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!