What is Residual Income?

What is residual income and how can we set it up to our benefit.

The only  impossible journey is the one you never begin

We hear the term ‘residual income’ talked about a lot in network marketing, but it’s a concept that confuses many people. If we have a look at the general term ‘Income’ it can be thought of as being divided into three main groups:

1. Earned Income – that which we would earn from our job, with a weekly or monthly salary. When you stop working, you stop earning.

2. Passive (or residual/recurring) income – money received on a regular basis with little effort required to maintain it.

3. Portfolio income – such as we might receive from a portfolio of stocks and shares.

Residual income can therefore come from a number of sources including rental from a property, royalties from publishing a book or even, some might argue, a pension. Many recording artists receive residual income in the form of royalties; Sir Paul McCartney might have left the Beatles many years ago, but he will still receive an income from the work he did whilst part of the band. In sum, it reflects an ongoing payment for work that was done some time ago. Harry Potter might be the name everyone is familiar with, but the recurring income from all the hours and hours of work that went into creating him will go to J.K. Rowling.

In the world of sales and network marketing, residual income is therefore the repeat regular income generated from the payment of a product or service, that must be renewed on a regular basis in order to continue receiving its benefits.

Psychologically, the idea of creating and receiving a residual income for life is a powerful motivator for many internet and network marketers; particularly if they don’t already have excellent pension plans in place, or if they are looking to put all their energies into building up a successful network marketing business so that, after a few years, they can either quit their full time job, move to part-time, or even retire early with a monthly income to look forward to.

If you are an internet marketer and wish to generate a residual income, there are a number of ways to do this, but basically you would create a website and fill it with affiliate content as well as something that you have created yourself, such as an e-book, that you can sell. In theory, it could practically run on autopilot.

If you are a home based network marketer, you would generate a residual income from selling your products or service to customers and, at the same time, encourage new distributors into your business. You will then create a residual income from the repeat sales to your customers, and also from the sales generated by your distributors.

Sounds easy? In theory it is, but in practice you need to make sure that you have a product that people want, and will continue to want despite changing trends. For example, would Sir Paul still be receiving royalties if no-one bought the Beatles music, or J.K. Rowling if no-one ever read a Harry Potter book or watched a film?

The simple answer is NO. Every product or service needs an audience. So if you have a great website it won’t make you any residual income if no-one visits it, and you won’t make any residual income in network marketing if you never offer your product to anyone, or its so obscure that there is only a small market for it.

The key to success is Marketing. One of the main reasons why people fail at network marketing, or only generate a tiny residual income, is that they give up too early. Network marketing is a game of longevity. Build your business from the ground up. Offer your products to as many people as possible (by whatever means suits you best). Bring new distributors into your business and TEACH them how to be successful; let them learn from your mistakes. But, most importantly of all, don’t give up at the first hurdle. Some network marketers are quick off the starting blocks but run out of wind easily, and others pace themselves all the way round the track. Who hasn’t heard the story of the tortoise and the hare?

Do these things, and you will generate for yourself a solid residual income that will allow you to set your own goals and achieve your own dreams. Affiliate Marketing University

Five Simple Self Motivation Tips For People Who Work From Home

Having a work from home business is one of the dreams for just about everyone I know, but it comes at a price.

In every success story you will find someone who has made a courageous decision. Peter Drucker

In every success story you will find someone who has made a courageous decision. Peter Drucker

Sure, you’ve got the freedom to do what you want when you want, or so you think, but running a successful work from home business requires dedication, enthusiasm, lots of hard work and above all, plenty of self motivation.

After all, there’s nobody but you looking over your shoulder and urging you to complete your tasks, so how do you maintain a level of self-motivation that will see you achieve the goals you want?

Here are my top 5 self motivation tips:

1. Decide On Your Goals And Write Them Down

To get motivated, you need to know what you’re aiming to achieve, so plan short, medium and long term goals. The goals you choose need to be realistic and achievable. There’s no point in setting the goal-posts so high they’re out of reach – you’re doomed to fail, and failure is not very motivating!

Write your goals down and place them in a spot where they’re clearly visible and remember to re-visit them as often as possible.

Tell somebody else about your goals and dreams. Verbalizing and visualizing your goals makes them feel real.

2. Don’t Let Your Feelings Get In The Way

We don’t always wake up every morning with the exuberance we would like, particularly when there’s no time-card to be punched. People with work from home businesses require a level of self motivation that those in the regular work force can’t even begin to imagine.

Feelings are only that – feelings. They DON’T run your life! Remember the old song “Some Days Are Diamonds, Some Days Are Stone?” Life is a bit like that; some days you’ll wish you never got out of bed, others you’ll power through your day.

When the only person you have to answer to is yourself, make sure the messages you’re hearing are the right ones. Hitting the Snooze button is not going to make you or your home based business a success, so no matter how you feel, get up and do it anyway! Even really bad morning people find their motivation levels rise once they get started, regardless of how they felt earlier in the day.

3. Stop Procrastinating

Procrastination kills self motivation, but procrastination can be overcome with a well-structured daily schedule. People with work from home businesses, particularly Internet businesses, can find it difficult to set up a daily schedule because every day is different. The aim is to prioritize your tasks, giving the highest priority to those activities that will make you money.

Don’t allow yourself to become overwhelmed with the number of things you have to do. The answer is to complete each task before moving on to the next one. Procrastination can leave you feeling frustrated at never having achieved anything, so when you complete each task you set yourself, reward yourself for your achievements.

4. Reward Yourself

Work from home businesses don’t have somebody in the corner office to give you that bonus you worked so hard for, or a day off in lieu, so you need to be able to reward yourself for your efforts. Your self motivation will increase enormously if you give yourself a pat on the back for a job well done. Your reward doesn’t have to cost a lot. In fact, it doesn’t have to cost anything.

Reward yourself with a night off and watch the latest release DVD, or go to the park with the kids. If you’ve had a financial gain, play a round of golf or have your hair done – it will make you feel great. Here’s a self-motivation suggestion from a friend who works for himself: “I like to write down my to-do list and award myself a large red tick
as I complete each item. It may sound silly, but those big red ticks help give me a feeling of achievement.”

5. Have Fun!

Home based businesses can be incredibly hard work, so a sense of humor is a key ingredient in your success recipe. Try not to take yourself or your business too seriously. Learning to enjoy yourself while you work your home based business keeps you enthusiastic and motivated, and staying enthusiastic and motivated helps you keep your stress levels under control.

Self motivation is its own reward and a jewel in the cap of your new-found freedom in successfully operating your very own work from home business.

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