Showing posts with label residual income. Show all posts
Showing posts with label residual income. Show all posts

24 June 2009

Definition: Residual Focus Company

The development of a Residual Focus Company begins with the desire to increase the percentage of distributors that maintain a qualifying volume and to create mathematically a compensation design to assist this achievement. The primary belief in this concept is that retention relates directly to the development of a residual. The residual focus company design is to mathematically create retention and thus increases by many factors the ability to now create a residual.

1. Mathematically Increase the Cash Flow.

2. Cash Flow Increases Retention.

3. Retention builds Residuals.

By simply creating residuals for all distributors, we form a powerful, strong core in our organizations. The distributors and the company reap the benefits.

You may be asking how this explanation differs from other types of network marketing company financial focus. The answer is that many compensation plans look great on paper...the latest, greatest, most lucrative ever kind of thing. But when you seriously look at the numbers you find a great deal of breakage (money that does not go to the field but comes back to the company), and also holes. Holes in a compensation plan can be seen for example, when there is a great fast start bonus incentive, but then a gap until the residual begins. Another type of hole is one where the fast start pays out to the enroller, but not at all to the upline for a period of time. The upline essentially gets no residual on a new enrolling for a number of months..and by that time the new person may even be gone.

The idea behind a Residual Focus Company is to reverse the 75% Attrition Rate in the MLM industry and create a 65%-75% Retention Rate. When you do this, your efforts pay out for a longer time and more easily. You then do not need to become a recruiting machine..which is never what network marketing was meant to require in the first place. Instead you can focus on teaching and duplicating. Your team will grow steadily and with strength, and the residual income of all will be reflective of individual efforts.

16 April 2008

How to Make Money Like a Wealthy Person

How the Rich THINK Differently and How You Can Think Rich Too

In his book The Cashflow Quadrant, Robert Kiyosaki spends a lot of time focusing on the four main ways that people create income. They are: Employee, Self-employed. Business Owner and Investor. If you can picture a square divided into four quadrants, Employee is in the upper left corner, Self-employed in the lower left corner, Business Owner in the upper right and Investor in the lower right. If you actually draw that picture on a piece of paper before reading on, I believe you'll better understand the rest of this article.

According to Kiyosaki, the difference between those who are truly wealthy and those who are not is about where the income comes from and if assets are greater than liabilities. Wealthy people have assets that create income. Whereas those on the left side of the quadrant generate most of their income from working at a job or seeing clients or patients, those on the right side of the quadrant generate most of their income passively. What this means is that they have assets that create a monthly residual cashflow and that cashflow is greater than that person's financial liabilities.

Wealth is a factor of how you think about money. If you continually spend all the money that you make, then you will never be wealthy. What the "work for a salary/hourly wage" type people see as assets are actually liabilities if they carry any debt. This includes your house and your car. These things are only assets if they have no debt or of they actually bring in income. Real Estate is an asset to the extent that someone else (ie: a tenant) is paying the mortgage and the expenses. If you THINK about assets like a rich person, you will begin to set up your life and your finance in a way that creates true assets.

Donald Trump, Warren Buffet, Robert Kiyosaki have all come out recently in support of the structure of network marketing companies. If you are a business owner than you are working from the right side of Kiyosaki's quadrant and thus are creating income in a way that does not rely on your physical presense or time. Starting a business can be costly and risky. The beauty of network marketing is that you can start your own business for little money and operate within the structure of an already established company. There is nothing better in business than making money without spending much of your own. This is what rich people do. You can to it too. Network marketing is a means to this end.

Risk is a matter of education. As you learn more about an industry or a business or an investment, it becomes less risky. What is truly risky is entering into a situation and using your own money without having a full understanding of what you're doing. Again, this is where network marketing is a great opportunity. The financial investment is small enough that you can earn while you learn and even keep your day job until your residual income flow catches up with your current salary.

The most exciting network marketing opportunity right now is with a company called Zrii. Zrii fits all of the parameters of a legitimate network marketing company. Plus it has something else. It is the only company in the functional nutritional beverage field today that has the endorsement of the internationally renowned Chopra Center for Wellbeing. Zrii has every piece that's needed for network marketing success. Timing, Product, Management Team, Funding. The company does not officially launch until May 2008 and already they are breaking every industry record for revenue and distribution network.

The Rich thing differently. You can think Rich too. Start today creating the organization that will provide you with years of residual income. Join our Zrii Success Team. Work with a group of people who understand that success in this business comes from teaching your team how to succeed. You can easily learn more about me and my values and my understanding of this business by reading my other posts on this blog or finding my writings at Hubpages.com. Zrii is a way to become wealthy. Zrii is the road to becoming healthy. Zrii is a family of people who care about your success. Join me in not only thinking like a Millionaire, but becoming a Millionaire.

