Lots of people think about starting a home-based business to generate extra income. If you’re one of them, you need to take a close look at a residual income business.
When people think about making more money, they usually focus on the traditional ways of making money, like getting a second job or selling a product or service. But there is a much better way that produces income without you being there to punch a timecard or make a sale.
It’s called residual income.
Network marketing is a great way to generate residual income. One in six U. S. households have someone involved in network marketing. And nearly 60% of them are motivated to join the industry because of the income potential.
Read on to learn more about how a network marketing business can help you increase profits quicker with residual income.
What is Residual Income
Residual income is what allows you to retire debt free, spend time with loved ones, and do the things you always wanted to do.
Residual income is money you receive every month for work that you have already done. It’s a way to earn more and work less You don’t have to be present to earn it. Imagine being able to make money even while you’re sleeping.
While you don’t have to be present, some types of residual income businesses still require that you keep an eye on operations to make sure everything is working well so you’re not losing any money.
Here are some examples of residual income:
- Book or song royalties
- Royalties from invention patent
- Franchise royalties for rights to use a name and system
- House rental income
Not everyone can write books, create franchises, or have properties to rent. But the network marketing industry has opened opportunities for more people to earn residual income.
How Residual Income Works
Residual income is an attainable way for virtually anyone to build wealth.
Imagine getting paid over and over again, with a steady stream of income going directly into your bank account every month.
When considering a residual income business, look for the potential to leverage your time and effort to produce more income with less effort over time. For example, in network marketing, you put in the effort to build and train your team in the beginning.
Then, you reap the rewards of your efforts months and years down the road.
It’s similar to the franchise model. If you were to buy a Burger King franchise, you would pay for the rights to use the Burger King name and duplicate their system. Burger King would charge you a fee or a percentage of your profits.
In Network Marketing, you are training people to duplicate your system, without having to pay a fee. You are investing your time and effort to find and train people who want to join your team to help you run your business and to build a business of their own.
The more people you recruit, the more the potential for residual income. And the more likely other team members will duplicate and capitalize on your success.
An Ideal Residual Income Business
If you’re a freelance writer or you’re building your own business, you’re doing it alone. Not so with Network Marketing.
Network Marketing is an ideal residual income business because it allows you to do the following:
- Duplicate a system
- Recruit a team to help you meet income goals
- Earn residual income on team efforts
- Create exponential growth at leadership levels
Also, selling consumable products creates a greater opportunity for residual income. These are products people use up quickly and will buy again.
A residual income business like network marketing gives you the ability to leverage your time. For example, if you put in 10 hours a week on our business, and 5 of your team members put in 10 hours, you have 60 hours of work invested in the business that week.
Maximizing the power of your team is one of the most attractive features of network marketing.
Maximize Your Residual Income
An article in Forbes Magazine recognized network marketing as a great way to create stability in retirement. When building a network marketing business, keep in mind your goal is to generate residual income. Residual income allows you to do the following:
- Build Wealth
- Save Money
- Pay off Debt
Once you build your network marketing team, you want to build momentum. The key is to train your team members how to effectively build and duplicate your success system. This requires strong leadership skills to keep your team moving forward. It also requires creativity and vision.
To maximize your residual income, leverage your earnings. Put any extra income earned in savings to take advantage of interest earnings.
Decide how much of your earnings you will invest back into your business and how you will use the funds to boost your growth. One possibility is to invest in establishing your brand.
Branding your business is essential for standing out in the marketplace. A strong brand will attract prospects to your business and help retain your recruits. Check out this great blog on branding your network marketing business.
Learn Cutting-Edge Industry Technology
With today’s technology, you have the potential to build a global business right from your home. Think of the amount of residual income you could generate with such a large audience. Learn new skills that will take your business to the next level. Here are a few skills to consider:
- Internet marketing
- Email marketing
- Network Marketing Management Software
Another area to focus on is social media. The potential of growing your residual income business with social media is huge.
Every day, millions of people gather on Facebook, Twitter, Pinterest, Google Plus and other social media platforms. Many online entrepreneurs have learned how to successfully engage a targeted audience on these platforms to share what they have to offer.
Learning to use these and other digital cutting-edge marketing strategies will increase your residual income earning potential.
Building your home-based residual income business can be challenging in the beginning. At first, you invest many hours for what seems like little pay. But as you grow, you end up working a few hours for a lot of pay. That’s the magic of residual income.
As you develop your strategic plan for growth, look for the tools and resources that can help you learn about how to most effectively grow your business.
At Yoobly, we provide the training, tools, and resources you need for a successful network marketing business. To request a consultation, contact us here.