This is an approach to building wealth espoused by Robert G. Allen in his two "Multiple Stream" business books. The idea is to diversify your business endeavors so that you can weather the storms of business cycles, seasonal adjustments and whims of the marketplace. An important concept is that of Residual Income. Residual income is money that keeps flowing in as a result of a work product that was done once, but is always available and always (we hope) in demand. For example, the estate of Bing Crosby still gets money every time "White Christmas" is played over the radio. Steven King gets money every time one of his books is purchased. These are examples of work that is done once, but gets rewarded continually -- even when you are asleep.
Multi-Level Marketing is another example of creating residual income. A person may join an MLM company and then recruit others who do the selling and who recruit others in turn. The first person in this example may end up doing nothing, but he had the good sense to sign up other "go-getters." We actually saw an example of this at a recent national conference of our MLM. A former NFL player who was honored as one of the companies largest revenue producers, admitted that he had done little more than recruit friends who, in fact, were the ones driving the business.
The converse to residual income is what's called Linear Income. This is probably what you and I know of first hand, unfortunately. You work for an employer and you get paid by the hour. (Even "professionals" who have yearly salaries, are really getting paid by the hour.) This is a work plan by which you work 'till you drop. Not what we're looking for here in our Boomer Retirement Strategies.
Getting back to Mr. Allen's books: The first one, written in 2000, lays down the basic principles of building life-long income, part-time, through multiple sources. This is a great primer on how to grow wealth and you need to read it. My favorite, though, is his second book, Multiple Streams of Internet Income, published in 2001, but updated in 2006. This book contains a treasure-trove of ways to make money using the Internet, with little up-front investment required. Included are numerous explanations to help the uninitiated understand how the Internet works and the mysteries of Search Engines. I have twenty-two "Post-It" tabs stuck in my copy so I can continually refer back to the sections that I found especially useful.
Multiple Streams of Income, Robert G. Allen
Multiple Streams of Internet Income, Robert G. Allen