Doing the Math on One Residual Income Opportunity

I'm not sure when a person looks a residual income opportunity that they see the big picture. Many times as Internet marketers we are focused in how much money we are making today. In this article will take a look at the big picture when it comes to making money with residual income programs.

There are many different opportunities available to create residual income on the Internet today. In this example let's talk about selling a membership to an Internet marketing training program. This is a good product or program to sell because anyone who is marketing a product on the Internet needs this type of training.

What you really are looking for is how you get paid in a residual income opportunity.

1. The first thing is how much money can you make on the front end for a sale? This is important because we all need cash flow to stay in business and many times you can't wait for the residual income to kick in.

2. Next we want to look at how much money will we earn on an ongoing basis. Generally this will not be as much as the initial sale, but many programs today are set up so that you only need to make 3-4 sales a month to cover the cost of your own membership.

Let's say that you are in an Internet membership program that cost $25 to join. Of the $25 many programs will give at least half or more to the selling affiliate. For easy math lets say that $15 goes to the selling affiliate, five dollars is paid to the affiliate merchant, and the other five dollars is paid in the form of residual income.

On an ongoing basis this program charges $20 a month to be a member. In this example you would need to have 4 paying members to cover the cost of your own monthly membership fee. However at five dollars a month in residual income once you get beyond the initial $20 monthly fee you are paying everything else becomes profit.

How many sales would it take for you to be able to quit your job? How many sales would it take for you to be able to retire? This is not a big-ticket item yet there are literally thousands of people that you could sell a program like this too and get paid over and over on.

Naturally selling larger ticket items will earn you more money quickly. So is joining a network marketing program where you earn money on a residual basis for a multitude of sales from your downline.

The key is that you find a product that you enjoy and can create a residual income from. The best residual income opportunity is the one that there is a need for, and will pay you well on a residual basis.