The Value of Residual Income

The Value of Residual Income
By Larry Zinamon

How would you like getting paid for a job you did several weeks, months or years ago? Imagine not doing any work for a month and still getting paid for work that you did previously. This is what is known as residual income, sometimes referred to as passive income.

Residual income is when you do a job once and you get paid over and over again based upon the original effort. When you compare this to someone who earns a traditional income, such as a salary or gets a commission and only gets paid once for doing a job, it is financially rewarding.

Here are several examples of residual income:

1. An insurance agent who gets a commission every time a customer renews a policy.
2. A person who makes video or e-book and sells it over and over again.
3. An author who receives royalties every time he sells a book
4. Rent that a landlord receives from the leasing of property.
5. Any product or service that pays you a commission over and over again for renewals.

The best thing about residual income is that you keep getting paid over and over again without any additional effort. Financially, this makes residual income very lucrative. For those in network marketing, it can be financially rewarding.

Residual income is one of the keys to a lucrative income in network marketing. If you're a network marketer with several streams of income it can be very rewarding.

Let's say that you're a network marketer and you earn commissions of $1,000 in one month. The next month you earn $1,500 in commissions plus another $950 in monthly renewals (commissions) from the previous month. This makes a two month total of $2,450. Let's take it one month further with commissions of $1,200, plus the same renewals from the first month ($950) plus new renewals of $1,300 (from the second month) making a three-month total of $3,450. With residual income your income continues to increase month after month. Multiply that times several streams of income and you can see how lucrative residual income is.

When you have residual income coming in, it allows you time to do other things. You have more time to build your business. You can focus your attention on promoting your business and getting new customers. It allows you the time to build other streams of income. And, it allows you personal time to do whatever personal activities you may want to do.

In summary, residual income is a valuable source of revenue. It is a means to create additional income which can help you achieve personal and financial freedom.

The Author: Larry Zinamon has been involved with taxes for over 35 years. He is a registered tax preparer and authorized e-filer with the IRS. Larry has had his own tax consulting and preparation business for over 20 years. Prior to starting his own business, Larry worked for the IRS. During his 14 years with them, he worked as a Revenue Officer, Taxpayer Service Specialist and Tax Examiner. Within the past couple of years, Larry has been doing some network marketing.

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