What is Residual Income and How to Create it in Network Marketing – Pipeline Principle and Pipes Analogy

Today’s topic is really one of my personal favorites: What is residual income and how can to create it in network marketing! Good stuff =)

Well first off you should understand…

The Network Marketing Pipeline Principle

This is a powerful analogy that you should definitely share with your teams and prospects. Most jobs out in the marketplace are bucket hauling jobs. What I mean by that is that in these jobs people trade their time for money. If they want to get paid on a given day, week, month or year, they are going to have to show up and put the hours in that their job requires. We compare this to hauling buckets of water into a village every day to sell that water. It’s a fine way to make money, but hard to scale.

Now there is nothing wrong with this type of job. I admire any man or woman who is out there hustling to take care of their family, but there is a better way. The better way is to build a pipeline. Residual income is the better way.

Network marketing is one of the best ways to build residual income. You are (in our analogy) laying pipe down every day from that water source to the village so that instead of having to make trip after trip after trip, exchanging your time for money, you can just leave the water flow on and collect money 24/7.

So how do you build your pipeline in network marketing? We teach…

The Network Marketing Pipes Acronym / Analogy

The PIPES acronym is:

These are the 5 activities that you need to participate in to build your pipeline of residual income in network marketing. The 3 income producing activities (aka the ones that are the most important) are I, P and E. Invite. Present. Enroll.

If you are out of balance in your business, you’re going to see less success and grow at a slower pace.

Some people spend 90% of their time on personal development and setting goals. This is the Prepare category. This is not where the money is my friends. Success comes ONLY after massive action and massive action is in I, P and E. You should spend the majority of your time inviting people to learn about your product or opportunity, presenting your companies information to them, and enrolling them as customers as business builders. These are the activities that lead to success.

I’ve seen some people who get a few people on their team and think they can sit back and just offer support. Guess what happens on their teams? little to nothing… Why? Because your role as a leader is not to motivate, but to inspire! You can motivate people by telling them what to do, but you inspire people by SHOWING them what to do! Duplication comes easiest when people can watch you doing those pipeline residual income producing activities.

So in short, stay balanced between the PIPES activities. All are important, but balance is key.

Hope this was helpful for you! If you got value, leave a comment below with your insights or share this with a team member.
PS If you haven’t already, be sure to check out my free audio training on the 6 core beliefs to create success in network marketing: