How To Determine A Good/Great Monthly Residual Income Home Business

Discussion in 'General Advice' started by FreeCashMan, Sep 30, 2010.

  1. FreeCashMan

    FreeCashMan Well-Known Member

    The biggest challenge a lot of people have is understanding the compensation plans of networking home businesses. And many people put together various presentations to simplify them, but there is a key thing to understand when it comes to determining a more challenging monthly residual income building business over another.

    When all the excitement and hype has settled, look at the compensation plan, ask and determine the least path to breaking even on the monthly expense. Success in home business means making a profit, and profit is only realized after the expense is eliminated. The least amount of team members/sales gives you the great chance to establish a monthly profit quickly.

    More people haven't built a monthly residual cashflow home business and have sought to stray from monthly residual generating opportunities, using one-time pay cyclers for example, because they never understood the path to breaking even, and were focused on bonus and fast start income that comes and goes quickly, thus resulting in people feeling like their monthly fee is a bill just a few months into the business.

    Very often the path to break even is challenging, when you take out the fast start bonus checks, this difficulty leads to more home business failures. Typically, only the top recruiters will succeed in a business where bonus checks/fast start cashflow drive the income production on a monthly bases, while establishing a long term building of monthly residual income.

    If a business has a simple path for the average person to ideally break-even on the monthly residual, then that suggest a simple path to manifest profit for the average person that joins. A simple path retains your downline and makes monthly residual income a true probability that becomes a reality.

    I recently saw one business mention you needed 20 people on the team to break even, and that made me think, (OMG!, on first thought) do people really understand the challenge in having success with that business for the average and ordinary person.

    Such things are not conducive for more people to have success in this industry. Be wise and understand the compensation plan that makes you money on a residual bases if you want to have long lasting success, don't get caught up in bonus/fast start checks.
  2. ModernMother

    ModernMother New Member

    Good post. I have been there and done that with the fast start bonus... then I didn't make a single cent after that. I have also joined opportunites were I never got to the level where I was making money. It is hard to find opportunities where you can make a profit in a timely manner. As a matter of fact, I am still looking for suggestions if you have any.
  3. ibuzzmentor

    ibuzzmentor Member

    Numbers can be misleading. Some programs you are in profit from the first sale on but that sale is harder to make. Others you are in profit from sale 3 on but those sales are easier to make. There are too many variables to just put a blanket statement out there. The reason people fail in this industry is they either quit, dont leave aside money to market, they dont hone their skills, or they dont learn the power of leverage. Have others advertise for you, or call leads for you. One should master the art of closing to make residual huge checks no matter what business you are in.

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