The difference between Residual Income and Traditional Income
Have you ever dreamed about escaping the prison of your 9 to 5 job and go into business for yourself? Of course you have, and so have the millions of people around the world who escaped this miserable lifestyle through Network Marketing. Network marketing is a form of marketing that, as its name suggests, focuses on selling the product or service to people within your network. All network marketing programs have the same premise: the more customers you get and associates you bring in, the more money you make each month. It is like getting a raise every single month instead of at your annual review. The payment system used for Network Marketing is residual income. Below are the numerous benefits residual income has over the traditional income of a 9 to 5 job.
What is Residual Income?
Residual Income is income that is earned repeatedly through the initial effort of the salesperson. For example, once you put in the initial effort convincing a customer to buy your product, their next purchase earns you residual income since you no longer have to put in the effort to make the sale.
Residual income is what makes network marketing such an attractive option. If you are a salaried employee and know there is no possibility of making more money if you work harder, then what is your incentive to work hard? Residual income is income that is directly correlated to the effort you put in. If you put in 40 hours a week like it is a "real" job, then you will see five or even six figure monthly incomes.
Residual Income vs. Traditional Income
Let us start with the negatives of traditional income. The main problem, as mentioned above, is that there is no incentive to work any harder than is necessary to keep your job. The one exception to this is commissioned sales jobs such as car or insurance salespeople. The reason so many people are unhappy with their job is they feel like their efforts go unrecognized. They give their work every ounce of effort, yet it seems like they always are passed over for the big promotion. Does that sound familiar?
Residual income wipes that problem off the board. With network marketing, effort is money. If you put no effort in, then you will make no money. Therefore, network marketing is not like a traditional job where you can sit at your desk and slack and still collect the same paycheck. With that being said, you will have all the time you want to sit back and just collect checks if you are willing to put in the initial effort. All you need to do is give your first sale with every customer everything you got. If you build the proper relationship, they will be your source of residual income as they order new shipments of your product each month.
Another problem with traditional income is that it offers relatively little income security. If you get hurt and can no longer work, then you no longer are paid the same salary. You have to rely on disability checks, which are a fraction of your original salary.
With residual income you have virtually bulletproof income security. Since you have a network of customers from your initial efforts, you can always count on that residual income each month. This covers you if you have a slow month getting new customers. Also, once you reach a certain amount of customers you do not even need to worry about getting new ones if you so choose.
The concept of the raise is another big problem with the traditional income structure. Metaphorically it is like running on a treadmill with someone dangling a carrot in front of you. Sure you may catch the carrot eventually, but then you just hop on a different treadmill with a bigger carrot. You get in the trap of chasing income and before you know it you are at retirement and realize all you did with your life is work.
With network marketing and residual income your income level grows exponentially. What this means is that there are no "raises" where you must do x,y, and z before a boss promotes you. Instead, your income growth is tied to the growth of your customer and associate network. For example, if you have 10 customers who order monthly you obviously have that residual income. What most people do not realize is the power of word of mouth. If you leave a good impression on your customer with both your product and personality that customer is going to tell an average of seven people about their new purchase. With today's social media-centric world, that number is much higher. This is how your income grows exponentially with you putting in virtually no effort.
Perhaps the worst part of traditional income is the 9 to 5 prison it entails. America is currently a live to work country for most people, while it should be work to live.
Residual income gives you complete and utter freedom. There is no boss making your schedule or waiting to approve your requested time off. You can spend all of your time doing the things you love while your residual checks keep piling up in your bank account.
It is obvious to anyone who does the research that residual income is more rewarding than traditional income in several ways. Network marketing offers you the power to create your own life. You get the ability to live proactively instead of reactively. With a residual income hitting your bank account each month, you get to feel the liberation of having no boss to answer to. You will be surprised at how long each day is when you have all day and every day to do anything you want. With all of these benefits of residual income, you should consider breaking out of the 9 to 5 prison and get on the path to financial freedom today.