Build your Net Worth with Residual Income!
Would you like to know the four favorite words of wealthy people? Here they are:
Multiple. Streams. Of. Income.
We all have multiple streams of expenses… mortgage or rent, phone bill, groceries, travel, and on and on. So why do most people have only ONE stream of income, usually in the form of a job?
Some folks attempt to gain multiple streams of income by acquiring multiple jobs. I hope this isn’t you, because that strategy will drive you into the ground fast. You will work way too hard, and it is truly impossible to achieve wealth when you are trading your hours for dollars.
Wealthy people do things differently. They focus, not only on multiple streams of income, but on two highly leveraged types of income — passive income and residual income.
Passive Income means the money comes in without you directly trading your time for it. You could be sleeping, cooking dinner, hiking in the mountains, swimming with dolphins, you name it… the money is coming in.
Residual Income means you build the source of income once, and the money comes in over and over and over again, long after the work is done.
When you have a job, you earn what’s called active income. This means you are paid on work you actively do, most often measured in time. Even business owners often structure their businesses to only pay them in active income, by charging per hour or per project. When I was a real estate agent, that was active income too. The day I stopped being a real estate agent was the day the checks stopped too. Since there are only 24 hours in a day, there is a ceiling to this type of income. If you want financial freedom and wealth, you must shift your focus and your efforts to generate sources of passive income and residual income.
The Best Business to Build Passive and Residual Income is Network Marketing!
Our network marketing profession is an excellent source of both passive income as well as residual income. Wealthy people recognize the leverage in this business model, because it is something that you build once and it pays you continually. Donald Trump and Robert Kiyosaki have both said if they had to do it all over again, they would build a network marketing business. Warren Buffet owns several network marketing businesses. In our business, you earn residual income every single week from all of the autoship orders that are placed in your business. Moreover, as people in your business also enroll new folks, the growth of your business compounds and you are earning large amounts of – you guessed it – passive income! It is for these reasons world-renowned economist Paul Zane Pilzer estimates that between the years 2006-2016, the network marketing industry will have yielded 10 million new millionaires.
How can you earn more passive income and residual income in your own life? Try this approach: Next time you are faced with a business opportunity or a professional project, do what wealthy people do. Ask yourself, “Will this generate passive income? Will this generate residual income?” If the answer is no, think twice about taking on the obligation. If the answer is yes, you are on the right track! If you are in network marketing already, then take your opportunity very seriously. We always say treat it like the million dollar business that it is. Sometimes I wish the cost of entry was actually higher because we value what we pay more for. Don’t make the mistake that just because your start up costs were low, that this can’t generate huge income for you – and passive and residual income, the best kind!
Also, don’t make the mistake that many do in regards to multiple streams of income. In our profession, trying to build two or three network marketing businesses will typically get you nowhere. Most of us have a hard enough time building one extremely successful MLM business, let alone two. You won’t make twice the money you will make much less trying to ride two horses. If you are in the right company for you, then focus on that one and go all in. The rewards are great!
When I made the shift from working income to passive income and residual income, my life changed dramatically. Since I was no longer trading hours for dollars, I finally had the freedom that comes from getting my time back. Moreover, in less than two years, I had leveraged my efforts to build a multi-million dollar business. The best part is, I have never had so much fun and called it work.
Now that you know about passive and residual income, get out there and start building your cash flow!
P.S. I hope these network marketing tips are of value to you. You may find this blog post on how to build your warm market helpful too! If you learned something in this article, share it on Facebook! Also, comment with your thoughts below.