Understanding the Importance of Residual Income
By Sunny Ngene
This article is aimed at explaining the importance of building residual income and also to explain the need for individuals to leverage network marketing business model if their dreams are to gain financial and time freedom. So, even if you presently work a job or business, it is needful that you pay attention to network marketing so as to develop residual or passive income over time.
The commonest way that people define residual income is “income earned while sleeping”. Is it really possible to earn income while, all the while, you are asleep? This may sound strange to some people but, yes, it is possible.
The importance of residual income in a man’s life finds expressions in the statement of the billionaire investor, Warren Buffet, in which he stated that “if you don’t find a way to make money while you sleep, you will work till you die”.
Residual income is a concept that many ignore without understanding that their future well-being is dependent on it. And with what result? With damaging consequences.
By going to work every workday and receiving a salary at the end of the month, you’re simply exchanging time with money. Your salary is not residual. If your work stops, your income stops automatically.
Let me explain residual income with the following example.
Imagine two men in a village. Both have to walk a mile every day to a river to get water for their families. After a month, one man starts working on building an underground pipeline to connect the river to his house. For an entire year, he expends extra energy working on his pipeline. When he finishes, he has the source of the water directly to his house, while the other person continues to visit the river.
Residual income is like building a pipeline to connect water from the source to your house so that you don’t always have to go to the river.
In that short example, you will notice that it took some time for the pipeline to be constructed. But having done that, the man continued to enjoy water supply effortlessly.
However, the second man who failed to take the same initiative had to continue to visit the river for his water supply. What will happen if he becomes indisposed? He and his family will stay without water and suffer its consequences.
There exist many business initiatives that you can leverage in your effort to build residual income. But I do recommend network marketing, or MLM as some would like to call it, due to the fact that it doesn’t requre a tonne of investment capital to set up.
A lot has been said about network marketing by various network marketing professionals but many still feign ignorance about it.
The reasons people WON’T take a look at network marketing is NOT:
• because they don’t have the money.
• because the opportunity or business isn’t good.
• because they are worried about being scammed.
• because the profit margins aren’t high enough.
• because the demand for the product isn’t wide enough.
• because they need to ask their spouses first.
• because they need a night to sleep on it.
• because they need more time to research the company.
• because they need to get on the phone with you to join.
• because they have to ask other people on Facebook to see if you’re a good sponsor.
• because they need to see your bank account to prove the results.
• because they don’t believe in it.
The real reason they don’t join network marketing business opportunity is that they have been conditioned by society to be consumers of goods and not producers.
.They have been conditioned to buy “education” but not to buy knowledge.
.They have been conditioned to have a “job” but not to own a “business”.
.They have been conditioned to be workers but not to be their own bosses.
.They are non-thinkers instead of go getters
.They are intimidated by anything that challenges them.
That is what this is really about. It’s about people who are so afraid of learning, and stepping out of their comfort zones and being paralyzed by their fears.
It’s about being comfortable and caring what other people might think. It’s about their family thinking they are FAILURES if they do anything besides just having a JOB.
If you’re working presently, understand that you are only exchanging your time and effort for the pay cheque you receive at the end of the month. That’s okay though but by going to work every day, you are not building residual income which is the pipeline that will enable you to get water supply without having to go to the river.
In view of what has been outlined above, what should you be thinking of doing now? Continue with your job but alongside your job, approach a network marketing professional to set up a network marketing business that you should be doing on a part-time basis. The little part-time effort you put into the business will, before long, yield a significant result.
Article Source: http://EzineArticles.com/expert/Sunny_Ngene/2455020