Many think that the credit repair business generates residual income by default. For some, that’s the biggest reason they want to get into credit repair. But developing residual income is difficult in this business. Even if you can do it, it doesn’t last because clients will only pay for 3 to 6 months on average. But read on because I will show you how to generate a residual income in the credit repair business.
Why is it Challenging to Generate a Residual Income in Credit Repair?
There are several reasons why residual income is challenging to achieve in credit repair. The first is the federal CROA law. According to the law, you can only charge for services after you produce the result for the client. Producing that result could take quite a while. Even if you find a way around this law, the clients will only pay until you get them a higher credit score. So, at best, the residual income is temporary.
But the biggest issue you have in trying to do everything yourself is a lack of leverage. When you operate a business on your own, you have zero leverage. In other words, you have no help. The only way to grow your business is for you to do it. That’s a business model that will lead to burnout at best, and failure at worst.
For you to understand what I’m about to share, you must abandon your thinking about how to start a credit repair business. The days when someone could start a credit repair business on their own, work out of their house, and do it on their own are gone. I address this in many of my articles such as Success in the Credit Repair Business in 2022. That is unless they just want to help their friends and family. However, to develop a significant and true residual income you need to work with a different business model.
The Basics - What You MUST Do
First, you must free up your time. Doing everything yourself gives you no time to grow your business. Having more time gives you the opportunity to market your business. That is your highest and most important value to your business. Drafting dispute letters and taking customer service calls are not high-value functions.
Next, you must offer far more than credit repair. Removing derogatory items is beneficial. It will raise a credit score. But there are tens of thousands of other companies that do credit repair. Just Google credit repair in your area. How can you compete when other credit repair companies are already on the front page of Google? They have a track record, and a seasoned website ranking, and chances are they can outspend you for marketing in your area.
And you must be legally compliant. Federal and state laws shouldn’t be ignored. Don’t think that you can fly under the radar because you’re just a small credit repair company. Maybe for a while, but don’t you want to sleep well at night?
But How Do You Generate a True Residual Income?
So, what’s the solution? How do you get started and generate a residual income in the credit repair business? Well, we partnered with a larger company that provides well over a dozen services including credit repair. These services help put people in a better financial situation in many ways. They help the customer save more of what they earn, eliminate their debt, and give them asset protection vehicles for long-term tax-free growth of their money. And, with this business model, we can build a team of other business owners and gain leverage in our business.
Let’s take a look at how this solves the problems I shared above. It most definitely frees up time. We are not delivering these services. So first off, we don’t have to be an expert in all of them. Our partner has experts. They have CPAs, CFOs (Certified Financial Planners), and other financial experts that can do a far better job helping our clients than we can. This allows us to market our business, help far more people, and make more money.
Offering more services allows us to outflank the competition. How? For example, we can go to real estate agents and mortgage brokers and talk about rent reporting. We can take a renter’s monthly rent payments and add them to their credit reports. This can bump a credit score 50 points or more in less than 45 days. Do you think that would get the attention of a real estate agent? And, of course, if the client has derogatory items, we can take care of that as well.
We are legally compliant in all 50 states. How can that be? Because we do not deliver the services and we do not take funds directly from the client. Our partner does that. They are the ones that need to be legally compliant. And they are. Their credit repair service is CROA and RESPA-compliant. So, we can sleep very well at night.
Developing a Team Gives You Leverage and a Residual Income
You must have others that are out there marketing their business, and at the same time marketing yours. By having others spread the word about the services they offer and getting paid to do it, you win. You bring in more clients and make more money.
Instead of competing with all the big companies on the front page of Google, we have hundreds of independent business owners out there sharing the message with their contacts. Yes, their friends and family might need the services, but also people in credit-related industries that have credit-challenged clients. When they bring in a client, we win.
As you develop this team, your residual grows because they are bringing in business that you couldn’t possibly bring in yourself. They are developing their own income and their own team, so your business grows exponentially.
This is true residual income. If we stop working, the team does not. When we have a slow week, the team doesn’t. If we want to sell our business, we have value to sell because the residual is guaranteed to come in every month, and we can document it. This is the business model we’ve been using for ten years. In that time, we’ve generated over $6.5 million in business.
Does This Make Sense?
Does this make more sense to you than buying software, getting a merchant services company, and paying for a surety bond that allows you to only do business in your state? Isn't it a better way to go than competing against all the big dogs, offering just one service that everyone else has, and dealing with state and federal laws? Does this sound better than you doing everything yourself?
If so, click the image below. This will bring you to our Business Opportunity page. There you can watch a 24-minute video that will give you all the details. If you like what you see you can click an icon just below the video to schedule a phone appointment with one of our Executive Directors. You’ll get all your questions answered and be able to make an informed decision.