The idea of long term residual income is a powerful one. Who does not want to do work once and reap the benefits for years to come. The sad reality is this idea is used to convince people to join a business opportunity that can’t provide long term residual income. Don’t waste 3-5 years of your life for something that you will not find in a MLM scam.
Being able to generate passive income largely depends on your audience, and if they detect that you care more about making money than serving them, you won’t succeed. “Whenever I’ve seen people do something just for the money, they’ve failed because their intentions aren’t driving them in the right direction. It should always be about helping people and about the passion of making others feel better. The byproduct of doing that is generating money,” says Flynn.
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Managerial accounting defines residual income in a corporate setting as the amount of leftover operating profit after all costs of capital used to generate the revenues have been paid. It is also considered the company's net operating income or the amount of profit that exceed its required rate of return. Residual income is normally used to assess the performance of a capital investment, team, department or business unit.