What is a business system?
A business system is all of the components used to start and run a business. The components I am using in this internet based business is websites pages like this one to provide training, I’m also using a FaceBook page to look for people who want to own an internet based business to build a life time residual income. And the third part is THE INCOME FOR LIFE AFFILIATE MEMBERSHIP PROGRAM.
You should remember this from my welcome page but I wanted to start with this as a reminder to refresh your memory.
What is a business model?
I cover this on the welcome page as well but want to remind you here to because this information is the foundation for the training I will be doing on this page.
A business model describes and explains exactly how money is involved and how money moves around with in a business system. So it is like the financial budget used by a company or business. It is a plan on how they will earn money and how they will spend money.
One of the most important parts of a business model is how they have decided to pay the people who work for the company or business. For example if you work for a company that pays an hourly wage the workers get very little of the profits and revenue. But if you work as an affiliate for Global Domains International who pays a share of the profits and revenue you have the opportunity to earn a larger income for doing a smaller amount of work.
What do the words mean in affiliate marketing?
I went over this on the welcome page but feel the need to refresh your memory on this.
The first thing you need to understand is the words and what they mean. We will start with the word marketing. The words marketing and advertising both mean relatively the same thing. Anyone who is promoting a product or service is doing marketing and advertising. Marketing and advertising is not doing the actual selling of a product or service, it’s just doing the promotions involved to get people interested in the products and services.
Now let’s take a look at this word affiliate, I’m going to be very truthful and tell you I had no ideal what that word meant the first time I saw it, but now I do.
The word affiliate means to be affiliated with someone or something. When you become affiliated with someone or something it gives you the rights to to do certain things. So when you become an affiliate of a company or business they are giving you the right or permission to do what they want you to do for them. When a company or business gives you permission to do something for them they are also giving you the right to earn money from them. If you preform the task they want you to do you get to earn a share of the profits and revenue.
I am affiliated with GLOBAL DOMAINS INTERNATIONAL because I am a member of THE INCOME FOR LIFE AFFILIATE MEMBERSHIP PROGRAM.
I brought this up on the welcome page that the owners of GLOBAL DOMAINS INTERNATIONAL created THE INCOME FOR LIFE AFFILIATE MEMBERSHIP PROGRAM back in 1999. And this affiliate membership program is a big part of their business system and their business model.
Now that I am an affiliate of GLOBAL DOMAINS INTERNATIONAL because I am a MEMBER of THE INCOME FOR LIFE PROGRAM I have the right to earn some of the profits and revenue.
Their not going to pay me anything until I do my part of the affiliate agreement, my part of the agreement is to find and train people. My job is to teach people how to earn a share of the profits and revenue. Most people have never learned how to earn a profit and revenue income because they were taught to work for money by the hour. So it’s my job as an affiliate to teach people how to earn a LIFE TIME RESIDUAL INCOME using the affiliate membership program.
So the job title of an Affiliate is RESIDUAL INCOME TEACHER.
Marketing and Advertising is a form of Education.
So my job is not to sell memberships, my job is to find people who want to build a life time profit based income by teaching them to become a RESIDUAL INCOME TEACHER.
Global Domains International will pay us a share of the profits and revenue for the rest of our life if we help them find new customers that want to earn a share of the profits and revenue for the rest of their lives.
My Business Is Teaching and Training.
I am spending a lot of time writing about business systems and business models on these web pages because I want you to fully understand what this business is all about and how it works.
The only people that we want to become a member of THE INCOME FOR LIFE PROGRAM is people who want to build a life time residual income, that is what it’s designed for.
We are not trying to sell a membership to people that don’t want a LIFE TIME INCOME, our program is only designed for people that want a LIFE TIME INCOME.
From here I am going to move into the next part of the training.
I have wrote this several times that the business model describes how the money moves around from place to place with in a business system. You also already know that these web pages are one component of my business system that are used to do training’s. Now look at the two images right above this paragraph, I made them for free on canva.com. Matter of fact a lot of stuff I use in the business are free. This website is a WordPress free version website, and the images above are free from Canva. These things might be free but they are an important part of the training process. Any body in the world can study this training and it does not cost me any money, pretty cool I think.
I want you to look at this image and start to think about what it is saying. It say’s The 5+5+5 Training Program, then it goes on to say, Is A Simple Math Formula We Use To Teach Financial Freedom
This training is about how the business model works for both THE INCOME FOR LIFE AFFILIATE MEMBERSHIP PROGRAM and for people like me who have decided to become an AFFILIATE of the program. In this training I will show you how the money moves around from point A to point B.
You may or may not want to achieve financial freedom in your life but I personally made a decision years ago to pursue FINANCIAL FREEDOM.
When starting a business one of the first things that you have to figure out is how many customers are you going to need to make your business work. When I was looking at all the home based businesses that could be done on the internet, I wanted one where I didn’t need many customers. My goal is to build a business where I don’t have to work much, I want my business to be a spare time business. I also want to make it as automated as possible. After looking at a whole lot of different types of internet businesses I choose the Global Domains International Income For Life Program for several reasons. One is that the owners of the company only want me to focus on finding 5 new customers for them. That’s pretty cool that they designed the Income For Life Program this way. Most companies want their workers to work a lot harder than that for much less money.
The first 5 means you will only need 5 new customers. But you need to find one that want to be (AFFILIATES)
As I wrote above we are only looking for people who want a LIFE TIME RESIDUAL INCOME. It might be hard to find people who want a life time residual income because most people are happy working for a low hourly wage, don’t ask me why, but I have found that most people like working for a low hourly wage. A lot of people like living paycheck to paycheck for some reason and if that is their thing that is fine, we are only looking for the people who seek Financial Freedom.
