CASHFLOW-RESIDUAL INCOME-STATIC INCOME

Remember the movie ConAir? Remember when the serial killer is brought on board and begins speaking to Nicholas Cage? When Cage tells him he is crazy his comeback is something like this, "Crazy is getting up and going to work every day for 30 years only to be given a gold watch and $1200.00 a month for your troubles. It's all semantics."

The majority still believe the only way to earn a living is to get up, go to work for 8 hours a day, come home and do this all over again; 7 days a week for 30-40 years. They want the gold watch and pitifully small monthly income that no on can live on. It's the right thing to do, Right? WRONG.

What if I told you that you could earn money while you sleep, when you are on vacation, when others work, and yes, when you decide to work as well. Well known authors like, Robert G. Allen, Robert Kiyosaki, Brian Tracy, and more have proven that there are multiple ways to earn an income without working.

To fully understand this concept let me give you some background information. Static income is what you and I earn from a job. To receive our salaries, we must go to work, complete the tasks of our jobs, and this requires us to do this day in day out until we either change jobs or retire. I know what you're thinking. You're thinking, "Well I am putting money aside in a pension fund that will give me money when I retire."

WAIT. HOLD ON. You are working in order to be able to put that money aside. It may be useful to you at the ages of 67 or 70, but you cannot touch it until then.

Residual income is just the opposite. It allows you to earn money when you work, when others in your organization work, when you sell products, use affiliate programs (which are free) and when you use automated devices like the internet to work for you.

Money can come in while you are asleep. You can still get paid while you are on vacation. It can even continue to bring in a full salary after you have passed away.

Residual money is an income that is perpetual; it doesn't need you to do anything to recive it, and it will never go away, as long as someone in your organization is working.

RESIDUAL INCOME CREATES CONSTANT CASHFLOW.

STATIC INCOME EXAMPLE
My father worked 30 years for a large corporation. While with this company his salary increased many times; thus by the time he retired in 1998 he was earning about $60,000.00 a year. My father realized early on he needed to save money. He contributed to his company's pension plan; he bought stocks and put money in several IRA'S. My father meticulously calculated what he needed to put aside in order for he and mother to live on during his retirement years.

There were 2 things my father never planned on.
1. He would live after the age of 65; because none of the men in his family had.
2. That he would outlive my mother. She passed away in January 2008 after a long bout with cancer.

These 2 factors depleted his stocks and IRA'S. He draws his pension every month. But here is the clincher.

My father went from $5000.00 a month to $1680.00 a month. He makes less than half of his previous earnings. Why? He went to work faithfully for 30 years. He put in the time. Here is the reason why. My father depended on a company to take care of him. While they make billions of dollars a year off the sweat of their employees, the profits are being put into their own pockets.

CASHFLOW EXAMPLE
Now let's look at a friend of mine. He has been in network marketing for over 20 years.

I will call my friend John. John began network marketing in 1983 when there was no internet. He is a great salesman; therefore, he earned his money the hard way; cold calls, recruiting friends and family, discussing his opportunity with everyone he met and weekly meetings.

John moved swiftly up the ladder in the companies he associated himself with. John earned top dollar in those companies. John built an organization of 500 personal recruits with one organization. That may not seem like a lot today, but remember this was many years ago when the internet was not the useful tool it is today.

John recruited wisely. His organization grew to over 3000 in 2 years and continued to grow steadily over the next 3 years until it reached 5000.

So, what does this have to do with residual income and cashflow? All 5000 members were put directly under John. John earned money every time a new person was put into his business.

When Alice, whom John recruited, added 6 people, John made money off of Alice's 6 people. When Tim brought in 35 people, whom John sponsored, John earned an income from those 35 people. And when John's friend Tammy put in 300 people, whom John also recruited, John earned a commission off of those 300 people. Because John was at the top, he earned money from all 5000 members in his downline.

BREAKDOWN OF JOHN'S INCOME FROM 1983-1988.
This model will go on the presumption that John recruited only 500 of those 5000 in his organization.
Base Commission = Money John earned for personally sponsoring a person.
Bonus Commission = Money earned when his downline sponsored people.
Cycle Commission = Money earned when so many people are added to his downline. For this example we will use 4 people per cycle. His organization of 5000 cycled 1250 times.
Base Commission: 500 x $50 = $25,000
Bonus Commission: 5000 x $30 = $150,000
Cycle Commission: 1250 x $30 = $37,500
IN 5 YEARS JOHN MADE: $212,500.00

BUT WAIT. Remember the cashflow and residual income I was talking about earlier? John's salary; what he actually worked for came to $25,000.00. The other $187,500.00 came from his downline. John earned money while he slept, was on vacation, when he was in the hospital for an operation, etc.

