Many people who work 50, 60, 80 hours a week, dream of a way out of the rat race. They want to be able to take time off whenever they want to without worry about loss of income or repercussions. Whether they are entrepreneurs or they work for someone else, they are trapped. Does this sound like you? Passive income streams may be your ticket out of the rat race.
There are three types of income, one time, linear and residual. With one time income you do a job and get paid. To generate more income you have to do another job. For example, real estate agents generate one time income. They sell a property and get paid. Then, to get paid again they have to sell another property.
Linear income is where you have ongoing pay for ongoing work. Most people who have a job receive linear pay. Each paycheck is the result of so many hours of work at a certain rate of pay. However, if you stop working you stop getting paid. To get paid more you have to work more.
Finally there is residual income where you work once and get paid over and over for that one time work. Movie makers for example receive residual income. They make a movie and get paid over and over each time that movie is shown. This can go on for years. And a feature that sometimes happens with residual income is that it is also passive.
With passive income you stop being directly involved to receive pay like you do with one time pay or linear pay. Some passive income sources are royalties on books or inventions, payments on rental property or billboards, vending machines, investments such as bonds or CDs, or network marketing. The benefit of passive income is that it comes in whether you work or not. That frees your time to enjoy more personal and financial freedom.
While some types of passive income take considerable time and or money to develop, one type, network marketing can be accomplished relatively quickly and for far less money.
The key to network marketing success is leverage. Network marketing is a leveraged income business where you and everyone you bring into the business contributes a small amount of time and money consistently that builds your and their network of customers and distributors over time. Then, all qualified distributors in the network receive a commission based on the volume of products sold.
It becomes a passive business when the volume of products sold monthly is consistent enough to allow you to stop or near stop working the business and not reduce your level of income. With the right, consistent work, some network marketers have accomplished this is 3 to 5 years.