Tag Archives: residual income

What language are you speaking?



Coding bonus overrides.

That’s English, right?

But for most English-speaking people outside our profession, you may as well be speaking a foriegn language.

A person looking at the professon might think:

That’s the leftover junk at the bottom of the tank, or the grit that didn’t get removed when I did the dishes. I don’t want that.

You must not like them very much.

Someone took your bonus away? How awful!

Much like technical topics, our profession is detailed and has its own vernacular. Certain words have legal definitions, too.

Jargon is a shorthand that’s great for discussions within our profession.

But it can be intimidating to someone who’s not.

What if we spoke two languages: short and clear descriptions for those who are looking to join us, and the fine-tuned special vocabulary for those of us immersed in it?

After all, simple is appealing. Simple is attractive. People are looking for simple solutions.

How would our profession’s reputation change if we described things like this:

Money that comes in month after month.

Your sales team.

Bonuses you receive when your team sells products.

Watch the language in your videos, literature, and individual conversations. Jargon doesn’t impress people; it makes them feel uncomfortable and excluded.

Keep it simple and accurate. They’re more likely to join your team if they feel comfortable with the words you use.

–LYnn Selwa, “The Rocket Science Coach” ™

#lynnselwa #therocketsciencecoach #language #residual #downline #leadership #bonuses #team #leveragedsales #mlm #networkmarketing #directsales


How a bird with laryngitis still sings

In the last few weeks the pop singer Adele posted a tearful cancellation of her two most recent Wembly Stadium concerts.

She has struggled with vocal health issues for many years. At the end of this world tour, her doctors advised her to not sing the final two performances. And it was heartbreaking for her to let her fans down.

What would happen to you, if suddenly you could not perform in your job?

For most people in the 9-to-5 working world, that situation would end a career. The money would stop coming in.

However, Adele is a lot like you and me.

Our compensation has a passive income stream.

Singers call it royalties.

Actors call it “back end” percentages.

Network Marketers call it residuals.

Even though Adele’s gorgeous voice is silenced, perhaps for many years, she still gets paid every time her songs play on the radio. She had to practice and sing many many times before she recorded and released the first crucial recording of her popular-play song. That action opened the passive income stream.

Do your critical step task, and the passive income is yours.

So when the recording session ends, the director of the blockbuster movie yells “cut and print”, or you and I enroll a subscription client… we join that club of people who get paid while we sleep.

Welcome to The Club. Even when you have no voice left to shout the good news to the world.

–LYnn Selwa, “The Rocket Science Coach” ™

#lynnselwa #therocketsciencecoach #laryngitis #adele #residualincome


Bruce and his back story

I enjoy reading biographies and autobiographies. This week I am reading Bruce Springsteen’s self-told story “Born to Run.” So far I am on page 211 of 508.

He is a rock-n-roll singer and leader of his band. You likely have heard of him; he’s considered to be “famous.”

What I didn’t know was what he endured to follow his musical vision.

Fingers sore from his first guitar. Band members stealing or hiding from the law. Moving back in with his parents in his 20’s.

Simultaneously exhilarated and fearful as he recorded his first record… was he a “good enough” musician to gain a following? Or was this a futile attempt?

Each of us has a back-story, a history of experiences that led us to where we are today.

But only the present moment shows in the public eye.

Your rank, your residual check, your fame are all products of your past. Remember to honor the lessons learned in the journey that brought you to this day.

And take another step tomorrow.

I believe in you.

–LYnn Selwa, “The Rocket Science Coach” ™

#lynnselwa #therocketsciencecoach #guitar #rank #residual #fame #perseverance #bruceandhisbackstory #brucespringsteen #theboss #rocknroll


Bonus-rich but residual-poor?

Network Marketing provides two typical ways to make money: bonuses and residuals.

If you concentrate on the bonus money, the one-time payments for successfully coaching your group, you can make a nice income. Many times this is the figure people concentrate on while viewing the opportunity presentation and in the early months or years of their business.

But bonuses do not create a strong, work-when-you-want, steady income.

The irony is, one-time bonus income is more like a job paycheck. Work once, get paid once.

In contrast, the long-term income is what will set you financially free. It is created by customers (and distributors) purchasing and using your product, month after month. In your plan it might be known as “residual” or “percentage overrides.”

A Big Hitter once told me, “The bonuses are in the pay plans to get money coming in while you build the residual income. And time and money freedom come from a healthy residual income.”

Both types of income are important.

Both add to your bottom line.

Only one will set you free.

–LYnn Selwa, “The Rocket Science Coach” ™

#lynnselwa #lynnselwaTRSC #TheRocketScienceCoach #bonusincome #residuals #residualincome #networkmarketing #BonusRichButResidualPoor


Do you have a successful business?