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amalakihealthblog.com

17 January 2008

Residual Income Creates Opportunities for Change

In the Sept/Oct 2007 issue of The Utne Reader, there is an article titled, The New Elders. The premise of the article is that the BabyBoomer Generation can still save the world. The premise of this post is that residual income is the door opener to making a difference in the world. If you have a source, or multiple sources of residual income (income that arrives in your bank account while you are doing something else), then you have the ultimate freedom in how you spend your time.

The Utne Reader article quotes author Marc Freedman (Encore: Finding Work That Matters in the Second Half of Life). Freedman states, "Faced with the practical necessity of extended working lives, boomers have made it a virtue getting busy on their next chapters. A generation that set out to change the world surely did, by changing the way the world thought about the purpose of work...."

Because people are living longer and are vital longer, there is a tendency to take on a second "career". Sometimes it is for financial reasons, and often it's to keep one's mind active and oneself engaged with the community. So here you have the largest generation ever, hitting 55 or 65 or even 70 years old and having the energy and the enthusiasm to devote to the needs of their community, the country and the planet. What an opportunity.

Network marketing is a means for creating passive, residual income. Though starting with a network marketing company is not a recipe for instant success, commitment, hard work and follow-through are the ingredients necessary to reach a point the residual income is appearing in your bank account on a monthly basis. If you talk to professionals in the network marketing industry, you will learn that though some make quick money due to their contacts and years in the industry, most people should expect to work hard and build their business for 3 years. How many other types of business can you build to a level of success in three years, that will enable you to be gone from it for weeks or even months at a time, and the money still comes in?

Once you are at that point in your business you can go to Uganda for 2 months and volunteer in an orphanage. Of you can join an organization in the US that is actively working and lobbying for healthy care reform. You will not be beholden to a desk or an office on a daily basis. Once you have set yourself up with a flow of residual income you will be able to not only go someplace warm in the winter, but go there long enough to be a traveler instead of tourist. The world opens up, and if you are of an altruistic bent then the possibilities are endless in terms of how you can use your time and your income to become an agent of change on a very needy planet.

12 December 2007

Information or Recommendation

If you're anything like me you spend a substantial percentage of your internet time surfing for new ideas or information. Because marketing on the internet is becoming more popular by the minute, you will never be disappointed in your search. The real question becomes how to discern the useful from the interesting from the waste of time? A corollary question is "how many of those free information or free newsletter forms should you fill out?". Eventually most people would prefer a few good recommendations over a vast quantity of random information.

I used to be concerned about filling out those free information forms. Then I learned how to generate a form like that myself and I also learned how to disguise my true identity on the internet, so that I could gather information without someone gathering too much information on me. My recommendation is that if you come across a site that interest or intrigues you, then fill out the form. But before you do, set up an email address that is separate from your regular personal and business email. In addition, you can also use a variation of your name on that email. By doing that you know that information you request will come to that email and your true name won't be given out until you are comfortable with the incoming information.

Once you fill out one of those forms, be prepared for many emails unless you unsubscribe. In general, most of what I've received has been useful. Occasionally I might even purchase a product (which of course is the ultimate intent of the incoming emails). The beauty though is that I've often been reading newsletters or sales letter from the solicitor for months prior to purchasing and by then I have a pretty good idea if what I'm getting is useful to me.

The way to keep from drowning in a sea of information is to be not only selective but organized. Once you have a sense of your needs try and keep your net surfing focused on those areas. Read the capture pages carefully. You can always bookmark the ones that are intriguing but not exactly what you need at the moment. After a time you will notice that some authors and sites pop up often. That's a sign that those people either really know what they're talking about OR they really know how to market on the internet and drive traffic to their sites. This in and of itself is a skill you want and need to learn in the 21st century. Even if their products do not interest you, it's good to pay attention to their methods. It's a great way to learn about the internet marketing world.

There are people out there, particularly on ezine.com, who offer recommendation. That's often a good starting place if you are feeling overwhelmed. Please beware that anyone can be an expert on ezine.com, so siphon through judiciously. At the same time, there is good direction to be found.

When organizing your new network marketing business or making 2008 plans for your existing one, visit healthyfreedomsecrets.com and subscribe to the FREE newsletter. You'll get to see an outline of the issues prior, so you'll know exactly what you're signing up for.

Until next time.....

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06 December 2007

Support From Professionals

Being a network marketer means that oftentimes you are working on your own. You need to stay motivate and focused on the job at hand, even on the days that it feels like you're swimming upstream. Often your family and friends don't truly understand what it is that you do and how hard you need to work. Many people drop out of the network marketing profession due to frustration and lack of support.

I read somewhere that the people who ultimately succeed in the MLM/Network Marketing world, are those who stick with it. They pick a good company based on doing their research and due diligence. Then they make a commitment to learn the business and keep working. The successful people in this field are not the one's who go into it expecting to be earning 10K a month after six months. Some people do hit the jackpot and experience that velocity of success. Most however work steadily over a period of a few years to build their downlines and their knowledge base. Most people who stay in it and work consistently, will be successful.

