If a company has only 5% active and the average associate makes 10k/yr then you gotta decide if you have a shot at making that kind of money. How much work would it take and even why does the company have so few active associates?

This could be bad then because lets say you sponor 10 and they sponsor 10 each. That is 100 associates but with a 5% active rate then your 100 associates really is only being supported by the work of 5! Not good. So then I tell people to factor in a realistic drop off rate and average sales per associate. At that rate how many associates will it take to make $10k/month. You would be shocked. Some companies require 10,000 while others like mine require less than 1,000. This really opened up my eyes.

Next thing. Do you require an autoship? Basically you had an example of milk. So each person sells their 50 bags of milk each month. What happens if 50% of the people decide that times are hard and they are going to buy milk somewhere else or just cut out milk totally? So then your Auto ship of 50 milks per assoicate per month turns into 25 milk bags per month. If the team didn’t grow your residual income just got cut in half!

I saw this and was again shocked. So I found one that didn’t require an auto ship. I don’t stock items. I don’t have to ask my clients if they want to buy more milk every month. I deal in services and those include contracts of 1,2,3 years. So when you say you get paid on the efforts of what you did one time. That is really what I do. I call my client and ask him to renew his contract and bam! I got a customer paying me a residual for the next 1-3 years.

Every legit business has a pro/con. Take a look at the polices/procedures, income disclosure, and compensation plan. Bust out an excel spreadsheet and decide if it is worth your efforts. In the long run any legit company will do but the risk/reward will differ of course.

I have taught my downline and all income associates this have since built my blog soley to train. Generally people don’t understand how residual works or why a income disclosure is so important. Shoot, most don’t have a clue where to find the policies and procedures.

When people see a residual check grow when your on vacation then people understand why people like myself stay up at night watching to see how much the business has grown while away from it. No normal job will do that.