Sunday, July 29, 2007

Home Business Residual Income

If you are looking for the type of business that offers ongoing income, there are several options that you may want to consider. Though most people think of network or multi level marketing when the term residual income is mentioned. These are not the only types of business that can offer ongoing income. Although it may not be the true sense of residual income, any sales oriented business that does not require in person contact can be a form of residual income.

In other words, if you have a website where customers can go and buy products they need, you have a limited form of residual income because the money is going to continue as long as the website is up and running and the products are available for purchase. On the other end of the scope, true residual income is that which goes on even when you are no longer around to monitor it. The most common type of business that offers residual income is that of network or multi level marketing.

This type of business involves recruiting and training other people to join a sales distribution network that operates underneath a sponsor. Since the sponsor is paid a portion of what each person in his organization sells, once the network is running at peak efficiency, it will provide an ongoing income to each person as it escalates to the top person in the organization. The highest income is from those you personally sponsor but you also are paid from the other branches of the organization.

Although network marketing is the truest form of residual income, investments such as real estate and high level stocks, bonds and mutual funds also fall into the same category. With real estate, it's much easier to see it as residual income because as long as there is a need for housing, you will have the ability to derive income from rental property. If you have enough income that you can hire someone to manage the properties you own, then you can relax and let the properties make money for you just like you do in network marketing.

Securities will vary with the market but real estate does not customarily decline in value. Unless the housing market becomes very depressed as it was in the late 1970s and middle 1980s when mortgage interest rates were hovering close to 25%, the price of real estate is not likely to decline in value. Once you have your properties and as long as you keep them well maintained, you will always have income from there and after your death, the income will flow to your family if you set it up that way. Other investments can work the same way but real estate is by far the less volatile.

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1 comment:

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