Let’s talk residual income and how to get it.
What is residual income, and is it really possible?
Residual income almost sounds too good to be true:
- Make money while you sleep
- Work once and get paid forever
- Become FINANCIALLY FREE
This may be why you’ve disregarded claims about passive income.
Is that possible?
How could I do that?
Where would I start?
It is possible. And every person who builds wealth does it.
We are all taught the “path to success” from an early age:
- Go to school
- Learn things
- Get a job
- Work your way up the corporate ladder
How many people do you know who have followed this path?
And how many of those people are financially free?
Many are struggling.
Some are comfortable.
But none are wealthy.
That’s because it’s not possible to become wealthy while building someone else’s dreams.
Wealthy people (in every sense of the word)* work for themselves.
They are entrepreneurs.
Take a moment and look it up: the wealthiest, most successful people in the country, in your state, in your city: what do they do?
I’m willing to bet they are almost ALL entrepreneurs of some kind.
In order to create real income and true wealth, it is imperative to create passive, residual income. Without it, you’ll never do more than just “get by,” and you’ll never be paid what you are worth.
Once you understand what residual income is and how it works, you will want it. Surprisingly, it’s not incredibly difficult to accomplish, but it does take work!
Maybe you have tried your own business…
Lately I’ve been talking to a lot of new entrepreneurs.
These people want to work from home, but are frustrated with their “new businesses”
Many have joined network marketing or direct sales companies.
“I haven’t gotten any sales!” Stephanie complained.
“I’ve talked to people, but no one is interested,” lamented Melanie.
“I’m just not very good at selling,” Olivia sighed.
What’s the problem?!
The frustration is real, but if you consider a few simple factors, you will see that true, substantial residual income is not only possible, it’s attainable by anyone: even you and me!
You just may need to reconsider your approach.
5 Things to Consider When Choosing YOUR Side Hustle
1. The Products
People often tell me they chose their side hustle because “the products are amazing,” or “they changed my life.”
But is it a good enough reason to make that your side hustle?
Of course, it’s important to be passionate about the products you represent. It’s guaranteed that if you don’t think your products are life-changing, nobody you talk to will get excited about them either.
Your products ABSOLUTELY must be life-changing, and you must believe in them 100%!
So if you are representing a product you love, you will definitely be successful, right?
Not so fast. There are four other very important considerations, and it is crucial that they all apply to your business if you are going to be successful.
2. The Competition
Ask yourself objectively: How many other companies carry products that are similar to yours?
- You have 100% organic bath and body products? Great! So do 100 other direct-selling companies. Even more importantly, organic soap and lotion are quite easily bought on almost anywhere with no commitment or interaction.
- You have the cleanest make-up around? That’s amazing! How many other companies offer organic make-up and skin care? (Also, not everyone wears make-up. Your audience is limited to women, and then only some of them use make-up often if at all).
- Your weight loss shakes transformed your health and you lost 60 pounds? Perfect! But if every other company you see sells weight loss shakes and supplements, it may be difficult to compete. Do they all have amazing testimonies that look just like yours? (And even if people buy weight loss products, how long will they continue to purchase? Generally, they either don’t work and they stop buying it, or they work great… and they stop buying it).
COMPETITION MATTERS. It can make or break your sales.
What sets you apart?
You should offer something people can’t get anywhere else.
“But these shakes are truly revolutionary! They do things no other shake does!”
Your shake could be amazing, but that testimony isn’t very convincing to your average consumer, who has 5,326 other options for shakes that (to them) look identical to yours. And that’s if they are even in the market for a shake: only a fraction of the population is interested in shakes at all!
Ideally, your product has NO competition.
And you should be well-versed on what sets your product apart.
EXAMPLE: I love MONAT haircare products. Of course there are many other brands of shampoo, but what sets MONAT apart is:
- It’s the only anti-aging hair care on the market. (Check out this testimony!) When your hair looks younger, so do you!
- It is non-toxic. Conventional shampoos contain a dizzying array of toxic chemicals that absorb into your scalp and enter your bloodstream within 26 seconds of contact! These chemicals do all kinds of damage, from disrupting hormones to causing migraines or worse. That’s bad news. We ran all of MONAT’s ingredients through EWG’s Skin Deep site, and the average score is 2 out of 10 (10 being most toxic… think Johnson & Johnson’s baby wash, Pantene, Herbal Essences).
- It doesn’t promote build-up. Build up is a big deal: most shampoos contain silicones, waxes, gums and keratins that build up on your strands and your scalp. This not only suffocates your hair and makes it dry and unmanageable, it can cause thinning and even balding in the long run! MONAT removes existing build up and doesn’t add any back in. Check out this video of an expert stylist who shows the build-up that is likely lurking on your hair and scalp.
