The Importance of Building Residual Income the Right Way

By Richard J. Norris

One of the key aspects to owning a home based business should be the opportunity to build "residual" income. As a regular worker, you get paid a set amount of money for a set amount of time. If you want more money, you need to work more hours, or find a different job that pays you more money for the hours you work, but once you've been paid for your work, you need to work more if you want more income. It's a vicious cycle. Getting involved in a network marketing business gives you the opportunity to work hard in the beginning years of your enterprise, with the promise of being paid over and over again for the effort you put into your business.

One of the reasons I advocate building your network marketing business as a team, and supporting the people you sponsor into it to assure they are also successful, is you want them to stay and keep their monthly purchase of products (autoship), since that's part of the volume you'll be getting paid for. Many successful salesmen fail at network marketing because they are so good at recruiting people into the business that as soon as they sign someone up, they are on to the next, without stopping to offer support to the person they just signed up. What they wind up with is a business that is crumbling behind them (with frustrated people dropping out and canceling their monthly autoships). In the end, they fail because they didn't "build" their business the right way to assure that everyone is successful and that residual income is built, not just for themselves, but for everyone who is willing to commit to building a serious business.

I suggest you work with no more than 4-5 people at a time. Once you've attracted 4-5 people that you wish to sponsor, stop looking for more people to join your business and concentrate your efforts on helping them find and sponsor their own 4-5 people, and right on down at least four levels. Once you've helped a person you sponsored to build their business down 3-4 levels deep, you have done three things:

1. You have built residual income for yourself, the person you sponsored and the people they have sponsored, as all of you have a number of people below you purchasing products on a monthly basis.
2. You have trained the people you sponsored to follow your lead and not abandon their people until they have achieved a specific level of success. This will keep them excited about the business, show them the power of teamwork, and set an example that will permeate your entire business, as your efforts are repeated.
3. You will build stability into your business by using this model and will see few, if any, serious about building a business leave.

Once you have assisted a person you have sponsored to develop their business down at least 3 levels, you are now free to go find a new person to sponsor and work with in the same manner. By following this plan, by the time you are ready to go out and start looking for your second group of 4-5 people to work with, you will have a significant residual income already coming into your bank account, which makes being selective about the people you work with much easier. Also, you'll be surprised how fast the part of your business that you just finished working with continues to grow, as your example is replicated over and over.

Residual income that allows you to eventually decide how much, if any, time you want to continue to use to build your business is the ultimate goal. Building the right way will assure that you begin receiving residual income from early in your business and it continues to grow steadily. Of course it's nice to get those big volume numbers you typically get when you sponsor a new person into your business, but if you constantly have to find someone new to get paid because people are leaving as fast as you're bringing them in, that sounds a lot like working a traditional job to me. This is a game plan for building residual income that will in the end make for a much stronger, lasting business, and that's the goal that you should have in sight.

If you would like to learn more about network marketing and the power it can provide you financially, please view the videos on the right, Brilliant Compensation and What the Wealthy Buy on Payday, and feel free to include your contact information when prompted to do so afterwards and we will be happy to contact you personally. If you were sent here by one of our team members, please get back in touch with them and they will make sure you have all your questions regarding getting started with ARIIX answered.