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Frequent Questions & Answers

What is "Residual Income"?

  • Residual Income is money that continues to be paid to you on a previous instance of effort or investment.  Example: you invest $100 at 10% interest and each year you earn $10.  Or maybe you set up a billboard on the side of a highway and rent it to advertisers for $500 per month - each year you earn $6000 (12 x $500) for the initial effort of installing the billboard.

My Dream is to stay at home and spend more time with my family -- Do I have to travel like you guys to develop Residual Income?

  • No, the beauty of a Residual Income opportunity is the it can be developed anywhere with an investment of just a few hours per week.  We build our business to have the freedom to make our time and our lives belong to us.

Why can't I just save or invest my money to have the same Freedom that comes with Residual Income?

  • Saving and Investing is definitely important and it is a way to develop a residual income stream.  However, building a residual income business is usually a faster way to get your Freedom.  If, for example, your income is $5000 per month and you are able to save or invest 10% ($500 per month) of that income.  Assuming your a happy with the lifestyle your income provides, you will need to accumulate $600,000 of invested money to maintain your current lifestyle (not counting inflation or increased cost-of-living).  If you were able to get a 10% (compounded annually) return on your investment you would need to invest almost 25 years without touching the investment to be able to pay yourself $5000 per month.  In my business, many people are earning MORE than $5000 Residual Income per month in LESS than 2 years.

Are there other ways to develop Residual Income?

  • Yes, but there may not always be as much Freedom.  You could develop residual income by buying houses and becoming a landlord, but that would require a substantial investment and you would have to keep them maintained & rented (too much worry and work for me).  You could write a book or develop software that pays you royalties, but only a small percentage of the population have the talent to do these things.  My Residual Income System works well because anyone can do it, it doesn't take a lot of time, and there is very little maintenance involved (like in real estate).

I like my job -- can I build a Residual Income Business and keep my current job (or business)?

  • Of course!  Multiple income streams is a good thing and its great to stay in your present profession as long you desire.  However, keep these things in mind.  First, remember that things change.  Your company ownership could change hands, your current supervisor might be replaced by one you don't like as well, or your company might even go bankrupt. These things happen to unsuspecting employees all the time. Second, don't forget to evaluate how your time is spent.  If all your time is at the office with little time left for family or fun, is that really the life you want? (just a thought).  Finally, be real with yourself about your job's loyalty to YOU and about how much you really earn.  Would your company keep you if they got the chance to replace you with someone better? or someone less expensive?  How much do you really make per hour counting work time, commute time, and expenses related to your job?  These are just some questions to help you honestly evaluate what you do and why you do it.

Residual Income vs. JOB

  • Hours for Income - With a traditional job you work for someone else -- trading your hours for their dollars.  With a Residual Income Business you continue to get paid multiple times for work you performed once.

  • Loss of Income - In almost all cases, if you become disabled or were unable to work your job, your employer would not continue to pay you.  This is true even with most business owners (i.e. if you own a plumbing business and injure yourself so that you can't service customers, your income would decrease.)  Once you develop a residual income, you continue to get paid for effort done previously.

  • True Freedom - With a job or even a traditional business your time is not your own. Your boss or your customers decide when and how your time will be spent (And how frequent and how long your vacations will be).  With Residual Income you have the Freedom to work when you want, play when you want, travel when you want, even sleep & wake up when you want.

  • Family Time - Most people who work a job see their spouse and children just a few hours each night. Consider this -- your child spends about 7 or 8 hours a day at school - that amounts to 35 or 40 hours per week.  If you see your kids 2 or 3 hours in the evening (for some folks it is much less) and 20 or 25 hours on the weekend, your kids spend as much or more time at school than they do with you.  Where are your children learning their values and ideas about life.  Is it any wonder most parents "don't know or understand their kids by the time they reach puberty.  Our goal is to spend as much time as possible together as a family and to teach our children our values and beliefs.  A Residual Income Business allows us to do just that (and in variety of pretty cool places).

  • Security - My parents taught me that JOB security was the best kind of security.  But is that true?  With company layoffs, downsizing, and restructuring how much security is really in a "good job?"  For my money, Residual Income is much more secure!

  • Retirement - On a traditional job, you work 45 or 50 years and retire with a gold watch and maybe a little pension and/or social security.  Residual Income is something that doesn't decrease just because you turn 65 (or 70 or 80 etc.)

  • Inheritance - In most cases if you retire with a pension or social security, little or nothing is left for your survivors once you pass away. Residual Income continues to pay even after you die and can be willed to your spouse or family members.

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This site was last updated 05/24/07