Turn Your
Multi-Level Marketing Network
A Residual Income Business

Do you struggle to turn your network marketing business into a residual income business? You are probably not doing things right.

Before discussing the mechanics of ensuring that you earn a residual income from your multi-level marketing network, let’s take a look at what residual income really is.

Imagine you are a sales representative for an insurance company. The company offers you a choice of two options to earn your commission. First, you can be paid a once-off commission equal to two years premiums for each policy you sell. Or, you can opt to receive a fixed percentage of the monthly premium for the rest of the policy’s term.

Which option would you choose? It should be clear that with the first option, you will earn commission in any one month only if you sold any policy during that month. That is, no sale, no commission in that month.

But with the second option, the policies you sold in the past will continue to pay you as long as the company receives premiums on those policies.

That is residual income. You sold the policy once, and you get paid every time the premium is paid to the insurance company. Your residual income – commission – will keep growing with every new policy you sell.

Enter network marketing.

What if the insurance company says it will also pay you a commission for every policy sold by the people you sold policies to – people you may never have met and will never meet?

That would increase your residual income earning potential by leaps and bounds. You would soon be earning income from the policies you have not personally sold.

Effectively, you will be owning a residual income business. How would you like that? You would? Then it's time to…

Turn your multi-level marketing business into a residual income business.

Here’s how.

Many network marketing distributors focus their attention on recruiting new distributors. They build wide. They believe that the more distributors they have on their first level, the better are their chances of building big organisations. How wrong.

Look at it this way. Where does the bulk of your residual income in network marketing come from?

The bulk of your residual income in network marketing comes from deeper levels on your downline. So, to turn your network marketing business into a serious residual income business you’ve got to build deep. Wide is for sales representatives, not network marketers.

By building deep, you use the unfailing power of leveraging.

The key to building deep is training. Spend time with a new distributor. Make sure he/she understands the concept of network marketing. Never hurry to sign up the next distributor. Stay with your new distributor until you are satisfied that he/she can stand on his/her own.

To build deep you can use the batching system. That is, decide how many people you will work with at any one time on your first level. Work with that number of distributors only. Not more and certainly not less.

Say you want to start off with 5 people. Five will be your batch size. Work with these five until they have found their first five distributors. Do not enrol a new distributor until your first five have each enrolled five distributors on their first level.

Once this is done, you can put together a new batch.

Repeat the process as many times as you can, but do not start a new batch until the previous batch is filled.

A variation to this is to replace any distributor who reaches his/her first five with another distributor. This way you will always be working with five distributors at any one time.

Your challenge will be what to do with new distributors whom your recruiting efforts generate. Should you place them underneath the batch you are working on now? Or, should you maybe delay registering them?

The best thing to do would be to not recruit any new distributor until one of your current five distributors reaches his/her batch quota of five. But if you happen to have someone who wants to join your organisation, why not sign him/her up? You will only have a bigger workload.

Put a time limit to how long it should take a distributor to recruit five new recruits. It will not help to sick with a distributor who, despite your efforts to help, he/she does not make any progress.

Zig Ziglar said You can have everything you want if you help enough other people to get what they want.

This is the concept upon which the network marketing business concept is built upon. Help others create a residual income business through network marketing, and you will create your own sustainable residual income business.