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Residual income formula

Posted on November 15 2012

A Residual Income is by far the best way to be paid. A residual income is where you leverage your income potential by working in numbers. In some cases you can also be paid residual commissions for life even after you have stopped doing what it is that you were doing to get it in the first place. Its a bit like a royalty that is paid to a songwriter every time his, or her, song is played or rereleased. The song writer would be paid further royalties for every new release by other artists who do a cover of their song. The song writer is then paid for life on this based on the royalty income. A residual income works in the same way and I am going to give a brief example of a great residual formula and how it works. A typical scenario for a residual income is with a network marketing company, who sell you a product. You use the product and recommend it on to others. Once others buy and use the product you get a commission. If you want to know more, take a look at Residual income formula. You will get this commission for as long as the keep using this product. If you get 100 people to use this product through you and you get a commission of, lets say, $20 per customer, per month, that is $2000 a month. But it doesn't stop there, because they have bought into this product and are using the same product as you, then they also have the same opportunity as you. They can also recommend and sell the product. The best part to this scenario is that you can also get a monthly commission from all of the customers your direct referral brings in. Lets say, each of you 100 customers bring in just 10 customers each. Now every company is different, but for this example lets say you get only $10 per customers, customer. This would be your second level down. That would mean you would be earning a residual commission of $2000 a month from your customers, and $1000 a month from their customers. Again their customers have the same opportunity to use, recommend, and sell the product, and you in this example are getting another commission from that level also. Now every company is different, and the pay plans all vary. However, the principle is the same. You can earn a monthly residual income based on team efforts, and once it has built a solid structure going down a couple of levels you have the potential to earn that residual income every month for life. Now that was a pretty straight forward example. The networks don't always work that way. You may get, lets say, 100 people, but only half of them actually get customers. Then, lets say, some of them get only two customers, while others fly with it and get a couple of hundred customers. For more info, visit this webpage.

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