I was talking with some new friends during the big Royal Alliance event in Orlando, FL a few days ago and we got into a discussion about retail sales vs building a team for residual income.
I realized where we weren’t understanding each other and wrote about that in part 1. You can read part 1 of Residual Income in Internet Network Marketing here then come back to read the rest of this article.
Thinking more about that article and talking about it with my wife last night I realized that what I am doing online is really very close to what traditional network marketers are doing.
Most Nikken consultants, or any network marketers for that matter, are looking for people who will join, buy the product, and sign up more people. Most of the people who join the team will never do much, buy a little bit of the product from time to time, maybe introduce a couple people, but little more than that. They aren’t the leaders who will help you to advance in rank through the leadership levels.
That is their residual income, those people who buy a little bit from time to time. They want a lot of those people. The growth in their business then comes from finding a few leaders to join their team and duplicate that process. A bunch of consumers and a few leaders.
What I am doing with my internet-based Nikken business is very similar with one significant exception.
I write my non-leader distributors instead of finding them out there somewhere.
My friend Rory goes out and finds Cindy, Bob, and Suzie and he signs them all up in his Nikken business. Cindy is excited. She goes out and signs up Frank and Kim. They all buy product for themselves.
Rory is Silver, let’s says that Cindy has moved up to Executive, and Frank is still a Direct. Frank sells some product to a friend at wholesale because he doesn’t feel right about charging someone the full retail price.
There is no retail profit, so Frank doesn’t make any money. Cindy makes 10% commission on the sale. Rory also makes 10% commission on the sale, his 20% less Cindy’s 10%.
Cindy isn’t someone who is going to go Silver, so she won’t help Rory move up in rank. She will generate him a lot of residual income though because they all use the product and will share it with others.
Here is how this looks in my Nikken business model. In place of Cindy I have my PiMag Waterfall page, in place of Bob I have my Magsteps page, and in place of Suzie I have my Bergisterol page. I have replaced Frank and Kim under Cindy with two articles on my blog that link to my PiMag Waterfall page – article 1 and article 2.
Like Cindy and Frank, they will never reach a leadership level. They aren’t going to help me move up in rank beyond Silver. They did get me to Silver though.
Unlike Cindy and Frank, they work 24 hours a day, seven days a week, and they have no issues with selling the product at the full retail price. They are so good at it that they got me recognition as a top 5 retailer with Nikken last year, and I was only an Executive at the time.
Also unlike Cindy and Frank, they don’t take a cut of the commission. I get the full 20% commission on everything that my team of pages and articles sells for me. I think that is very generous of them.
Because this works so well, I don’t have to go out to Walmart or the bookstore and sign up everyone I meet.
Rory has to check in from time to time with Cindy and the rest to keep them motivated and working.
I have to do the same thing with my team of pages and articles. They need to be refreshed and updated every so often to continue to rank well with the search engines so that they will continue to get traffic and make sales for me.
That frees me up to focus only on recruiting leaders, those people who want to create a huge team of pages (or people) who will generate that residual income for them.
If that appeals to you then I encourage you to find out more about Nikken and my Nikken business. Leave me a comment below or contact me directly at the phone number or email address at the top of this page.
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