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Residual IncomeFirstly, what is a residual income?It is an income which you continue to receive long after the necessary work has been completed. The examples usually given are the writing of a top selling book or making records. Obviously Elvis Presley does nothing about his recordings but the money still pours in. We are led to believe that this is what will happen due to our work within a Network Marketing company. The way that most NM / MLM companies define the term is that you will receive a pay out on retail of your downline for as long as YOU are producing retail within designated time periods. You must check within the small print of your agreement.
Another get out clause that some companies quite legally employ is with the stair step breakaway compensation plans. In this case you will only receive income on the breakaway if you can produce enough retail in your personal group. There are various types of breakaway but most seem to have been put in place to give a cut off point for bonuses. The plan as presented to you as a prospect will set out what will happen in an ideal situation. However, it is your responsibility to read the small print very carefully. You will find that a true residual income is extremely unlikely. This is quite acceptable if you can fulfil the qualifications to keep your income flowing. If you are worried about an agreement then don’t sign it. If you would like some help please Contact Me Direct. I am not legally trained but I have seen many of the agreements out there and would be pleased to be of assistance to you.
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