Network Marketing. Residual Income Versus Linear Income

Network marketing is a home-based business and you do not need a high investment to starts one. There is no risk involved except your time and effort.

Word of mouth advertising

Every day you are being bombarded with network marketing at work. Someone has just told you about how great the food is at one of the new restaurant in town; you tell your friends how great was about a movie, all these are being spread via word of mouth. Unconsciously, you are doing the restaurant and the cinemas a free advertising service. It is a form of marketing where the product or service is move directly from the producer to the consumer via word of mouth.

Get paid for talking?

But in network marketing you are being paid for doing this on a basis of a residual income. Is it not great?

One-time job

Residual income in network marketing is income you can earn continuously from your customers and those customers of your down-line whenever they purchased the company’s products. The best part is this residual income results from only one time effort in your marketing efforts for these products and services.

One-time commission

Linear income is the opposite of residual income whereby you are only able to make a one-time income out of a sale of a product or a service. For example, when you sell a car, you only get a commission once. There is no recurring income as compared with that of network marketing. Even if the customer would have bought another car, the agent would only receive a one-time commission for the new purchase.

In network marketing a customer who bought your products or services will continue buying from you if they like it and you keep earning recurring income based on only one time effort of yours of making him your customers.

Time=money

If you are a 9 to 5 guy working for a salary every month, you are only earning a linear income. It is best described as you are exchanging your time with money. If you stopped working, your income stopped with you.

Just duplicate

In network marketing you need to prospect and make them join your network as a business builder only once. After that he will duplicate and prospect people to join them as their down- line business builder or just become their customers.

Go viral

You may want to know how viral it can be to earn a residual income when you see how a software developer does it. For example, if you could create an anti-virus product that every computer users needs to protect their computers every time they goes online, and you will get the picture of how much residual income you will be getting by just creating the product only once. You just have to duplicate it and sell and you will see your money rolling in without much effort because the initial task of making the product is already done.