A residual income home based business is one where you are paid for work you have built up in the past and continues to pay you - like a royalty - Musicians and actors receive residual income or royalty for their past efforts. Same holds true for entrepreneurs - Network marketing or MLM offers this incentive as you earn an override income of all future business representatives you introduce to a business create. Affiliate Programs, especially two tiered affiliate programs offer residual income opportunities as well.