Residual Income is another term for “recurring†income. Basically there are three types of income streams that you may have coming into your business. If you do a one-time job, sale or perform a contract, you get paid once and the income stops there. If you do a normal 9 to 5 job, you will continue to get paid as long you continue to work for your employer—often called a linear income. This is the type of income that the majority of workers “enjoy.†Even if you are a neurosurgeon, lawyer or engineer, you are only paid as long as you continue working. You stop working and the bank account dwindles.
The third type of income is the residual or recurring income where you are paid even after you have stopped working. For example, let’s say that you wrote a book. You had to go through the tedious task of researching, writing and getting a publisher. However, after that initial investment, and as long as your book continues to sell, you will continue to receive royalty checks.
A majority of affluent people created wealth through a residual income stream. Take singer Michael Jackson for example; he still continues to receive royalty from the sales of his records made decades ago. He can even repackage the same oldies and sell them to generate new income. He doesn’t have to spend time in the studio to record new songs in order to have the cash keep flowing in. This is the most ideal situation of the three. We would all like to work once and get paid over and over again. That is the power of residual income!
The majority of professionals that enjoy this type of income belong to the creative fields such as actors, writers, singers, and inventors. The field of Network Marketing or Multi-level Marketing (MLM) has also been instrumental over the past 60 years or so to make the residual income concept very popular and attractive. Here, you can build a network of distributors, referred to as your ‘downline’, and generate income outside of your own immediate effort. Working for an MLM company is one of the most feasible places where you can generate residual cash, and so we will now take a look at the secrets to being a successful network marketer.
