Residual Income


Would you like to make money even when you don’t go to work, while you are sleeping and even while you are away on vacation? The secret to this is to have your work continue to pay you even when you stop working. Like a money machine that, once started, continues to operate even when you aren’t there. Well there actually is such as thing… It’s called residual income, and with some time and effort you can be earning it. More on that in a minute.

Right now let’s take a look at the three basic ways most people get paid, chances are you fall into one of these categories.

The first is where you do a one-time job, sale or perform a contract, you get paid once and the income stops there. The second type of income is where you do a normal 8 to 5 job, and you will continue to get paid as long you continue to work for your employer- often called a linear income. This is directly proportional to the number of hours invested in it (40 hours of pay for 40 hours of work), and is a one-time compensation or payment in the form of a fee, wage, commission or salary. Linear income is the type of income that the majority of workers get.

A large majority of affluent people created wealth through residual income. Take singer Michael Jackson as another example; he received royalty checks from sales of the records that he made decades ago. He could even repackage the same oldies and sell them to generate new income. He didn’t have to spend time in the studio to record new songs in order to have the cash keep flowing in.

Even if you are a doctor, lawyer or engineer, you are only paid as long as you continue working. You stop working and your bank account dwindles quite quickly.

The third type of income is Residual Income and it means that once you have set the wheels in motion you will continue to make money. Residual income keeps coming in month after month, year after year, from work you do just one time. Possibly forever! 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!

For example, let’s say that you wrote a book. To do that you had to go through the tedious tasks of researching, writing and getting a publisher. However, after that initial work, and as long as your book continues to sell, you will continue to receive royalty checks.

A large portion of people who enjoy this type of income belong to the creative fields such as actors, writers, singers, and inventors. However, the field of Network Marketing, also known as 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.

With MLM you can build a network of distributors, usually referred to as your “downline”, and generate income outside of your own immediate effort. This is something called Leveraged Income, where you leverage the work of other people to create income for you. When you combine leveraged income with residual income you have an extremely powerful money force working in your favor. And that is why working for an MLM company is one of the absolute best ways you can generate residual cash. We will take a look at the secrets to being a successful network marketer a little later. But first let’s talk a little about why residual income is important to you.


Residual Income is very important for anybody looking to create a reliable source of income without slaving away at a job for the rest of their lives. It is something virtually everyone ultimately wants but most don’t know what it is or how to get it, or are simply too scared to leave their “comfort zone” in order to make a better life for them and their family.

An opportunity that combines leveraged income (through efforts of other people) with residual income (passive and recurring) is the first step to creating true wealth, which will eventually lead to financial freedom. As stated above, Network Marketing, also called Multi Level Marketing (MLM), business opportunities offer this combination of leveraged and residual income. Here are just a handful of the benefits of generating a passive residual income:

  1. After your initial effort to get your income started your work is minimal. You work less and earn more. (Don’t be fooled though, you WILL have to work very hard at first to get the ball rolling. But it’s definitely worth it.)

  2. Freedom to choose when you work and where you do it. Get up when you want, go to bed when you want. Set your own hours because you are in charge with no one breathing down your neck with deadlines.

  3. Your residual income is passive and not dependent on a typical 40 hour (more likely 60 or 80 hour) work week. It can be generated 24 hours a day, 7 days a week.

  4. Able to give yourself a pay raise whenever you want by creating multiple income streams. If you need more money just find another residual income stream, work at little harder to get it going, and you have just given yourself a pay raise!

  5. Create a virtually unlimited amount of income. You are really only limited by your own imagination and willingness to put in the effort.

  6. Have more freedom to spend time with your family and friends, go on vacations or do whatever else you want to do.

  7. Ability to give to charitable causes with the extra money you can create, or donate your time to help a good cause since you won’t have to be at work all the time.

  8. When you retire your income will stay the same, even increase, so you won’t have to forfeit any luxuries you have grown accustomed to.

Is residual income only a dream? For thousands of enterprising individuals it’s not just a dream – it’s a reality. The concept is simple, do the hard work first and collect on it forever as long as you except the fact that people will not always work as hard as you do. You will always need to keep marketing to replace the ones that fall by the wayside.