Residual Income From A Home Business
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There are several options you may want to consider if you're looking for the type of business that offers ongoing income. Though most people think of network or multi-level marketing when the term residual income is mentioned, there are other types of home businesses that can offer ongoing income. Although not categorized in the truest sense of residual income, any sales-oriented business that doesn't require in-person contact can be a source of residual income. For instance, if you have a website you’re your home business where customers can purchase products that they need, you have a limited form of residual income, because the money will continue to come in as long as the website is up and running and the products are available for purchase. On the other end of the spectrum is true residual income that continues even when you’re no longer around to monitor it.

The most common type of home business that offers residual income is that of network or multi-level marketing in the health and wellness industry as well as some others. This type of business involves recruiting and training other people to join a sales distribution network that operates under a sponsor. Since the sponsor is paid a portion of what each person in his or her 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 that organization. You get the most income from those you personally sponsor, and you are also paid from the other branches of the organization.

Although network marketing offers 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.

In real estate, it's much easier to view it as a residual income source, because as long as there is a need for housing you’ll have the ability to receive income from rental property. If you have enough income that you can hire someone to manage the properties you own, you can then relax and let the properties make money for you just as you do in network marketing.

The securities market will vary, but real estate generally doesn't decrease 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 is not likely to decline. Once you have your properties and you keep them well maintained, you’ll have an income source, which can go to your family, if you’ve taken the proper measures. Other investments can be set up for your family in the same manner, but real estate is by far the least volatile.

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