Why Residual Income = Freedom
Residual income AKA passive income has been touted as the key to financial freedom by the best of them. Robert Kiyosaki, T Harv Eker, Warren Buffet, Jim Rhon and many other mega-successful entrepreneurs have said it. Given that residual income is now a steady part of my own online business, I have to agree.
This type of income – income that continues to be earned long after the work is done – is a wonderful thing. The hit song, the best selling novel, the iconic photograph, the string of investment properties – it comes in many forms. Until fairly recently it wasn’t all that easy a thing to build. You had to be either uniquely talented or a skilled entrepreneur with ready capital to invest. The Internet has changed all that. Now we can all have a slice.
Business models like affiliate marketing and MLM offer multiple income streams that start with a new kind of real estate – Internet real estate. If you put content out on the web linked to the right sort of sales funnel it works for you day and night. It needs minimal management, can be re-purposed and syndicated and anyone who learns the ropes can do it.
Residual Income Streams With SFM and DEA
This is how it works for me as an elite member of Six Figure Mentors and a Gold partner with Digital Experts Academy.
As an affiliate with these companies I have reseller rights to a suite of high value products. These are high-level training products in the area of digital entrepreneurship. I’m also a customer and student so I’ve invested in these products myself – always best when promoting other peoples products I find.
When I make a sale on these products I have three residual income streams on top of the initial high-ticket sale.
- As SFM is a membership deal – a business system and training portal – I earn a cut of the monthly fees paid by members I introduce. So I can build a monthly residual.
- SFM also offer an Elite membership, which carries an annual renewal fee. So I can build an annual residual.
- DEA has a built in 2 tier pay plan. Any DEA sales made by members I have introduced pay me 10% of their earnings. This is not MLM per se – just one “downline” level.
This all adds up as you can imagine. These are high-ticket products, which pay high commissions. An Elite renewal is worth $1000 to me annually. A DEA sale by one of my referrals is worth from $170 – $660 at my level (there are two further levels which I don’t earn on but will do when I upgrade)
It Starts With The Products
Of course I pay monthly and annual fees myself but both are now covered several times over just by residual income. That’s what you have to understand about investment – it’s a long-term thing. With this type of business model however we can be taking weeks or months to get into profit rather than years or decades.
Of course for all of this to work, the products have to be seriously hot. Since there are no binding contracts here (unlike a franchise) members can come and go. That’s true for any sales pipeline, sales funnel or funded proposal. With this particular model however, the numbers are extremely good.
Conversion rates are high as is customer retention and average customer value. An Elite SFM and DEA affiliate can afford to pay over the odds to acquire leads and sales via any Internet ad platform.
Plus of course as a customer you benefit from some of the best training in the world on how to acquire leads and sales online. This isn’t hit or miss, law of averages marketing.
Automated Residual Income
Neither are the residual income streams anything like the traditional MLM model. Whilst it obviously pays to encourage and nurture your customers the company does that for you in spades. They provide ongoing live and recorded training webinars on a weekly and monthly basis. They also hold regular live events in the tier one markets: UK, USA, Australia and Canada.
Support is second to none and a community style structure encourages collaboration, networking and peer to peer support. It’s a genuinely one for all and all for one set up.
One other benefit here is that SFM and DEA affiliate partners are not tied to only selling their products. The SFM’s digital business system and marketing toolkit (included with membership) can be used to sell any affiliate product.
Ticking All The Boxes
For me this ticks all the boxes a sustainable online business needs ticked. It combines the best elements of affiliate marketing, Multi level marketing and network marketing. Further segmentation of the two companies core products is in the works too.
That will mean affiliates will have a suite of individual products to promote. Each will have separate marketing funnels and residual income streams.
Additionally, each will have built in automated funnels offering additional products. As additional high value products – like the recently added e-commerce training platform – are added, they will be added to the picture.
This is a privately owned, debt free organisation 5 years into an ambitious 25 year plan. The founders have already passed on an extremely lucrative buy out offer, preferring to retain full control of their vision. This gives them the flexibility to expand and diversify. As a business investment offering both high-ticket commissions and numerous residual income streams its second to none.
Find out more about SFM and DEA by requesting their complimentary 7-day video training series on the link below.