There is a great free newsletter called Healthy Freedom Secrets that provides an outline for everything from choosing your network marketing company to understanding the type of prospecting that fits best with your personality, to how to get organized and get support. You can find it at healthyfreedomsecrets.com.

Until next time......

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10 November 2007

Why Network Marketing?

I thought you'd find this article interesting. It was written by a network marketing professional named Rod Nichols.


In April of 1979, I viewed my first network marketing presentation and fell in love with the concept. At that time, I was a corporate manager for a Fortune 100 company.
I had graduated from college with a business degree and set out to climb the corporate ladder to success. However, those circles drawn on a white board opened my eyes to the future of business.
Nearly twenty-seven years later, I am convinced that network marketing is the wave of the future in business. It is a powerful marketing model that is sweeping through the world and will have a greater impact than franchising. Bold statements? The balance of this article will provide the proof.
Fortune magazine called direct selling (of which network marketing is the largest segment) “the best kept secret in the business world.” It has experienced 91% growth in the last 10 years with annual sales in excess of $30 billion in the U.S. and $100 billion worldwide. Financial experts say that it’s a “recession proof” industry. Billionaire Warren Buffet, after purchasing a network marketing company, called it the best investment he’d ever made. Tom Peters, author of In Search of Excellence, calls it the first truly revolutionary shift in marketing in the last 50 years.
Even billionaires and Fortune 500 companies are jumping on board the network marketing bandwagon. Richard Branson, founder of Virgin Records, launched his own network marketing company in the U.K. Time Warner, Lillian Vernon, City Group, Hallmark Cards, Nestle, Jockey, Readers Digest, and Remington have either purchased or launched their own entries into this high growth industry.
Why the interest in network marketing? The main reason is that it fits the current marketing trends. If you haven’t figured it out by now, the baby boomers (those born between 1946 and 1964) are in control. Seventy six million strong in the U.S. and over a billion worldwide, the boomers have dictated what is hot, from baby food and diapers to fast food to minivans and SUVs. Now the boomers are looking for products that will help them look and feel younger and ways to secure their financial future and enjoy more time freedom. Network marketing offers the answers.
Tired of the corporate rat race, boomers are starting home businesses in record numbers. CNN reported that a new home based business is started in the United States every eleven seconds. The home business boom is the next big trend and network marketing is one of the hottest home businesses available. It offers low start-up investment and monthly overhead. Entrepreneurs can start part-time, while still employed, and build the business to replace their job income. Age, gender, and race aren’t barriers in network marketing. In fact, well over half of the success stories are women.
The biggest reasons that the boomers are flocking to network marketing are time leverage, residual income, and tax benefits. Network marketing is one of the few businesses that does not require employees and yet enables the owner to leverage his or her time by building a network of independent business people. This network, which purchases and sells products or services, generates a residual income for the owner. Unlike the income earned at a job, which stops when the work stops, residual income continues on long after the work is completed. As exciting as leverage and residual income are, boomers love the tax benefits of network marketing. Tax expert Sanford Botkin says that a network marketing home business can result in tax savings of $3,000 to $9,000 per year.
The final reason why so many people of all ages are interested in network marketing is the internet. Success requires a business owner to build a large network of people who buy and sell products/services and recruit others who will do the same. The internet now enables network marketers to build national and international businesses from the comfort of their home. No more early morning alarms and high stress commutes. All the work can be done from a bedroom with a computer and telephone.
Network marketing is the first true equal opportunity, as there are success stories from every age and ethnic group, gender, personality type, education level, and walk of life. However, this is not a get rich quick scheme where supposedly everyone will succeed. This is a business that requires financial and time commitment and the willingness to work hard until success arrives. The great part is that network marketing, similar to franchising, is a turn-key business. Others have forged the trail and all a person has to do is use the proven systems and follow the path. Don’t expect to make millions the first year or the second, but do expect to make enough to give you time and financial freedom.
The first key to success is to find a company, out of the over 3,000 available, that operates with high integrity and offers a product/service that brings out passion and excitement. The second key is to find the right compensation plan. There are five types – Stairstep, Matrix, Unilevel, Binary, and 2 Up. Each has positives and negatives, so study the plans and find the one that fits best. The third key is to study those who have already been successful and duplicate what they have done. Last, never, never, never, never, quit. The success you seek may be just around the next corner.
Network marketing is well over fifty years old, so it’s not a new concept. However, it is a concept whose time has come. In the movie The Graduate, a young Dustin Hoffman was told that the future was in plastics. I’m here to tell you that the future is in network marketing and that future is now.

Written by Rod Nichols
www.rodnichols.com
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