We are only looking for people who are seeking FINANCIAL FREEDOM.
The next two 5’s have to do with the cost of membership and the payout of monthly commissions. This is what being an affiliate is all about, this is called the compensation plan. If you have not heard of it I feel sorry for you, this type of compensation plan should be taught in every school systems public and private. As of right now only the rich people teach this to their kids in private schools, hopefully at some point this will be taught in public schools.
One of the reasons the rich keep getting richer is because they are smart and understand compensation plans like the one I will be teaching you about right now, it was created by two mathematical geniuses.
How do you turn 10 dollars a month into a LIFE TIME RESIDUAL INCOME?
The first 5 in this math formula means that each affiliate only has to find 5 new people to join the affiliate membership program.
We don’t want just anybody to become a member, we only want people who want financial freedom.
The second two 5’s in this training represent the cost to be a member, ( your operating cost ), and the payout of monthly residual commission.
This business model is called multi-level-marketing.
It was created by 2 mathematical geniuses back in 1945.
Global Domains International designed their compensation plan using a business model that was created by two mathematical geniuses.
I have always liked math and this compensation plan was inspired by a few geniuses. Multi-Level Marketing is one of the smartest ways to build a life time income created. It was designed by intelligent people for intelligent people. That’s why the rich teach it to their children.
How to turn 10 dollars a month into a LIFE TIME RESIDUAL INCOME.
Teaching people how to understand a business model that was created by two mathematical geniuses is definitely the hardest part of this business. So I made this diagram to help me.
The second 5 represented in the math formula image is the 5 levels of compensation and the third 5 in the image represents 5 dollars paid out in monthly commission. Now your going to have to use your brain to put this all together as we go into this training, if you apply yourself you can grasp it all pretty fast. What I need you to do is get a mental picture in your mind of the monthly cost of membership into the basic membership package.
The basic membership package cost is 10 dollars a month, picture a 10 dollar bill in your mind. The basic membership package includes everything you need to build financial freedom into your life. If you are having trouble doing this just find a 10 dollar bill to look at while thinking about this, it helps.
Global Domains International only needs 5 dollars a month to cover the cost of operating the program. This is what we call operating cost, I mentioned it before, remember, if you are paying 10 dollars a month for the basic membership package your operating cost is 10 dollars a month.
As you can see Global Domains International has a profit of 5 dollars a month on each basic membership package. We pay 10 dollars a month for the basic membership package, but it only cost them 5 dollars a month in operating cost, guess who gets the profit in a profit and revenue sharing compensation plan, we do, the people who are affiliated with them.
Now if you can, try to get a mental picture of this math formula and apply it to the image below. We pay 10 dollars to be a member of the program and the company only wants us to find and train 5 new people to become a working affiliate in the membership program. This math formula is awesome and it was created by two mathematical geniuses. Look at where it say’s Basic Members on the top line and just below it say’s Level 1 , 2 , 3 , 4 , 5 . This is like 7th to 8th grade math so you are only going to have to think about this using your middle school brain. The compensation plan is multi-level, it has 5 levels. So what are levels in the compensation plan?
The 5 levels represent the 5 dollars of profit that Global Domains International has to payout each month in monthly residual commission. Let’s see if we can get a mental picture of what this looks like. The 5 dollars is divided up into 5 levels.
Level 1 Pays out 1 Dollar
Level 2 Pays out 1 Dollar
Level 3 Pays out 1 Dollar
Level 4 Pays out 1 Dollar
Level 5 Pays out 1 Dollar
I want to make sure that you are getting all this set in your mind the right way so let’s recap before we move on. So the cost of the basic membership package is 10 dollars a month and 5 dollars of that is the profit and revenue that Global Domains International pays back out in the form of monthly residual commission. The 5 dollars is divided up into 5 levels of 1 dollar each. What this means is the 5 dollars is divided up and paid out to 5 different people who are on the 5 levels as training and business growth continues. We will go deeper into this as needed.
Looking at this let’s recap what the 5+5+5 means.
The first 5 represents 5 new people that want to build a life time residual income. If you remember what I wrote up above that is the only work that Global Domains International wants each of us to do. The only work we have to do is find and train 5 people.
The second 5 represents the 5 levels of compensation and the third 5 represents the 5 dollars of profit that is divided up into the 5 levels of compensation.
If this is the first time you have had any type of training of this type of multi-level compensation plan then you might have to go over it a few times before it sinks into brain. If you have that desire to be Financially Free you will study till you get it.
How long does it take to train each person?
This is a question that is really hard to know the answer too, mainly because that every single person learns at a different pace. So what I did was create this chart using 5 hours as the time it would take for a person to learn everything they would need to start and run this business. I think a more realistic time would be 2 to 3 hours for the average person because of the simpleness of everything.
But all training is done here online so it shouldn’t take much of your time.
After you learn how it all works you don’t have to actually train people, you will do it here online with a free website like this one using free images from Canva. You will use a free Facebook business page as your office and training center location. Pretty cool if I do say so myself.
Here’s how the training process look’s on paper.
Like I was saying earlier this compensation plan was created back in 1945 by two men who were mathematical geniuses.
We also have a PREMIUM MEMBERSHIP PACKAGE.
We also have a premium membership package that you need to know about now. The premium membership does cost more and does include a lot of extras, here’s a diagram to look at.
So, THE INCOME FOR LIFE PROGRAM has two membership packages, the basic membership package and the premium membership package have one main thing in common. Your goal will still only be to find and train 5 new people who have a desire to build or develop a LIFE TIME RESIDUAL INCOME.
I am re-writing this page and will be back to work on it soon.
Mark Caudill, The Residual Income Teacher