Residual income?

[mythfinder]

hello people though i have read the training i barely seem to understand what residual income is. do i have to reach a target to start earning residual income. if some of my affiliates who have joined and has been EA and has left after some months, do i earn residual income???

[ajazzfan]

Originally Posted by mythfinder

hello people though i have read the training i barely seem to understand what residual income is. do i have to reach a target to start earning residual income. if some of my affiliates who have joined and has been EA and has left after some months, do i earn residual income???

You must be EA to earn residual income. Residual income is a commission you earn when your affiliates make sales. For example, you sponsor "Bob", "Bob" makes a sale to "Mary"--you get a residual commission on that sale. The amount you get varies depending on the product and your status (MIQ, PTL, or GL)--see the Compensation Plan and the Commission Schedule for more details. Residual income is on sales, so if there are no sales generated then there is no residual commission available. You would get residual income on Mary's purchases even if Bob isn't MIQ--it's your status that counts here. Hope this is clear!
John

[mythfinder]

i understand that....but if (in the above example) mary join under bob. mary makes a sale and leaves SFI after 2-3 months of time. how will i get residual income????

[Elmarc]

Originally Posted by mythfinder

i understand that....but if (in the above example) mary join under bob. mary makes a sale and leaves SFI after 2-3 months of time. how will i get residual income????

You continue to get residual income by continuing to recruit new affilaites and finding new customers as well as by supporting the customers you have and keep.

It is self-defeating to focus on those who leave SFI. Only those who stay will be of help to you and they are the only ones that you need to be concerned about. Help the people who stay and their success will help you.

Elmarc

[silke247]

A lot of people get caught up in the terminology (it's just a name, don't fuss over it). A lot of the terms in the US - residual income and leveraged income to name two - are unfamiliar to many in the UK I have found. It doesn't mean it doesn't exit, it means it gets called something else. But sometimes the terms get mixed up.

Here's how I explain it to my team:

Here are the ways to make money:

1. Make a sale to a customer. The is a direct sale. This is called retail. Whether the customer is an SFI affiliate or not is immaterial, they are a customer. If you sign up Mary and she buys a copy of Mining Gold you have made a sale, you get commision. This is a one time commission on a one time sale.

2. Make a sale that has an ongoing payment from the customer, such as IAHBE membership. For the one time sale of IAHBE, you will get money each month as long as the customer keeps their membership. That is residual income. Do it once, get paid "forever" (or until they cancel their subscription).
This applies to any kind of membership in any program, whether cable TV or phone lines
(I'm not limiting this example to SFI, this a general concept).

3. Mary sells a copy of "Internet Marketing by Joe Bloggs". You as her upline get a commission on that sale. This is leveraged income. It is levered, or leveraged, from the efforts of someone else. Your action in recruiting Mary has indirectly caused you to earn money from her future sales.

4. Mary sells a copy of the "Internet Marketing Club" membership.This means from your action of recruiting Mary and her action of selling "IMC", the sale will bring you income each month.

"Level 4" is where the big money comes in - you make more money from the ongoing sales of your team than you could ever earn from your own direct sales. This is where terms like "exponential growth" and "viral marketing" start to get used.

Of course that is just my way of looking at it and how I explain it.
The compensation plan will differ for each company so you need to study the SFI plan to know exactly what you're getting, and when, and why.
You need your own plan of action and you need to show your team members how to duplicate your success so that you can benefit from their efforts.

A lot of newbies look at the scheme and want the "residual income" because it looks like "money for nothing". It's actually money made later on work you do earlier (sew now and reap at harvest time and other analogies) - work to become PTL by 3 affiliates who all EA by IAHBE and you will be making residual income each month, and can then make money on their sales.
What you can't do is sit there never having even done Smart Start (as many do) and expect the money to just roll in from nowhere.

The same applies to bonuses - you can't do nothing and expect to just get a bonus. (The money in the bonus pool is generated by the sales other people make. Why should you get a share of that for doing nothing?)
Make enough sales to become PTL and you get a bonus, but that is what "bonus" means, a little extra, your main income comes from your efforts - direct, leveraged and residual.

To make GL you need 1000 SVP. People see this the wrong way round. Yes, after 1000 SVP you get "promoted" to the status of GL and you get a bonus from the GL pool. But really, the reasons for making 1000SVP of sales a month is for the amount of money you make in comissions!


Silke
PTL
(future GL)
;-)

[Nancy Casseur]

Originally Posted by silke247

A lot of people get caught up in the terminology (it's just a name, don't fuss over it). A lot of the terms in the US - residual income and leveraged income to name two - are unfamiliar to many in the UK I have found. It doesn't mean it doesn't exit, it means it gets called something else. But sometimes the terms get mixed up.

