Residual or “passive” income is what creates real wealth. In fact, it has created many millionaires and will continue creating more.
Understanding this principle is so important to your bottom line. The reason is simple.
Residual income opportunities multiply the profit part of your “profit-to-work” ratio.
For instance, if you take a day to make one sale and earn a one-off payment of $25.00, you have to keep repeating the same amount of work each day, making the same sale over and over again to different people, just to remain in business.
Now, imagine that you are working a residual passive income system. In the same amount of time, you acquire a new customer who will pay you $25.00 per month for the next 12 months. In one day, you managed to secure $300 for the year. In other words…if you wanted to make $30,000 per year, the one-off approach would require that you make 1200 sales, while a residual program would require only 100 sales to make the same amount of money!
The second option sounds a lot more appealling. If you haven’t already, you should consider adding sources of residual income to your online business. You’d be crazy not to with so much money on the table for so little work.
If you are just starting out, or even if you’ve already established your web presence, place a BIG focus on including residual income opportunities as part of your business plan!
But, keep in mind, not all programs are created equal. So, here is how to select, promote and profit your way to multiple streams of passive income using a logical process flow.
It consists of four simple vital components that link and synergize together as an entire whole in order to produce the best possible results. It makes it easy for you to obtain passive residual income. Use it and you’ll build your own residual windfall in not time flat.
Formula For Residual Income Wealth:
Component #1: Select It
Component #2: Experience It
Component #3: Repackage It
Component #4: Replicate It
Component #1: Select It
To begin, you need to be able to select the right residual income programs based on certain criteria.
Online residual income opportunities are built on recurring commissions for the sale of products, services, and memberships.
You can be the owner of a product, service, or membership or an affiliate. Let’s examine only the affiliate side of the equation.
Residual income programs come in several forms. There are:
- MLMs
- Membership sites
- Any service or program with a recurring fee
The last point in the list applies to all programs; that’s what is at the heart of residual programs: a recurring fee.
However, that’s not the only part that counts…
A lot of services and products fall under this definition. Services like web hosting or membership sites charge monthly fees which you could receive a portion of as a commission.
A multi-level marketing company might pay commissions based on the monthly purchases of products by customers you refer plus a percentage of sales made by affiliates you recruit into your downline.
So, the first thing to look at is the commission structure:
- Is the program single-tier or multi-tier?
- How often do you get paid?
You should also evaluate how much work is involved; not just in making the sale, but in retaining customers.
Going back to our previous examples, you can see that web hosting or membership sites bare most of the responsibility for retaining customers. If the service or the content is good, the customer will stay.
However, in an MLM, a lot of the work can fall on you.
Depending on how the company is run, your position could be extended beyond the normal definition of an affiliate to something like “independent sales representative”.
In that case,m you may have to do a lot of the maintenance and follow up work yourself. This means keeping a client database and reminding customers to re-order products.
It can also mean investing a lot of traditional time into training your members, especially if the commission structure is such that your income relies heavily on the combined percentage of sales made by your team.
Finally, you must look at the product or service and ask whether it is something people would want or need to pay for on a month-to-month basis.
This is especially important when evaluating an MLM program. You should be wary of any MLM opportunity which requires you to pay a fee to join, and in which your income is generated solely through getting others to join and pay the same fee.
Component #2: Experience It
Question is: should you promote a residual income program the way you would promote any othe program? Yes or no.
The same traffic generating tactics still apply. Tactics like pay per click, viral marketing, search engine optimization, reciprocal linking, opt-in list, ezine advertising, article marketing, etc.
However, the spin you place on promotion will differ with one step:
You should always use the product yourself or are the member of the residual site or service you are promoting.
This is important. Remember, you are asking the prospect to invest in the long-term view, a higher ticket item than most other products. Also, the majority of residual type products require first-hand experience in order to be promoted properly. How can yo praise the benefits of your MLM’s cleaning products if you have not even actually tried them.
How can you gain the interest of your prospect with your own story about the profits you’ve reaped through your favorite resale rights membership site if you are not a member?
The is the key to the way these programs are sold…
You need the benefit of being an ‘insider’ in order to hint at what lays on the other side of the order button.
Finally, you need first-hand experience in order to determine whether YOU would be willing to pay monthly for the product.
If you are not impressed, there is a good chance that your referrals will not be either; and you have to fight to keep your commission up as people start dumping the product like flies.
Component #3: Repackage It
Residual income programs offer one of the most ideal opportunities to exploit the power of freebies and special offers.
In order to get the most referrals is simply to create complementary product or service to the actual program you’re promoting.
Then offer this as an edge or ‘bribe’ to encourage prospects into joining you through you affiliate link, instead of someone else’s.
The one thing you can do to increase your results is by capturing and following up with these prospects at the same time.
You should seize the chance to build your own specialized opt-in list of targeted prospects in in your sub-niche or ‘mini market’.
To work well, your bribe needs to COMPLEMENT the main program. In a perfect model, it should achieve these two key factors for your referrals:
- To enhance their usage and benefit the residual program joined.
- To help them make their own residual income from theat same program.
For example, if you look below, you can see that I do practice what I preach.
If you click on the image below, I am giving away to those who join from the link, the opporutnity to download a report along with, not one, but two bonuses.
This is what is meant by creating a complementary bribe aournd the two factors for optimum results.
Component #4: Replicate It
What you have just learned are the first 3 components which is enough to make you a solid passive residual income base, that is if you apply it.
However, if you want to take things to a more profitable level and expand your business, all you have to do is to…
…Replicate this success formula across different programs, or recreate new bribes to attract more referrals into the same program.
The fact is that Internet Marketing is not complicated. Too many marketers are turning what’s straight-forward and easy into something totally complex as they cannot ‘believe’ that’s all there is to it.
While there are many ways to skin a cat, focus on a system that works for you once you find it. You really don’t have to reinvent the wheel; you just need to add more fuel to improve its performance.
Similarly, the system revealed here, though simple, does produce results. When the rubber meets the road, what do you want at the end of he day? I’m not a mind reader but my guess is you want Money and Real Results. Therefore, component #4 is important. Replicate and duplicate the system and you’ll exponentially build on your residual income windfall.
In conclusion, what you have seen so far are the steps required:
Component #1: Select the right residual income program to focus and work on.
Component #2: Experience the program so you’ll know exactly how to market it.
Component #3: Repackage the main program by creating your own bribe to increase referrals. Once again, it must complement the program you’re promoting.
In order to market your own unique bribe, create a simple direct response webpage with good sales copy listing the benefits prospects will get from you; if they become your referral.
It is imperative to capture their emails in order to follow up and build a targeted list.
Next, send qualified traffic to your web page and test the conversion rate, improving upon your web copy to increase response continuously. Some proven traffic tactics for this purpose include Google Adwords, article marketing, ezine advertising, press releases and joint ventures. That is it. Simple.
In conclusion, I would just like to point out that…
In order to profit long-term, you need to employ integrated thinking and marketing.
Any residual program you choose will go through changes.
Your focus is to stay on top of the changes and promote the service from a user’s perspective…create a community, offer useful tools and information and, most of all, stay in contact with subscribers even after they’ve converted into customers.
By creating a shared experience, you’ll be able to retain those customers for a long time to come…and that means more residual income for you, with a lot less work.
Hope you’ve found this information useful and profitable!
To your residual income success!
Lawren Smith
Note: This special report was created with the intentions of revealing how to generate massive free leads.
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