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Residual Income

Residual Income (also referred to as Passive Income and Recurring Income)

Many people do not understand the concept and importance of residual income. For most people they trade their time for money. Hey I am an ex accountant and financial planner and did not really get it at first!!

Employees go to work and are paid for the hours they work. Many self employed people are paid on the same basis. You do the work and you are paid for it – once. If you do not work you do not get paid.

Residual Income is income that continues to generate after the initial work has been done. Some examples of this are:

  • An author of a book receives ongoing income for sales (royalties)
  • A singer receives ongoing income for CDs sold
  • Positively geared rental properties give you a residual income
  • Investing in shares or other various investments can result in ongoing income

Not everyone has the talent or interest to write a book or become a musician (eeks I am the worst singer!). Investing in property or shares takes capital and knowledge.

There is a way though for everyone and anyone. It is Network Marketing (also called Direct Selling, Multi Level Marketing, and Referral Marketing.

Leverage coupled with Residual Income is very powerful. Robert Kiyosaki taught me these concepts many years ago. He called leverage “doing more with less”.

Network Marketing is the best model of leverage that I know. It is a business where you refer someone, who refers someone and soon you have a growing business.

It is a business where you cannot succeed without helping others succeed.

5 thoughts on “Residual Income

  1. Pingback: The Importance of Residual Income

  2. Gina Sands

    I am also passionate about residual income. I am very upset when I find that Internet Marketers work for years and then suddenly have an illness and have no Plan B (residual income) to keep them afloat/

    1. Sue Post author

      Gina I agree with you totally. Internet marketing and for that matter any marketing with one off sales is good while you are doing it. I have been caught in my life before and now totally value building a residual income.
      Thanks for your comment and have a great day.
      Sue

  3. Adam Robinson

    Today, more than ever, is the perfect time to think about having a residual income. Network marketing is beginning to be more and more popular these days. This is of no surprise really. One just has to do their due diligence in the beginning before investing into these types of passive income opportunities.

    1. Sue Post author

      Thanks for your comment Adam. I agree Network marketing totally makes sense in these times. And yes you do have to do your homework. I also think you have to choose a company who has products you feel passionate about. In my observation the people that succeed are truly passionate about what they are promoting.

      Sue