Today, I want to talk to you about the asset value of your MLM Business.
Many people are really confused about our industry. They think the purpose of the network marketing industry is to create a second income. It’s not.
The purpose of our industry is to create an asset that gives you residual cash flow each month. Ultimately, you create something that continues to pay you for many years to come.
In other words, you are not trading hours for dollars like you do at your job. Instead, you are building up a business asset that provides ongoing cash flow.
It takes time to build a business into an asset that provides consistent residual cash flow: normally several years! It’s worth it though.
What most people don’t realize is how valuable an asset is that generates $500, $1,000 or even $3,000 per month in residual income.
Suppose you build up a $500 per month residual income with your network marketing business. And assume it takes you two years to do that. That’s the equivalent asset value of having $100,000 in an investment earning 6% annual interest.
Not bad. Most banks don’t pay 6% interest and most people will never save that much money in their lifetime.
To clarify, this does not mean your network marketing business is WORTH $100,000. It just means it has an ASSET VALUE of $100,000, based upon the example I provided above.
Here are a few other examples, just to show you the power of residual income.
• To earn $1,000 per month in residual income, you would need $500,000 in an investment account earning 2.4 percent annual interest
• To earn $2,000 per month in residual income, you would need $800,000 in an investment account earning 3% annual interest
• To earn $5,000 per month in residual income, you would need $1.5 million in an investment account earning 4% annual interest
Once again, the average person WILL NOT save this much money in their lifetime. The average person is living paycheck to paycheck.
As I see it, even if it takes you two years of part-time work to build up a $500 monthly residual income from your network marketing business, you are heading in the right direction. Combine that with your tax advantages and it is a winning 1-2 combination. I think so anyway.
What are your thoughts? Leave a comment below to let me know what you think. I look forward to hearing from you.