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The Power of Residual Income and How it Will Create Financial Success For You


Residual Income Explained in Plain English.

When deciding on a potential business, it is important to understand that no matter how you want to slice it, sales drives a business. If you are not sales driven, then you should not consider getting into business for yourself. I know that may sound a bit harsh, but the truth of the matter is, no matter what industry or product line you wish to affiliate with, the bottom line is you will need to market, promote, and sell it to someone.

With this in mind, it is also important to understand the different types of compensations that are offered, in sales. No longer is the buy at wholesale; sell at retail, and keep the profit margin the only method for compensation.

The main and most well known method for sales compensation is, of course, commission. The sales person receives a percentage on the sale price (usually the NET sale price). This, of course, varies a great deal depending on the product, the company, the item(s), etc. An insurance salesperson can earn up to 55% commission, when selling a life insurance policy. On the other hand, a real estate agent may only earn 5 -7% commission on a sale. (However, it should be noted that a real estate sale can be HUNDREDS of Thousands of dollars, which more than makes up for the “low” percentage.)

There is a very powerful compensation policy, which many seasoned sales professionals seek out. RESIDUAL commissions are probably the most lucrative of all compensations. This is when a sales person makes a sale, and is given their initial commission on that sale. However, it does not stop there. Every time the customer purchases again, re-orders, again or renews again, the salesman receives an automatic commission on that repeating sale. The commission is paid, even if the salesperson never returns to that customer to make another face to face sale.

Residual commissions are what make insurance sales very popular, as the agent only needs to sell the policy once, and then when the client pays their monthly premium and/or renews their plan, the agent receives a residual commission. These residuals are usually less than the initial commission, but when you add them up, over time, they create a sizeable steady income.

Residual commission compensation has spread to other industries, It is an important part of most multi-level marketing businesses, and has been adapted and tweaked to be even more lucrative, over the years.

When deciding on a business to affiliate with, make sure it offers a strong and lucrative residual income compensation. In all reality, residual income is the key to a very successful and long lasting financial future.

See you at the top.

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July 2019
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