Growing a successful work from home business requires that you leverage your efforts. Making a one-time sale and continuing to get paid from that buyer for months or even years allows your business to grow not only from your current efforts but from your previous efforts. I currently have over 40 customers that I have earned monthly income from for over 15 years. Currently the only role I play is for customer support for them. How would that impact your online business model to know that the work you do today will pay you for decades to come?
Selling new products to new buyers and former buyers is a great way to make an income but the amount that you can leverage this is limited by how much you can do at any given time. True leverage comes when you earn money from work done once over a period of time. This income cycle is control by how many buyers you have had times the number of months or years that they continue to pay you.
You can do this one of two ways. The first is by back-end products that your buyers may need to continue to use the first product that you sold them or a product to add value to what they are already doing. This requires that you have a continuing stream of product offerings to an existing buyer list. Planned periodic sales campaigns allow you to stay in contact and provide value to this buyers list.
There is a misconception in online marketing that residual income is income earn when you promote and sell someone else product through an affiliate program. This is still a back-end sale just not a product that you own. You will continue to offer reviews of great products and promote them to your buyers list. Campaigns will be required and you will still need to make the sale again and again. It is a great method for growing your business.
True residual products are products that are on auto order, ongoing monthly income streams from membership sites or even ongoing services provided to people who bought your service program. These types of products require you to provide customer service to your buyers but not necessarily sell them new products. This money comes in automatically each and every month as long as you provide e the service or product.
A comparison is that if you wanted to have a $20,000 per month income you would have three choices.
1. The first would be to sell $20,000 in profit of items to new buyers each month. This is similar to what large retail giants do. They have no income until they sell a new product to a new buyer.
2. The second would be that you have a list of people who you market a product to each month that will generate you $20,000 worth of commissions. This is the value of your buyers list but you must still run campaigns each month to have income.
3. Third would be selling a $40 per month service to 500 customers that is auto-billed each month. To maintain $20,000 per month income you would only need to service your customers and replace any customer attrition that you may have.
Most work from home business owners are only creating a job that they work from the kitchen table. Entrepreneurs understand that you must have an exit strategy and true residual income model allows them to sell their business to someone else at multiples of up to 100 times the monthly Income. That means that $20,000 a month residual income could be worth as much as $2,000,000 to the right buyer. Then you can do it all over again. That is real residual income.
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