Building Residual Income through Team Building In Network Marketing

You need to understand the different between passive and active income in network marketing. Active income comes from your own personal work. When you work for money, you are bringing in active income. This kind of income stops coming in once you stop working. Passive, or residual, income is money that continues to come into your possession even after you have stopped actively working.

The purpose of network marketing is to achieve steady, secure residual income for life. Read on to learn how to get there!

You may feel great every time you bring people into your network marketing business through your downline. However, this does not mean that you can sit back and relax quite yet. Your network has to be strong enough to sustain you for life, not just for one to two years.

Your network needs to have a strong foundation. In order to truly create wealth, you need to cultivate leaders within your downline. Your main focus should be on finding four to five leaders who will create their own teams themselves. They will be the ones bringing in new leads and new customers monthly, bringing results to the entire team.

You need to create a system for them to follow. Your goal is to start with a group of about forty people and find the gems within. However, don’t think that your work is done already. Leaders are made, not born. You need to become the example leader for the, and show them how to succeed through example.

How do you pull out these leaders? You have to follow the 80/20 rule. Remember that only 20% of all of the people in your downline will follow through your proven systems. This attrition is expected. Keep focused and help these people work your system in order to succeed.

It’s easy to get discouraged when you encounter these people who don’t always follow through. It’s hard to spend time and energy on people only to find out that they are not the potential leaders you thought they would be. However, shake it off and move on.  Eventually, your true leaders will shine through. Then you need to train those rising stars. They may bring in different levels of income for you, but they will bring stability to your team.

When all is said and done, you need to build your team in order to accumulate true passive income in your network marketing business.