Numbers don\’t lie but people do which is why it\’s necessary to right a wrong and set the record straight concerning residual income. Many have a misconception of residual income due to its association with network marketing companies that use it to pay their distributors multilevel income streams. The concept is sound but the process is flawed by which it\’s administered using products sales as its source which accounts for up to a 99% failure rate of new distributors. This leads to a negative rate of return on new business generated by distributors who bought into the program but can\’t sell their products and lose all of their investment money.
The second wave of disappointment comes in the form of referrals. Many distributors invite their family and friends to join their network and they too become victims and fall into the same trap. This leads to a bad after taste in the mouths of distributors having felt burned even scammed by the very network they\’ved joined. So this is why so many avoid income opportunity networks that promise the world only to disappoint those that regret they\’ve gotten involved in the first place.
Finally, network marketing is not easy to do even if you\’re a very good sales person. You must have the time, the opportunity and the communication and sales skills to grow your network through product sales and new recruits who are destine to failure like yourself.
So why do you ask does our ministry use a network marketing format when many Christians consider it to be of the devil? Because it\’s not of the devil nor demonic but can appear to be so if you know the facts but don\’t know the truth that network marketing and sales is hard but the same isn\’t true regarding services. With sales, networking marketing is a loser but with services it\’s a winner. Network marketing was not made for sales but for services which we offer at Rejoice!
Residual income is a great way to pay our partners who aren\’t distributors. Instead of selling products, Rejoice focuses on serving and servicing our local communities using network marketing to promote our communities programs, services and events.
Residual income differs from a wage, salary or straight commission because it\’s made for the entrepreneur not the employee who really just wants a job. Jobs pay a wage or salary which is a good source of income to pay bills but sometimes they can pay lower than expected having no way of escape other than quitting. Straight commissions are for the risk takers who love the challenge of starting every new pay period with no income until you\’ve produced. Residual income lies somewhere between the two for the best of both worlds if done right.
What do the numbers show? Our recruit leaders earn nearly $300.00 per starter\’s kit they create which also earns a little bit over $300.00 for our community service agents (CSA). So what\’s the big difference or deal? Much, really! If our recruit leader and CSA earn approximately $300.00 per month for 12 months, the recruit leader will earn $300.00 X 12 months or $3,600.00 whereas our CSA will earned an additional $300.00 per each month for a year or $23,400.00 – $600.00 in service fees ($50.00 X 12 months) = $22,800.00 for a difference of $19,200 or nearly $20,000.00 in residual income.
This is why we pay residual income, it\’s better than a wage or straight commission, but what you may not know is this in our example above that residual income raises income by the amount earned last month or in this case $300.00 to establish a new higher income level for the next month. So the recruit leader starts the next year earning $300.00 per month but the CSA starts the next year earning $3,900.00 per month.