Residual Income in MLM or Network Marketing is a Lie!

OK, I am sure that title probably pissed you off. But, think about. When you joined your MLM, network marketing, direct sales company, you were probably told that one of the reasons for doing so is because you will earn residual income. You were told that you would have your upfront sales and you would then have your residuals that would come in month after month after month. Do it once and get paid over and over again. Right?


Let me explain why.

If you have a customer for life, if you never have to speak to that person again and they will just keep buying from you over and over again every month, then you will earn true residual income. But, it rarely ever works that way. You have to keep in contact with your buyers, your team, your downline in order for the checks to keep coming in. Once you stop, so do the checks.

So, why do MLM, network marketing, direct sales, etc companies tell you that you can earn TRUE residuals doing this business? They didn’t really lie to you, did they? Well, not exactly. But, what they did not tell you is that it would take work, a lot of work, hard work to earn those residuals. You will have to build up a team(s) in the thousands, knowing that 95% of them will drop out, drop off the face of the earth, and drop your product. It will take more than a few weeks or month. In most cases, it will take years of hard work, long hours, time away from friends and family, time away from some things that you love to do, to actually get there.

It is very different than the residuals you earn from say a stock portfolio, monthly interest on a bank account, investment dividends, etc. In these cases, yes, you can do it once, sit back and wait for the residuals to come in without having to really do much work.

Find out what residuals mean in your company and how realistic are they to obtain and keep? Is the upfront money as good as the residuals you can and will earn? What sort of work will be required to keep earning residuals? These are just a few questions you should ask to find out more how residuals work in your company and if they are realistic or just yanking your chain.

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