What does your ideal life look like?
There are plenty of ways for earning money so the focus here is not on that. This is about something much more valuable than money. It's about time and how to separate it from money so you can spend it on things worth while.
In the past thirty years, many people have traveled the path to financial freedom introduced here. Their stories are as varied as their backgrounds and there is quite a bit of literature about how to build your own financial independence the same way they did. Here are only three of numerous books written on the subject:
- From Person to Person - by Gabi Steiner
- The 45 Second Presentation - by Don Failla
- The Process - by Todd Burrier
Below is an independent summary of the system used by the above authors. It's essentially all one needs to know to build a stable, recurring income. For a deeper understanding it is advisable to read at least one of these books.
Step 1: Understanding the system
The system used by the authors of the books above goes under the name of pure referral distribution or marketing (also known as word of mouth marketing).
For a sizable, passive income to be built, turnover needs to be generated reliably and sustainably. Pure referral marketing does exactly that. What follows below is a breakdown of what pure referral marketing is, how exactly it works and what makes it different from other forms of distribution/marketing.
First let's look at how goods are commonly being moved and what pure referral marketing does differently.
Two of the most common distribution methods are:
A much less common distribution method is:
In short: Pure referral marketing is a way for distributing goods directly from the manufacturer to customers without advertising or middle men.
In this method, companies rely purely on word of mouth propaganda from their customers to spread awareness. The marketing budget here (roughly 40% and sometimes more) is used to award customers for the business generated as a result of their recommendations (referrals).
Essential Product Property For Generating A Recurring Income In Pure Referral Marketing
Getting a one off thank you of 40$ for a recommendation on a 100$ product is nice, but that would not be considered a passive income.
Step 2: Understanding the true potential
The interesting part lies in how the 40% marketing budget are payed out to customers. It's easiest to explain this through an example. (For the ease of calculation we continue to postulate 100$ as an average order amount.)
Lets take a consumable product that you have bought through pure referral marketing. You are happy with it, so you tell your friend Anne about it. She want's to try it as well. The only thing she does when she places her first order is: She gives your name or customer number as a reference to the manufacturer to let them know where the recommendation came from. She now gets her own customer number that she can use to buy things and to pass on.
Anne is happy with the product too and tells her brother Bruce about it. Bruce then recommends it to his colleague Christine and Christine to her neighbor David. They all become regular customers.
Taking one of David's orders for instance, the manufacturer pays out a provision as follows: Christine, Bruce, Anne and you will receive 10% each. In total that makes a sum of 40%.
That is still the same 40$ mentioned in step one, only split up over several levels.
If you have bigger goals then getting your own products cheaper, like being more financially independent, paying off a home, supporting important projects, early retirement or perhaps improving your pension, traveling the world or going on dream vacations, 40$ won't get you very far.
What can you do to grow a sizable income stream in pure referral marketing?
The Power Of Multiplication
You are not restricted to referring only one person and neither is anyone else.
Depending on what your goals are you can talk to 2, 3, or more Annes and put the focus on sharing the opportunity/ the concept/ the idea with them. This unleashes the power of multiplication upon the growth of the customer network that you initiated. Best explained like this:
By referring only 5 people who have the same goal as you (which is to refer 5 people with the same goal as them etc.) you can initiate a large network that is generating a large turnover. In this example you are looking at a total turnover of 78.000$ per month of which your 10% would be 7.800$/month. It's the same small % as before but on the volume of a larger customer network.
By building a referral marketing network you...
That is the true potential of pure referral marketing. You don't need product knowledge to explain this to someone and if you feel like you can not explain it yourself, you can use this website as a tool instead.
The opportunity is out there and everyone is free to make use of it... or not. It does not matter what your background is or how old you are, if you are a man or a woman etc... It all hinges on the simple decision of buying certain everyday products for personal use through this distribution channel instead of through retail or direct selling and letting others know about the existence of this opportunity.
More Essential Criteria For Products
We have already established that the products must be consumable products that are bought regularly for this system to generate a passive income and that they must be of high quality so that people like using them. But there are two more important criteria that the products should fulfill:
Step 3: Get yourself a customer pin number
To get your own pin to pass on, simply order something from a pure referral marketing company. (There is only really one out there, all others are direct sales companies) This is where you can test out products to see if it's for you or not. Speak with your contact about what company they are with and about all questions you might have.
Step 4: Spread the word
When you are happy with the quality of the products and the integrity of the company you can start spreading the word.
To grow a network all you need to do is to inform others about the existence of this opportunity. There are many ways in which you can do this. Some are described in the books mentioned earlier. You can also use this website as a tool. Most importantly though, make use of your upline and their knowledge and experience to answer all your questions and those of your prospects until that knowledge becomes your own.
You won't need many people to be successful here but not just anyone will do. Find those that you enjoy spending time with and who share the excitement of pursuing this opportunity and new perspective on life together with you.