The Power of Leverage and Residual Income in Network Marketing

The Power of Leverage and Residual Income in Network Marketing

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Network marketing is the go to business if you really want to maximize leverage and build residual income.

Don’t join the band wagon of people who don’t understand what it is and hence give it a bad name. If you want to grow a business that will be growing even without your active involvement then you need to consider network marketing.

For starters let’s reveal what network marketing is not.

It’s not a system where you put money and get money without doing anything! It’s not an investment…where you put money and it grows as others use it to trade.

A genuine network marketing opportunity has a product or a service that people buy and sell. It’s just a system that pays you for selling goods, services and opportunity. You get paid for your sales and the sales of people you introduce and the ones they also introduce. It’s a truly life changing business model.

The primary issue I have discovered people have with network marketing is the issue of referrals which has being brought about by people who did the business in the wrong way in the past and failed woefully. Another issue came from Ponzi schemes which came in the guise of network marketing and deceived people. People who know no better mix up network marketing and Ponzi scheme as one and the same. This very far from the reality.

My main concern here is to let you know that you can make it big with network marketing. I know people who are making N100,000, N150,000 and above daily. Some are making millions weekly from various network marketing opportunities. You may want to look at it.

The two main attraction for me when it comes to network marketing are Leverage and residual income.

Let’s look at them briefly

LEVERAGE

In simple terms leverage in network marketing means you and a team working together on a business. Each person’s effort counts for you. You work you get paid, someone else work, both of you get paid and so it goes down the line. Everyone’s work is contributing to everyone’s benefit. Your time, effort and resourecs are multiplied for mutual benefit.

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Check out what this lady says about leverage

Are you a workaholic? I know I have been accused of this by insensitive friends and family that didn’t understand my burning desires and relentless need for forward momentum. But even a workaholic can only put in so many hours per day. Let’s see… there are 24 hours in a day, 365 days in a year. That’s a max of 8760 hours. No sleep, no pottie breaks, no drive time. Maximum 8760 hours. (There were years when I think I came close to that number).

Now, I bet you could get a lot accomplished in 8760 hours. In fact, I would guarantee it. Your performance might be suffering a tad with no sleep though. Okay, just so we are clear… 1 person, working 24 hours a day, 7 days a week for 52 weeks = 8760 man hours of effort into building your business.

Let’s take a look at leveraging with the Network Marketing model. I invest my time and energy into building a business that contains 10 people. I continue to invest my time and energy into training those people so they become actual business owners for themselves and do the same thing. It’s in their best interest to continue the trend as we will see in just one minute. So, 10 people, train 10 more people each…. that’s 100 people. If each of those 100 people ONLY put in 30 minutes a day, how many man hours could have been funneled into my business success? Care to guess? 18,250 man hours.

Yep, you read that right. 30 minutes a day from each person in my down line gives me 18,250 man hours invested into my business. That’s 200+% more than if I worked 24/7 all year long. And that’s if the 10 people I worked with initially only work with 10 each and then everyone stops what they are doing.

Just for grins, let’s do the math if I had 2000 people in my down line. 2000 people, 30 minutes a day = 365,000 man hours. It would take me 41.6 years of working 24/7 to put in the same number of hours. This is one of the strongest examples of leveraging I have seen in a while. And here is the best part… those hours all spent in my business, ALSO help each of the people in my down line with their business. Again, leverage.

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I gave up trading time for money back in 1991 because it is so inefficient. The wealthy know this lesson already and make the most of it everyday. Put the power of “leverage” into building your business with network marketing and watch it grow.

RESIDUAL INCOME

Residual income is defined as any income that comes without much effort on your part or as a result of work that you have already done or sales you have already made.

When you can start earning these residuals in MLM you will really start to make money and the best part is that you will be earning this money without doing any additional work. Once you have laid the groundwork, your residuals will start rolling in.

Look at this picture. A man does work in a network marketing company and builds a team. After say 1 year he starts making N10,000 daily. Then after two years it goes to N50,000 daily, then to N100,000 daily and so on. The advantge is that the potential to increase is always there as he keeps working on the business.

Another advantage is that if done well, the team grows without your active participation and a point comes where whether you work or not you keep earning for life. This is what residual income is all about.

You work for a while and earn on your previous effort continuously. NETWORK MARKETING IS BUILT TO PROVIDE YOU LEVERAGE AND RESIDUAL INCOME.

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