Residual Income, Passive Income and Network Marketing
Network Marketing is one of the few industries (some people will argue it's not really an industry, but that's the only word I can come up with now) that offers both Residual and Passive incomes. Both of these kinds of incomes are superior to the "time for money" type of incomes you might get with a job. What are they and how do they differ?
Residual income is income you get long after you already done the work for it. A real world example of this would be recording artist. They get paid long after they've done the actual work to make the recording - sometimes for decades after.
Passive Income is income you earn by doing little or nothing at all. A real world example of this would be a sports star who lends his name to a product for promotion purposes. He hasn't really done any work - but he'll get paid usually on one some ongoing basis for the use of his name.
You might be saying: But I'm not a recording artist or a sports star! That's ok because network marketing usually offers both of these advantageous income types. If your network marketing product is sold with an Autoship option, that means you get paid long into the future for one sale. This is residual income because you do the work once and you keep getting paid long into the future. Passive income can be found in your network marketing team building. Presumably your team is doing work; bringing in customers and building their own team. You will be getting paid on their efforts.
Passive and residual income can be far superior to 'paid by the hour' income. When you are paid by the hour, you are simply trading time for money. And time is something that there never seems to be enough of. Often when you are working a low paying job, money is also in short supply. Trading time for money and not making enough money - that doesn't sound good does it?
Network marketing is a home based business model where both types of income are present. With some work and dedication you can build both passive and residual income streams in network marketing.