- No artificial fragrances. This is a biggie: it’s great if your shampoo smells amazing, but more and more people are becoming intolerant to chemical fragrances, which can trigger migraines, respiratory problems, or worse! MONAT’s fragrances are all essential oils, so they are actually good for you. And they smell INCREDIBLE.
- MONAT is salon-quality and it is the ONLY direct-selling hair care company. People can’t hear about it from you then turn around and buy it on Amazon or CVS like they can do with other salon products.
- It is demonstratable. There are literally thousands of before-and-after pictures and testimonials on social media: real people showing exactly what MONAT has done for them, some in as little as one wash!
- There is a 30-day Money-Back guarantee. No other salon-quality hair care brand offers that, anywhere!
- MONAT is very concentrated, and one bottle lasts an average of 4-5 months. You can actually SAVE MONEY using this over even store-shelf products!
- Samples are available to let potential customers and team members try it out before they take the plunge. Sampling is very effective!
That’s just one example… now look at your products and see what makes them unique.
Come up with a list of things that sets your products apart.
Make sure your list is compelling, and that you have it committed to memory.
If you can’t come up with a good list of reasons why your product is ABSOLUTELY UNIQUE, you may have found the reason it isn’t selling well.
If your product has too much competition in the marketplace, the dollars will be spread over every option, giving each one a smaller share.
The problem may not be you: it may be your products.
3. The Company
The products can be amazing and there can be no competition, but if the company lacks integrity, you have a problem.
Research the company you are looking at.
- Is it owned by a family or a mother corporation?
- How long has it been in business?
(If a very long time, like Avon, Amway or Mary Kay, the market may already be saturated).
- How does the company treat their associates?
Do they value the people that work with them or have they ripped people off, leaving distributors unhappy?
Do they offer valuable incentives, trips, and a generous compensation plan with bonuses that encourage success?
- What is the structure of the business model?
Is it direct-sales, network marketing, traditional marketing, commission-based?
Do they provide resources and quality marketing materials to give their associates the best possible chance at success? Do they provide training videos?
4. The Compensation
You can have amazing, unique products that have no competition and a wonderful, family-run company that treats their distributors like gold, but if they don’t have a great compensation plan that allows you to build significant residual income long-term, how can it be the right vehicle?
The first thing to look at is the nature of the products. Do they allow for residual income by being used up, so people keep coming back for more?
- The product should be consumable.
Consumable means they run out: they must be repurchased regularly.
While selling something like hair clips or jewelry is fun, every time you want to sell more, you have to find more customers, and sell more.
That’s not passive income—that’s active income. It can be one type of income stream, but it will NOT create residual income—because people aren’t re-ordering on a regular basis. After all, how many pieces of jewelry does a person need?
Conversely, if one of your selling points is that your customers only ever need to buy one thing every few years (like with one cleaning company I’ve worked with that sells high-quality cleaning cloths), what does that mean for you? It means you have to hustle a lot more to make a decent income, and it won’t be very residual.
To build truly residual income, your products MUST BE consumable.
- Study the compensation plan.
Any time you are considering a company, you need to evaluate the compensation plan and really understand it.
There may be videos that go in depth, or maybe the person who told you about the company can explain it in more detail so you know how they get paid and what you can expect.
It’s great to find a company that not only pays commissions on personal sales, but also incentivizes building a team. This way you can earn commissions on all of the people on your team, not just your customers.
See how far down you get paid: if you build a large team, is there any point at which you don’t get paid on the people far below you?
Look at the top earners in the company. How much are they making and how long did it take them to get there? How many people are making really great incomes?
Also many companies have bonus incentives the first 1-3 months after joining: so you start making good money right away and get your business on the right track from the beginning—which is good for everyone!
EXAMPLE: MONAT has a period called Smart Start that lasts the first 3 months after you join. You get paid the normal commissions on all sales, and you also get bonuses if you build a “block,” which is 3 VIP customers and 1 Market partner (distributor), and if you build 4 blocks you get another additional bonus on top of that! You also get bonuses for ranking up to the next level. Some people have made several thousand dollars in their very first month and got their business off to a great start—already earning residual income on all of those sales!
Bonuses built into the comp plan, especially at the beginning, allow for active income (now) and passive income (residually…forever)!
The details of the comp plan matter. A lot.
5. The Team
Lastly, examine the team you would be working with if you joined your potential business.
- Do you like these people?
- Are they successful?
- Do you like their strategies?
- Can you relate to them?
- Would you like to work with them and learn from them?
- Are they people that could be (or already are) your friends? Would you be happy to travel with them and do events together?
