Why are people attracted to the residual income business model as a means of earning income? Every one will have their own specific reasons, but one of the main attractions is the freedom one can attain. It could be time freedom, personal freedom, financial freedom, or some other means of freeing oneself, but the reason this is possible is due to the residual aspect of the business: the ability to create a walk-away, reoccurring and passive income – that’s the goal right?
Now in order to create the level of walk-away residual income you need to reach your freedom goals – whatever they happen to be – you have to have continually growing production to compensate for the attrition rate, however small or large that may be (reps getting caught up in life or getting distracted, customers discontinuing auto-ship, for those companies that require a regular auto-ship that is; a Team National business does not revolve around an auto-ship program, for example). No organization just sits still, it’s always in a state of either growth or decline.
However, this does not mean you cannot produce residual income. Once you factor in this attrition rate to your business and have enough production occurring on a regular basis – and growing without your needing to be involved in the process – you have just created walk-away residual income!
So how large an organization must you have for your residual income business to throw off enough sustainable residual income?
According to industry legend Randy Schroeder, the key to creating walk-away income for at least 10 years (in most good companies) is to help 3 people replace their income and walk away from their jobs (3 different legs basically). This will allow your income to sustain itself as it allows these 3 people to go full-time in the business and their full-time energies and efforts can feed the activity necessary to overcome any attrition that may occur in your organization and keep your organization producing while you spend time with your friends and family, vacation, travel the world, whatever.
But if you want to create an income that will not only sustain itself but continue to grow and expand without you, you need to personally help 5 people make more money than they’ve ever made before.
For example, Randy Schroeder had been building a residual income business with Rexall a decade ago or so for about three years, having achieved a regular monthly income of approximately $150,000 a month. However, in that third year he had a difference of opinion with the company owners and stopped working his business with his income at $150,000 a month.
He thought his residual income business would then fall apart as he didn’t go to any meetings or company events, wasn’t on any conference calls, didn’t even pick up his phone with regards to his Rexall business, yet four years later his income went from $150,000 a month to $350,000 a month without him being involved whatsoever because he had enough leaders, enough people whom he had helped make more money than they’d ever done before, prior to him no longer building it.
So how many people have you helped to replace their income? How many people have you helped make more money than they’ve ever made before? That’s what it really takes to create walk-away residual income with a home based or residual income business.
To learn how to help others create a solid 6-figure income with a residual income business, download my FREE “Home Business Success Blueprint” and take action today: http://hansschoff.com/free-training
Originally posted 2011-03-14 08:18:02.
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