Create Residual Income: Part 1 of How To Create Residual Income
Create Residual Income: Where Do I Start As the song goes...
"you start at the very beginning, a very good place to start.
" Now that I have Mary Poppins in your head, these really are wise words.
The beginning of any venture starts by evaluating the company and the income stream this company can provide.
But there is so much more than just considering if a company sells widgets or if they service widgets and how much they pay you to further their cause.
First, I want to make sure you understand residual income.
Let's take the example of water and let's say that I invite you to use "CleanandClearWaterCo" (which I am not)- a premier water producing company.
You become a customer of this company and pay your bill each month.
Well, because I recommended you to this company, "CleanandClearWaterCo" is paying me every month for the water that you use.
That is residual income.
I sold something one time, but get paid continually month after month.
If I do this enough times, the monthly income is significant.
Residual income is also generated when you have a team of like-minded individuals with whom you work, who are doing the same thing.
You can earn this type of income from the sales your partners are producing.
I have come to the understanding that there are ten points of evaluation when considering a company that will pay you on a residual basis.
These ten points are not meant to be all-inclusive, but they do present an excellent base upon which to make your decision.
So let's step through each of these over the next couple of articles.
Create Residual Income: Compensation Plan The bottom line to any residual income program is "WIIFM" or What's In It For Me? And if the compensation plan does not meet your needs, then you might as well move on to the next opportunity.
When evaluating the compensation plan, you should consider three areas: "Now Money", "Residual Money", and "% of Plan Money.
" Now Money- Money You Expect To Receive Immediately "Now Money" is immediate payment you receive for promoting the product or service of your chosen company.
Sometimes "now money" gets paid literally immediately, in cash.
For me, when a company pays in cash, I question its legitimacy.
There is no paper trail for the company or for you.
That creates a potential tax situation which you want to avoid.
But most often "now-money" is paid via company check the following week.
So you make a sale in week one and the company will pay you in week two, once the sale has been validated.
Next time we will finish the evaluation of the compensation plan and move on to Part 2 of How To Create Residual Income.
"you start at the very beginning, a very good place to start.
" Now that I have Mary Poppins in your head, these really are wise words.
The beginning of any venture starts by evaluating the company and the income stream this company can provide.
But there is so much more than just considering if a company sells widgets or if they service widgets and how much they pay you to further their cause.
First, I want to make sure you understand residual income.
Let's take the example of water and let's say that I invite you to use "CleanandClearWaterCo" (which I am not)- a premier water producing company.
You become a customer of this company and pay your bill each month.
Well, because I recommended you to this company, "CleanandClearWaterCo" is paying me every month for the water that you use.
That is residual income.
I sold something one time, but get paid continually month after month.
If I do this enough times, the monthly income is significant.
Residual income is also generated when you have a team of like-minded individuals with whom you work, who are doing the same thing.
You can earn this type of income from the sales your partners are producing.
I have come to the understanding that there are ten points of evaluation when considering a company that will pay you on a residual basis.
These ten points are not meant to be all-inclusive, but they do present an excellent base upon which to make your decision.
So let's step through each of these over the next couple of articles.
Create Residual Income: Compensation Plan The bottom line to any residual income program is "WIIFM" or What's In It For Me? And if the compensation plan does not meet your needs, then you might as well move on to the next opportunity.
When evaluating the compensation plan, you should consider three areas: "Now Money", "Residual Money", and "% of Plan Money.
" Now Money- Money You Expect To Receive Immediately "Now Money" is immediate payment you receive for promoting the product or service of your chosen company.
Sometimes "now money" gets paid literally immediately, in cash.
For me, when a company pays in cash, I question its legitimacy.
There is no paper trail for the company or for you.
That creates a potential tax situation which you want to avoid.
But most often "now-money" is paid via company check the following week.
So you make a sale in week one and the company will pay you in week two, once the sale has been validated.
Next time we will finish the evaluation of the compensation plan and move on to Part 2 of How To Create Residual Income.
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