The difference between passive income and residual income
There is a big difference between passive income and residual income. These are two terms that are often used interchangeably, but they are not the same thing. In this blog, we will explore the key difference between passive income and residual income, and help you understand how they can help you achieve financial freedom.
Passive income
Passive income refers to income that you receive without actively working for it. This type of income is generated by investments, rental properties, online businesses, and other sources of income that require little to no effort from you once they are set up. For example, if you invest in a dividend-paying stock or a rental property, you will receive regular income without having to do anything beyond making the initial investment.
Residual income
On the other hand, residual income is a type of passive income that is generated from recurring payments. This type of income is most often associated with network marketing or multilevel marketing (MLM) businesses, where you receive a commission for every sale made by members of your network. Unlike passive income, residual income requires some level of ongoing effort to maintain and grow. If you are looking to increase your residual income we highly recommend the 15 day challenge legendary marketer course which will detail exactly how you can create your own residual revenue stream. For more information on the 15 day challenge legendary marketer course simply download our free eBook, which contains links to the 15 day challenge legendary marketer course.
So back to the difference between passive income and residual income. The key difference between passive income and residual income is the level of effort required. With passive income, you can set up a source of income and receive payments with little to no ongoing effort. Residual income, on the other hand, requires ongoing effort to maintain and grow.
Which is better?
In terms of which type of income is better, it depends on your goals and preferences. Passive income is often preferred by those who want to earn money without having to work for it, while residual income is a better choice for those who are willing to put in the effort to build a long-term, scalable business.
Passive income is a great way to earn money without having to work for it, but it requires a significant upfront investment. This can include buying rental properties, investing in stocks or bonds, or starting an online business. However, once you have made the initial investment, you can earn passive income with little to no effort.
Residual income, on the other hand, is a great way to earn money while building a long-term business. This type of income is ideal for people who are looking for a flexible, scalable business model that allows them to earn money from multiple sources. With residual income, you can earn money from the sales of your network members, as well as from your own sales.
15 day challenge legendary marketer course
So now that you know the difference between passive income and residual income you can see they are both great options for those looking to build a secure financial future. However, it’s important to understand the key differences between these two types of income, and choose the one that is right for you based on your goals, preferences, and skills. No matter the difference between passive income or residual income, the most important thing is to take action and start building a passive or residual income stream today. For more inside information on the best side hustle ideas be sure to check out our range of blogs on the Side Hustlers homepage, and don’t forget to check out the amazing 15 day challenge legendary marketer course by downloading our free eBook. So now you know the difference between passive income and residual income, it’s time to get hustling!