Wealth & Residual Income - What is it?

When I first joined my company in Network Marketing, the thing that appealed to me the most about the benefits of what I had become involved with was not only helping people (I am in a service based industry, not a product marketing industry) but the company said I could create wealth and a future for my family with residual income. I was hooked! Sounds great! Residual income....What is that?? And how do I get some?

So here I am a 37 year old, stay at home mom with a teaching degree, trying to find a way to make this "residual income" from home so I can bring my husband home from Job #2. Well, after being involved in the Network Marketing industry for a short time, I finally understand the power of what I have my hands on for my family and for my future.

I'd like to share with you an article, written by Debbi Carroll, that explains it for those who are new to the concept of residual income so you can see exactly HOW this can help you obtain wealth and a secure future for you & your families:

Wealth is created by streams of residual income. Residual income is leveraged income… not trading time for dollars. For example, when I was working as a nurse for the government they were paying me a salary and if I was lucky they would give me small raises on an annual basis. When I left their employ… I no longer received income from them. This is linear income.
So what is residual income, really?

Residual income is income that continues to be earned after the initial effort has come to an end. In other words, it can be thought of as the process of making a sale one time but getting paid over and over again.

Let me give you example… let’s say you are marketing e-books and you charge $29 for the book. Each time you make a sale you get $5 in commissions. You then have to go out an find another customer to purchase another book to make more money. So if you sell 100 books you make $500 for 100 customers.

Now lets say that you market a monthly subscription to a program that gives the client value on a monthly basis, like a dental or health program, legal services or identity theft protection program and they pay a monthly fee. You get recurring income over and over again. Lets say that you make the same $5 on each plan… month after month.

So for those 100 customers, you would make $500 the first month and the second and third and over a year you would make $6000. Over 5 years you would make $30,000 total on those same 100 customers. Think about how much you could make with 1,000 customers.

Network marketing , affiliate programs, and investments all create streams of residual income and there are many great companies and programs to choose from. Find a program that you can be passionate about, that brings real value to the client (solves a problem for them), has great training and pays residual income.

And that my friends, is the secret to wealth!

Debbi Carroll is a marketing coach, author, speaker, trainer and founder of Team New Vision. Debbi mentors and coaches successful home business owners and entrepreneurs on marketing and lead generation, business building strategies, social media marketing, leadership development and personal achievement.