Residual Income– (also known as passive income or recurring income) is something Ive been learning more and more about in the last 18 months and dont understand why this isn’t taught to us in school!!!


Firstly lets look at Linear Income

We all know of the linear income that is the every day active income we get from trading time for dollars, and this is your standard well known way of making money, but its not secure and its not sustainable….if you have to stop working for some reason or you take a holiday or sick leave and then take too much time off work, that money will soon run out wont it!!! Its the type of money we have to keep earning day in and day out until we are in our 60s and 70s (you need to show up for work to earn this type of linear income) its a direct result of our efforts.


Residual income

This is the type of leveraged income that gets paid after the work is done!!

you’ll have to put in some effort to continue receiving residual income on the business you started. Building a solid network and organiation will create the best foundation for your business to keep running after your hard work is done.

Residual income in Network Marketing is income you continue to earn based on efforts you put in initially. This income is based on the sale of products and services. And, these products must continue to generate repeat sales.

This is one reason why “consumable” products are the most effective in Network Marketing. Consumable products are those items that are purchased, used up and then replaced, over and over again.

Residual income is desirable in Network Marketing, because this is what allows you to put forth a lot of effort in the beginning, and reap the rewards of that for months and years to come! Pretty cool right!

In the beginning, you will be working lots of hours for a little pay. In the end, you have the freedom of working little hours for lots of pay.



Examples of Residual income

  • Royalties from intellectual property, such as books and patents
  • Home Business/Network Marketing
  • Subscriptions, advertisements, donations or affiliate links from your blog or website
  • Transferring the rights to a song you recorded, a book you wrote, and a company agreeing to pay you a percentage of each copy of your work sold
  • Rent from Property or Commercial Real Estate
  • A savings and investment program that earns interest


Advantages to Residual Income

  • You do have the potential to be financially independent if your residual income produces enough money.
  • Having residual income allows you to do more important things with your time. Whether that’s a hobby or another job or spending precious time with family.
  • No matter what, you will have a constant flow of income (however large or small it may be). This is critical if you get injured or sick, can’t work because of another emergency, or if you just want to take an extended holiday
  • You will make money no matter where you live, unlike a linear income which ties you down to your location, residual income can be created from a international business.
  • Earnings from a business that does not require direct involvement from the owner or merchant.


Of course, before the money starts rolling in you will probably have to put a lot of time and effort into the business. You’ll need a lot of patience and determination to see the residual income in the future.

The beauty of residual income in the Network Marketing world, is that there is no major investment to start off the business and you dont need any background in sales or marketing. The small outlay of a few hundred to a few thousand dollars makes the business very appealing to anyone looking to work for themselves and create a legacy for their family.

Creating this true wealth of Residual Income is something I am very grateful for to pass down the generations of my family.

How are you looking to create financial security for your family? drop me a comment below, I’d love to hear your thoughts.


Janelle Emma xx


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