How to Create Residual Income in a Home-Based Business

 Your ultimate goal is to find a product or service that can make you money and create residual income. You need a product that the consumer will continue to use every month or service that provides a distinct benefit which represents a value to maintain. This means staying away from fad products, such as the current weight loss craze or health drink of the month. Because of my background and training, I tend to lean more towards financial products and services. Despite economic times, financial and healthcare savings programs are always in demand. In addition, the sources for these programs usually come from time-tested companies that will still be around to support you a year from now.

Many readers are all too familiar with the here today, gone tomorrow hot deal of the month promotions. Next to the right product, the next most important decision you will make is what your source will be for your product or service. Unless you are creating your own product, this decision is critical to how residual your income will really be. Look for credible and reliable companies which have been in the marketplace for several years. You are much better off not gambling on a start-up company. Also, find out what marketing tools, training, and support are provided.

As you start to develop your marketing strategy, the next question is what will set you apart from the competition. Becoming the next "me-too" is not going to make you any money. What is it that you or your product can bring to the table that makes you different? Does your product offer a unique feature or benefit? Do you offer better customer service? What value do you add as a marketer? As you start to promote, remember it's never about you, it's always about the customer.

Unless you own your own product, you will need to look for an affiliate program, network marketing company (MLM), or financial services agency for products which require an insurance license to sell. Even though the profit potential is greater, if you are not someone who is interested in recruiting a team to help you market, a network marketing company is probably not for you. The main focus of all MLM companies is more on recruiting than the product itself. This is not to say that some MLM companies don't have excellent products.

Affiliate programs and agencies lean more towards personal sales, but usually have a limited opportunity to earn overrides on the sales of sub-agents.

By Rod Taverna