In my Examiner column today, I listed my 6th reason to be thankful you work from home. My reason today was Residual Income. It is by far one of my favorite subjects, as I have experienced the power it has to build a great income. And to provide an income when you are unable to work, as I was .Notice the word "BUILD".
I got to thinking there's a slim chance (very slim:-) that not everyone reads this blog AND my Examiner column, so I give some information in both spots.
In a nut shell, residual income is income you receive over and over, sometimes even years after writing that initial piece of business.
All companies do things a little different, but I can speak for the company I work with. I hear there are several that are similar.
Say in month one- I enroll 10 people into a dental or health plan. I get paid on each of them within a few days of enrollment.
Month two, I enrolled 10 more: I get paid on 20 people (assuming here that all my 1st month people are still members)
10 people from last month, and 10 new people
Month three- I enrolled 10 more: I get paid on 30 people (assuming here that all my previous people members are still on the books)
20 people from months one and two, and 10 people from this month
Month four- A lot has been going on in my life. I really didn't get a chance to work much. I will get paid on 30 people. I didn't have any new business but I still get a check.
The same goes for recruiting new business owners into your company. Some companys will give residual pay on your downline, some give bonuses based on your downlines performance. Some offer both.
Sometimes a company will give advance pay. You get several months advance pay (we'll use 3 months here) on new customers, then your monthly residuals start on month 4. Some companys charge paybacks if a member quits, some don't.
That is my experience with residual income. So far, I have had great experiences with it.
I hope that helped to clear the air for those wondering.
Have a Prosperous Day!
See You At The Top!