Many MLM opportunity seekers have come from a direct sales background where income is dependent on home parties, fundraisers, and retail sales. While this is an excellent source of cash, there is a 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 little story to demonstrate the concept.
Imagine, if you will, a choice. A genie pops out of a bottle and offers $10,000 cash, today- right this second, no strings attached. You can take it and walk away, happy, forever. Or, he says, you can have just one penny, but not today. The genie will take that penny and double it, every day for 30 days, and at the end of the 30 days, you can have the final amount. You have 5 seconds to decide.
Now, most people would, in fact, simply take the $10,000 cash and happily walk away, especially with so little time to decide. They would instinctively feel that the doubled penny represented a trick of some sort. But they'd be wrong. Let's see 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 end of week one, those who took the $10,000 are laughing and those MLM opportunity seekers who opted for the doubled penny are probably a little 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's not 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 wonder 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 end of four weeks, you can see that the total is a far cry from 1c or even $10,000. Those MLM opportunity seekers that initially took the $10,000 aren't laughing anymore.
Day 29: $2,959,605.76
Day 30: $5,919,211.52
At the end of the month, the doubled penny is worth almost $6 Million. It's hard to contemplate that. But that's the concept behind how the residual income model works. No, you don't make $6M in a month; this example really has nothing to do with an MLM company's compensation plan.
But what does happen is you work longer, for what seems to be very little income, in order to take home a much larger prize in the end. And that prize isn't a one-time thing. After you've worked to establish your long term 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 company that is not a one-size-fits-all company, and I suggest you research companies and do so as well. MLM opportunity seekers want to go with a company where you can build residual income via recruiting while at the same time earning quick cash via sales. Find a company that offers both.
There really is no genie who gives out money. It would be nice if that was the way it worked, but following a residual income model takes a lot of hard work and time. But for those MLM opportunity seekers willing to put in the work, the rewards can be worthwhile.
