The Power Of Residual Income In Network Marketing

I want to share with you the power of residual income in network marketing.  But even if you’re an employee, in a network marketing company, MLM business, or you have your own traditional business, I want you to be aware of this fact.

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Everyone – I mean everyone – wants to retire with some sort of a nest egg, so that they don’t have to struggle in the later years.  The fact is that in this age it is nearly impossible for the average person to save enough money to live comfortably later on.  We are living longer and healthier lives, we have supplements that make us look better, feel better, and actually live longer.

But many times we end up spending our life savings on unforeseen circumstances, college tuitions, sports (very expensive now in school), cars, insurance, unexpected illnesses, etc.  My wife Lisa and I had to take a really good, hard look at where we were going and what we would have when we reach our retirement age.  What was going to be available for us?  We certainly didn’t want to be in the category of people that have to work until they’re 75 years old.

So one of the options – and it seemed like the only option for us, and one that we took a very serious look at – was the network marketing profession.  It’s the only kind of profession and source of income that becomes residual – where we actually get paid whether we work or not once it’s built.  It’s also the least amount of investment for the greatest amount of return.  Sure there’re other things you can do, but everything out there seemed very risky when we started researching these things.

So below I put a chart in of a network marketing income versus annual earnings, and the assets that you actually need to make that kind of money each month on a residual basis.  In fact, when I did my research I found there were actually financial advisors who use this 10 year U.S. Treasury bond study as a benchmark to calculate how much you would need to invest to receive a certain amount of monthly income.

Now the following schedule that you see below highlights the amount of money that you would need to have invested in order to earn a certain income stream, compared to simply earning it in a network marketing income business and developing the equivalent in a residual income.

Now remember that this is just an example of how powerful residual income in network marketing can really be in your quest to really create real, live wealth and time freedom for you and your family.

So what I want to do now is basically show you the power of what we create – and the chart above shows it in great detail.  What we create in a network marketing company is probably one of the most powerful assets today, and I believe it’s quicker than almost any other vehicle that’s offered out there.  The reason that we can do that – and you really should understand this – is that when we start to create this income stream we’re actually creating an asset but that asset is what we would call a “hypothetical asset”.  What I mean by that is, we can’t get to it – it is allowed to grow without us having access and potentially depleting it.

Here’s an example:  the first simple step is to create a $300 asset.   When that becomes residual – when we’ve created approximately $300 a month in residual income – that’s $3600 per year.   And that equates to an asset that you’d need 90 thousand dollars invested in a 10 year treasury at 4% interest to create the same asset otherwise.  And in order to put $90,000 in a treasury account, you would have to have earned at least $180,000 because the government is going to take half of that!

So if you go back up and look at what you’re creating within a matter of months, you have created an asset with evaluation of $90,000.  Now here’s a crazy statistic, but is actually realistic to do in this profession: if you are making $1500 a month, which is extremely doable in a good network marketing company, that’s $18,000 a year.  So we literally created an asset of $450,000, and that’s after taxes.  In this case, we would have had to earn almost $1 million because the government takes about half of it!

I just hope you realize and understand how powerful this really is.  What we’re doing is creating an asset is no tax implications on the creation of it – only on the income stream.  And at the same time it’s true that – God forbid – when you pass on, most network marketing companies allow you to pass on the residual income stream you’ve created right to your family and to your children.

And here’s the thing that really got to Lisa and I.  Basically we’re able to will this income to the next generation at full value – the same income stream that we created.  There’s really nothing as powerful as this in anything out there today.

I want to get that message across to you: that you don’t need $90,000 in the bank to make $300 a month, and pay taxes on what would’ve been $180,000.  This is all done for you in a residual asset.  And doing this with the right company, you’re creating massive incomes with massive assets.

This is an incredible tool to talk to people about when it comes to this business, because it attracts their interest from a financial planner’s view.

If you’re struggling in your network marketing business, or you want to start in the industry and just don’t know how, Lisa and I wrote a book called “The Home Business Blueprint” that’s free for you to download.   You can see if this business is right for you, and we help get you started!