The Simplest Formula We’ve Used To Earn A Residual Income!
Recently we published an article about How to make money online posting, then someone asked, “But what’s this residual income and whats the easiest way to earn it”?
For some this question could come across as a nosey one from someone who just wants a quick fix…In fact Julie did!
But we got a light bulb moment almost at the same time…Well it was like we both spoke at the same time, what if Barbara is at that stage like we were when we first started? She could be a serious business builder waiting to happen, with a lil help from her friends…US! So we decided to sit down with Barbie and do some maths…But before we dig into the maths of how to earn residual Income on or offline, We decided to tackle the bigger Questions “What does it take to earn a viable Residual Income online and can one actually earn a fortune in Network Marketing?”
First of all, creating and earning residual income online isn’t as complex as many people believe. Oh
yes its true ad before you shoot the messenger. Learn the basic rules of business….the more people that walk thru your door the higher the chances of a sale…so SHARE with MORE people…Read that again!!!
Now don’t get us wrong, we didn’t say it was easy it’s just a simple process that becomes complex because people make it so.
The Mathematics of Earning Residual Income:
Lets start by helping you get this in the simplest way possible, for we want YOU to start earning residual income! Get pen/pencil, paper & your calculator OR open an excel spreadsheet…if you are a techie geek
Got that sorted, lets dig in Let’s start with the basic question, What is Residual Income To You, and How much do you wish to earn to be comfy?
“A residual income stream will earn you money even when you’re not on the clock. Owning rental units, collecting royalties or investing in a savings and investment program are examples of such income.”
Know that you don’t have to start your residual journey at 500k or $1mil although that would be pretty cool! You see every baby starts with a crawl, then balances on objects, lots of stumbles & falls and starts to walk, test their legs and then confidence grows. So in the same way it’s a lot easier to break your earnings expectations into practical terms, daily, weekly, monthly, annual and break those down into smaller numbers.
Let’s imagine or play a game:
Julie wants to earn $1,000,000 this year and below is what she could do:
250,000 people spending $4 each.
100,000 people spending $10 each.
50,000 people spending $20 each.
10,000 people spending $100 each.
1,000 people spending $1,000 each.
Now, you might be thinking, “Gosh that’s a huge number of people, where the heck do I find them and get them to buy?”
Well, let’s try this, did Walmart or Tesco come to you and present their model to you so you could buy from their store…? Exactly, you just need to make sure you do your research, target your market and place your “SHOP” in the right locations for your market to COME TO YOU! YES THEY CAN! Yes you may have to make some calls probably daily to start. So there’s no reason why you can’t get in on the sales that numerous others are making! AND, if you want to hit your goal with even FEWER customers, think business model that allows you to earn over and over. It’s called a “continuity” or a “subscription” based model.
Let’s take this example to clarify residual income for you. Say you had a product or service that you charged $69,99/month, it may be easier finding customers willing to pay $69.99/month than finding those willing to pay $839.88. But, in the course of one year (12 mths), that’s exactly what they’ll do! Think bigger, imagine you have 1,000 customers = $69,990 you’re banking per month. Multiply that by 12 months = $839,880 this is close to a million dollars A YEAR…See you need to think NUMBERS coz Biz is a game of numbers and its fun for those that crack the calculus code. Imagine what that amount of money could do for you…That dream lifestyle now seems real doesn’t it…not pie in the sky…!
The only sad thing is many people don’t really deep inside think they deserve “residual income” and its benefits and how it can impact their lives in an amazing and relatively short span of time!
Let’s consider, what subscriptions you do have: gym, cable, library, men’s club, magazine, sports club membership, cell phone, etc…you pay these monthly don’t you? Well that’s what Residual income is…FOR YOUR PROVIDER! So do you think the owners of these programs organizations are scamming you? I Believe NO Is the answer…Yet we never think twice about these expenses which don’t necessarily build our income for a better life tomorrow…although they may be “useful.” Well guess what now consider the millions of people are on some type of recurring monthly subscription for all sorts…the possibilities are endless.
For instance, we have a training program for Home business training selling at $19/month OR $147 one off payment! Do the maths, at $19 per month for each, we just needed about 800 customers to make 6figures a year on just that one product! A friend charges $90/month for her product and earns five figures per month on her one product! Selling a product that she created once and tweaks, updates every so often for less than 4 hours a week. This is one type of residual income baby…Give me this any day over a 9-5!
We went to Trafford Centre yesterday and bought some goodies from a very well-known lingerie store. Guess what, we were asked our email address and if we would like to subscribe, and that we can buy online & receive monthly promotions at 10% off…! Well guess what they were doing? Bringing services closer to us, making it easier to buy and of course future sales assurance, for a monthly fee. We are their subscribers now…hmmm & they had several customers agreeing on several tills…! Simple!
So you definitely should want residual income today to make tomorrow better! You don’t have to own a product, service or lingerie, you can be an affiliate or distributor. Much cheaper and less stressful. Find a product that you like and see if there’s an opportunity for you to get a piece of each sale you refer. This’s sometimes called “affiliate” marketing. Someone else handles the product creation/delivery….and they’ll pay you a percentage just for helping them market their product. It’s appealing because you don’t have to handle all the production, employees, warehousing, shipping, etc. You can just focus on getting the word out about the product or service.
This is one of the methods we’ve used to average at least $2,000/ month in extra/residual income for the last several months. It works. No stocks. No Trading options, No real-estate. Just a laptop and internet connection…and a more fun filled lifestyle, new friends across the world and training par excellence! It works. Residual income is possible. You also need to understand the difference between ‘revenue’ and ‘profit’…Ha you didn’t forget expenses did you? Every viable and integral business has them…! Don’t cheat Caesar, even Jesus said pay Caesar what belongs to him … As a Home Business owner your biggest investment is in YOU: Training,getting to & fro training events, Marketing and Advertising, Autoresponder costs, etc. What you must focus on is as long as you spend $5 to earn $15 you are good! The expenses must be well lower than the income or revenue! Residual income is about monthly incoming revenue, that you don’t have to watch daily or baby sit. Make sure that your maths add up and you have a + at the end of your results!
We do this by providing value, solutions, answers, pain pill to people’s lives, questions, pain! Earn a part or full time income by helping other people Get what they want! What can you offer others that will add to their lives now or tomorrow, whatever it is Get cracking, put a price to that product/service and take consistent action! This is how we earn residual income, We are doing it so Can you!
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Feel free to share your thoughts below and by all means you are welcome to look at the maths!
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