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There are three different ways to earn residual income. Residual income is income that a person earns again and again for something they do once. They can earn it through a home business, investments or direct marketing. Each method will provide the chance to earn a great income without putting in a lot of hours. That is the beauty of residual income: a person works hard to set it up and then it works hard providing them money on a regular basis.

Having a business is a way to make residual income where a person is in control. Unlike other methods, in a business a person sets up the system themselves. They design how it works and the payment method. They create the whole system, so they can tailor it to their needs. A business can be created by a person reselling products they buy or selling products they create. It usually requires a large upfront investment to get started in a business. It can also be difficult to make a business successful if a person is not well educated in business matters. This type of residual income is not immediate, either. A person will have to work very hard for substantial amount of time before they can start to earn a continuous income through their business.

Investments are an easy method of residual income. All a person needs to do is figure out how to invest their money. They could invest in stocks, real estate or a business. This method requires very little work. All a person needs to do is invest their money and then monitor it to make sure they are earning and not losing. The down side of investing is that it requires a large amount of money upfront. Without a large amount up front there is no opportunity to earn.

The most popular method is direct marketing. Direct marketing is the method of selling and establishing a sales team to build a residual income. Direct marketing is also referred to as multi level marketing or MLM. A person joins a MLM company that is already established. The company handles everything except marketing, selling and signing up new team members. Most MLM programs can be started with little to no start up costs. The company usually provides training and even a website to get a person started. There are a variety of MLM programs from which to choose, so a person is sure to find something that interests them. The biggest issues with MLM is that many people jump into it without really being passionate about the products, they simply focus on the recruiting side. A true business can not succeed, though, without both sales and recruiting. However, this is one of the best ways to earn a continuous income.

These three ways to make a residual income are the most common ways people earn. They are very diverse and each offers something great. Every business will have a downside, but the persons job is to overcome that. Success only comes through hard work and being passionate about the business. Anyone should be able to take one of these methods and turn out a great residual income.

About the Author: Diep Tran is Internet marketer, owns a Plug-In Profits Site and webmaster of Internet Home Business Opportunities. For An Internet Home Business Opportunity To Make Money Online, Visit: http://www.internet-wealth.biz