Residual Income Models
Residual Income Models as seen below give you examples of how you earn money and how much you can earn with this industry.
This model can take you from being paid a wage to being a business owner with assets that pay you.
There are so many choices - go with your passion - a health nutrition home business or even a health fitness franchise business.
The difference with a Networking business in comparison to establishing your own business or having an investment portfolio is the money you need to set it up. With a Networking business eg an ehealth business, you start with very little capital. Anything else, even a franchise takes so much.
Look carefully at the examples below.
Do you have $1,950,000 invested to earn you $100,000+ p.a.? Do you even have $90,000 to earn a bit extra - $5,400 p.a?
Not to worry. You will not need it because the Network Marketing Industry allows you to earn this without all that capital!
|
People in Group |
Approx Residual Income pa $US |
$ US Invested or in Bank at 6% Return to Earn the Same |
| 15+ | $5,400 | $90,000 |
| 50+ | $13,500 | $225,000 |
| 200+ | $54,000 | $750,000 |
| 500+ | $117,000 | $1,950,000 |
| 1200+ | $171,000 | $2,830,000 |
This is how you do it.
There are two main areas of income - Residual Income and Direct Bonuses. This is called the Compensation Plan.
Direct Bonuses are paid to individuals for referring other people to the company. A good company will handle all orders, all money, all shipping - in fact everything. All you have to do is refer a few people to the company to make your money. It is really everyone buying wholesale products for their own use, direct from the company. Beware of any company which asks you to stock product.
A good company will give you substantial bonuses to make it worth your while. There will also be numerous additional and continuing bonuses. In fact, there can be up to about 14-16 areas of income. This gives you incredible earning potential.
Residual Income is the great power of the system. This is what we are really looking for. It is the formula of the wealthy and it is how they make their money. This industry provides the only system that gives you and me access to this formula. It gives us the chance to make a lot of money without having a lot of money to start with.
Residual or Passive Income is paid to us 24 hours a day, 7 days a week, while we sleep, while we work, while we play. We are paid the residual income from the work of the team or group. The aim is to build a group of people and off course the more people, the better because the more we get paid.
Now, you do not have to do this on your own and this is the beauty of it. It is about everyone doing just a little bit. But you all get paid on those little bits and it soon adds up to a big bit!!.
Example of Direct bonus Payments
I am going to give you an example of figures just so you can see how you actually get paid. Please picture this:
You refer 2 people to the company.
The company pays you a direct bonus eg $200 for each person.
Those 2 refer 2 people each. They all receive their direct bonuses.
The company then might pay you a special bonus when there is say 8 people in the team. This could be $1000 or more.
This money should cover the cost of your initial outlay - entry into the company. There are usually a few entry levels, but if you want the income you will usually have to take a specific package. Make sure you do.
Its all about everyone doing a little bit - all referring a few people to the company. When you do the multiplication, the numbers soon add up. Here is an example. It does not happen quite as evenly as this, but these figures do show the power of the system and the power of the numbers. The WOW factor is when you reach what is called critical mass - big numbers. It really happens at critical mass point. So the bottom line is - work with one company so you can be part of a big organization. That is where the real money is.
2x2=4
4x2=8
8x2=16
16x32
32x2=64
64x2=128
128x2=256
256x2=512
Have a look at the chart above to see what you could be earning with 500 people in your team. Remember it is a team - it is the work and contribution of the team, not just you.
The groups or teams are structured in different ways according to the company. It is best to look for a compensation plan which has the teams in 3 or 4 vertical rather than horizontal groups.
Why?
Because this ensures that everyone is supported. It is like a very strong tree trunk. No matter what the weather or the storm, it will not fall over. If you have lots of little teams, there will never be much income from the group as a whole because it is too small and too weak.
You get paid to certain levels and the bigger your team, the more you get paid - hence the beauty of this structure. These payments can end up being a % of a global income and this can add to a lot of money. This is the ultimate aim.
Residual Income takes a while to grow. But the direct bonuses are your instant cash flow. That is one reason why they need to be good.
If you do your research well, you might find a company which subsidises you with some extra residual income until you have enough people in your team to support yourself. This might be to the tune or $100 per month. It might not sound a lot, but it covers most or your monthly product payments. This is really important and a great help to most people but it is most unusual and I only know of one or two companies who do this.
Monthly product Orders
All companies have a monthly product or service order. It is usually in the form of an automatic order eg. permanent unless changed or cancelled. You need this order in place to be eligible for the income program. It is important and it is what makes the money go round. All businesses have a product or service which changes hands
The monthly order might be from $100 - $300 per month. A company which gives you a $100 bonus each month - all for nothing, definitely puts you in front. After a while you do not need this bonus as you are earning enough residual income yourself to cover your costs and make a profit.
This is why a Residual Income Wellness Business Opportunity is the only way most people can earn this sort of money without the capital to start with. This is what it can do for you - take you from being paid a wage to being a business owner with assets that pay you.
‘The Relationship Marketing model is the only form of business which gives anyone, no matter what their background or education, the chance, the avenue or medium to build this desirable passive income, all with a very low initial investment.’ Richard Poe - Wave 4 - Network Marketing in the 21st. Century
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