Residual Income is addressed in several parts of the SFI training modules: in SFI Basics, in the Compensation Plan, in Solutions, and in Frequently Asked Questions (FAQ), including explanations of the executive pool, just to point to few of the places where to find relevant, official information.
We have the official definition in the Glossary: "...Residual Income is income that keeps coming in, around the clock, month after month, year after year. It's like a royalty where you write a book or record a song and get paid indefinitely on it".
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Building residual income is engaging in activity that will produce for us revenues, in the future, repeatedly regardless of whether we continue to do that activity or not.
One of the best examples of such activity is the sponsoring of E-Commerce Associates (ECAs). When our referred ECAs becomes active and sells through TripleClicks, we earn a 10% commission on their sales. As long as they continue to be a member and to sell, this income will continue to flow to us, "month after month, year after year", on the basis of one single action in the past.
The similarity, made in the official definition quoted above, is a good illustration on how residual income woks. It was published last year that one of the greatest earners among recording artists was Micheal Jackson, years after his passing away, as a result of his work that continues to sell.
For us, SFI affiliates, the secrets of building residual income is in sponsoring affiliates, training them and teaching them duplication, helping them build their own team.
Indeed, sponsoring is the second type, and most lucrative activity that will produce residual income for us. When we sponsor an active affiliate, we earn direct commissions from their activity for as long as they are with SFI. We also earn matching points that will be part of our shares of the executive pool, as long as we maintain a team leader rank and the affiliate maintains an EA2 status. In addition, team leaders, from Bronze Team Leader (BTL) to Diamond Team Leader (DTL), earn additional executive pool matching points on their second generation PSAs (up to 6th generation for BTLs, and up to 12th generation for DTLs) with the doubling of the matching points on the 12th generation
Team Leaders earn matching VP, also, on their CSAs who are EA2
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This is a very important component of our compensation. It is what makes team building so lucrative. It is an important part of the residual income.
Below are illustrations on matching VP:
The example mentioned in "Solutions" is that of a Silver Team Leader (STL) : "...You are an STL. The EA2s in your first 8 levels account for a total of 57,500 VP this month, so YOU earn a matching 57,500 shares of the TripleClicks Executive Pool"
Platinum Team Leaders (PTLs) earn matching VP up to 10 generations in their downline.
It is also interesting and highly motivating to keep in mind the matching VP earned by Diamond Team Leaders: "DTLs receive matching VP on all EA2s in their downline within 12 levels (including their CSAs), plus double matching VP on affiliates on the 12th level."
"To earn matching VP, we must hold the rank of Team Leader, maintain our SFI Leader Page, and also maintain a minimum 3-star Sponsor Rating (not applicable w/less than 5 ratings)."
Thus, we can summarize: residual income is built by (1) referring ECAs, (ii) sponsoring a strong, large team of EA2, and (iii) providing an effective support to our CSAs. These are the three major building blocks and pillars for a strong, growing residual income.
How to sponsor EA2 is clearly explained in the SFI Plan
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Building a strong residual income is maximized to the highest when we reach the level of DTL and build a team to the 12th generation. The more EA2 we have in our downline, the more residual income we earn even after we slowdown our SFI building efforts and go into semi-retirement,. as long as we keep the status of team leader.
It is actually interesting to note that the requirement for the rank of DTL is just to have a standing order of 1500 VP or more and 5 first generation Platinum Team Leaders (PTLs). After we have built a strong team for years, it is likely that we will have many other DTLs as first generation affiliates. This will solidify our position as DTL ourselves and strengthen our ability to continue earning residual income.
This is the objective to work for.
I will conclude by quoting the last FAQ at the bottom of the SFI Plan:
Question: "What if I developed five DTLs on my first level? Would I get an even higher rank than DTL?"
Answer: "Diamond Team Leader is the highest rank in SFI at this time, but with five DTLs on your first level, you might very well be the highest earner in SFI! So that's a GREAT goal!"
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