Recurring Income and Residual Income Explained

Although I am not a big fan of Network Marketing, and all the multi-level schemes involved with it, there are many very successful folks, like Donald Trump and even Warren Buffet, who believe that Network Marketing is a fantastic business model.

Who can argue with their success?

Regardless of the model you use it is important to ensure that you find a way to keep the money coming in. Clearly recurring income is a great way to make a living.

Listed below is an excerpt from an article that explains this – and uses Network Marketing.

What Is Recurring or Residual Income? – Al Sims, Rich LifeStyles Network, Network Marketing

Recurring Income is another term for residual income.

In a nutshell, there are three 3 types of income streams that you may have coming into your business.

1. If you do a one-time job, sale or perform a contract, you get paid once and the income stops there.

2. If you do a normal 9 to 5 job, you will continue to get paid as long you continue to work for your employer—often called a linear income.

This is the type of income that the majority of workers “enjoy.” Even if you are a neurosurgeon, lawyer or engineer, you are only paid as long as you continue working. You stop working and the bank account dwindles.

3. The third type of income is the recurring income where you are paid even after you have stopped working. For example, you wrote a book and as long as your book continues to sell, you will continue to receive royalty income for a work done once.

via What Is Recurring or Residual Income? – Al Sims, Rich LifeStyles Network, Network Marketing.

This entry was posted in Blog. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *