Residual Income Streams

Written by Genevieve Hawkins
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Residual income can emerge from many sources, but it usually all originates with the same company. By finding a multi level marketing business that offers good bonuses for creating new wealth, you may be able to get multiple checks in any given month. Often higher tiered salespeople will receive bonuses for the performance of people below them they may not even know. What is more, these checks can often be self generating.

How Residual Income Works

There are many different variations of this type of income, but in this era it is increasingly being used to refer to network marketing. Residual income can be made from work that you haven't done, or that pays long after the effort was expended on your part. If you actively recruit other people that essentially sell for you, it is not that difficult to make money.

The most common form of network marketing is known as a pyramid, although there are a few others such as match bonuses or direct levels. In a pyramid, you recruit, say, five people, which would be considered your second tier. These five are then supposed to recruit five each as well, which equals 25 people for your third tier. If the same numbers apply, 125 people will be on the next tier, 625 will be on the next, and 2525 will be on the next. After seven tiers, you are usually moved on.

With several thousand people all working for you at a given percentage rate bonus for all sales, it can add up quickly. The money is circulated through to you, especially after the first few months when the ball gets rolling. If it works as it is theorized to work, there may be more streams of money than you know what to do with.

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