Residual IncomeIn this post we will  look  into ways you can benefit with residual income.

 

 

What exactly is residual income?

 

Residual income is income that continues to be generated after your initial input, without your continued direct involvement.  This is opposed to linear income where compensation received is directly related to work done by you. This is a once-off transaction and is mostly in the form of a salary or wages.

 

From this definition it is clear to see that residual income is the preferred way to go.

 

 

Ways of generating residual income.

 

There are a variety of ways in which residual income could be generated.  Herewith a few examples.

 

–  Artists like actors and musicians receive residual income.  They receive it in the form of royalties from the sale of movies in which they acted in, and when their recordings are sold, or broadcasted.

 

–   Authors and songwriters receive residual income when their books and songs are sold.

 

–   Inventors can receive a percentage of the revenue generated when the product is sold.

 

–   Investment programs generate residual income in the form of interest of dividends.

 

All of the above require some special talent or, in the case of investments, substantial available funds to generate a high return.  For us mere mortals there is another way that does not necessarily require a big upfront investment.  This is called associated programs.

 

Associated programs by which we can generate residual income can be subdivided into the following (not all-inclusive) list.  Here I have listed mostly online methods.

 

–  Network marketing or MLM.  You can become a rep and/or distributor and market the product and the opportunity.  MLM can be run online or offline, or a combination of both.

 

–  Affiliate marketing. You would sell other persons’ product by means of putting up a website and advertising the products. You get paid a percentage of each product you sell.

 

–  Your own product.  You can create your own information products (in the form of e-books) that address and solve problems in a particular niche markets, or you can create software (or outsource the creation) that would do likewise.

 

–  It is possible to make residual income by selling advertising space on your website. As soon as you get decent traffic to your site, other marketers will be willing to pay to have their advertising banners displayed on your site. You can also utilize Google adsense, where Google would place ads (text and/or images) of advertisers at designated spots on your site. You then get paid should a visitor click on the ad.

 

–  Having a membership site can also generate good residual income.  Your members pay a monthly fee to have access to a service or information.  Services could include web hosting, autoresponder services, and SEO services. Information could be a training program that is drip fed, or the latest marketing techniques or investment tips,

 

 

The power of Leverage.

 

With the aforementioned strategies it is highly recommended that you use leverage to increase the residual income.  With network marketing this is done by establishing a downline.  With your own product you should recruit affiliates.  By doing this you have an army of individuals assisting in creating your residual income.  You are leveraging the time, effort, skills and energy of, what could be hundreds or even thousands, other people.

 

 

Benefits of residual income.

 

–  With residual income your efforts are concentrated only in the initial stage.

 

–  Generating residual income gives you the freedom to work from wherever you want, as you are not directly involved.

 

–  Residual income is generated 24/7 – yes, even while you sleep or on vacation.

 

–  Receiving residual income gives more free time to spend with your loved ones, or pursuing your other interests.

 

–  Having more time available, you can set up additional streams of residual income.

 

Hope this short overview of residual income helps.

 

To your success!

 

 Johan

 

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