Page 5 - GDO Residual Income brochure

CREATING RESIDUAL INCOME WITH YOUNG LIVING
Income becomes residual when your members are placing regular recurring orders on Essential Rewards (ER). See we did get back to the ER discussion!
In a nutshell, if your downline ordered the exact same order after Fast Start, your monthly check would be the same each month. That is how you keep residual income, by keeping members on ER!
However, if your monthly income relies on kit sales you do not have residual income. You have a sales job. Not a good place to be.
Now let’s turn our other example on its head. Remember that $72,000 – or $300 monthly.
This means if your YL business is established enough that you have people on ER. That $300 in ER is the equivalent of someone having $72,000 in the bank to get that payment monthly. We use a multiplier equation to tell us how much money you would need to have in the bank to receive that residual income.
Multiplier Equation =240 {72,000/300=240}
Let’s break this down a bit further and remember you must pay a little bit of tax on your income, so let’s assume a 200x multiplier to account for those taxes. Here is the amount required in bank to earn equivalent of YL check at 5% return (using 200x multiplier)
Rank
Star
Senior Star
Executive
Silver
Gold
Platinum
Diamond
Crown Diamond
Royal Crown Diamond
Median Mo. Income*
$60
$210
$465
$1,770
$5,000
$12,000
$30,000
$63,500
$145,000
Value needed in bank (Rounded) $12,000
$42,000
$93,000
$354,000
$1,000,000
$2,400,000
$6,000,000
$12,700,000
$29,000,000
* Median income= If you have 101 people number 51 would be the median.