Network marketing is one of the few businesses that provides both residual and passive revenues. Both categories of income, highly desirable and more preferable than the “time for money” method of earning known as active income. So what are they and how do they vary?
Residual income is money you receive after you’ve previously worked for it.
A musician or recording artist is an example of this in the real world. Their residual income is in the form of royalties and often for decades. Musicians are compensated long after they have completed the income producing work. In this case the actual recording task.
Passive income is money earned from an company from little or no ongoing effort involved. It requires an initial investment either of money or time with the primary objective of earning on-going revenue known as a passive income stream.
Difference of Active and Passive Income
Active income trading time and skills for money might be considerably inferior to passive and residual income. Paid-by-the-hour you are merely exchanging time for money. There is only so much time in the day meaning there is only so much income that can be earned. Time as a finite resource is also extremely precious to us because we desire not just money but to do the things we love to do such as spending quality time with our loved ones as well as other things we like to do. Consider when working in a low-paying job where money is even more limited. Trading time for money when not generating nowhere near enough money and quality time with our family and friends doesn’t sound nice, does it..?
Freedom Of Time
An individual’s passive income can free up our time to spend in other ways other than working. It’s a stream of income working independently from actual time spent working. The added advantage is a constant stream of cash flow can offer more financial security. It can be enough to quit your job or just a nice complementary additional income to enjoy.
So what happens if you’re not a recording artist? That’s OK because network marketing often provides both of these lucrative earning streams. If your network marketing product has an auto ship option you’ll continue to get paid long after one sale or purchase.
Power Of Multi Level Marketing
The power of networking marketing also means it’s not a one man show. You are not limited by time or by being your own source of passive income. Creating a team by recruiting others to earn their own passive incomes increases your income. You are leveraging their time to earn an abundance of income for you. In short, you are compensated for their efforts so their income becomes your income, and all this without using up any more of your time.
A Home Based Business Concept
Network marketing is a home-based business concept that allows to create both passive and residual revenue streams with a small sum of money with little effort. More effort is required to start building a team if you wish to earn even more abundance of revenue. The reward is being paid an ever growing residual income for the rest of your life
The successful companies to look out for are those giving you the choice of earning passive income only as well as the choice of creating a team. In addition 100% of people must also all earn income especially from the first week onwards.
How We Can Help
At Home Based Business Expert we are dedicated to searching for the ideal additional income solution best suiting the nature of your current situation and purpose. We can discover your solution after completing this short questionnaire.
It’s a progressive income always growing for you in the background without your effort and taking time away from your daily schedule.
Home Based Business Expert Consultant does not charge you for this service nor will we at any future stage. Our aim is to create a thriving community of people with a common interest in creating abundance for themselves.