A Residual Income Home Business – Foundation for Success

How many times have I heard people ask the question, “How can I really build a residual income home business to secure my financial future?”  It may sound like a difficult problem to solve, but it isn’t. The answer is always the same. There are no magic bullets – it takes work. It takes a focused work ethic and a few guiding principles.

The “secrets of success” in building a lasting residual income home business are not new. They just seem to be forgotten many times when things don’t seem to be going the way they should. Let’s take a look at a few tips that have served me well over many years.

This first is always about goals. It has never been truer than it is today – “If you don’t know where you’re going, you won’t know when you get there.” If you haven’t set a goal for where you want your income to be in one year, five years and ten years than you absolutely, guaranteed will not be where you want to be in the years ahead. Read that again and think about it. Put your goals down on paper and look at them every day. Spend some time thinking about what your life will be like when you have reached your goals – DREAM.

Once you have your goals set, you need a tactical plan on how you are going to get there. The basis of this plan has to be a viable business opportunity that can generate and sustain the kind of residual income you want. There are many choices – an online business, a “brick-and-mortar” business, franchise or variations of all three. The easiest and least expensive startup is of course an online business that you can build and run from your home.

Now a discussion of all the different variations of online businesses and all the tools and techniques for building and growing an online business with a residual income is far beyond the scope of this article. However, don’t even worry about all those things until you have addressed the foundation for success. What you need to determine first is the right kind of business that will provide the basis for building and sustaining a strong residual income.

You should look for, and this is key, a business opportunity that provides a valuable product or service for retail sales and allows for the building and growing of a team of business entrepreneurs like yourself. If you have that you can earn commission overrides on the sales of your team members – a residual income home business. For anyone looking for a new business opportunity this is a key characteristic and a basic requirement for building a residual income for life.

There are several online business models that can provide a residual income – selling products or services with a recurring monthly amount and membership is a very popular model these days. But most of these are the result of sales you make yourself, not necessarily of a team of people of your making. Now a lot of people will say what I’ve described is nothing more than an MLM or network marketing arrangement. Well in many respects it is. A well respected, well managed, well run network marketing business that has been around for a number of years is the single best way to develop a residual income home business for the newbie or seasoned professional alike.

Now many reading this will say that network marketing is a scam. Well many are just that. Here are a few things to look for to find the really good opportunities. First, how long have they been around? I wouldn’t consider anything without an 8 - 10 year track record. Most importantly, does the majority of their revenue come from retail sales to non-members? This is very important for two reasons. Many MLM or network marketing scams were the result of illegal pyramid schemes where all the revenue generated came from sales to other members. In these scams the first level members, usually the original founders, made out very well, but it was actually impossible for new members deep in the pyramid to ever make any money, let alone build a good residual income stream. Stay away from these.

The second reason the large retail sales component is important is that this allows members to earn money essentially as an affiliate marketer – a very popular and lucrative online business model. This gives you essentially two business models in one. Affiliate sales to help pay the bills while you grow your long term residual income base. This is a very good model.

Finally look for those business opportunities that have good marketing support in terms of marketing tools, techniques and processes. Most of the best will have a strong marketing support capability for both the new and experienced marketer. Find ones that don’t have a big upfront fee to join or require a large monthly payment to stay a member. The ones I join are usually free to join and I never pay more than $30 per month. After the first month, in the best programs, you’re earning a nominal commission even if you’re doing very little, so there is some offset to the monthly fee. The investment does not have to be large.

Now get started. Take action. Set your goals. Finally, select the kind of business opportunity that will give you the opportunity to build a real residual income - for life.

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