January 6, 2009

Linear Income vs. Residual Income

Do you ever wonder why direct sales companies explode during the times of recessions?

I think the biggest reason is because people are looking to earn additional revenue during these hard economic times. I was watching Jim Cramer on Mad Money and he was talking about how direct sales company stocks are skyrocketing right now!! Can you believe that?

People are getting very nervous with all of these huge companies failing and going out of business. There is just no such thing as job security anymore. Companies with employees that have been with the firm for over 15 years are getting laid off everyday. I have always had an entrepreneur mindset but I believe this more today than ever; you have got to have multiple streams of income coming in to be financially stable. If one fails you will always have another.

I once heard from a very wealthy man that there are two different types of incomes. One type is Linear Income which is if you go to work and do what you are supposed to do you will get paid. The other type is Residual Income. If you do something right just one time and stay with this business and nurture it and watch it grow you will be paid for a life time.

Just think about this for a moment, you are walking through a park and you see a huge oak tree that must be 15 feet in diameter and the top of the tree is so enormous that it will shade almost an acre of land. Do you think a miracle like that just happens overnight? No not at all, somehow or another there was a seed or acorn that was dropped on the soil and then it rains and all of a sudden a small chute pops out of the shell looking for more water and nutrients. Then it rains again and again and eventually 100 years later there is a huge tree offering shad and home for many little animals.

This is kind of like how you start a direct sales company. You start planting seeds everywhere. Some will grow, some will not, and some will be major producing oak trees. This is what I have done with my United First Financial business. I have sown many seeds and now they are all growing. I have an organization that is starting to grow and mature and as they are talking to their friends and family members just sharing their testimony about what The Money Merge Account by United First Financial has done for them in their personal finances for their incomes. I am finding that agents are coming in by the droves to be able to share this debt cure with their friends and family members to offer some sort of hope during these turbulent times.

I want to leave you with this little saying that I got off of someone, “You cannot stop an idea whose time has come!” So lets go deeper in the next post and I will talk about the day in the life of an agent.