To listen to the media, you would think that opportunities to make a residual income are in short supply. A downturn in the economy doesn’t mean your options to make residual income are limited. Quite to the contrary, the savvy businessperson recognizes the fact that a soft economy presents new options to create residual income that are less readily available in a strong economic market.
In fact, there are many ways to make money. Some require a lot of direct involvement (i.e. your blood, sweat and tears) for a low return. Some require little of your direct involvement (residual income) for a high return. The closer on the spectrum you can move from the former to the latter, the more time and money you will have to focus on things that make you happy instead of things that make you money.
To make things simple, we can break income opportunities into four quadrants:
1) Non Residual Income - Low Return
The individuals doing this kind of work comprise 95 percent of the rush hour traffic you find in every city and every country in the world. They leave early in the morning, come home late at night, live for the weekends and spend the best years of their lives trading hours for dollars. In smaller towns, the story is the same, except they don’t spend several hours sitting in a car. This is not a value judgement. We’ve all done it. But on the spectrum, non residual income – low income sources are a poor use of your most precious resource: time.
2) Non Residual Income - High Return
These are the people who the 95% aspire to be. They are the senior executives, vice presidents, doctors, lawyers, etc. They live in nice houses, drive expensive cars, belong to the yacht clubs and country clubs. They love the power and respect that their position brings. But I’ve got a secret to share with you. Just like you, they leave early in the morning (often earlier), come home late at night (some times later), live for the weekends (if they aren’t working this weekend), and spend the best years of their lives trading hours for dollars. Behind all the glitz and glamor you admire lives a person like you who is probably living paycheck-to-paycheck. They are broke too. Just at a higher level.
3) Residual Income - Low Return
You’ve probably heard that real estate is a great way to make residual income. Real estate is the most common example of leveraging money. Take a relatively small part of your own cash and borrow a relatively large amount of the bank’s money to buy income property. In a perfect world, this allows you to create a source for residual income. But the reality is that unless you have a lot of money to do this many times, have fabulous credit, and are comfortable with a high degree of risk, you will not make a lot of money. After paying interest, taxes, insurance, maintenance and allowing for vacancy, there is a high likelihood that your investment will be generating spending cash, not appreciable cash flow.
4) Residual Income - High Return
Each of the other categories has its pros and cons. For example, many non residual income sources provide a higher degree of security than high return residual income sources. But high return residual income sources are attractive because they free you from the cycle of trading hours for dollars, always chasing the next paycheck. Examples include recording contracts, book deals, and network marketing. You do the work once, and get paid months and even years into the future.
ARIIX provides the opportunity for high return residual income. As in the case of obtaining a recording contract or writing a best-selling novel, it takes an intial investment of time, dedication and perseverance. But unlike securing a recording contract or writing a best-selling novel, it does not take unique skills that are difficult to acquire. If you would like to find out if you have what it takes to create a high return residual income business, fill out the form at the top of this page.