NOW THAT IS THE WAY TO MAKE MONEY! IT IS PERPETUAL CASHFLOW, RESIDUAL INCOME!

Fast forward to 2008. I want to give you an idea of John's earning potential since 2003 using the same numbers.

Again, this model will go on the presumption that John recruited only 500 of those 5000 in his organization.

Base Commission = Money John earned for personally sponsoring a person.
Bonus Commission = Money earned when his downline sponsored people.
Cycle Commission = Money earned when so many people are added to his downline. For this example we will use 4 people per cycle. His organization of 5000 cycled 1250 times.

Info Marketing Commission = Money John earned by selling his recruiting strategies online. John wrote 1 70 page Ebook using the internet to increase the number of recruits. In 5 years he sold 1200 copies for $29.95
Base Commission: 500 x $100 = $50,000
Bonus Commission: 5000 x $100 = $500,000
Cycle Commission: 1250 x $100 = $125,000
Info Marketing Commission: 1200 x $29.95 = $35,940

IN 5 YEARS JOHN MADE: $710,940.00. HIS SALARY CAME TO $85,940 THE OTHER $625,000 came from other's sponsoring people into their business. John earned a little over $142,000.00 a year in those 5 years.

John also made car and house bonuses. Those yearly bonuses added up to $54,000.00 a year. However, John did not make those bonuses every year for 5 years, so the figures here just reflect 1 year.
Car Bonus Commission 12 x $1500 = $18,000
House Bonus Commission 12 x $3000 = $36,000

The second example is just an illustration, but it is based on facts. John earned that money in the 1980's. I just applied his numbers to 1 company's earning potential.

Dream Trips Wholesale Club

Rovia

Home based Travel Business

My Travel Biz

Why am I giving you this information? Why don't I just show you a great presentation and business opportunity and let you decide? Because 90% of those looking at an opportunity do not realize the earning potential, the cashflow that comes from owning a home based business.

What's the catch? The catch is do you have the desire to become an independent agent, whose sole living depends on what you make of it?

Do you have the drive to succeed, want a better life, tired of working for a boss and company that makes you angry every time you leave the house? Do you need extra money to get out of debt, add to your retirement fund, send those kids to college?

If so, then do what 13 million American's, and 58 million people worldwide are doing;

OWN YOUR OWN HOME BASED BUSINESS, CREATING REGULAR CASHFLOW AND A RESIDUAL INCOME!

Scroll down to learn some basics.

There are 2 things a person needs to make their home based business a success.

1. Making the decision to take that leap, and sticking with it.
2. The drive and desire to succeed no matter the cost.

You say, "that's easy." Actually it isn't. The masses do not have what it takes to become an entrepreneur. WHY? Becuase they are afraid. They hear of a great opportunity and the first thing they do is begin to worry about the problems they will face.

I have a friend. He has a great product to sell. It is a food product. His family loves it, his friends love it. However, he is afraid that he can't produce enough, or that no one will buy it, or what if he is sued. His fears have paralyzed him. He will not make the commitment and stick with it.

The second thing a person needs is the drive and desire to succeed. There are many who take that leap of faith, but do not stay with it. They let setbacks crush their desire for success. They do not believe in themselves enough to go on. When the going gets tough, or they haven't made their first million in 8 weeks they throw in the towel.

To succeed in network marketing you need to take that leap of faith and keep your flame of desire for success alive. Feed it daily with inspirarional books, cd's; surround yourself with friends and family who believe you can succeed. You must have it in you first, but creating a web of those who also believe in you is key to continued success.

While being successful is our ultimate goal, how do we begin?

