The Power Of Residual Income


This is a guest post from my good friend Nick Kelly.

 

One of the greatest aspects of our nutrition business is that Stacia and I get to work, learn and travel together. We get to work from wherever we’d like, and we have met some wonderful people who are now a huge part of our lives. Another aspect is that our income is residual, and we’re not trading hours for dollars like a traditional employee. This became top of mind this winter when snow left us unable to get out of the house for several days (and that was nothing compared to our friends in the northeast.)

This post is specifically for those who have a profession and the weather (or other circumstances) have kept them from earning a living. Many folks in America live paycheck to paycheck, and missing days or weeks of work could have a huge financial impact. Weather is one obstacle. Unexpected health issues can be another. Family emergencies. Car troubles. Home repairs. Any of these can not only cost money, but impact the ability to earn it, having a double effect.

To assist me with this post, I’ve asked my friend and business partner, Chris Poorten, founder and owner of Rock Your Life. Chris and I have been working together for a few years in our network marketing business. He’s a very positive guy, and he shares my love of music. He is passionate about helping people become rock stars in their own lives and helping people live their lives to the fullest.

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The frigid cold winter weather is upon us.  Long days of uncomfortably cold air, sometimes leading up to massive snowstorms. As a kid, we would all get excited about the prospect of a day off from school, and look forward to getting a call saying school has been cancelled. We would wear our pajamas inside out, and pester our parents every fifteen minutes asking if the announcement had come across the news broadcast.

Ushovel-snow

Unfortunately, as an adult, snow days may not be as exciting as they were when we were young.  With snow days and inclement weather, come the risk of losing money if we are unable to get to our day job. Thankfully, there are opportunities where we can earn money at home and have the same enthusiasm we had as a kid. Any employee or business owner who earns money based on hourly wages or face-to-face appointments stands to lose money if she can’t get to work. Retail clerks, food prep folks, painters, landscapers, and construction employees lose the ability to make money. So do chiropractors, massage therapists, dentists, interior designers, and realtors. Musicians and artists may miss studio time, rehearsals, or performances.

Overcoming this limitation may require some flexibility, or it may ignite a switch to an entirely different business approach. Trading dollars for hours isn’t necessarily a bad thing. The average hourly pay earned by an anesthesiology physician is $170 [1]. Regardless of the amount, being unable to earn a living is a challenge.
Two of the greatest ways to overcome this limitation are the ability to work from anywhere at any time, and to earn residual income. Residual income is “what can happen after you put a lot of time, effort and sometimes money into a job to continue to get paid for the work months or years after it’s done.” [2] Some examples of residual income include earning royalties, selling e-books, selling subscriptions, and earning interest. In our business, we earn residual income by educating clients on nutrition, health, and supplements. Our clients consume the products, enjoy the experience, and continue to order more over time.
Instead of putting in equal amounts of time or effort for each commission, our initial effort earns commission multiple times. Also, with a network marketing business, consumers of the product can also elect to sell the product. That duplication means that a professional can build a team whose members also contribute to those commission checks.
2013_lamborghini_aventador_lp700_4-1920x1080The key is to have a product that has two traits. It must be unique, and it must be consumable. A Lamborghini is a truly unique product, but it is hardly consumable. Most high-end car salesmen have a compensation package that is heavily based on sales, not salary. As Mark McDonald writes in Motor Trend magazine, “I only get paid if I sell a car. If I don’t sell a car, I don’t get paid. I make nothing.” [3] The customer who comes in for a new $397,000 Aventador isn’t going to come in again in 30 days. The car is unique, but hardly consumable. The commission check may be high, but it doesn’t solve the issue of only earning money for each individual effort.On the flip side, a consumable product that isn’t unique isn’t going to solve the issue. A client may benefit from consuming the product the first time, but if the product is simply available anywhere, then price and convenience become the primary decision drivers. Ideally, the goal is to prove that the product you offer provides a benefit, and that you are the ideal resource from whom to purchase it. (This should be part of the initial consultation with the client. Prove that you have value to offer that establishes your product as unique.)

Providing a product that is both unique and consumable is the best way to build residual income. You get paid multiple times for each individual effort, and you and your team can duplicate efforts and succeed together.
To learn more about the opportunity we represent (and the corresponding residual income), drop me a line here or reach out to Chris at Rock Your Life.
To your success…
All the best,
nK
—- For more information on creating residual income and creating the income you desire click here 
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Works Cited:
[1] Salary.com. (2015). Physician – Anesthesiology Hourly Wages. http://www1.salary.com/anesthesiologist-hourly-wages.html. Retrieved on March 15, 2015.
[2] Flynn, Suzanne. (2015). Residual Income: What It Is And How Does It Work?. WAHM Articles. http://www.wahm.com/articles/residual-income-what-is-it-and-how-does-it-work.html. Retrieved on March 15, 2015.
[3] McDonald, Mark. (Feb 14, 2014). Car Salesman Confidential: How We Get Paid. Motor Trend. http://blogs.motortrend.com/1402_car_salesman_confidential_how_to_get_paid.html. Retrieved on March 15, 2015.

About Chris

My name is Chris Poorten and I believe we have all been put on this earth for a purpose, and we all have many great strengths and talents to share with the world. Our lives are meant to be led with abundance, TRUE HEALTH, and service to others. I am very passionate about helping others there own desired lifestyle Throughout my life I have had an interest in psychology, human behavior, what makes people do different things and why some people become more successful than others. I first picked up the book “Rich Dad Poor Dad” by Robert Kiyosaki around 2001/2002 and it really changed how I viewed jobs, making money, and how one approaches life. One of the main concepts in the book is the importance and benefits of entrepreneurship to create assets that will generate long term income. Over the course of my life I have held many different types of jobs, some of which I enjoyed, and others where I did not feel very happy or fulfilled inside. As a result of this, I decided to use some of the lessons from Rich Dad Poor Dad and look into opportunities to make money outside of a regular job. In doing so, I learned that there is an abundance of opportunities available to earn money and even create true FINANCIAL FREEDOM for yourself. After researching many different options I fell across with an opportunity that I fell in love with. I am able to utilize my passion for helping people with the ability to improve peoples health and financial well being. I truely enjoy being able to make a positive impact in others lives, while helping others do the same. I look forward to hearing how I can help you out.

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