How to Earn Residual Income with a Home Based Business – Supplemental Income
What is Residual Income and how do you get it? Residual income is like royalties the celebrities get on their movies and music. Every time someone downloads a song or a movie a celebrity gets paid, although it might come as a monthly check, but how does an average person achieve residual income, even better, a great job-replacing residual income stream?
Start a home-based business. There are many strong network marketing companies out there that pay you weekly and monthly commissions for sales in your organization.
What is your organization? An organization are the people who you personally recruit into your business. They can either be customers of your product, or they can promote the business-side of the business. True residual income comes into play when your distributors in your organization start building their own business by recruiting distributors on their team.
Network marketing is a business model that more businesses are switching to. It provides many benefits for both the owners of the business and the distributors who share and promote the product. This business model saves the company millions of dollars on useless traditional advertising and passes the profits on to the distributors. The result is that the distributors can make legitimate unlimited income while the company saves millions on advertising and rental space.
Network marketing companies can operate mainly from cloud technology and the internet, which reduces the need for physical offices and staff. The product is also “drop-shipped” to the customers, so no more distributors holding onto product collecting dust in the garage.
Key benefits of starting a Home-Based Business
Starting a home-based business is more practical, less expensive and has very little risk compared to starting a franchise or a brick and mortar business.
Key Benefits of a Network Marketing/Home-Based Business:
No inventory needed. (The network marketing company stores the product.) All you need is enough product for your personal consumption.
No Staff or employees. (The only thing required of you is to share the product and make sales. This is your business, no one else’s, and the amount of income you make is dependent on how effective you are.)
No Accounting necessary. (The only numbers you crunch are to file your 1099, everything else is handled by the company.)
No office Space Necessary. (Your entire home-based business can be operated online and from home.)
More Tax-Write Offs. Home-Based business Entrepreneurs can write off many expenses related to the operation of the business.
Top-notch Products. Network marketing companies are known for spending millions on research and development on their superior products, which distributors get at wholesale prices.)
Residual and Passive income Streams. Once your business grows and more distributors are in your organization, the more overrides you earn off their commissions, which means greater and greater income.
Shorter period to reach retirement. Most people work 30 to 40 years at a dead-end job. If you put in the work it is highly feasible to retire from network marketing in 2 to 5 years.
Website & Marketing tools. Upon joining a network marketing company, the company usually provides you with your own website, capture pages and sometimes an autoresponder email system to follow up with your prospects.
Top-notch Training. Your company wants you to succeed and the top leaders within your company usually do training and testimonial calls and webinars and annual events. It’s truly a family atmosphere when joining a network marketing company.
No Risk. If you don’t like the product or business, you simply cancel your “autoship” for next month’s order and you’re out of the business.
Mindset for Network Marketing
Network marketing is a different breed of business. You’re your own boss and need to be efficient with your time and be productive. There are activities that build your business and there are activities that feel like you’re building your business. Here’s the difference:
“Income-producing activities”
Calling prospects.
Creating valuable content online to attract Leads (Attraction Marketing)
Posting videos online to attract Leads.
Hanging flyers and posting ads to attract leads.
Calling Prospects.
Calling prospects.
“Non-Income Producing Activity”
Organizing your emails, or desk, creating desktop folders for all your media.
Calling your sponsor.
Washing the company decal on your car.
Complaining to your sponsor
Taking notes during a webinar.
Reading about network marketing.
Calling your sponsor.
Becoming efficient with your network marketing business is essential. If you’re busy responding to all the “tire-kickers” online, you will never grow your business. I get probably 20 to 50 “What is it?” replies everyday on Twitter.
In the beginning of my MLM career, I answered most of them, only to be let down when they weren’t interested or just didn’t write back. Now, they have to click my link and read what I have and opt-in before I talk with them. Unless they have a specific, intelligent inquiry I won’t bother.
