Passive Income vs Residual Income

What is the better avenue for additional income today? Well, that depends. It depends on your risk tolerance. Passive Income is derived from income on assets that you own and quite often are leveraged so that there is significant recurring costs. Residual income comes to you from value that you create in your life and the lives of others through products and services.

Clearly, both avenues are valuable and can be used by the same individual who is interested in a diverse supplemental income stream. It may be necessary to get involved in one before you get involved in the other. The startup costs for passive income from real estate is very high and so are the maintenance costs. The startup costs for residual income opportunities are much smaller and depending on the avenue that you choose, you can start making profits quickly.

The really exciting thing about residual income is that in most businesses that offer residuals as part of their compensation plan, the idea of teamwork and sharing is an integral part of the operation. No one is alone.

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