A friend in another network marketing business is experiencing rapid growth in his team, and I’m very happy for him.

He posed an interesting question last week. “How do you know when you have a successful business?”

In my opinion, running a successful network marketing business is not about earning a specific amount of money nor judging by the size of the distributor team.

Here are four basic guidelines that popped into my head.


Idea #1.
When your residual income is equal to or greater than all other income you receive from that company.

My primary reason for joining network marketing in 1996 was to create long-term residual income, so I am more interested in the residuals than comparing who makes bigger one-time bonuses.

If I wanted to emphasize one-time bonuses, I would have stayed in the 9-5 workworld and maximized my salary.


Idea #2.
When people on your third or higher number generations are getting promoted.

This means you taught your people to teach their people to teach THEIR people how to build teams.

This is a positive signal that you are teaching a duplicatable system which doesn’t depend on your presence or personality.


Idea #3.
When a charismatic leader leaves your organization.

You might be thinking, Wait a minute, that’s not very uplifting!

Well, you’re right… and I’m being realistic. Stick around long enough in this profession, and some people end up leaving for another company… or leaving the network marketing profession altogether. Each of us is an independent agent, so simply understand some people quit.

If the majority of that person’s organization sticks with your company, that’s a healthy sign that you have a supportive and growing culture.

In any case, don’t take it personally. Stay committed and keep building your team.


Idea #4.
When surviving a shakeup at the corporate level in the personnel, comp plan, or product offerings.

A growing company will need new leaders with different or more advanced skillsets at the corporate level. This change of personnel is not necessarily cause for alarm.

For example in your own life, as you (likely) changed from being an employee to running a growing business and began buying investments with your profits, you needed more sophisticated tax advice. So you stopped filling out your own tax forms and hired a CPA instead.

Because the business legal environment keeps changing, your Founder or CEO might need to adjust how bonuses are earned, pull a product that has troublesome ingredients, or make a stronger distinction between wholesale customers and full-fledged distributors. Smart CEOs make such changes early, to keep well within the regulatory boundaries.

But that might mean your teammates have to complete more requirements to trigger bonuses or need to inform customers their favorite product is no longer available.

A team that can survive such a shakeup and keep growing… well, that’s a team that will keep producing for the long run.

Residual income, anyone?

To your long-term success,

–LYnn Selwa, “The Rocket Science Coach” ™

#lynnselwa #lynnselwaTRSC #therocketsciencecoach #success #networkmarketing #mlm #residualincome #DoYouHaveASuccessfulBusiness


Amount or Type?

His attitude started out skeptical.

Recently I attended a regional training seminar for our company, and the man to my left (I’ll call him John) was a guest of the man sitting farther down the row.

John had seen our business presentation, but hearing the top field leaders speaking from stage somehow created doubt in his mind.

When his host slipped out to use the restroom on a break, he motioned toward the stage and asked, “Can a regular person really make good money–build that size of team– with this type of business?”

In response I told him about the background of the most recent speaker– he was not born into wealth, for example there were metal detectors in his high school. And he had focused on building solid relationships since his late teenage years, so his success is built on much more than the work he did since joining the company.

John found that enlightening, and as we chatted he eventually began asking about the size of my team and customer base.

I thought, ‘He’s missing the point of what we’re offering.’

“The TYPE of money is more important than the amount. John,” I asked, “do you know about Robert Kiyosaki and the “Rich Dad, Poor Dad” books?”

He did.

“In that first book,” I continued, “He talks about how you can make a lot of money with one-time payments– for example, most jobs and most small businesses, but the money STOPS if you stop working.”

John nodded in agreement.

“On the other hand, there is residual income or automatic money- which is money that comes in month after month, whether you are working, playing, or sleeping. Of course, you have to do work up-front to get it started, but it keeps paying you, month after month, year after year.”

I looked straight into his eyes and declared, “And if you truly understood the power of residual income, you would walk through brick walls to get it!”

“So, John, it’s not the AMOUNT of money that is most important, it is the TYPE.”

I could tell my last two statements startled him a little– and made him think.

“You are receiving great training here. If you would like to listen in during our weekly training call– taught by the guy who was on stage a minute ago– I can give you that number.”

He enthusiastically indicated yes, so I brought up that entry in my smartphone contact list and held it where he could easily read it.

As he copied the phone number and passcode, I learned he already owns a business– but obviously does not receive residual income from his efforts!

I sure hope John came on board with his host and is enjoying the benefits of being a member of our company’s team.

–LYnn Selwa, “The Rocket Science Coach” ™

#lynnselwa #lynnselwaTRSC #therocketsciencecoach #AmountOrType #robertkiyosaki #networkmarketing #residualincome