Residual income is the earnings that you continue to receive after your initial sale from companies offering this program. In other words, residual income is an effortless earning resulting from your sales efforts in the past.. First, what is residual income and how it works? Residual income is the earnings that you continue to receive after your initial sale from companies offering this program. In other words, residual income is an effortless earning resulting from your sales efforts in the past. Residual income accrues on a frequent basis usually on a monthly period. Members under you called downline generate the earnings known as residual income. More members in the downline means more income. Each member in every company with the residual income plan holds a position. In every organization members come and go or stay for variety of reasons, but positions remain. Holding your position in your company is the key to get the desired results. …