Residual income
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Override income is the term used in network marketing to describe income received based on the production of those others who have become members of one's organization. As an example, Mary becomes a distributor in the Good Products Company. She uses the products, likes them, and talks to her brother, John, about the company. John also becomes a distributor for Good Products, signed up "under" Mary. At that point, any purchases of products by John, for himself or his customers, become sources for residual income for Mary. The residual income will vary by company, and the number of people that Mary herself can collect residual income from varies, as well.
"Residual Income" is term used in network marketing to describe income received periodically for services rendered in the past, this is usually with non-tangible products such as insurance or memberships. As an example, Mary becomes a distributor in the Good Insurance Company. She services many customers who remain in the books for a period of time. After a certain period of time, depending on the company, Mary receives a percentage of the premuim or plan from whatever customers sign under her umbrella of business. If Mary goes out and services 1,000 customers and she gets 25% of whatever her price of the service cost, (let's say 40 dollars for conversation sake) Mary would receive 10,000 dollars per month whether or not she is working. She is getting paid for all the memberships she has marketed in the past.
Math = 25% of 40 = 10 residual income base x 1,000 memberships = 10,000 dollars monthly = 120,000 dollars annually for no work rendered but for all the previous work rendered for whatever period of time she has worked in the company.
