You've heard that it's important to have multiple streams of income and that there are different types of income? But did you know that your business can have up to 4 different types of income (they can come from the same stream, but you should diversify)?

I originally learned this from Diane Hochman. She calls these 4 types of income the Full Dimensional Plan.

The 4 Types of Income

I've heard Diane give this training a few times, but I re-listened to make sure I didn't miss anything. The four types are:

  1. Retail
  2. Leveraged Retail
  3. Residual
  4. Leveraged Residual

What Do They Mean?


You sell a product to a customer and you get paid immediately (no one else involved). This is your cash flow so you can pay for tools, memberships, and training. In the “real world”, you go to a store and you hand over your money for a product and it's yours. In network marketing, you have some product on hand and you sell what you have.

There are retail products sold online as well. However, most of the time you will not get paid immediately. Which makes sense as they don't want the expense of daily payouts and to deal with those people who like to buy stuff and return it before the guarantee is up. (Yes, those people are annoying, but they exist everywhere, online and off)

Leverage Retail

Someone else makes a one-time sale and you make money. This is the least dangerous stream if you lose it. An example: I recently bought a new car. Not only did the salesman make money but the sales manager probably does as well as the owner. In network marketing, you sell a product and your upline makes a percentage.

Residual Income

you make a sale and it repeats. It could be weekly, monthly, annually, or whatever. Examples include: insurance agents getting paid when you renew your insurance, tv stars are paid a royalty when their program gets syndicated, Barnes and Noble gets paid every time someone renews their memberships, certain warranties (I could have bought extended warranties on my car that would have to have been renewed annually), and more.  pays for mortgages, tuition, etc. critical if you can’t work (have multiple streams of income)

This type of income pays for mortgages, tuition, etc. It's critical if you can’t work. This is the income that doesn't completely stop if you can't work. Now, it may decline and if you are not working or having someone work for you. It could stop, but if you have built up enough it will take a while. You want to have multiple streams of  this type of income.

Leveraged Residual

This is the type of income that network marketing companies promise you. Someone you bring into the business makes a residual sale and you both get paid over and over. It can happen in other ways, but this is how the big money is made in network marketing.

The 4 Types of Income and Why You Need Them Video

There are the 4 types of income. Share on Facebook with those you think need to hear this training.

Tracey's Blog

Skype: traceyhausel
Email: [email protected]
“I help home business owners get in action, Get Stuff Done, and get results.”

PS: This is the system that I use to that teaches step-by-step how to get leads. Check it out HERE (aff)

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