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There are many ways to make money on the internet. Selling E-books or other forms of information, having an online shopping mall is another way. (Amazon.com and Buy.com have proven that this is a very lucrative method) and the list can go on and on.There is, however, a very powerful, and long lasting income plan, for creating long term growing cash flow: Residual Income.
This is really not something brand new. The insurance companies have been doing this for decades, when paying their agents. The basic idea is: Sell the item once, and then receive continuous smaller commissions on a monthly basis as the customer renews. Obviously, when it comes to insurance, this happens every time the policy holder sends in their premium. The insurance agent receives a small commission each time. Even though that one commission is usually small, when you combine it with dozens or hundreds more, the monthly residual total can add up to thousands of dollars.
Herein lies the real magic and strength of residual commissions. As the marketer, you are continuously rewarded for a sale that you made months or even years ago. You are, quite frankly, building your own retirement fund, without worries about how the stock market is going or if your bank will still be around next week.
There are several industries that align themselves with the residual income model. Obviously, the insurance industry is one of these, however, in order to take advantage of this industry, you need to be legally licensed in each state that you are doing business. This may get to be a bit cumbersome and expensive to start up and maintain. Another business model that follows this idea is the multi-level marketing plan, in which you recruit people to work under you, (a “down line”), and you enjoy over rides on their production.
Multi-level marketing (MLM) has been around for some time as well. A lot of well known companies use this model. (Avon, Tupperware, Mary Kay, etc) The only possible drawback to MLM is that not everyone enjoys direct selling. In fact, there are people who actually get physically ill over the thought of having to do telephone or face to face selling.Dead
A successful tweak of the MLM system, which maintains a powerful residual income compensation plan, is combining a shopping membership club with the MLM structure. In other words, allow people to purchase products that they will normally use anyway, but offer these products at a reduced price to the select membership. Furthermore, reward that person for being a customer, by giving them a rebate on each of their orders, and also reward them for bringing in more customers, by giving them a commission on orders that their referrals have made.
As you can see, by doing this referral business, it’s a win/win for all parties. The company wins, because they are increasing their customer base, and thus increasing their sales revenues. The customers win because they are receiving quality products at good prices, PLUS they are not investing any NEW dollars, AND they are earning residual and continuous commission rewards from referring new people to this buying club.
This is how a continuously growing residual income plan can actually lead to a retirement income in 5+ years. Of course, this is not the only viable method for creating financial wealth, but it is one of the more powerful ones.
See you at the top!
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