A residual income is also know as a passive income, or a ‘walk-away’ income. The difference between passive income and active income is that an active income is one you work for regularly - it requires consistent effort. The drawback of active income is that it stops when you do. This could be if you change jobs or when you retire, or if you are made redundant. However, a residual or passive income is one that continues to flow in long after you’ve stopped working. How great is that?

The goal in network marketing is to achieve a true residual income and following are some great tips on how this can be achieved.

When you sign prospects into your network marketing business you may think that now you have team underneath you, you can carry on for a few years and then stop. It doesn’t work like this - you must build your business on a very solid foundation if you ever want it to reward you with a passive income.

Leaders are everything in network marketing, and while you must be a great leader, you must also develop great leaders in your network so that they can keep up the good work. True network marketing success only comes after you have developed strong leaders in your team. Your goal is to search for these few key leaders within your organization and help them achieve their full potential. These are the people you can count upon to lead their own teams in the future. They will be able to get new leads and sign-ups time and again without your intervention.

Just how do you as a network marketing leader achieve this success? The first thing you need to create and put into place a proven system that can be easily duplicated. In your system your goal is to recognize these leaders by training a medium sized group of roughly 30 to 40 people. Within this group you should be able to spot about five people who offer impressive material for development. Remember, leaders are not born, they are made, and the most effective tool you have for making a great leader is to be one yourself. So work on your own skills at the same time as you work on theirs.

What is the best way to identify these leaders? Remember the 80/20 rule? You will have given all of your downlines a set of instructions to follow detailing how they can build their own network marketing business. Some of them will follow the instructions to the letter, putting in 100% effort and commitment, while others will fall by the wayside. This is completely normal. What is interesting is that there will be times when you think you have spotted a potential leader only to find that they drop out when they lose their drive. It is tempted to waste time and effort trying to turn them around and bring them back into the fold. Don’t. The best thing is to forget about them and focus your energy on the really committed members of your team.

Once you’ve found your great potential leaders you need to train more leaders under those leaders! You may even find yourself training people who fall out of the range of your pay levels but this doesn’t matter - you are looking forward to the future and the stability that will provide the passive income. When leaders have their own downlines that are moving forward and growing, they will get so fired up and they will never drop out.

To achieve true network marketing wealth and a real residual income, you must never stop training leaders all the way down your organization.

Want more resources on how to create true network marketing wealth, check out the resource box.

Jaz Lai is a network marketing online expert. Download your free white paper and audio on how to use the internet to Double or Triple your organization within the next 30 days. Available for the next 24 hours only, click below for instant access : http://www.HowToNetworkMarketing.com