What is residual income?
Residual income is a method of compounding your income usually that is free or very low cost to you.
How can residual income benefit me?
Take your job for example. Each week you get paid, you then must start over building the same income through the following week to receive income again. If your job offered residual income, this would mean your weekly income is compounded. You would work the first week and get paid. You would work the second week and get paid but also receive payment for the first week again thereby doubling your income. After you get paid for your third week of work, you would also receive a matching income again from the first and second weeks you worked. In just 3 weeks, you have tripled your income.
How can residual income build my long-term income?
Residual income is paid as long as it is generated. In the example above of your job, you were still working to generate the weekly income and the compounded income. If you stopped working, you would lose everything. True residual income means you work today but get paid for months and usually years. The huge benefit is that this residual income is generated by others and not by you. This allows you to take time off, go on vacation, or in the worse case, deal with health issues while still receiving your income.
Are there any drawbacks to residual income?
I would like to say "no" to this question but like most things there is good and bad. You will need to help those that join you in your business. Some want an income that is direct and not have to deal with helping others. However, it is the "others" that will generate and build your income and generate long-term, residual income for you. They are also an investment in your future for years to come. You have two choices. One, you can spend your life in direct sales and make a good income from just your efforts. The income stops when you stop working. Or two, you can be in a business designed for the long term that will pay you residual income and it is for you to decide to be active or inactive in your business. When you stop working, your income not only continues but will increase most of the time as those you worked with increase their incomes. A huge benefit many overlook is the ability to work only 3 - 5 years instead of a lifetime and be in a position to semi-retire or even go into full retirement with a monthly residual income of thousands.
Once you understand what residual income is, you will be armed to seek out good businesses both online and offline while avoiding the online one-size-fits-all programs that are designed for those seeking a fast buck. The sad reality is they are usually robbing themselves of long-term income since most programs unlike well-designed businesses are not designed for the long term though many promote the long-term income benefit of their program. While some pay good upfront income, it almost always is a smoke screen to disarm those joining by placing their focus on the immediate income while distracting them from the fact they would need many referrals to make a few monthly dollars.
If you do not believe what I just said, think about this! The program "Work For $3" was a huge hit but only lasted a short time. Why? It was designed for the masses that know little about earning an income. Most that joined were so excited about the low cost they did not realize that they would need for thousands to join to receive even a few bucks. Normally, it is the owners that make the BIG $$$ in these types of programs that capitalize on the lack of knowledge most online today possess.
Using the information in this article, you can seek out good businesses and save yourself a tremendous amount of heartache and wasted time. Not to mention saving yourself hundreds and even thousands of dollars chasing the elusive "income dragon". The income is not elusive if you have the ability to find it.