Network Marketing by xiangpeng


									Network Marketing
If ever there was a path available to anyone, from anywhere, in any current career, and
any set of circumstances to gain their own financial freedom and independence...
Network Marketing is it

by Richard B. Brooke

               The powerful advantages of a Network Marketing lifestyle are many.
               Frequent and lavish recognition; travel for training and fun; a global
               address book with many contacts whom you consider to be friends;
               earning while you learn; tax advantages; being in business for yourself -
               but not by yourself; the franchise factor; mentoring and coaching
               relationships; personal development paths; etc. While these are all
               extraordinary advantages, there are two that many of us believe are
nearly exclusive benefits of building your own MLM Empire.

     Building wealth through residual royalty income.

     Earning $5,000 a month now, and $10,000 a month in
     net worth at the same time!
     So first, what is Residual Royalty Income?

You and I can earn income in a number of different ways. Even without an advanced
degree we can earn a large income - to the tune of $20,000 to $100,000 a month -
through lots of different business or sales endeavors. However, there are few, if any,
income opportunities that allow us to build a pure residual income - and the net worth
that comes with it — primarily using our sweat equity.

For clarity sake, let's first define residual income:

    Residual income is income that you earn regardless of
    your everyday involvement in creating it. Consider it
    passive income or royalty income.

You invest in, or build or invent or create something that has enough value and
longevity that it earns you income virtually forever.

Real estate is an example of residual income. You invest your hard-earned cash in a
property, whether all cash or financed. You earn the difference between the rent, minus
your mortgage and other expenses. Your net cash flow is residual.

Another commonplace example is that of investing in equities. Over time you invest your
hard earned cash in bonds, stocks or the like; the kind that pay dividends or interest.
That income is residual; in that once you own the equities you continue to earn the
income forever.
Both of these examples carry inherent risk. Stocks can vaporize. Specific real estate
markets decline, or tenants systematically destroy the property.

    However the VALUE, the WORTH, the WEALTH, the NET
    WORTH of the asset is something you can calculate.

You can show it on your financial statement.

Stocks are easy to value in the moment by virtue of the markets. Real estate is the
same. An easy calculation you can "take to the bank" in real estate is 10 to 20 times the
annual net income. So, if a rental home earns you $15,000 a year it is worth $150,000
to $300,000. (However, when it comes to rent there is a threshold over which you earn
diminishing returns. For example, a $500,000 home will usually not earn twice the rental
income as a $250,000 home.)

A million dollars in equities might earn you $100,000 a year over the long haul, given a
great deal of diversification. The point is that assets have value that can be calculated
based on the income.

    And the income is the value.

Pure Residual Income
A pure residual income in Network Marketing has similar value. Although you may not
be able to sell it for that value in cash, it holds that value nonetheless because the value
is in the income. One reason an investor would purchase your rental house is for the
income. When you sell your bonds, the buyer is partly buying them for the income. It is
the income that an asset produces that sets its value. Appreciation is also certainly a

For clarity, the definition of pure residual - or what I like to call royalty residual
income - is Network Marketing (MLM) income you earn with the following conditions:

1. You do not have to do any work to earn it.
You may spend a tiny portion of it on products and/or fees in order to earn it. You may
have to show up to an occasional meeting or conference call, but you do not have to do
any more work.

2. You can count on your income staying stable (at least) indefinitely.
This means you cannot see any circumstances other than acts of God, terrorism or
blindsiding economic forces that would wreak havoc on your MLM business. You, by the
way, are NOT the best judge of this, as you are obviously biased and a true believer in
the inevitability of your product to change the world. The MLM wrecking yard is chock-
full of companies that were equally as optimistic, yet perhaps not committed or
competent enough to pull it off. The track record for handling diversities, as well as
successes, is the only valid means of determining whether the opportunity can
persevere for the long haul.
    Network Marketing empire building - done right, in the
    right company - allows you to build a lifetime, steady
    flow of pure residual income, regardless of your
    personal involvement.

And that asset is worth 10 to 20 times the annual income you receive from it.

Want to become a millionaire? Just get busy in the right company for a year or two, and
you can add SMM (Self-Made Millionaire) to your resume and business cards.

    A Network Marketing pure Residual Income of $5,000
    a month can be worth a lot more than $1,000,000.

In addition to the value of your residual income - which will take some years to
establish, especially at the higher levels - your income along the way can also provide
substantial wealth-building value. An extra $5,000 a month, even if it is earned income
for now, can put you on the path to significant net worth.

Imagine a property or set of properties that are worth $1,000,000. Perhaps it is one
commercial building or four rental homes. Real estate investing is an extraordinary way
to build wealth due to the leverage you can get through financing. If a million dollar
property or properties appreciate at a rate of 10 percent each year and you can tie it up
(OWN IT), your earnings are an extra $100,000 a year plus 10 percent compounded
(i.e., $110,000 the second year; $120,000 the third; and so on.)

