What Are Residual Income Activities in a Network Marketing Business or MLM Opportunity?

This is one of the most important subjects in building and running a successful network marketing business.

IPA – “Income Producing Activity”

What is an IPA and what differentiates it from any other activities?

The fact is that many people in network marketing businesses haven’t really grasped this concept in it’s most effective sense. They (unknowlingly) mistake unproductive work as income producing activity.

I’ll be the first to say, that I fell into this trap myself years ago.

Let me explain:

For simplification purposes, let’s say there are just 2 categories of activities (work) in building a network marketing or MLM business. They are Busy Work Activities and IPA’s (Income Producing Activities).

What are some examples of busy work?

- Attending a conference call.
- Going to a company or upline meeting.
- Attending a convention or a company event.
- Reading over company brochures or websites.
- Talking to 3 strangers a day because your upline said to.
- Studying the compensation plan or product specs.
- Talking on Instant Messenger day and night.
- Listening to training cd’s or reading a book about MLM.
- Thinking about your ‘why’ and if it’s big enough.
- Checking email (unless it’s from someone who wants to purchase what you are offering).
- Anything that is not DIRECTLY related to putting money in your pocket.

Now, are the things above important? Sure they are, but they should be considered secondary activities because they take your time and focus off of the most important thing: GETTING RESULTS.

Let me ask you something here:

If you know how to get consistent results in your business, then why would you spend so much time on activities that may possibly take time away from you obtaining your primary objective?

One of the reasons (in my opinion) that people get so in to all the conference calls, meetings, annual conventions and such is because it sort of feels like you are working your business in some weird way, and learning some things while you are around others in the same boat, and there’s always some ‘exciting’ news you need to hear. You are going through ‘training’. You are told to ‘Stay Plugged In’.

What does that mean? Well, for one it’s an easy way to keep you in the business longer by getting you all excited over other people’s successes, or the products, or the triple infinity comp plan, or the company, or the new distribution plant coming out soon, etc.

Yes, they are forms of training, and training is very important. However, the most effective training is one that produces predictable, consistent results. If you have been in calls or have gone to meetings and you still are not getting predictable results on a consistent basis, then you may want to take a good look at the so-called training you are tapping into.

Either it’s not really that great OR you haven’t yet implemented it correctly.

Truth be know (in my opinion), it’s usually that it’s not that great. Mostly just rehashed information everyone already knows mixed in with excitement, hype, and ‘you can do it’ terminology. Going back to my article on training – it has to focus on marketing and predictable results.

Now, what are some examples of True IPA’s?

- Making a sale.
- Generating your own leads.
- Signing up a business builder.
- Performing proven marketing methods on a daily basis.
- Effectively training your organization on marketing to duplicate your efforts.
- Anything that when the action is completed or accomplished, it directly generates dollars for you.

So, here’s a helpful way to locate and filter out any non-essential activities:

Sit down with a pen and a piece of paper. Think about every activity you do on a daily basis that is in any way related to your network marketing business. Write down each activity you performed, the time you spent on that activity, and what the direct result for that activity was (or is currently).

This will assist you in narrowing down the essential activities needed to produce your desired results, and will help you to spend less time on the non-essentials and more on the activities that count.

Then, take a look at the results you are getting or not getting from your marketing efforts. If your results are sporadic and inconsistent, you may want to consider what kind of education (training) you are getting and question the effectiveness of either IT or YOU.

Before you perform an activity for your business, simply ask yourself: ‘Is this a true IPA?’

Remember, we all need to constantly educate ourselves and stay ahead of the curve; but getting results is easy when you’ve been taught the basic template and what to look for. If you know how to effectively market, you can be successful in just about any business.

It’s OK to do ‘busy work’ sometimes, but just don’t confuse it for a true IPA or spend your ‘on duty’ time doing it. Save it for after hours.

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