What is Residual Income?
By Edward Gause

Residual Income is another term for "recurring" income. You are paid even after you have stopped working. For example, let's say that you wrote a book. You have to go through the tedious task of researching, writing and getting a publisher. After your initial investment, and as long as your book continues to sell, you will continue to receive royalty checks.

Another example of someone earning residual income would be a recording artist. Take Michael Jackson for example; he still continues to receive royalty from the sales of his records made decades ago. He can even repackage the same oldies and sell them to generate new income. He doesn't have to spend time in the studio to record new songs in order to have the cash keep flowing in. We would all like to work once and get paid over and over again. That is the power of residual income!

The field of Network Marketing or Multi-level Marketing (MLM) has also been instrumental over the past 60 years or so to make the residual income concept very popular and attractive. Here, you can build a network of distributors, referred to as your 'downline', and generate income outside of your own immediate effort. Working for an MLM company is one of the most feasible places to generate residual income, and so we will now take a look at the secrets to being a successful network marketer.

You don't have to join an MLM company to earn residual income. You can join affiliate programs that offer a monthly service such as a web hosting, or membership websites. Remember the key is that the product should be consumable or requires renewal. Unlike many MLM companies, affiliate programs don't normally pay you beyond the first or second level so you cannot really build large organizations as in a MLM company, therefore your income is a bit restricted. In this case you will have to spread wide-create a large frontline.

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About Author:
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Edward Gause is webmaster of the Honesty in Internet
Marketing and publishes the Honest Online Marketing Tips
Newsletter, a weekly ezine targeting the interests of
novice internet marketers. When you get the chance, visit:
http://www.honest-marketing.com