Residual Income differs from Linear Income in that it pays a person over and over again for the same "sale". An example would be Insurance sales. An Insurance salesman is paid a commission every year a policy is ative, even though he only had to sell the policy once. A simple linear income example is that of a laborer. He trades his time and labor for a one time payment.

It is quite obvious that a residual income is much more desired yet harder to acheive. Many people use the MLM Business Model to acheive a residual income they can retire on. Yet 99% of the people who attempt to build an MLM Business to earn residual income fail.

Most people fail to build an Mlm Business and earn residual income because they fail to understand that it takes time to build an MLM Business. In the beginning is when the MLM distributor is building the foundation of the business. This is the most important time in the business, yet it is the least lucrative.

Putting in a foundation for a building can be tedious, take up a lot of your time, and be hard work. The untrained observer will think nothing is happening. When will the building go up, or for an MLMer, when will distributors start to signup and begin working?

At the start you will be setting up a lead capture page with autoresponder followup messages to build the foundation for your home based business. You will begin to sign up your 1st distributors. Training these 1st distributors is of upmost importance since they will duplicate you. If you fail at this critical stage of duplication you will fail to build an MLM Business which will produce a reliable residual income.

It will cost you some money to lay a good foundation in order to earn a residual income in your home based business. You will not earn money during this period. The best you can hope for is to break even. This is the reason the failure rate is so high. Few people can overcome laying out money for 6 months, while it "seems" that nothing is happening. Get past this crucial period, and you probably couldn't stop the momentum if you wanted to.

Success in MLM requires patience. The time factor which is a inherant component of building a residual income cannot be rushed. Accept it, build a strong foundation, and you can't help but to succeed

Copyright (c) 2008 Jim Suzak