Can You Really Earn Residual Income in a Home Based Internet Business?

With all the upheaval in the economy and record high unemployment many people who are out of work are desperately searching the internet for a Home Based Internet Business. This search can be overwhelming and quite frustrating with the constant barrage of "Work from Home" internet ads. The difficulty is in sifting through all the hype and junk online to finally find a legitimate opportunity. In addition to the hyped up internet ads, I'm sure you can find plenty of Yard Signs around your community that tout a "Six Figure Income from Home". A lot of these ads make it sound so simple; as if all you need is a computer with an internet connection, a little bit of training and you can become the next internet millionaire, next month! Don't kid yourself! Yes, you can make a six to seven figure residual income in a Home Based Internet Business of your own and yes many of the work from home opportunites are legit. However, any true business opportunity is going to require a consist ent investment of your time and money.

So what is the true definition of "residual income"Wiki's definition is "Residual Income is an income received on a regular basis, with little effort required to maintain it." A few examples of residual income that come to mind are rental properties, investment portfolios, movies and songs. However, most people don't have the money required to invest in real estate, they're scared of the stock market's current volatility and most of us aren't talented enough to star in the next box office winner or write a hit song. This explains why most of the people who are searching for residual income turn to the Home Based Business Industry because you can start a business of your own from home with very little capital or talent for that matter. Not to mention the fact that you only have to invest 3-4 hours per day to make a significant six to seven figure income.

The Home Based Business Industry is experiencing tremendous growth right now because of the record high un-employment rate caused by the Recession. The timing couldn't be any better to start a Home Based Internet Business. There are a lot of highly skilled people who can't find a job and they're open minded to any legitimate opportunity that has the potential to replace or even exceed the type of income they are accustomed to earning from their previous job or business. The trick is finding the right opportunity that suits your likes, interests, lifestyle, income goals and skill set.

The most popular segment of the Home Based Business Arena is Network Marketing. Within the Network Marketing Niche there are two business models to consider: Multi-Level Marketing and Top Tier Marketing. Multi-Level Marketing (MLM) is the model that most people are familiar with. In Multi-Level Marketing (MLM) you earn a small commission upfront by selling a product or service. You also earn residual income by recruiting your customers into your business and when they recruit others into their business and make a sale you earn an override on the sales that your recruits and their recruits make. This cycle goes down for many levels creating a large network of distributors.

Once you've grown your network beyond several thousand people it's likely that you will be earning a nice six figure residual income. The Top Tier Model is different than MLM in the fact that you can earn a nice commission upfront by selling higher priced products. In my experience the average commission generated with a Top Tier Opportunity is between $400- $1,000 dollars per sale. In addition to making upfront income you can also recruit people into your business and develop a substantial residual income by earning an override on the sales generated by the people in your downline just like in Multi-Level Marketing.

In closing, finding the right opportunity takes time and research. Just like a traditional business you need to do your due diligence in evaluating a business opportunity. Whether you decide to start a Multi-Level Marketing business or a Top Tier Marketing business you must make sure that your company allows you to build your business primarily online. The internet has changed the business landscape forever. No longer can you expect to build a successful home based business by recruiting family and friends, inviting people to home or hotel meetings and prospecting strangers at the mall. You've got to learn how to market online to the people that are looking for a home based business or people that are currently in a home business that they are dissatisfied with. If you would like to learn how to build a Home Based Business quickly by leveraging the power of the internet please see my author's resource box below.

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