What is the difference between active and passive income? These are great questions often asked by many people. Let me explain it this way, Residual income is that which continues to be generated after the initial effort which created the income has been completed. There are many different ways in earn residual income, and the best ways are those which you have exclusive rights to.
These may be more difficult and time consuming to develop or acquire up front, but the rewards and income generated are often greater and the income more stable then continually having to generate income constantly. A residual income is one that provides income no matter what, even if you no longer actively promote the income source. The money just keeps coming. For many enterprising individuals, this is an excellent way to make true long term income a reality.
There are many ways to generate residual income, some easier than others. By investing small amounts of time over a long period, the residual income will continue to grow, and eventually grow exponentially. Residual or passive income is basically income from sources other than a traditional 9-5 job. Other passive income can include stocks, bonds, rental real estate, mutual funds, and businesses one does not own.
If one would compare how earning lifestyles are functioning today with the way they were going on until a few years ago, there is a huge change. Residual income is simply the money earned from a job that was done once, but which keeps on paying by itself for a long time. Passive income opportunities have always existed, but since the internet has become such a large part of the world, the opportunities have multiplied drastically. It is much easier now to leverage the internet to create a passive income. The Internet can now be your 24/7 sales force for you, earning upfront sales and residual sales in the long term.
One of the most popular ways to generate residual income is in network marketing. When you participate in a network marketing opportunity, you can generate recurring income from the same customers or sales of a product over and over again as long as they are associated with you.
The key to a successful residual income business is keeping the business as automated as possible so once it has been set up; it does not need as much attention and the residual money can begin to be made. If automated correctly, one can literally wake up having made while one was sleeping. With the example of Network Marketing, one can have customers ordering automatically and new ones joining if the business is automated correctly.