Let's say you cannot afford to cover any negative cash flow created by rent collected
that is less than your mortgage payment. Or perhaps you do not qualify for a loan due
to your income. The $5,000 a month from your MLM income opportunity allows you to
execute on the property and start earning an extra $100,000 a year plus!

$1,000,000 in real estate:
Divided into four $250,000 properties.

Down Payment: $100,000
(Your $5,000 monthly checks saved for 2 years.)

Mortgages: $900,000 divided by 4.
Payments: $1,500 a month each covered by rents.

Your four homes appreciate at a rate of 10% a year:

Year One: $1,100,000
Year Two: $1,210,000
Year Three: $1,331,000
Year Four: $1,464,100
Year Five: $1,610,510
Year Six: $1,771,561
Year Seven: $1,948,717

As soon as you can tie up $1,000,000 in real estate in a 10 percent appreciating market,
you are seven years away from being another millionaire. Now you are an SMMM (self-
made multi millionaire)!

If you set them up on 15-year mortgages - even if you have to cover some of the
payment in another seven years - you will have added about 3 million more to your net
worth. One million more from paying off all the mortgages, and two million more from
your top line values appreciating at 10 percent for another 7 years. Your total net worth
is now over $5 MILLION. Any more and you will have Trump shaking in his eel-skin

And that, of course, does not count your Royalty Residual MLM income growing
geometrically as well.

The entire real estate market in the U.S. has appreciated 6 percent a year (on average)
over the last 100 years, and many markets currently average 15 to 20 percent. What
makes real estate such a valuable investment is the leverage you can get against the
top-line appreciation; the fact that they do not make any more of it; and the current and
escalating population boom. Real estate in the next 50 years may well average 20 to 30
percent in the more attractive locations. It is a "Walk in the Multimillionaires Park"
providing you have what? FREE CASH FLOW.

Equities can also be a good investment, yet it is difficult to leverage them. You can tie
up $1,000,000 of real estate with maybe $50,000 cash down and some cash flow to
cover the expenses. With equities you will need the full $1,000,000 to get the
appreciation value of the full million. Equities can grow quickly and they can also
evaporate just as quickly. In fact, they can completely vanish along with your
investment. It is much easier to participate in real estate at significant levels, and it is
much more secure.

Your Financial Future
Between the asset value of your residual income and the growing assets of your real
estate portfolio, you can make yourself a multimillionaire in four to five years. For most
of us, such wealth may have always seemed like a dream-come-true luxury. Our parents
didn't need that kind of wealth to do well in life. Why might we?

There is no "might" about it for the majority of us. Our parents grew old in the days of
pensions, corporate benefits and semi-affordable healthcare. We will not be growing old
with these props in place. It is a commonly accepted practice today for corporations to
take drastic measures to offload their pension and healthcare liabilities. The price of
healthcare is already out of control, and will certainly gain even more momentum. You
and I will need at least several million in secure assets to live out our golden years with
some gold.
Financial Future Worksheet

To what age do you intend to live? __________ (e.g., 100)

At what age do you want or need to be financially independent? __________(e.g., 60)

What is your age now? __________(e.g., 60)

What annual income (in today's dollars) will you want to have in your golden years?
__________(e.g., $100,000)

What is your current net worth, excluding your primary residence?__________(e.g.,
$200,000. Your primary residence cannot be used here. You will have the opportunity to
downsize in the future and you will still need to pay for a place to live.)

What will your net worth be when you want or need to retire, given your current
investment trends? __________(e.g., $600,000)

What income will that earn you in retirement?__________ (e.g., $30,000 to $50,000

What does your net worth need to be in order to fund your desired income (stated
above) at retirement? (20 times the annual income) __________(e.g., $2,000,000)

How much net worth are you short? __________(e.g., $1,400,000)

How many years do you have to make it up?__________(e.g., 20)

How much do you need to save each year in addition to your current trend? _________
(e.g., $70,000 minus compounding)

How on earth will you accomplish that? _________(e.g., A residual income of $1,000 to
$2,000 a month now, and investing it in real estate.)

    Do you know how few people have $200,000 in non-
    residential assets at the age of 40? Very, very few.
    Even they do not have a way to achieve their financial
    freedom. What about all the people that have much
    less? Financial disaster.

Network marketing multi-gazillionaire, Mark Yarnell has heralded Network Marketing as
"the last bastion for free enterprise." This can certainly be true. As I look across the
landscape of wealth-building options, I see only two ways most people (not everyone,
but most...) will be able to become financially free:
    Earn and invest extra income now in real estate, and
    build that same income in pure, solid gold residual

If ever there was a path available to anyone, from anywhere, in any current career, and
any set of circumstances to gain their own freedom and independence... Network
Marketing is it. 

To top