Long term residual income is what we as network marketers strive to attain. The stark reality is that few ever create it, much less maintain it! There are a number of reasons for this. So here are some important components for creating and maintaining residual income I've gleaned from my 35 + years' experience in this industry.
First and foremost, the product or service must have appeal and value. People must want to try it, then continue buying it! There's NO residual income if the customer does not continue to buy, month after month. The product cannot be just another bill each month, it must provide some type of value for the customer, whether it be savings or maybe some health benefits.
But this alone does not insure ongoing residuals. The product/service must have some type of exclusivity, i.e. something that makes it unique in the marketplace. It's an exercise in futility to expend time, money, and marketing acquiring a customer only to have them find a similar item somewhere else. A product protected by multiple patents is ideal. People can't find it anywhere else, they can only purchase through you or your company. You simply must KEEP customers in order to maintain residual income. Look at the burgeoning CBD niche. A week hardly goes by whereby I'm not pitched on some different CBD product or company. They are literally coming out of the woodwork. Don't get me wrong, I think CBD is great. I take a very good one myself. But to try and build a residual income in this niche would be very difficult, due to the non-exclusivity and unpatentable nature of the product. Customers just have too many choices to remain loyal to any one brand. People must continue to buy YOUR product for months and years in order for you to attain true residual income. Case in point, I have CUSTOMERS who have been buying my primary product consistently for over 18 years now, because of what it does for their health and well being AND because they can only get it from one source!
Another important factor in this discussion on residual income is of course earning enough to cover product cost. This only applies to distributors, not customers. So if distributors are earning enough to cover the cost of product or service, they have a high likelihood of continuing to purchase for years to come. This is crucial in order to maintain long term residuals. Ideally, one should look for a company whereby a distributor can get into profit quickly. They tend to stick around when this happens!
But all this goes for naught if the company behind the product/service closes its doors! I had this happen to me back in the 90s. I had built a significant residual income in the thousands$ per month only to have the company file for bankruptcy! Now that's a residual income killer. It was devastating for me and my family to say the least. Thankfully, the company I'm with now is 20 years old and growing more than it ever has. I feel the foundation is more than solid.
Take a step back and evaluate your business. Looking at these factors I've laid out, what are YOUR chances of experiencing a true LONG TERM residual income?
https://www.youtube.com/watch?v=FA_dnKvRd6g This product has provided tens of thousands of dollars in residual income to me for over 18 years! Exclusive, proprietary, and patented. IT WORKS!!