Residual Income Model - A Penny or Ten Grand?

Residual Income Model - A Penny or Ten Grand?

Many MLM opportunity seekers have come from an immediate sales background where income depends on home parties, fundraisers, and retail sales. While this is often a superb source of money , there's a much bigger picture here: The Residual Income Model.

Most MLM opportunity seekers don't quite understand how the residual income model works, so here's a touch story to demonstrate the concept.

Imagine, if you'll , a choice. A genie pops out of a bottle and offers $10,000 cash, today- right this second, no strings attached. you'll take it and walk off , happy, forever. Or, he says, you'll have only one penny, but not today. The genie will take that penny and double it, a day for 30 days, and at the top of the 30 days, you'll have the ultimate amount. you've got 5 seconds to make a decision .

Now, most of the people would, in fact, simply take the $10,000 cash and happily walk off , especially with so little time to make a decision . they might instinctively feel that the doubled penny represented a trick of some sort. But they'd be wrong. let's examine what would happen if the doubled penny scenario was pursued:

Day 1: 1c

Day 2: 2c

Day 3: 4c

Day 4: 8c

Day 5: 16c

Day 6: 32c

Day 7: 64c

At the top of week one, those that took the $10,000 are laughing and people MLM opportunity seekers who opted for the doubled penny are probably a touch embarrassed.

Day 8: $1.28

Day 9: $2.56

Day 10: $5.02

Day 11: $10.04

Day 12: $20.08

Day 13: $40.16

Day 14: $80.32

Two weeks have passed, and our doubled penny has not even reached $100. Half-way there and it isn't looking too good.

Day 15: $160.64

Day 16: $361.28

Day 17: $722.56

Day 18: $1,445.12

Day 19: $2,890.24

Day 20: $5,780.48

Day 21: $11, 560.96

Ha! After three weeks, we caught up! i'm wondering what next week will bring?

Day 22: $23,121.92

Day 23: $46,243.84

Day 24: $92,487.68

Day 25: $184,975.36

Day 26: $369,950.72

Day 27: $739.901.44

Day 28: $1,479,802.88

At the top of 4 weeks, you'll see that the entire may be a far cry from 1c or maybe $10,000. Those MLM opportunity seekers that originally took the $10,000 aren't laughing anymore.

Day 29: $2,959,605.76

Day 30: $5,919,211.52

At the top of the month, the doubled penny is worth almost $6 Million. It's hard to contemplate that. But that is the concept behind how the residual income model works. No, you do not make $6M during a month; this instance really has nothing to try to to with an MLM company's compensation plan.

But what does happen is you're employed longer, for what seems to be little or no income, so as to require home a way larger prize within the end. which prize isn't a one-time thing. After you've worked to determine your future residual income model, you receive your income month after month.

This example is what initially attracted me to the concept of network marketing. Of course, I chose a corporation that's not a one-size-fits-all company, and that i suggest you research companies and do so also . MLM opportunity seekers want to travel with a corporation where you'll build residual income via recruiting while at an equivalent time earning quick cash via sales. Find a corporation that gives both.

There really is not any genie who gives out money. it might be nice if that was the way it worked, but following a residual income model takes tons of diligence and time. except for those MLM opportunity seekers willing to place within the work, the rewards are often worthwhile.