MLM Residual Income Series Part 1: What Exactly Is Residual Income?

If you are in an MLM network marketing business then you have heard the term “residual income”. Residual income is the main way to increase your income in MLM network marketing. You do the work once and pays you over and over.

In this four-part series, we will take a deeper look at residual income. So, what is residual income?

What is Residual Income?

Residual income is defined as any income that comes without much effort on your part. It is a result of the work that you have already done. It can be sales you have already made. Some of the most common forms of residual income are royalties for ongoing sales. If you sell a product that requires a monthly auto-ship, you will get paid on that sale over and over. Most MLM opportunities list residual income as part of the compensation package. You start to make money and earn this money without doing any additional work. Once you have laid the groundwork, your residuals will start to roll in.

How Does Residual Income Work in MLM Network Marketing?

Each MLM network marketing opportunity is different. there are some common ways that people are compensated with residual income. When you first start working your MLM business you will be putting in a lot of hours grow your business. This is finding new customers and building a team. The hard work will pay off, as you can expect to start earning some residual income on these efforts.

One way to earn residuals is by getting customers to buy a product on an ongoing basis. If you sell them on a product that they purchase each month you will get paid commissions each time they buy, even though you will not have to do any more work.

Once you have a downline that is building their business, you will start to get residuals on the sales that they make. You have already done the work to get these people involved. You can continue to earn money from their efforts without any extra work on your part. Sure, you might have to answer some questions or give some occasional training. For the most part, you will be earning these residuals on work that you have already done.

Residual Income is the way to get wealthy

Now that you know what residual income is, you are probably wondering if it is better to get residuals or to get a normal employee wage. This question will be answered in part two of our series. We will break down the reasons why residual income is better than employee wages. If you want to keep learning about how to get wealthy with residual income then continue to part two by clicking here as part of my four-part series.

It’s your turn!

What are your thoughts and feedback regarding residual income? Are you currently earning residual income? Are you currently at the beginning phase of residual income? I would love to hear your feedback in the comments section below!

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22 responses to “MLM Residual Income Series Part 1: What Exactly Is Residual Income?”

  1. Adam Payne says:

    Residual income well explained Nate. much better than selling your time for an hourly wage my friend.



    • Nate Leung says:

      Profits are better than wages. With this being said, work hard one time and get paid over and over again. Thanks Adam!

  2. Korey Spikes says:

    This is a really good article. Residual income is important. It is what will allow you to “stop working” and still get an increase of pay each month. Very important in my book. I only work with residual pay systems or programs.

    • Nate Leung says:

      Hi Korey! You’re right, it does allow you to “stop working” and get an increase in pay each month. I’m glad you have stopped by. I’ll see you soon, my friend. 🙂

  3. The thing is Nate, we eventually run out of hours, trying to generate active, bust-your-tail income lol….Awesome points here dude!

    Residual income builds fortunes. Lady Gaga gets as rich when she is sleeping as when she is working, because as your songs are played all over the world – and trust me I hear them when I travel 😉 – she gets paid, in a big way.


    • Nate Leung says:

      Yes, Lady Gaga needs her beauty sleep when she’s making money. Rock on Ryan!

  4. Great content, as always, Nate! You put together some really attractive posts!

  5. Yes, residual income is the way to get rich. In all the books I’ve read on success and building wealth, every one of them talks about residual income from an MLM company. It’s so funny to me how the general public views MLM businesses as a scam. And the wealthy look upon MLM as another stream of income. Guess the general public needs to open their minds. They’d all have more money if they’d give a serious look at starting an MLM business. Great post Nate! Looking forward to Part 2!

    • Nate Leung says:

      Hi Stefani, I agree with you on how the general public views MLM as a scam. It’s just sheer ignorance on their part not to open their minds to new ideas and new concepts even thought MLM has been around forever.

      It’s very unfortunate that the general public are conditioned to just go to school, and get a job and work there for the rest of your life. I’m not saying jobs are bad, but what I do think is bad is why be miserable at your job and still be ok with that and not make any changes.

      I believe it take a tipping point in someone’s life in order to really be open to a change.

      Thanks for stopping by Stefani!

  6. Residual income is where it’s at! It Enables you to work over 24 hours a day and still get paid without much effort from you once you get the ball rollin’. You put together a great post explaining this for everyone to understand! Keep up the value Nate!

  7. pam schmidt says:

    I have no doubt that residual income is the best option when selecting a business. I”m looking forward to your next post, Nate.

  8. Elisha says:

    Ah-hah! Thank you for explaining this to me! It makes so much more sense, now! 🙂 On to part 2!

  9. Liz says:

    Hi Nate,

    Residual income is a great way to develop consistent income that you don’t have to work at continually.

    I don’t belong to an MLM but I’ve done some affiliate marketing that to this day continues to bring me income. It’s income from something I did just once.

    I also encourage writing books and guides. Those are also great ways to ensure continuous income for something you do just once.

    Nice informative post.


    • Nate Leung says:

      Hi Liz,

      Writing books and sharing knowledge is another way of generating passive income. Thanks for stopping by Liz. 🙂

  10. Luke Blower says:

    It’s absolutely essential to explain this stuff to people, thanks for sharing.

  11. Michael Juan says:

    Hard work up front pays off later. It is like I heard the other night. If you weren’t very successful when you first started your “job” so why do people think that it would be any different with marketing. I right now have a 100% pay check based on my efforts and am going to flip this in the future. Thanks for sharing.

  12. June says:

    Now i know, that residual income is the stairs to wealth rather than active income

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