Here's how I explain it to my team:

Here are the ways to make money:

1. Make a sale to a customer. The is a direct sale. This is called retail. Whether the customer is an SFI affiliate or not is immaterial, they are a customer. If you sign up Mary and she buys a copy of Mining Gold you have made a sale, you get commision. This is a one time commission on a one time sale.

2. Make a sale that has an ongoing payment from the customer, such as IAHBE membership. For the one time sale of IAHBE, you will get money each month as long as the customer keeps their membership. That is residual income. Do it once, get paid "forever" (or until they cancel their subscription).
This applies to any kind of membership in any program, whether cable TV or phone lines
(I'm not limiting this example to SFI, this a general concept).

3. Mary sells a copy of "Internet Marketing by Joe Bloggs". You as her upline get a commission on that sale. This is leveraged income. It is levered, or leveraged, from the efforts of someone else. Your action in recruiting Mary has indirectly caused you to earn money from her future sales.

4. Mary sells a copy of the "Internet Marketing Club" membership.This means from your action of recruiting Mary and her action of selling "IMC", the sale will bring you income each month.

"Level 4" is where the big money comes in - you make more money from the ongoing sales of your team than you could ever earn from your own direct sales. This is where terms like "exponential growth" and "viral marketing" start to get used.

Of course that is just my way of looking at it and how I explain it.
The compensation plan will differ for each company so you need to study the SFI plan to know exactly what you're getting, and when, and why.
You need your own plan of action and you need to show your team members how to duplicate your success so that you can benefit from their efforts.

A lot of newbies look at the scheme and want the "residual income" because it looks like "money for nothing". It's actually money made later on work you do earlier (sew now and reap at harvest time and other analogies) - work to become PTL by 3 affiliates who all EA by IAHBE and you will be making residual income each month, and can then make money on their sales.
What you can't do is sit there never having even done Smart Start (as many do) and expect the money to just roll in from nowhere.

The same applies to bonuses - you can't do nothing and expect to just get a bonus. (The money in the bonus pool is generated by the sales other people make. Why should you get a share of that for doing nothing?)
Make enough sales to become PTL and you get a bonus, but that is what "bonus" means, a little extra, your main income comes from your efforts - direct, leveraged and residual.

To make GL you need 1000 SVP. People see this the wrong way round. Yes, after 1000 SVP you get "promoted" to the status of GL and you get a bonus from the GL pool. But really, the reasons for making 1000SVP of sales a month is for the amount of money you make in comissions!


Silke
PTL
(future GL)
;-)

Hi, Silke!

You presented a great explanation; simple and direct. So much so I am planning to use part of it for my affiliates! Thanks!

Nancy :Koolaid:

[silke247]

Thanks for the thanks, Nancy! :)

Another "training" method I've found useful is rather than just give them a solution, ask them questions so they have to think and find their own answer, their own "way".
(if that sounds a bit Zen, forgive me, I used to be a karate teacher - in fact it was my first experience of "mentoring"!)

How do I MIQ? (10 SVP)
Personal purchases or sales?
What benefits do I gain?

How do I PTL? (40 SVP)
What benefits do I gain?

If I sign up Mary and she MIQs, what do I get in commission?
If she sells to Bob what do I get in commission?

If Mary makes PTL (40 SVP) what do I get?
When Mary sells to someone in her new powerline what do I get?

And so on.

I know some affiliates get told by their PTLs
"look at the dboard, look at the commission schedule" and feel they deserved a more direct answer.

But there are also PTLs who keep getting the same questions from afiliates who COULD have found the answers if they had bothered to look at the board, schedule, or even just do Smart Start!

It's a case of finding balance between giving guidance to a good new affiliate and potential future PTL, and "babysitting" someone who will never do anything for themselves.

And of course remembering "if it's to be it's up to me".


Silke
PTL
;-)

[gstvbrjs]

Hello. I have been with SFI for 8 months, almost a year up to this date. I still haven't found the best way to make a profit. Is there anyone out there who has found a way to make residual income in the best and easiest way? Thank you. Gustavo J. Barajas :)

[kayrose]

Originally Posted by mythfinder

hello people though i have read the training i barely seem to understand what residual income is. do i have to reach a target to start earning residual income. if some of my affiliates who have joined and has been EA and has left after some months, do i earn residual income???

It means you keep getting money on work you already did building teamwork
yes In my conpany you get paid 8 different ways.