3/16/2015 Leveraged Income vs Residual Income ­ Working At Home With KSMussselman

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Leveraged Income vs ResidualIncome

The wealthiest people in the world will say you have to have either leveraged income orresidual income. But what if you can have both?

So what’s the difference between leveraged and residual income, and why it’s important thatyou should actually go for both.

Leveraged Income

This is the type of revenue that you can earn from the work that other people do. Networkmarketing and affiliate marketing are two perfect examples of creating leveraged income.

3/16/2015 Leveraged Income vs Residual Income ­ Working At Home With KSMussselman

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Here’s how that works: A company produces its products and contracts a sales team to sellthe products for them. Each team leader then builds a team of affiliates who also make sales.

Each sales person earns a commission not only from their own sales, but also earns anOverride commission, which is a percentage of the sales the affiliates make.

The more affiliates you can build into your team, or downline, the more sales they make, themore commissions you’ll earn.

Your income is then leveraged against the amount of sales your downline makes. In networkmarketing, each time one of your affiliates signs up a new member on their team, you alsoearn a percentage from their sales and purchases too.

A good team leader will learn that you don’t have to have a huge team to build a secureleveraged income. You can have just a handful of proactive, successful team members whoin turn build their own team, and mentor their team members to each build their team, and soon down the line.

The more people in your team, the more income you can leverage by earning overridecommissions.

Now let’s look at residual income.

Residual Income

Residual Income is one of the best types of revenue you can have. Why? You do the workonce, and you get paid for it over and over.

3/16/2015 Leveraged Income vs Residual Income ­ Working At Home With KSMussselman

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What are some examples of residual income?

Anything that you only have to create once, whether it’s a physical product or digital product,that you can keep selling over and over to hundreds and thousands of people without havingto manufacture it again.

The first thing that comes to mind is Books. The author only has to write the book once butit’s sold over and over.

In the online world, there are a lot of ways to create residual income, from creating websitetemplates to writing digital ebooks. Create the products once and sell them over and over.

Leveraged Income + Residual Income = The Perfect Combination

One way to build a solid residual income, as an example, is to create a roadmap of sorts, aduplicatable system that your team members can use to earn and recruit team members.

You only have to create and test that system once and share it with your team, teach themhow to use the system and build their teams.

From there, you’ve automatically created a leveraged income from the efforts of your team.

It Doesn’t Happen Overnight!

Residual income methods may work pretty fast for some people. For example, you can writea whole autoresponder series and sell it at $50 each over and over, and make money almostovernight.

But it may take weeks, months or even years to build a solid, successful team full of activemembers who do what’s necessary to build a leveraged income with a profitable networkmarketing business.