The field of Network Marketing or Multi-level Marketing (MLM) has also been instrumental over the past 60 years or so to make the recurring income concept very popular and attractive.

It is a system of distribution of products and services through a network of people called distributors or downline, bypassing a series of middlemen such as Wholesaler, Sole Agent etc. It is an efficient method of distributing products and services to end consumers.

Products and services move directly from the manufacturer to the distributor and finally to the consumer. Thus, it is also known as direct selling.  Because of various practices that have affected the industry, the word “direct selling” is usually perceives to be very negative.

Some people even think that direct selling is done by going from door to door, persuading housewives to buy their ware, kind of marketing.

These network marketers are independent business owner who does not work for the Manufacturer who is providing the goods. Instead, they act as a business partner to market its products.

Network Marketing is one of the most feasible businesses today where you can generate residual income from your effort put in. It is an industry that is experiencing explosive growth in many countries.

Residual Income is another term for recurring income. In a nutshell, there are three (3) types of income streams that you may have coming into your business.

1.  If you do a one-time job, sale or perform a contract, you get paid once and the income stops there.

2.  If you do a normal 9 to 5 job, you will continue to get paid as long you continue to work for your employer—often called a linear income. This is the type of income that the majority of workers “enjoy.” Even if you are a neurosurgeon, lawyer or engineer, you are only paid as long as you continue working. You stop working and the bank account dwindles.

3.  The third type of income is the residual income where you are paid even after you have stopped working. For example, you wrote a book and as long as your book continues to sell, you will continue to receive royalty income for a work done once.

Majority of rich and affluent people created wealth through a form of residual income stream. Take singer Michael Jackson for example; he still continues to receive royalty from the sales of his records made decades ago. He can even repackage the same oldies and sell them to generate new income. He doesn’t have to spend time in the studio to record new songs in order to have the cash keep flowing in! This is the most ideal situation of the three. We would all like to work once and get paid over and over again. That is the power of recurring income!

The majority of professionals that enjoy this type of income belong to the creative fields such as actors, writers, singers, and inventors.

Unfortunately, not many of us are blessed with the talents Michael Jackson has, let alone the opportunities to be in the lucrative industries. However, there is one budding opportunity for any ordinary individual today to enjoy residual income today in the 21^st century.

You’ve guessed it: it’s none other than Network Marketing.