Network Marketing and Other Stuff

People join MLM or Network Marketing companies for many reasons. They want to be their own boss, work when they want to, have time, money and freedom. Sometimes they love their jobs but need a few extra hundred dollars a month. However, one of the aspects of network marketing that people seem to have trouble understanding is true, walk away residual income. Let's talk about the difference between linear and residual income.

You wake up, go to work, punch in, work your eight hours, punch out, go home. The next day you wake up, go to work, punch in, work your eight hours, punch out, go home...and so on. At the end of the week you get paid. Sound familiar? What happens if you don't work? You don't get paid. That's Linear income.

In network marketing you do the work once and get paid for that work over and over again. Think of it like a royality check without being a rock star or famous author. That's residual income. Now let's expand on that concept a little more. Where does that money come from? Any good Network Marketing company makes their money from retailing products. If you have a good product that People Want, they will reorder that product on a regular basis.  That's where your residual income comes from.

Companies also give you front end sponsoring bonuses, somtimes called quick start or fast start bonuses. These are important because it allows the new distributor to make some money while they build their residual or back end money. Most of us have a goal of building a business and someday retiring and enjoying our time while our residual checks keep coming in.

If this is your goal, or you just want to take a couple of months off to travel or to take care of a loved one, you need to make sure you're able to do this. That's where the integrity of the company comes in. If you have ongoing sales or recruiting requirements, ongoing training requirements you might find yourself without a check one day.

Network Marketing is a great way to leverage your time and money. It doesn't matter if your income goal is a thousand dollars a month or ten thousand dollars a month. You just need to do a little homework. Take your time. Once you find a great company they should be there for the rest of your life. Remember the best things take time, patience and work.