10 Types of Residual Income: . . . and Why MLM is Recommended by Most


If you are reading this, you now know that their are different types of residual income methods at your reach.

However, if you were raised traditionally you were taught to go to school, get good grades, then get a good job.  This means that one of the only ways you know how to get ahead financially is trying to make a good salary through a paycheck.  In your mind, it seems making passive or residual income is far-fetched and is for those rich people.

There are more people involved in MLM than any other industry that offers passive income and pays over 6 billion dollars a month in commissions to representatives worldwide.  The reason is that many consider it one of the best and simplest methods to gain passive income among various other reasons that are covered below.  But first I will talk about the other methods to receive residual income

Contrary to popular belief there are many ways to receive passive income.  Most of these ways require you to invest money upfront but generate residual income on the backend.


Types of Residual Income

10. Money Market Funds / High Yield Savings Accounts - These are accounts similar to a savings account that pays a higher interest.

While savings accounts pay an average of .03%, Money Market Accounts pays up to 5.0%.

  • Minimum Investment requirement = $100 - $5,000
  • Average Return =  2% - 5% of your investment per month

Types of Residual Income - Money Market Accounts


9. Stock Images / Video - If you have a professional camera and like to take pictures and video, you can sell them online.

If you see magazines and websites with professional images most likely someone sold them that image to use for marketing purposes.

Post your pictures to a stock photo company website and wait for offers

  • Minimum Investment requirement = $0 - $500
  • Average Return =  up to $500 per month

Types of Residual Income - Selling Stock Images


8. Vending Machines - In almost every public place that has a waiting area, you may see a vending machine (car dealerships, hospitals, business buildings, cafeterias, etc.).

Someone owns those vending machines and while they are doing other things, customers are using those machines every day, thus creating an income for the owner.

  • Minimum Investment requirement = $1,000 - $5,000
  • Average Return =  $350 per month (per vending machine)

Types of Residual Income - Vending Machines


7. Car Wash - A car wash is a business that you seldom see the owner because most of the time it is self-service.

By servicing the car wash once a week, you will be able to make ongoing income on a regular basis (especially in the summertime).

  • Minimum Investment requirement = $10,000 - $35,000
  • Average Return =  Up to $6,000 per month

Types of Residual Income - Car Wash


6. Rental Properties - By owning a property, you are able to rent it out to individuals and families looking for a place to live.

This can be a very lucrative monthly income due to the fact that you can be getting a steady monthly income of anywhere between $300 - $3000 (minus expenses) depending on where you live.

  • Minimum Investment requirement = $30,000 - $500,000
  • Average Return =  $300 - $3000 per month

Types of Residual Income - Rental Properties


5. Stocks and Bond Dividends - The average return on an investment in the stock market is approximately 10%.

If you find a good stock and invest a considerable amount you can and most likely will receive dividends.  These dividends will amount to a large residual income over time.

  • Minimum Investment requirement = $500 - $1,000+
  • Average Return =  5% to 7% of your investment

Types of Residual Income - Dividends


4. Invest in a Business - When you are a silent investor in a small business, it can be risky.

However, if the business succeeds, you will have a considerable amount of money from the percentage of that businesses sales.

This is equivalent to what you invest in the company

  • Minimum Investment requirement = 25% of what the Small Business costs (approximately $7,000)
  • Average Return =  25% of profits ($600 - $1,400 per month)

Types of Residual Income - Silent Partner in a Business


3. Peer to Peer Lending - This is when you have the chance to act as a loan company.

This is when you lend money to people who would normally not qualify for a traditional loan.

When the borrowers start paying back the loan, you will receive your principal back in addition to the interest.

  • Minimum Investment requirement = $25 - $5,000
  • Average Return =  4% - 6% per month

Types of Residual Income - Peer to Peer Lending


2. Laundromat - This is another business that you don’t have to physically be present for it to operate.

Even though you may have normal maintenance you have the opportunity to receive a generous passive income.

  • Minimum Investment requirement = $200,000
  • Average Return =  $2,000 - $60,000

Types of Residual Income - Laundromat


There are more ways to receive passive or residual income than the above-mentioned methods.  All of these investments and returns are approximate or average values.  All of these methods may not fit your character but some may.  The bottom line is there are different ways to get residual income.

The most recommended way to receive residual income by most individuals is in Network Marketing / MLM.

1. Network Marketing / MLM -  A billion dollar industry and has created more success stories than any other industry. 

In MLM you market a product of your choice (depending on what MLM company you are involved in).  You then have the choice to become a leader and train a team.

You earn a commission from this team’s sales month after month and year after year thus creating passive income.

  • Minimum Investment requirement = $100
  • Average Return =  $200 - $1000 per month

Types of Residual Income - Network Marketing / MLM


The reason why MLM is regarded as one of the best options when it comes to receiving passive income is the investment is reachable for the average middle-class individual.  To take advantage of any other means of passive income require an investment of over $10,000.  If they are below $5,000 (after expenses) it may take years to see a return on your investment.

The average MLM investment is below $200 and you have to opportunity to have a return on your investment within 30 days (if not the same week)

Other reasons MLM is seen as one of the better passive income options are the following:

  • Tax Benefits - A credit that you are allowed to reduce your burden

  • Economy Proof - The economic stock market conditions will not cause your business to suffer

  • Low risk - Due to the fact they have a low start-up cost, you won’t risk losing thousands of dollars

  • Low Start-up Cost - The average start-up cost is less than $200
  • International - You can receive passive income internationally (in different currencies)

  • No politics - There is no favoritism, nepotism involved (due to the fact the majorityofthe business is done electronically)

  • No educational requirement - You don’t have to have previous knowledge of HOW to run a business

  • Fun - Constantly networking with people in the same company (you work for yourself but not by yourself)

  • Personal Growth - Receive consistence self-development training in order to improve in the business

  • Constant Training - Local Training, Regional Training and International Training available consistently

Keep in mind that the above average returns on each investment are not including the expenses that come with operating that business or money that is taken from it to re-invest.

Each opportunity is not for everybody but with proper knowledge you have the chance to make a considerable amount of passive income from each one.


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