Residual/Passive Income

residual income“Residual income” (also known as “passive income”) is income you receive on a regular basis, with little effort required to maintain it. It’s sort of like doing the work once and getting paid a lifetime for that effort.

Residual is one of the biggest draws of MLM but it is also the most elusive.

Most home business entrepreneurs join network marketing because they want that passive income and yet, that exact thing eludes most of them, talk about irony.

See, in an ideal world, we as network marketers would put in our time and effort building our team and customer database. And over time, both will grow and grow, and according to the whole duplication process, things will compound over time.

This keeps going until we hit the tipping point and that’s when we can more or less relax and let our team of downlines build their businesses (which benefits them AND us) while we sit back and collect our paychecks in the form of residual income.

Think of that “residual income” as your team and your MLM company’s way of thanking you for all the work you put in upfront. This is what lures most folks into MLM – the idea of getting paid a life time for work you do for several months.

The Ugly Truth About Residual Income

Leaky bucket

This is your MLM team...

Well, this sounds fine and dandy but like I said, it remains elusive for most network marketers. The reason why this is in large part has to do with attrition.

For whatever reason, most folks will ultimately leave your network marketing team (remember… less than 10% of MLMers find success in this industry). They may leave because the products suck, they aren’t making any money, they can’t recruit anybody, etc.

And when they leave, they take your potential residual income with them. So rather than spending time exponentially compounding your team size and earnings, you are constantly busy just trying to keep up with this horrific attrition rate. It’s like trying to fill a bucket full of holes.

Not constructive whatsoever and CERTAINLY won’t get you that elusive residual income you dream about.

What Can You Do About It?

So what can you do about it? How can you help improve your chances of getting that passive income everyone dreams about?

Well, a few things.

First and foremost, and this goes without saying…, find a legitimate company that actually has GOOD products along with a GOOD marketing system and GOOD leadership. This will help cut down on the attrition rate of your team.

Second, attrition is inevitable.

No matter how good a company may be or how amazing the MLM product it sells is. Some people are flaky, inconsistent, and unreliable. All YOU have to do is make sure you are able to constantly stay ahead of your attrition rate. Recruit more folks into your team than you lose. And you can do this feasibly and easily with a proven marketing system (that’s a whole other topic).

Last but least… don’t rely solely on the residual income!

How about find a company that allows you to collect on every person you recruit into your business. Meaning you get paid whenever someone joins and buys into your MLM team. Legally of course...» This ensures that you at least recuperate whatever investments you made (time, money, and effort) into GETTING that person onto your team.

Residual income, as elusive go most as it may be, is well within reach for those who are savvy enough to know how to get it. Find a company and leaders who’ll show you how :)

, this means they have to actually buy some goods, if you get paid just for recruiting people, then your company becomes a pyramid schemePowered by Hackadelic Sliding Notes 1.6.5


  1. Blaze says:

    A pleasingly rational awnser. Good to hear from you.

  2. Jerry says:

    Creating a passive income can be difficult at first, but when the income starts coming in…it’s all worth it! Thanks for all your helpful tips. I love MLM, stick to it long enough and you will too.

  3. Tessica says:

    Okay I’m cnovicned. Let’s put it to action.

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