Network Marketing Benefits Over Conventional Sales

residual income

The Reason Network Marketing Works.

One of the great promises of network marketing is something called “residual income.”

What does this arcane phrase mean, and why does this business give it to us?

The word residual means “left over.” Residual income is that income which is the residue of one’s initial efforts, the results that are left behind after the doing is done.

Residual Income: Free At Last

The residual income in network marketing is income you continue to earn based on the productivity of your initial business building efforts. In a legitimate network marketing program, this income is a reflection of (i.e., commission on) actual sales of products or services generated by the network organization you helped create and develop.

Residual income is desirable because, like the songwriter’s or author’s earnings, it is an income stream that continues flowing long after you’ve completed your initial efforts.

In other words, you no longer have to do anything new to generate it. As long as sales are being made, the checks keep coming.

In a word: freedom.

Of course, there are some conditions that must exist in order for you to actually enter such a blissful state of residual keep.

→ First and foremost, the company that issues your checks must remain in business.

→ What’s more, the products or services must be of a sort that will continuously generate repeat sales. Historically, the favored choice for residual income in network marketing is a consumable product of exceptional quality and in great demand.

Understand this distinction: we are not compensated for the sheer act of recruiting. Genuine residual income comes from legitimate purchases and repeat consumption of products by the men and women in your group.

→ A third condition upon which your royalties rely is the strength—that is, the enduring strength—of the network you build.

This is a function of leadership . . . which brings us to residual impact.

Residual Impact : Making a Difference

Residual impact is just like the residual income that writers, artists, inventors and performers have, except here we’re talking about the impact their work creates rather than the income it generates.

To have an impact, one must influence with power and velocity.

The impact of the industrial revolution is an example. The influence of the Internet is another. The impact of a Gandhi, a Schweitzer, or a Chaplin is yet another.

Residual impact is impact that reverberates long after your initial efforts have ceased. For a writer, it would be authoring best-selling book or even a classic. Bach, Beethoven, Brahms and the Beatles have all given us the residual impact of their music.

There are numerous examples of great performances and great inventions (like the iPhone) that have had and will continue to have an enduring residual impact on billions of people. You create residual impact the same way you earn residual income: investing your time, energy and effort in other people.

What’s the primary benefit of network marketing over conventional sales channels?

Residual income.

The same is true of residual impact.

By enrolling, training and leading a network of men and women to success, you have a direct residual impact on their lives, the lives of their families and friends, the lives of countless consumers who benefit from their products, and the lives of all the future generations of men and women they will sponsor—and those whose lives they will influence, and so on.

Residual impact takes many forms. Each one serves by making a positive, sometimes even life-changing difference in people’s lives.

What’s more, as the network marketing industry expands and prospers, you are playing a part in bringing to light a major shift in the way of life and work in our world.

Showing the world how network marketing honors people’s values and purpose as no other business model in history has, proving that ordinary people can live extraordinary lives, offering the world a formula for personal and financial freedom, smashing the “glass ceiling” once and for all, providing much needed leadership for the future—these are all powerful pieces of a model of possibility for a world in great need of all that is good and true about our profession.

Again, residual impact—on a very big scale.

What kind of legacy?

Now, imagine this one: where will our grandchildren’s lives be tomorrow because you and I have created residual income today?

family health study

Where will our grandchildren’s lives be because you and I are free to play with our own kites—to discover, invent, create, refine, improve and play to our hearts’ content on the world stage?

When the ledgers are all totaled, what kind of impact will we have had?

Residual impact generates residual income, which allows you to generate greater residual impact, which gives you more residual income . . .

  • To some people, network marketing is about making a lot of money.
  • To some people, network marketing is about making a lot of difference.
  • But the truth is, it is impossible to separate the two: front and back of the same coin.

Both are legal tender in network marketing; both are your reason and your reward.

PS: Although Eric Worre of Network Marketing Pro has been a leader in the Network Marketing Profession for 28 years, I found this explanation of passive income from John David Mann very helpful too.

Source: John David Mann, Zen of MLM

Improve Your Life – Inspire Others!


martina meirhofer

martina meirhofer

Author: Martina Meirhofer

Improve Your Life - Inspire Others!