Residual Income

A lot of people get caught up in the terminology (it's just a name, don't fuss over it). A lot of the terms in the US - residual income and leveraged income to name two - are unfamiliar to many in the UK I have found. It doesn't mean it doesn't exit, it means it gets called something else. But sometimes the terms get mixed up.

Here's how I explain it to my team:

Here are the ways to make money:

1. Make a sale to a customer. The is a direct sale. This is called retail. Whether the customer is an SFI affiliate or not is immaterial, they are a customer. If you sign up Mary and she buys a copy of Mining Gold you have made a sale, you get commision. This is a one time commission on a one time sale.

2. Make a sale that has an ongoing payment from the customer, such as IAHBE membership. For the one time sale of IAHBE, you will get money each month as long as the customer keeps their membership. That is residual income. Do it once, get paid "forever" (or until they cancel their subscription).
This applies to any kind of membership in any program, whether cable TV or phone lines
(I'm not limiting this example to SFI, this a general concept).

3. Mary sells a copy of "Internet Marketing by Joe Bloggs". You as her upline get a commission on that sale. This is leveraged income. It is levered, or leveraged, from the efforts of someone else. Your action in recruiting Mary has indirectly caused you to earn money from her future sales.

4. Mary sells a copy of the "Internet Marketing Club" membership.This means from your action of recruiting Mary and her action of selling "IMC", the sale will bring you income each month.

"Level 4" is where the big money comes in - you make more money from the ongoing sales of your team than you could ever earn from your own direct sales. This is where terms like "exponential growth" and "viral marketing" start to get used.

Of course that is just my way of looking at it and how I explain it.
The compensation plan will differ for each company so you need to study the SFI plan to know exactly what you're getting, and when, and why.
You need your own plan of action and you need to show your team members how to duplicate your success so that you can benefit from their efforts.

A lot of newbies look at the scheme and want the "residual income" because it looks like "money for nothing". It's actually money made later on work you do earlier (sew now and reap at harvest time and other analogies) - work to become PTL by 3 affiliates who all EA by IAHBE and you will be making residual income each month, and can then make money on their sales.
What you can't do is sit there never having even done anything (as many do) and expect the money to just roll in from nowhere.

The same applies to bonuses - you can't do nothing and expect to just get a bonus. (The money in the bonus pool is generated by the sales other people make. Why should you get a share of that for doing nothing?)
Make enough sales and you get a bonus, but that is what "bonus" means, a little extra, your main income comes from your efforts - direct, leveraged and residual.


Vassago
http://vassago-vassago.blogspot.com/