1. THE COMPANY
Choose a company where your interests lie. Don't join because your brother is making money in nutritional product if you are not interested in them.
2. COMPENSATION PLAN
Look at the company's compensation plan. This is important for the long run. Look at the initial payout, the back end bonuses and how many levels the pay out continues.
3. INITIAL COST
Consider your initial payout. Some say if you pay more you will work harder. That's just crazy. And, other's say paying more than $100 to join a company is a rip off. YOU GET WHAT YOU PAY FOR!. This isn't about money. It is about you getting out the rat race and buildong a better life for you and your family. If you feel $1000 initial out of pocket cost, in your heart and gut that this fits, then make the $1000 payment.
4. REPRODUCE SUCCESSFUL STRATEGIES OF YOUR UPLINE
One of the first things your upline is going to tell you is to use certain techniqueS; MORE ON THIS LATER. However, do what your upline is doing. Look at those who are making $10,000 a month and research what they are doing. The number 1 income earner your company DID NOT make all that money by only using the 3 foot rule, recruiting family and friends, holding weekly meetings and going to acceleration conventions.
5. RECRUIT, RECRUIT, RECRUIT
While part of this was mentioned earlier, I want to go into this in depth here. You will be told to go out and recruit everyone you know. The first thing you will be asked to do is make a list of all the people you know. Call those people on your list, and if they are not interested then get them to give you a few names of their family and friends that may be interested in your opportunity. You will be asked to work a formula. This type of recruiting works for some, about 1%-10% of those in network marketing. Don't fall for all of their techniques.

So what do you do? Hopefully the next 5 will give you insight on how to really make money in network marketing.

6. GET THE NEWS OUT
Get your opportunity in front of as many people as possible. Part of this includes talking to others and making cold call, However, the best recruiting tool is the internet. The internet can reach hundreds of thousands of people every day. No matter how often you call leads you cannot reach as many people in your lifetime as the internet can in 24 hours. Squidoo is a great place to begin. Use blogs and free business web match sites that allow you to get your opportunity in front of the public.
7. CONSIDER YOUR AUDIENCE
Give you audience more than what they expect. Feed their emotional needs.I like to travel, and I am affiliated with an online travel marketing company. If you are interested in travel then I want you to join my company. However, if I only discuss my successes, my opportunity, my business, me, me, me then I have not appealed to your needs. I want to give you what you need to succeed in your business.
8. THEIR SUCCESS IS YOUR SUCCESS
NO this isn't the same thing. Think of your work as a building a team. If you just try to get as many people in your business, but do not care whether or not they really want this opportunity, like what you are doing, etc, or you do not give your team room to grow, be a part of your family, work together to make Sally as profitble as Tom in your company then your success is like that of a large corporation. It has been all about you. While your upline asks you to recruit in a way that they never would, they have the right idea when it comes to helping each other, motivating your team. Keep that part of the original concept of network marketing.
9. GIVE ACCURATE INFORMATION
Always give your prospect accurate information. Let them know they can make money, but this is a job. They must go to work everyday, work their business and get their information out there. Let them know that they may not make a million dollars or even $500,000 dollars a year for several years or maybe ever, but the rewards of being at home with their families, doing what they live and making a decent living; topping out at $85,000 to $100,000 a year is great in network marketing, can happen just as long as they work at it.
10. GIVE IT AWAY
Once you have acheived your goals, give back to your company, your team, your community. It is now time to truly share with those that have helped you become successful. Give incentives, motivate your team, create friendly competitions that get all involved, and where all will benefit. Your company may ask you to become a presenter, you may have a great spokesperson on your team, but their sales are low. Give them an opportunity to shine, bring them onstage with you. Once you acknowledge them they will begin to shine and their sales will turn around.

BE DILIGENT, BE PATIENT, YOU WILL BE SUCCESSFUL!

Being a network marketer has always had perks. These incentives ensure the company grows, but more importantly the incentives given reflect true appreciation from the company.

In the past, only cars or car bonuses were given, and personal recognition rewards like diamond pins, gold watches etc.

Today the incentives are larger. A car bonus is still the most popular, but receiving up to $1500 a month means you can buy a BMW, Mercedes, or Hummer instead of a Honda, Ford or Chevrolet.

A new bonus feature found is the house bonus. One company gives up to $3000 a month for a house payment. With mortgage problems today, this is a great incentive for someone to own their own home.

I have already mentioned personal awards such as pins, watches and things, but for those who love to travel one perk is sweeping the business.
AND YOU DON'T HAVE TO HAVE 1000 PEOPLE IN YOUR BUSINESS TO GET THIS INCENTIVE.

This bonus is called TRAVEL POINTS. For a World Ventures representative these points are given every time 6 people join your business. You must be qualified to receive those points.

20 points are given every time 6 people join. Those points match dollar for dollar. The more people joining the business the more points a person accumulates.

The representative can then cash in those points any time they wish by sending the company copies of their vacation receipts. This incentive means that the lowest rep may recieve a bonus and not have to wait until they bring in 20, 50, or 100 people.