I’m working from Denver this week and staying with our cousin Michael. Looking out his window this morning I’ve noticed a lovely piece of garden art – a large copper tulip sculpture that catches the sunlight and spins in the breeze.
It reminds me of all sorts of things – how fast my life spins by each week; how even in a winter garden movement that catches my eye makes me smile …
It reminds me of residual income. I know. I know. My mind works is very odd ways sometimes.
But here’s why.
I’m watching the tulip spin and I’m listening to music via Pandora. Hmmm….
Residual income is actually very similar to royalty income. ( You know – the income that musical artists, actors, and producers receive every time a song or a show is played. Like PANDORA.) Artists create something fabulous, and in perpetuity they will receive income off of their hard work. It’s very lucrative, folks. VERY lucrative. It keeps growing with the smallest bits of momentum.
My company, Rodan+Fields, has build a business platform based on direct sales (i.e. no middle man) and residual income. (think royalty income)
The easiest way to look at it is like this:
- I own a Rodan+Fields franchise versus I write/produce music/movies/tv shows
- I sell Rodan+Fields products versus I present my talent via live productions/concerts
- I partner with others to sell products and expand the Rodan+Fields brand and business platform via their own franchise versus I partner with others to represent me and my talent
- I am paid commission on my personal business, plus I am paid residual commission as I build out my distribution/business platform versus I am paid for my live work, plus residual income (royalty fees) when my work generates income for my distributors (radio, cable, Netflix, etc.)
I don’t know about you, but I’d much rather see a regular monthly check come in from the work I do upfront, PLUS the work my business partners and I do in building out our distribution organizations for years to come.
I suspect that if you ask any actor or musician … they feel the same way. Their hard work is supported and rewarded in perpetuity.
Michael’s tulip spinner chugs along, even with the smallest breeze. In an odd sort of way, it’s very much like residual income. It takes some momentum, but once it gets started, there’s no stopping the possibilities.