Caveats for Home-Based Business Owners
Creating a network marketing home-based business is exciting, scary and challenging, especially in the first few months. There will be challenges in the beginning, just like starting other types of businesses. Let’s have a look:
Rejection: People are hardwired to seek acceptance from their peers when doing things. Starting a network marketing business will bring opposition in from your peers, because they want to “protect you” from a “Pyramid thingy.”
You will not gain immediate acceptance when starting your home-based business, but once you see a little success, your friends and family will come around.
Solution: This can be prevented if you first learn to prospect and handle objections with the help of your sponsor. Most sponsors want you to create a list of 100 people you know and prospect them, but this could be a huge mistake if not done properly. I started with my “cold market” first. It took longer to grow, but now I’m building fast from my lead-generating content.
Get-rich-quick: Network marketing is like any other Profession that requires training, hard work and persistence. If you’re looking to retire next year and expect network marketing to help you do this, you better blaze a trail and work insanely hard, but typically it takes 2 to 5 years for a home-based business to gain “momentum” and really take off.
Solution: Working hard in the beginning and expecting little in return is the ultimate Entrepreneur mindset to have. If you can visualize your 2 to 5 year plan and stick to it, you will go far in network marketing.
“Just bring in two people.” Sounds great, just like playing the lottery a couple times and winning the jackpot. It’s very rare, but does occasionally happen that people bring in 10 or less people into their organization and a couple of them take off with it and make you millions. It is possible, but don’t depend on it.
Solution: Take responsibility for your own success and don’t pre-judge anyone and think they are going to crush it, because truthfully the ones I thought were going to be great flopped and the ones I thought didn’t have a chance, went far. Don’t pre-judge and bring in as many people as you can and don’t let up or quit recruiting altogether and go into “management mode” where you just micromanage your team.
“This is a Ponzi Scheme” A Ponzi Scheme by definition from the FTC is a company which has no product and derives all its commissions from”recruiting.” Think of Bernie Madoff, biggest Ponzi in U.S. history I think.
“This is a Pyramid.” If prospects ask you if this is a Pyramid Scheme, just say quickly: “Why? Are you looking for one?” They usually say NO, shocked that you asked that, then you proceed and say: “I didn’t think so. Would you like to see my opportunity?”
Solution: Objections are a normal aspect of sales and network marketing. Keep talking to people, qualify their interest and if they’re not interested, move on.
“Some will. Some won’t. So what. Next!”
Residual Income VS Linear Income (Your Job)
Linear income is the hourly pay from the hour you put in the work. If you stop working, you don’t get paid. Most people fall into this category and their whole life would go spiraling out-of-control if they stopped working. Most of us live paycheck to paycheck and sometimes credit card to credit card!
Once your home-based business starts growing because of your distributor’s activities, not yours, your residual income will grow. Once your team starts to grow exponentially without you, you have hit “momentum” which is a very exciting feeling and can exponentially grow your residual income, a.k.a. Beach Money as Jordan Adler calls it.
This is how the Leaders in MLM make $20k to $100k a Month. It’s not based on their personal volume, it’s based on their entire organization of hundreds or thousands of distributors. Don’t be discouraged though, they all started with 2, 3 or 4 distributors.
Promoting your Home-Based Business
The key to success in network marketing is to get as many eyeballs on your opportunity as possible. Obviously, there are different variables to consider when prospecting. If a prospect finds you before you find them, they are more likely to upgrade into your business. Why?
People love to feel like whatever it is, that it’s “their idea” not yours. No one likes to be told what to do, so if you are like “Order through me, Buy my product!” They instantly are turned off, it’s like walking around and asking strangers to marry you.
Don’t force your opportunity down people’s throats. If you are building an online brand as yourself and not your company, you will become an “authority” on the internet. People will look forward to hearing from you because you provide “value” online instead of “hype.”
Laser-Focus on One Platform
When I first started promoting my network marketing business online, I focused on using Twitter. Luckily, I already knew how to use Twitter because I used to promote other affiliate links and my eBooks on there.
