Residual Income?
If I have 10 rental houses, do I have residual income?
If I own a Starbucks Franchise, do I have residual income?
If I have a 10 million dollar stock portfolio, do I have residual income?
If I'm Joan Kroc,(McDonald's heiress) do I have residual income?
If I own Apple Computers, do I have residual income?
If I'm a distributor for a Multi-Level Marketing company, do I have residual income?
Does residual income imply no more work? Can residual income dry up? Are there any opportunities ever, for residual income in it's purest form?
What are you saying, when you tell a prospect in MLM, they have the chance to make residual income?
I'm just thinking out loud here. What are your thoughts?
posted by David Robison | 4:45 PM
3 Comments:
The simple answer to all your questions is no, you do not have residual income. To put it in perspective, if you earn $30,000 per year and save $3,000 to invest in the bank, are you earning residual income? The answer is no... right? What if you're living in Darfur? Now it's not so easy to answer in the negative.
Also, what is the definition of residual income? Does it mean not having to ever work again? Or to only be required to work when you want to maintain the lifestyle you desire? Is that residual income?
The wishy-washy answer is yes and no.
If you're building it correctly - you should have a significant degree of freedom with your income. Freedom meaning you can operate it from any civilized setting (as long as you can communicate with your group and potential new partners/customers), you can take a vacation now and then, and you don't have to work like a dog as if you owned a franchise.
But, in terms of this income being "secure" just as a federally-insured CD is secure - well, you're stretching reality - by a significant margin.
It is an income stream far more desirable than a job, or self-employed wage - but it is not income you'll have after living on a desert island for 20 years - or, it will certainly be far less than when you first left.
Kent
"There is no such thing as a free lunch"
With that said in regards to residual income I don't think there is true walk-away income in any business. However, my feeling on residual income is like the old water pump analogy. If you prime the pump (Work your business really hard) eventually the water flows with less pumps and less effort (Less work). So then its a matter of working real hard for a time then less to make more in the long run.
So if someone told me if I worked really hard for 2-3 years to grow my business, after those 2-3 years I could cut my efforts in half and still create the same income if not more with less effort I am like now we are talking.
Successfully yours,
George Marsh
CED-Chief Executive Daddy
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