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True Lifetime Residual Income

All networking marketing companies start out with saying they offer residual income. They don't even say lifetime residual income, just residual income. I believe their intentions are well founded when they say they offer residual income, but let's take a look at what really happens with the vast majority of network marketing companies.

Fact number one: Around 97% of all new network marketing companies never make it past their fifth year in business. So 97% of all the new network marketing companies are never really able to offer "lifetime residual income". I don't know about you but I would sure hate to invest 3 or 4 years of hard work building up my residual income only to have it disappear overnight.

Now you find yourself having to start all over again. Sure you can probably bring some of your down line with you if you move very quickly in finding another start-up. A certain portion of your down line will just get out of the business and not come with you. So you will have definitely lost a portion of your income.

Fact number two: 95% of all the people who get into a network marketing home based business will get right back out of it in the first 4 months. Where does this leave you, constantly having to replace people who quit the business? That's not so bad the first time you have to replace everyone, but the second or third time gets rather old.

You had better be an internet marketing guru if you plan on building a large down line, or to replace it when everyone leaves. It can take years and thousands of dollars to simply learn how to drive traffic to a landing page, not to mention a lot of time consuming work.

If you plan on building a large down line, which everybody wants to, then be prepared to spend a fair amount of money and time doing it. You can do it the free way by article marketing and things like that. The only problem with this it takes a quite a bit of work and time to do it effectively. The problem is you are in the process of replacing the income you lost. Listen, spending a long time replacing people is not something most people want to do.

Most network marketing companies are set up so the "real" customers are really the distributors. This creates two problems right from the start. When your "customers" are in reality the distributors you recruit, you will find yourself in a constant state of having to replace the ones who quit in order to keep your income at the level you want. That in and of itself is bad enough, but the second problems much worse.

The second problem is that these companies can be determined to be pyramid companies by the U. S. Government, and simply shut down overnight by the government. You will never know the government is in talks with your company until it is too late and you are shut down. Please don't be fooled by all the hype. Unless you are selling more of your products to legitimate customers, than distributors, you could easily be considered a pyramid company and shut down by the government.

Some companies think they can simply fool the government by calling their distributors other names like, preferred customers, rather than distributors. Once again I don't know about you but I would sure hate to spend thousands of dollars and 4 or 5 years building a home based business only to have it shut down overnight by the government with no notice.

In recent years due to many complaints the government has started to crack down on illegal pyramid companies. One difficulty is the government has limited resource devoted to this, so it may take years before the government shuts down a new pyramid scheme started today.

The safest policy is to make absolutely sure any company you join is not going to be considered a pyramid scheme by the government. Don't be fooled by the company's rhetoric. They will say almost anything to con you into joining. We checked with the government and they said we are not a pyramid scheme. The government is way to busy shutting down pyramid schemes to give a ruling to a company.

So in conclusion, the safest bet is to go to work for a company that has legitimate products that it sells to people other than it's distributors. Some companies will come up with a product that they claim they are selling to customers, but when push comes to shove they are actually selling 90% of sales to it's distributors. When the government gets around to it this kind of company will be shut down, and there goes your residual income.

The acid test is to take a very careful look at who ends up buying most of their products. If the sales are primarily to it's distributors then run, don't walk, away from that company and find another. They might want to offer long term residual income but if the government shuts them down then what do they really offer? That is not what I would want to invest my families retirement in, a hope that I don't lose everything. I think you would want a more secure retirement benefit.

Here are some things to look for if you are looking for "lifetime residual income". Make sure the company is a minimum of 5 years old and preferably 10 years old or longer. Make sure that the product or products they sell won't become obsolescent. The next thing to look at is the variety of product sold. They must have a very wide usage, the more people who can use your products the better.

The ideal situation is to have something that every household not only here in America, but worldwide can use. In my opinion the only way to accomplish that is to have a wide variety of products that appeal to everyone and are used up on a monthly basis, so they are reordered month after month.

The next best thing to look at is the track record of the management. Have they been successful in other ventures? Are they a publicly traded company? Are they dedicated to make this work? All that adds an amount of security that they will be here for years to come. Have they demonstrated they have marketing plans in place that help the distributor grow their business. What is their past history? Have they built companies only to sell them?

Last but surely the most important is, will your income continue to grow even if all your down line quits the business? If this last question cannot be answered with a strong yes, then look further. You want a company where the vast majority of your income comes from true retail customers, not distributors disguised as retail customers, or else your long term residual income is only a pipe dream.

Please make sure the company that you choose has some type of shopper reward program that gets them to continue to buy and just as importantly, to refer additional shoppers to your network so it will grow overtime. Without these supports from the company your long term residual income will be limited should you ever want to retire.

Picking the right company is not an easy task. It took me three years to find the right company.  I wish you the best of luck in finding the right company for you. Once you do you can look forward to a very bright future, not only for you, but your heirs as well.

For more information about this one of a kind business opportunity go back to the main part time work at home page and register in the white box to learn more details about this home based business. You will learn some fascinating facts about this opportunity.

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