWED!!! BUT 2 OF MY MENTORS SAID GIVE HIM A BIG HUG FROM US SO.........BE CAREFUL WHEN YOU HUG A GREEN!!!!!
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