Is Residual Income an Answer to Financial Freedom?

residual income

residual income

If you have not yet tapped into any recurring revenue program or residual income business opportunity, then I would urge you to start looking into one. Residual income can be lucrative if you choose the right company to join.

I like to look at residual income as smart passive income. By practice, when your business grow and reach a certain maturity stage, it should be self sufficient to cover the cost. That being said your total revenue output is much larger than your cost/expense – that is when you reach residual income status.

Residual Income in Internet Marketing

There are many various types of residual business models. In internet marketing, the concept can be best illustrated in the network marketing industry. Before we get into the nitty gritty. Lets take a closer look of what exactly is residual income and how it is different from linear income?

What is Linear Income?

Linear Income is the exact opposite of residual income! Linear income is also defined as general income. A residual income usually allows one to generate passive income over and over again on auto pilot despite the economy situation. Linear income, however, is the opposite way!

Here are Some Examples of Linear Income:

  • A regular 9-5 jobs: It is correlated to the number of hours you put into your workday. A classic example is 50 hrs of work will contribute 50 hrs of pay!
  • An affiliate program that pay you onetime commission rather than recurring revenue
  • A CPA program that pay you $20-$40 for someone who signed up for their email address


Linear income could be a good source of revenue earnings BUT you would have to create multiple linear income opportunities to bullet proof your earnings. A classic example is to build tons of affiliate niche sites that paid you multiple commissions and let the money roll in on auto pilot. Nevertheless, you will have to deal with search engine algorithm changes all the time. That being said you might lose your income overnight if you are 100% relying on search engine traffic!

A full time 9-5 job is also an example of linear income. When YOU quit your job, your salary stops. In order to expand your income, you must work long hours or hire more people to do so. Growth is defined in a linear fashion as you always have to be there to watch your job.

The Power of Residual Income!

Residual Income works like your monthly cable bills. You make a payment each month to maintain the services. Nevertheless, you also get pay by sponsoring others to the company.

Residual Income also called smart money. There are various forms of residual income available in the marketplace today. A classic example is insurance agent who sold you an insurance plan. The agent is commissioned on certain percentage of the plan you are buying from. So, as long as you stay with your monthly protection plan, you will get protected and your agent will keep earning his commission from you.

Residual Business Income Opportunities

Residual Business Income Opportunities

In internet marketing, the most common platform is membership participation via network marketing companies. You pay for company membership to receive training and coaching from the company to establish leadership role, and you are responsible to recruit referrals to the program to become part of the organizational? growth strategy.

I used to think that Network marketing is a troublesome business model because of its pyramid scene. However, after carefully studied the business model, I am actually embrace the practices.

Network marketing is actually a viable business model based on a WIN WIN situation. Basically. your sponsor is responsible for your success, that being said, if you fail, your sponsor will be losing his bet on you as well. Thus, to succeed in network marketing, the charisma between both parties are extremely important. That being said getting the right sponsor and referring the right candidate is KEY.

If both can be done correctly, then you can really scale your business and bullet proof your income in the long run.

Benefits of Residual Income

From a long term perspective, you will never have to worry about your financial anymore as it goes by generation to generation! Network marketers work in a way of getting people to help people and it does takes time to become successful! Typically, this will require one to have a burning desire to succeed and unbeatable confident to step up to become a leader.

Residual income works like a stock brokerage account. You open an account, you invest in the company wisely and you watch the stock grow over time and you will be compensated on the capital gain from what you invested in, and sometimes a good dividend payouts.

The beauty of residual income is you will be generating passive income consistently overtime, and you will not have to worry about economy uncertainty or getting lay off from your job.

Which One is Better? Linear or Residual?

Regardless you choose to stay with your 9-5 jobs or pursue a residual business opportunity, you have to understand that network marketing business is not a get rick quick scene. In fact, no companies will promise you with just with one click of the button then you will become rich tomorrow!

Your success is very much depends on your hardwork and contribution! Chances are you will have to work hard especially for the first 1-2 years, but after the business take off, you can really the cash flow come in automatically.? Indeed,? to succeed in any form of business, you will have to invest in the business and let the business reinvest itself and eventually you will be able to maximize on the total ROI.

Shall I Chase After the Hot Offer?

There are plenty of residual offers nowadays. And I would always advise to proceed with care. The hottest offer might not be the best offer.? My advice is always go with your instinct or evaluate the offer carefully before you take part in any types of opportunity! Once you decide to tap in, just focus on one thing at a time and don’t jump from new program over to another new program as you will lose your focus.

How to Evaluate the Best Residual Income Offer?

There are many home business residual offers to choose from nowadays. So, make sure you evaluate carefully and pick some of the best offers to work on.? Here are some criteria which I personally use to evaluate home based business opportunities before making any investment (Hope this helps):

  • Reputation of the Franchise Opportunities or Companies
  • History of the Founder
  • Start up Cost vs. ROI
  • How Do the Company Pay You?
  • Any Solid On-Going Training and Coaching?
  • Any Strong Inner Community
  • What stage is the company at? Introduction, Growth, Maturity or Declining?


As a splendid marketer, it will be wise for you to jump on some great offers before the residual opportunities become too competitive. If a company has more than 200 thousand competitors, chances are you will have to play some heavy catch up.

Bear in mind, don’t rush into making a quick decision, stay alert on what are some hot trends and big residual income ideas, and study carefully before you jump on board! Once you make the final decision, stick to it.

Residual Income Business Opportunities in Closing

To sum up, if your business is still 100% rely on linear Income, then I would suggest you to start looking into the possibility of joining 1-2 residual programs. It might seem tough at the very beginning, but if you have the right sponsor and you are willing to learn, you life can be totally transformed in 6-12 months time.

Always think of how you can leverage on the power of residual income for long term success! Nothing ventures, nothing gains:)