So, when I joined my current MLM, I took to it right away because they gave me my own personal “capture pages” to promote. But, there was still a giant learning curve. I needed to provide value instead of spamming my link. I learned that people responded to my success quotes and articles better than my spam.
I then took a giant leap and went from just being a “company distributor” talking about nothing but my products to a “Network Marketing Trainer” who helped people achieve their dreams.
Basically, instead of being self-centered, my focus grew outwards to become a “selfless leader” who helped others, because like Zig Ziglar said:
Keywords, “If you help enough other people…”
Network marketing is a “people business.” If you are mysterious online, leave no bio and your profile picture is a carrot, you’re not going to attract people to you.
When you add your personal bio and headshot, make sure it’s your face and a short bio of what you do. Mine is:
“Entrepreneur. Blogger. Passionate about Network Marketing and helping others Succeed.”
I use the same bio on all my social media accounts and use the same headshot. You want people to notice you. You don’t want them guessing what you might look like next week. Stay consistent. McDonald’s sticks to burgers, just like you should stick to your brand. I’m not saying you can’t modify it, just make sure you eventually stick with a solid bio and headshot.
Back to Laser-Focus on One Platform…
I stuck with Twitter because I felt it got my message out efficiently and there wasn’t a lot of competition, like there is on Facebook. I also tested conversion rates on my links and discovered that my automated direct message on Twitter received the most action.
This is surprising and completely opposite of what I thought. I thought since I had so many followers on Twitter that my “Tweets” would convert better, but no, it was the direct message people received when they followed me.
The direct message was:
Thank you! I’m looking for 2-3 Success-driven individuals who want to make great residual income: (my shortened capture page link)
I use Crowdfire App to unfollow my unfollowers and to send out my automated direct message. What’s even better is getting the “Earth Subscription” which removes Crowdfire’s branding from your message, so it looks even more personal.
I get 10 to 20 Leads a day when I follow on Twitter and my new followers receive this message.
A/B Test Everything!
What you think works, doesn’t and what you think doesn’t, works. If you can put analytics on all your links when you place them on different platforms, you will see what performs the best. This saves a lot of time and energy and can increase or decrease the quality of your Leads.
The second-best social media platform which is specifically designed for network marketers is IBOToolBox.
This platform is very powerful and gets 300,000 hits a day. You can advertise on it and post original content, which rises quickly in Google because of the website’s PageRank.
The Mighty Blog
Blogging is the best way to attract Leads to you, instead of you chasing them. The only setback is that it takes time to establish your blog and takes consistent writing of quality posts. The alternative of not writing a few articles a week for three years is working at a dead-end job five days a week for 30 to 40 years. If you ask me, I would rather blog from home, then get dressed and go put up with co-workers and a boss.
The best way to set up a website quickly is go grab your name as a .Com over at Name.Com
Type your name in the search bar and see if it’s available. Should only be $10.99 to buy it. If it’s not available, add “marketing” or “Online” or something like that to the end of your name and see if that’s available.
Buy your name, then go over to Bluehost and set up a hosting plan. You’re going to move your name over to Bluehost. Then, set up the “WordPress Platform.” Google loves WordPress sites and if you write original content, you are going to do great!
I suggest starting out with writing 1000 words on who you are. Blog once a week in the beginning. Learn network marketing techniques and then relay the information in “your own words” on your blog. All content must be original.
The best way to be a network marketing authority is to know what you’re talking about. There’s tons of MLM training videos online and lots of great network marketing books on Amazon.
Last but Least. . .
Post YouTube videos. This is the quickest way to get on the internet map. Post a 2 to 3 minute video on who you are and what you think about your new network marketing business. Induce engagement by asking questions from your viewers and once in awhile put your opportunity link in the video description.
Some of the biggest names in network marketing have hundreds, if not thousands of videos online, like Eric Worre. Don’t worry about getting hundreds of videos online, one at a time will add up.
I wish you all success and thank you for reading! Please share this if you found value and post a comment below.
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