How To Build a Distribution Network For Your Residual Income Business

One of the biggest obstacles people face when trying to build their residual income business to produce home based income is building that distribution network.

It can sound like a daunting task until you realize again the genius of the home based income business structure: there are no employees or employers – or brokers and agents as in the previous home based income article example. Everyone is equal – both an agent and a broker at the same time, so-to-speak. They can be the leader of their own team while at the same time contributing to someone else’s team. This means that everyone who gets involved got involved for the equal opportunity to be able to afford THEIR lifestyle and reach THEIR dreams and goals as it’s a volunteer army. They can build THEIR OWN distribution network and in doing so, if that person is also a part of your distribution network, THEIR distribution network is also now a part of your now LARGER distribution network.

Compensation structures vary from company to company, but in essence, you are able to receive compensation from the distribution network of your distribution network – are you following me? Your network can just continue to grow exponentially from network to network – and that’s how the residuals really start to add up.

Targeting the Right Prospects For A Residual Income Business

So you’re simply looking for others with similar goals and dreams like you have – people who want more out of life and are willing to work in their spare time or around their schedule to create more for themselves and their family, which they can do with home based income.

And unfortunately, not everyone wants that, as silly as that may seem. In fact, that segment of the population you’re looking for is only a small percentage (but even 1% of 6 billion people is still 60 million people – you just need a few who have a few who have a few), so you must specifically target your ideal audience, ie, those looking to create income from home to better their lives. Of course there’s always exceptions but obviously you’ll be received better from people who actually want what you have to offer (and to reiterate that’s NOT your product, your residual income business opportunity is what you’re offering if you’re focus is on building a 6-figure or so home based income; the product is a side-benefit of the business).

Follow this logic: if you’re looking for people who want to earn income from home with a residual income business, AND if the bigger your team grows the more leverage you’ll have and the more home based income you’ll be able to make, THEN you need to get your residual income business in front of as many people who are looking to make home based income to be able to maximize your earnings. Does that make sense?

Well, luckily, with the advent of the internet, people are searching online all the time about how to create home based income. There are companies out there who will find these people for you and sell you their information in the form of business opportunity leads or home based business leads. Now there are numerous companies out there selling these leads of all different types and you can spend as much as $10 or more per lead with some of these companies.

The Prospecting Skills Needed For A Residual Income Business

But one of the most important factors to your success in growing your team using purchased leads is the technique you use when you call. It is an art as much as it is a science.

How to Setup a Residual Income Business From Home

Setting up a home based business with several income streams can be quite intimidating at first. But, after a short learning curve, it’s fairly simple.

What is a residual income stream? A residual income stream is nothing more than a downline you have created that duplicates your business and/or business tools that provides you a monthly recurring income. This is the essence of network marketing. On the other hand, if you are simply providing or selling a product to the masses this would be considered internet marketing. A lot of opportunities provide both internet and network marketing within the same system.

The easiest way to setup your residual income business is as an affiliate. An affiliate is simply selling someone else’s product and earning a commission. I have outlined the simple steps below.

Step 1. Join some type of network marketing business as an affiliate. The very first step to creating your residual income business is to join some existing online network marketing business. Back in the pre-internet era, you would have the typical hotel conference room meetings where you would join and bring others to join and grow your business. Times have changed. These days there are countless online network marketing programs you can become involved with. Before you get involved, make sure you do your homework and the program you choose is appealing to you and your comfortable with the team, staff and people you will be working with.

Within almost every network marketing program there are monthly fees that you have to pay. This is how the recurring residual income is created and is perpetual. You pay your monthly fee, of which your upline gets a commission, bonus, etc. What I look for in a network marketing company includes who are the founders (owners), pay plan, how long in business, business plan, product, investment, support and training. The income stream can vary within the program as most programs have various upgrades with higher monthly fees.

Step 2. Setup your autoresponder. In order to get your message out to the masses, you need an autoresponder. Some network marketing programs come with built-in autoresponders and turn-key websites to make it easier for the newcomer. If your program does not have a built-in autoresponder there are several great autoresponder companies to choose from (aweber, constant contact, mailchimp, getresponse, gvo, etc.).

When setting up your autoresponder please watch all the video tutorials provided. It is important to personalize your pre-written messages that go out to potential recruits as you grow your business. Some of the better network marketing companies will provide pre-written messages for you to grow your business.

Another income stream here is the monthly fee associated with the autoresponder account. These fees can range anywhere from $15 monthly to $450 and up monthly depending on the size of your list. Your list is simply the number of prospects that have opted in to your opportunity. Your autoresponder then provides follow-up messages to that list (statistics say most opportunity seekers look at an offer 7 times before joining).

Step 3. Traffic & Advertising. In order to grow your business you need traffic. There is paid traffic and free traffic. A lot of the paid traffic sources also have an income stream your earn residual income from. As others join you and your business, they will copy your program and you will earn recurring monthly income as well. The income streams for traffic and advertising can vary depending on the newcomer. If they want to grow fast, generally the will have more paid traffic.

Simply following these 3 steps can setup your residual income business fairly quickly. As your continue to promote, your business will continue to grow and your residual income will grow as well.

Stop! You’re Doing It All Wrong! Offline Residual Income Business Strategies

Odds are, you are like the 95% of network marketers trying to create a home based income the “old school” or more traditional offline way and looking at how you can use the internet to build your residual income business because you only have a limited amount of time and resources to build your business, like most people. If that’s the case, it’s important to maximize the time and any money you spend on building your business.

Maximize the Return on the Time & Money You Invest Into Your Residual Income Business

In particular, I am referring to the promoting and presenting part of the basic 3 step “promote, present, and train” process. When you are promoting your residual income business, you must focus on methods and strategies that will create the most leverage for you, where you can spend the least amount of time and money and create the most number of potential prospects.

For example, if you’re out running errands or on your lunch break or anything else that puts you around other people, let’s say you happen to start a conversation with someone and it hits you that perhaps maybe this person may be open to working on a side project that doesn’t interfere with what they’re currently doing (you won’t know unless you ask).

So as the conversation comes to a close you throw the question out there, just to see if they may be open to learning about a residual income business or home based income. Your suspect says yes he’s open, and you tell him to give you his information so that you can email him a video with more information. If he like’s what he sees great; if not, no big deal, and you leave it at that. Done.

When you get home you send him an email with a link to a video capture page. If he likes what he sees and wants more information, he’ll simply fill out the form and learn more and you’ll be alerted that indeed he is interested (he qualifies himself automatically using your automated pre-qualifying system). If he’s not interested, no big deal, you’ll know because he WON’T fill out the form.

Pretty complicated, right? No, it’s very simple and eliminates the need to have to continually call and followup with prospects who may or may not be interested, which more often than not leads to hounding, bugging and begging people – bad posture! The next time you speak to this prospect will be only after (and if) he shows a genuine interest on his part in your residual income business.

How much time, frustration, money and energy did that just save you? The even better news is that now you have all this additional time, energy and money to put more people through this exact same system to multiply and in fact exponentially explode your results, and more importantly, your income!

What I am getting at is that in building home based income or a residual income business today, you no longer need to waste countless hours chasing and begging people, getting “no-showed” by your so-called prospects, sitting in traffic, getting prepared for an event so you’re “dressed for success,” etc – not to mention the hundreds and thousands of unnecessary miles on your car or the money you’ve spent on gas. There are more efficient, smarter, cheaper and more productive ways to spend your time to get results!