One of the biggest benefits of having your own business is the ability to work with people we like. We can choose who our teammates will be! And when they succeed, we succeed–we are literally invested in each other’s success.
Over the past year, I’ve met some of my best friends doing this business.
Some of them live near me, and some live across the country. I’ve traveled to the Bahamas with some of them (a free vacation on MONAT!) and look forward to many more trips with these new life-long friends.
- Does your potential team work together well to achieve goals?
- Do they help each other?
- Do they like each other, or is there a lot of drama and fighting?
- Can you get on board with the team’s strategies? Are they open to your ideas?
- Can you see yourself contributing and being successful with them?
These are all questions you must ask yourself when considering a serious side hustle.
Network marketing is a team effort–your choice of team is important.
Now that we’ve gone through the top 5 things to look for when choosing the side hustle that is perfect for YOU… let’s talk about some questions or objections you may have.
But isn’t Network Marketing a Scam?
Network marketing (MLM) has a bad reputation.
Some people call it a “pyramid scheme” (which isn’t accurate—look it up! Pyramid Schemes are illegal and don’t involve any products!).
Let’s look at what Network Marketing is, exactly.
Network Marketing is a business model that involves marketing primarily based in Word-of-Mouth marketing.
Because studies (and common knowledge) show that the most effective way to get a new customer is if someone they know and trust recommends it to them.
Plain and simple.
People buy what their friends and family recommend.
But what kind of marketing do most companies do?
Billboard ads, TV commercials, radio spots, Internet banner ads, etc.
That advertising is far less effective than word-of-mouth. But for huge corporations, it is a lot easier to spend money to advertise than to enlist an army of faithful customers to dedicate their time and efforts to spreading the word about their products.
And that’s what Network Marketing companies do. They harness word-of-mouth marketing over traditional mass-marketing methods.
And in the process, they partner with individuals like you and me. They allow us to be their spokespeople, which is way better than hiring celebrities and purchasing TV spots or internet banner ads.
Better for them, and better for us.
It’s better them, because they pay out their advertising costs on commissions.
Instead of spending millions of dollars on an advertising campaign, they will pay out millions of dollars in commissions to regular people like you and me.
That advertising money is spent either way. But when it’s spent on commissions rather than advertising, everyone wins.
The company gets more effective advertising, dollar for dollar. And we have the opportunity to build residual, passive income and become financially independent.
Once you understand what Network Marketing is, and what it is capable of giving you, I think you will believe (like I do) that it is the best business model there is.
I have a couple of companies that I work with, and of course I’ve applied all of the above criteria to each of them. That being said, if I come across products I really want to try and I can get a wholesale discount by signing up as a distributor, I usually do it: because that makes that purchase tax deductible, and if I recommend it and someone buys I can make a little bit of money as well.
Here are the companies I have found to meet all of the above criteria and offer (with work) the best chance of success:
MONAT haircare. I was never a “hair person” before, but guys: this stuff is life-changing. I always thought I had bad hair, but it has been literally transformed in the year since I’ve been using it. (And it’s helping people GROW BACK THEIR HAIR from thinning, balding, Alopecia, chemo, and other hair loss. This stuff is flying off the shelves!) It’s just a great business model, comp plan, company, team, and consumable product.
- Click “join now” to get the best hair products you’ve ever tried at wholesale prices, write off all of your hair related expenses on your taxes, and make great money! Always a 30 day money (empty bottle) money back guarantee on every purchase–so there’s no risk! If you’d rather try a sample first, click here.
Wholesale Travel Club. Do you wish you could travel more? What if you could take 5-star vacations at 2-star prices, plus get wholesale discounts on plane tickets, rental cars, hotels and theme part tickets? I’ve found that just the mention of “wholesale travel” piques all kinds of interest: I had 4 people sign up with one Facebook post! Everybody wants to travel more, and there is one reason they don’t: money. It’s a great way to write off your vacations on taxes, save money on great destinations, and make money to boot!
And of course if you ever have any questions or would like to discuss anything, please don’t hesitate to reach out. My google voice number is (802) 227-7051. Feel free to call or text me any time, or PM me on Facebook messenger.
*Wealth: What is “true wealth” (in every sense of the word). It is a lot more than money. It is freedom.
- Time Freedom: Make your own hours, do what you love on your own schedule. Pay attention to your kids when they need you. Take a vacation on your clock.
- Location Freedom: Work wherever you are: from your phone, laptop or in person. At home, on the beach, in a ski cabin, across the world.
- Freedom Freedom: Be your own boss. Call your own shots. Choose the people you work with.
- Financial Freedom: To accomplish all of the above, you have to make enough money to finance it. Don’t be a slave to your job, your bills, your taxes, your mortgage. Live in freedom.
New to Freedom & Coffee? Start here.
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