Why Residual Income
Why Residual Income

As a Tax Practitioner I tell all my clients that having a homebased business is perhaps one of the most effective ways to reduce their taxes. When asked .. “what type of business should I start” I always recommend they start with a Network Marketing Businesses that favors building residual income.


When you understand the power of residual income, especially residual; income built upon a Network Marketing Business Model you will break through a brick wall to get it.

Let me explain why!

There are two basic definitions of residual income; One refers to the income you have left after paying your bills each month. Which is a problem because most people have little or no income left at the end of every month even if they are working a steady job.

The second type of residual income refers to income earned that continuously flows from actions previously performed. Examples of this type of income are

  • Rental Income from a home, apartment, or commercial space. This type of residual income requires tremendous financial resources to obtain and specialized skills to maintain. Even though it creates residual income dealing with tenants can still be labor intensive even years after obtaining.
  • Royalties earned for creating intellectual property like books, recordings, music, photographs, movies, television shows, etc.. This type of residual income requires talent, skill, perseverance and a good bit of luck.  If you are not super talented your odds of success is severely limited.
  • Interest earned on savings or loans made to others, unless you have inherited a fortune, or started saving at very young age and patiently waited 40 or 50 years for compounding interest to build your nest egg .. forget. It takes a lot of money to earn even a small amount of interest type residual income.
  • Ongoing income such as retirement, alimony, disability, etc. Ether you must work the same job for 30-40 years, have married well to do spouse or become physically disabled. Not the best way to earn residual income.
  • Income earned from subscription or membership services including media, online, or ongoing services requiring a monthly or periodic payment.  Depending on the persistency rate, percentage you earn from each subscription payment, the perceived necessity and ease of selling this type of income can, over time, accumulate into  substantial residual income streams.
  • Income earned through OPE or Other People’s Efforts this type of income is commonly earned when you have employees or sales people working for you. Not only do you have management and training issues you can also be confronted with payroll taxes and or the issuance of 1099’s every year.

Generally when you hear about residual income in relationship to the Network Marketing Business Model it is a reference to incomed earned through OPE and sometimes subscription or membership types of income as well.

Unlike the other forms of residual income earned through OPE and/or subscription/memberships services Network Marketers are independent contractors and the primary company that they are contracted with generally handles all the payroll or 1099 issues.

The contacting company also creates the bulk of the Marketing material needed to market whatever product or service being promoted.

But what really sets this business model apart from more traditional models is their multi-tiered OPE income matrix. When you have the ability to earn, even a very small amount, from everyone within this multi-tiered income matrix massive amounts of income can be generated relatively quickly.

In fact savvy Network Marketers understand that they only have to directly work with a small number of motivated marketers to get paid on the efforts of thousands even tens of thousands of other marketers because of the power of duplication and exponential growth.

In the chart below is a mathematical model illustrating how, if each person in this multi-tiered matrix brought in exactly 3 people per month over a 12 month period. In this model, we are only showing 9 tiers or level. Ideally you want a company that pays to unlimited levels or depth.

As you can see, if everyone in the matrix brought in or signed up just 3 people per month by the end of month 12 there would be 2,189,277 people from whom you could be earning OPE income.

If you averaged just 50 cents per person your monthly income would be well over a million dollars per month in residual income. In the real world, no one will build an organization where everyone was signing up 3 new people every month.

But what this illustrates is the potential of leverage and exponential growth to build massive organizations in a relatively short time. It could take months or even years to build a matrix that will produce your desired income level. But it can be done and people are doing it every day.

It does not take you finding massive numbers of people but just a few each month who will do the same. Your income potential becomes limitless. As you may have noticed from the chart above the number of people in your matrix is rather small in the beginning so it is helpful when you can earn substantial up front money and even have the ability to create an additional residual income stream strictly based upon your own efforts.

Two of my favorite products that meet these criteria is produced by a company called GVO or Global Virtual Opportunities.

Both products has a reseller program that offers a 100% commission payout in the first month, a monthly subscription that pays you 50% from the second month for as long as your client or customer keeps the product allowing you to get upfront money and build a residual income stream base upon your own efforts.

In addition each has a matrix payout system that will allow you to build residual income based upon OPE.  Because of their unique payout structure, you will be paid through unlimited depth or levels. This is why so many people are making insane money with both of these products.

One is called GotbackUp. This is a cloud based back up system for your computers, laptops, cell phones and other devices. For one low monthly fee, you have unlimited backup for all of your devices. In fact this product saved me .. click here to hear my story.

The other is called Pureleverage.  This is a suite of essential tools every business needs if they want to market their business own line. It comes complete with

  • A 5,000 Subscriber Autoresponder
  • An Authority Blog
  • 500 Seat Conference Room with Facebook live broadcasting abilities
  • An Automatic Weekly Lead Generation System
  • A Powerful Lead Magnet
  • Video Email

Weekly Training and more

You can try each of these products for just $1.00 by clicking link below

For GotBackup Click Here
For Pureleverage Click Here

Once you become a user of ether of these products you can choose to become a reseller and start building your residual income streams. Even though these are two separate and distinct products with their own payout systems if you decide to become a reseller of either one you do not have to pay an additional reseller fees to start earning income with the other.

GVO has other products and services, each with their own payout structures but when it comes to building residual income these two products are super winners. You would be hard pressed to find any product or services that give you the ability to build residual income streams quit like these two so make sure you check out each of them

For GotBackup Click Here
For Pureleverage Click Here

If you have any tax question feel free to call us

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