Build a Long-term Passive Income
Build a Long-term Passive Income. Others are looking for a long term income. When that long term income is in a from that will keep coming in week after week, month after month, year after year without your having to do a lot of hours to maintain the income then it can be referred as a Passive Income. Passive income in our company refers to business that will continue to pay a serious income stream without you needing to more on a daily or weekly basis that to maintain some personal activity to stay active in your business. (Details of this are available in the market plan section of this site)
We went from Australia to America then England, 3 months backpacking in Africa, traveled around Europe for 6 months and then spent some time in India and SE Asia before coming home. It was 14 months from when we left till when we moved back into our home.
This is the sort of things I am taking about when I talk about long term, passive income. If you can be on the other side of the world, trekking in outback Namibia, and still be earning an income from your business then life holds more options. The question is always, how do you do this?
How do you keep income happening when you are not there to watch over it? How can you build Passive Income?
When I was starting with Herbalife I looked at the market plan and worked out what it would mean if I built a team of people who would work with me and “do what I did”. I did some numbers of what would happen if found 5 good people who then found 5 good people of their own and we worked together to assist them to find 5 of their own. If these distributors all do a little work directly into their own business, build a little customer base, and also focus some of their time to support the distributors who join them in their business, then they should be “active supervisors”. (Active Supervisors consistently do 2,500 “volume” per month). I could see that this was achievable if I only needed to find 5 good people to work with. The next question is, of course, what would this mean to me? I did the numbers and was just astounded that that this would be a monthly cheque out of Herbalife paying US$50,000 a month, not a year, a month. It didn’t look all that hard. It did not need an army of people. Just a few good people whp would work shoulder to shoulder with me so we all did well together. I realized that I could find one person to work with me and I worked with that person then together we could find someone else who would work in their business with them. If I could find one then I knew I could find another one, and so it went. The theory was good, as these theories always are, but how often to you find a way to actually make this happen? I am in a tiny little country down of 8,000 people, down at the bottom of Australia, in a depressed rural economy. My baby traveled with us when we went overseas and then came back and started secondary school (year 7) after having over a year of traveling. She was telling me that she has over 70 stamps in her passport. Most people at her school do not even have a passport! The children’s personalities and schooling have been fundamentally altered by the time on the road. They know who they are and what they want and they have no illusion about what is happening out there in the real world and how lucky they are to have the chances life has given them. We were talking here about long term passive income and I have gone off on a side track talking about my kids but my point is that the two things are linked. Doing some hard work initially to form a base of business and an income that will give you choices in your life has changed my life. I do not know anyone who has been able to take a whole year off when their children are young enough to travel as a family. What do you want to be doing in your life that some passive income may allow you to do? Obviously this is not a get rich quick scheme, to build passive income there is work to be done. If it was easy then all Herbalife distributors would be at the top of our marketing plan with their President team pins. My point is that it IS achievable.
I thought about all of this and about how to do things when I was first getting started. When I put it into business terms for myself it all seemed to make sense.
I thought about this as a traditional business. If the General Motors was opening up a whole new operation in your area and you were asked to head it up then what would you do?
How are you at building cars? Most of us have limited skills in that area. If you can build cars then what are you like with corporate bookkeeping? Sales and marketing? Human development and labor relations? What about logistics and being able to have the parts there on time and the correct products manufactures and delivered to the right places all over the country? Obviously if you were heading up the General Motors operation then you would need help. If you are going to build a really solid Herbalife distributorship then you need help. In General Motors you would need a little team of really good people to work with you and then together they can build their own teams to deal within the area they are working with. They would need to gather their own leaders and supervisors to run their part of the operation. It is the same in Herbalife. Your role as a distributor includes getting out on to the factory floor and seeing how cars are put together so that you understand the process. In Herbalife this means using the products yourself and really understanding how the products work and how we can use them to help people with their health and their weight.
It means getting out to see how the retail operations are done and having a little batch of retail customers around you. It means understanding distribution and having a batch of leaders who are new and who you are training up for yourself. It also means taking some responsibility for the whole operation and showing some leadership. In my case I have just built this entire website. I do not have the computer/internet skills to do it. Does that mean it can't be done? Of course not! It means that I find someone with the skills I didn’t have and recruit them to work with me. My friend Helene Malmsio has massive skills in this area. I have a plan and an overview and she has the skills to guide, step by step, how to do it. I have a cheque from Herbalife, the passive income, to keep things going while I work on the website so I have more options in my life now than I did when I was getting started. When you start you will probably not have the time or money to do more than just get your initial business started. This is why I have done this website at my own cost and if you are working with me then you, and the people who join you in the business, and the people in their organization, can have your own pages on this site to link prospective customers and distributors into. You can be part of this site for free. It is the same thing that I was talking about earlier. You don’t need to have all the skills or all the recourses, you just need a reason to get out of your comfort zone and to get to work. We can give you massive support but we cannot do it for you.
Leadership. If you build a little team of people who are serious minded then you will have a business that will continue to grow if you work with it, or if you stay in bed, or if you travel to the other side of the world. There is no one particular skill you must have as any skills you personally lack you can recruit. What you do need to do is lead. Stand up and get started. Register yourself as a distributor, use the products, learn all about the products and business and get to work. If you are leading them then people will follow. It is like a steam train. Lots of noise and energy and steam and the movement is frustratingly slow. You are working harder than you are being paid for.
The third stage is what we are looking for. The train is heading down the tracks, the wind is in your hair, everything is going well and if you go to sleep in your seat or even leave the train then it will continue heading down the track. Your cheques will come in without you having to do more than keep the operation on track. Passive income. You get your royalty cheques on the business you built in the same way that a singer or a writer gets royalty cheques every time they sell their books or CD’s, The people at the “coal face” doing personal sales will always make more money on their work than you do but if you are making 5% on a lot of business then you can be very comfortable. The key is to get yourself started and build your own skills and build a team of good people around you. If you help them to be successful then the passive income follows.
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Recently I took a year away from the office and went traveling with my wife, our 16 year old son and our two daughters aged 12 and 14 years.
The second stage is when things get a bit of traction and the engine starts moving down the tracks. It is an exciting time. Everyone is excited. At that point you will probably earning money about in balance with the work you are doing.
