Passive Residual Income – Mailbox Money!

Wikipedia defines Passive Residual Income as the following; “An income stream falling into this category is one where money is received usually on a regular basis, without continuing effort.” It further goes on to say, “Examples of Passive Residual Income include income generated from rental property, royalties from writing a book, and earnings from Network Marketing.”

Personally, I like to refer to passive residual income as mailbox money, and it is this type of income that we as Network Marketers are interested in building. Passive residual income is what allows us to stop trading time for money like a traditional job, and instead pays us continually for our original efforts.

Passive residual income will allow you to build a substantial income and will allow you to spend more time with your family, friends, traveling, etc., all while getting paid.

How do I mean?
For example, when an advertising agent sells a client an ad on one of the pages in a magazine, they earn a commission. Every month that the client continues to advertise, the agent will receive another commission check.

The advertising agent is getting paid continually for the original sale of the advertisement. This is passive residual income!

Now, just imagine when the advertising agent builds up a huge client base that is all renewing monthly ads. This Passive Residual income is exactly what you are looking for when starting a home business using Network Marketing.

So which types of companies using Network Marketing provide passive residual income? The companies that we are looking for offer products or services that are used on an ongoing basis.

For example, Mary Kay cosmetics, a well known company that uses Network Marketing, offers a skin cream that my wife swears by and has used for many years. A bottle will last her about eight weeks, so the Rep (who is a very good friend of ours) that first sold her the cream has her on Auto-Ship so that a new bottle arrives at our home every two months.

Every time that new bottle arrives, the Rep who made the original sale to my wife gets paid again, all from that one original sale.

This is mailbox money!

I feel that something worth mentioning here is that many of the products/services that are available for your home business will not provide true passive residual income passive maybe for a little while, but if you choose one of these products you may find yourself having to constantly recruit new customers to keep your income at the same level.

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Key Concepts

  • Your goal is to build a home business that provides Passive Residual Income.
  • Passive Residual Income allows you to build a significant income because you earn continually for your original efforts.
  • You want to find a company that offer products/services that are used on an ongoing basis.

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