Multiple Income Streams

What's the difference between Residual and Passive income?

Let’s start by clarifying the difference between linear, residual and passive income, as there is lots of confusion about the last two.

Normally, you work to earn money, and most people do that in a linear way. They either get paid for their time like an hourly rate, or they get paid based on production. So as a VA, for example, you get paid for the number of hours you work and if you’re making necklaces, you get paid for the number of necklaces you make.

Residual Income is when you do some work once and get paid for it several times . For example, you star in a movie and get paid when people buy tickets to watch it or you write a hit song or best selling novel and you get paid every time that song is played or that book is purchased.

Residual income is usually available only for certain people. But thanks to a fabulous business model called network marketing you can earn residual income by promoting products and services. The other great benefit of network marketing is that you can build a team, train and support them and get paid by the company for doing that. That gives you the advantage of leverage, which is beyond a doubt the secret to wealth.

The word residual comes from residue , which means leftover, and in this context, it’s left over from doing something and continues to repeat itself. Say you sell a product like a health supplement that someone takes every month they will rebuy every month generating a commission for you. Or you might sell a software product which people continue to use and pay for every month or every year. So the word is used to show that your one time sale pays you repeatedly, your work pays you more than once, you are leveraging your time.

I have heard some people claim that residual income is the same as passive income, but in fact, residual income is not passive at all. If you don’t make the original sale, you don’t make any money and when it comes to building a team, if you don’t support your team, they won’t make you any money. So, although residual income is not linear, and you can get paid way more than the hours you spend and the product you sell, you still have to do some work to get it started and keep it going.

With passive income there is no work involved at all.

Passive Income is when you use your money to make money for you and traditionally this has been reserved only for the rich because you need money to get started and it’s usually only the rich who have spare money to use for investing. Now thanks to the digital age, products have been created that allow people with small amounts of money to generate an income from their money.

We believe that nobody should ever put all their eggs in one basket, especially when it comes to your financial strategy. So we have built streams of residual income and streams of passive income for ourselves. That way we can work to create an income, which will then work for us and make us more income, which we can either reinvest in our businesses, or use to support our organizations, our charities, our friends, our families, to build a better world… That is the plan.

Because these programs have been successful for us we like to share them. We must stress that we are not financial experts. We are not giving you financial advice. We are showing you what we are doing because we believe we are creating a stronger, more stable, financial future for ourselves and our families. So far it has worked out well for us. We do not know what the future holds but because it’s been working for us we want to share our good fortune with others.

So what are you looking for? Take your pick, Option 1 or Option 2, or both!


(In an ideal world, you would do them both - your goal should be 5 independent income streams)