There’s a saying in the corporate world: “Don’t make yourself irreplaceable. If you can’t be replaced, you can’t be promoted.” As an entrepreneur, this is still true in its own way. Let’s think of “being promoted” as earning more and working less. You can raise your prices, but until you remove yourself from being directly involved in doing the work that generates the income, there’s always going to be a limit to how much you can earn, and it can only increase very slowly.
Residual income comes from building an asset that continues to pay you after the work has been done. A book, movie or song is an asset to the people earning royalties from it. A house is an asset to the landlord being paid rent, and a business is an asset to the business owner who does not need to be involved in the day-to-day activities anymore.
To create residual income, a business needs to have products that are sold over and over again rather than trading the business owner’s time for money, and it needs to be something people value. And preferably something you truly believe in and have a passion for. Having this fire will make it less like work at the beginning and honestly, the more you truly love what you do, the more you will attract people to it.
In my business, I have resources at my disposal to help me along: talented teammates who are sharing their strengths across the lines. As I share more and more about my love for these products and how they have helped my family and me, more people want what I have and that creates a marketplace. They see the changes in me, and then start to experience them themselves.
The snowball eventually takes hold and as I start making more residual income, they make more residual income. This means residual income will grow even faster once you pay it more attention by leading your team, replicating others to lead and handing them the reins. You can start slowing down and doing what you love without losing your income. In my business, I will be making $100,000 per month in nine years just by moving up a rank a year. Look at that number for a minute and let it sink in. What would you do with $100,000 per month and time?
Now I see what you are about to say: Is this one of the multilevel marketing schemes? Unfortunately, multilevel marketing companies are generally thought to be like a pyramid scheme. I can honestly tell you that this is not the truth. Multilevel marketing companies basically give you control of your own career path. Even Forbes Magazine endorses such companies as the wave of the future. Read “Is MLM a Bad Word” by Jody Greene or “Would You Join A Multi-Level Marketing Company For Retirement Income?“ by Robert Laura.
Before you turn away from your friend who is excited to tell you about her new career path, open your mind to the fact that this person is doing something they love, creating a business they are in control of and is super excited to share it with you. Then, think about how having some of that residual income can impact your life. Sometimes all it takes is a leap of faith. In my industry, it’s less than $200 to get started. That’s a pretty safe investment compared to the potential earnings!
As Jim Rohn was famous for saying: “I’m working full time on my job and part time on my fortune. But it won’t be long before I’m working full time on my fortune. Can you imagine what my life will look like?” I am imagining!