I can’t count the number of times I’ve heard Multi-Level Marketing program aficionados, insurance sales managers, and sales leaders tell me that what I need is to sign up with their program for the benefit of ‘residual income.’

Residual income, they never fail to tell me, is the future. Imagine, they said, that you keep getting a cheque every month for the rest of your life for making one sale today.

Ok, I’m not a dummy, I’m interested.

You have my attention.

Then they tell me about this convoluted scheme where buddy A gets a share then buddy B gets a share then buddy C gets a share and as long as I bring on buddies E, F, and G, and each of them bring on 3 people and each of those people bring on 3 people then I’ll be set for life.


And if the moon aligned with Miami and started spitting gold bullion I’d be rich too.  Somehow the odds of either one seem entirely too remote to work for the vast majority of the people involved.

Oh but it sounds sooooo good, doesn’t it?

So what’s wrong with it? Why doesn’t the model work?

Well, the truth is – it does work, but only for those closest to the top of the chain, and there lies the rub. If you’re at the top of the chain then that pretty much means that the product or service being sold is yours and everyone below you is getting paid for referring you more business.

So it really works for the person who is the originator – the person selling stuff in the first place.

So why not start there?

If you’re looking at building a residual or recurring income, why would you bother joining an MLM when you can have your own recurring income based on your own products and skip the middlemen altogether?

And when I came to that realization it became clear that the best recurring or residual income to be had isn’t from MLMs in the first place; it’s from having your own membership site.

Think about it. Odds are very good that you have a unique skill or knowledge base that you can share to others who would like to see/hear/or know about it. And if you don’t have that knowledge base today, you can research it and set up a membership site tomorrow instead.

For about $200 a month you can have a whole membership site built around the content you provide, you can update it regularly yourself, so it’s all in your control, and everyone who subscribes to your site is paying YOU directly. Ok, so they’re actually paying you through PayPal, but still it’s not that hard to administer.

If you can find enough content for people to pay you $10, $20, $40 or even $60 a month you can very quickly turn this into thousands of dollars a month in regular, recurring revenue.

No Middlemen. No Catch.

The reason? You are able to re-sell the same content, your content, over and over again to people who are happy with what you are selling them. And it is set up to automatically renew so you don’t have to go through the hassle of re-selling them each and every month.

Think about it. Isn’t that better than a part-time job?

I know that I spend more than $200 a month on gas and food and drinks to get to work at any job I’ve ever had, so in this case the reality is instead of going to someone else looking for a part-time or second income, I’m creating my own job when I launch my new membership site.

And since I’ve worked out a lot of the bugs, I can help you launch your site too.

Isn’t it nice to know someone who can help you not have to go to the office any more? To know someone who can help you build that second income your family needs right now? Am I a great friend or what?

Seriously. Call me. No Middlemen. Just you, your site, and your recurring revenue. That’s got to be worth a phone call. 623-252-4489. Honestly, it’s a no-brainer.

And with an income like that, that you can’t be fired from, whose hours you control, and that you can do largely in your housecoat…isn’t that the best residual income you can get?



Chris Cayer.

2 thoughts on “Residual Income

  1. I’m sorry, your plan is very good. Having your own product and building a website around it or them is a great idea and a great home business.

    However, you shouldn’t run down network marketing just because you have a great idea. I know many people in network marketing who aren’t the guy who started the company who are doing quite well. In fact, Rod Cook, a well-known industry analyst and owner of MLMWatchdog.com; said that any company he’s been in he’s created a significant bubble in the traditional diamond shape of a network marketing organization by working hard.

    Stop belittling network marketing. Promote your own system without denigrating a whole industry.



    • Alan – you make a fair point in that I did swipe at all MLM’s without making a full academic case for my point, and I do know of a few specific MLM’s that were redesigned to benefit the majority of those joining as much as the people further up the chain. I also took the same liberty with sales managers in general and with insurance companies, some of which have started offering base salary for as long as 2 years in order to allow the trainee an opportunity to build a big enough book of business to earn a living wage. More than that, your over-riding point is also valid – I don’t need to knock other opportunities to show that the opportunity I have found works, and works very well indeed.

      That said, I shouldn’t let you off the hook for faulty logic either. Statistics for all three industries I referenced, in aggregate, show extraordinary turnover rates, and net losses or subpar results for the majority of new participants. Those stats have been true for decades and are in no danger of turning around to a substantial degree any time soon. Sales has one of the highest rates of turnover of any part of any business, and insurance and multi-level marketing based firms have, as an industry, some of the highest turnover rates anywhere. One of the noted exceptions to the rule, actually, is for Customs Agents, who in general, especially in Canada and the US, do not last in the position very long, and who recently achieved top status (at least in Canada) as the highest turnover rate in the nation.

      The North American airlines, in particular the reservations agents, have long had at least a 50% employee turnover rate, often as high as an 80% turnover rate. I include these in the spirit of fairness, as they also have Employee Retention issues and should be included in the discussion in terms of industries with retention problems to be fair.

      The myth that hard work alone will garner success in any of the three industries (Sales management, Insurance, Multi-level marketing) has been broken by any number of studies at a wide array of accredited universities including the testing of personality, education, training, and motivation in terms of a person’s ability to grow a network of personally connected in integrated contacts.

      None of the studies to date substantiate the notion that the average person is likely to have success in any of the three positions with which I took issue.

      This in no way implies that there are *no* people who have the kinds of skills, personality, aptitudes and qualities to be successful at any sales, multi-level marketing or insurance position. Clearly that also would be grossly inaccurate – hundreds of thousands of people make very good livings in each every year. For them, the principle of hard work definitely pays off, and those with aptitudes that correspond to those positions should be strongly encouraged to give them a try and some serious effort.

      If anything it indicates a very poor practice by those three fields in general to recruit capable, qualified and effective candidates. It has, of course, been handled differently at different companies – again, I am aware of great sales managers, great insurance companies and yes, even great MLM companies; they do not, however, represent the majority of their field of competitors.

      When applied to the point that I made, then, the average individual is less likely to have success investing in becoming an accredited insurance agent or participating in the average multi-level marketing program than they would by having their own membership site. The ROI, as an industry average, is low for both insurance agent trainees and for new participants in established MLM’s. It is in contrast to those ROI returns that I positioned the opportunity of membership site ownership.

      The reality, though, is still the same. There are any number of people who are not cut out for business ownership either. They spend their income before they get it, they do not promote their business, they hire bad employees; they commit any number of cardinal business sins. The only truly secure form of income is to have established resources that can be leveraged in secured and insured investments to produce regular interest from a secured and insured borrower.

      After that, even having a regular job isn’t a guarantee of regular income any more. Which is why someone who is looking to establish a secondary or tertiary income should seriously look at the wide array of opportunities out there and select the right opportunity for them and their families to be able to get the best return on their investments of time and money.

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