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7 Residual Income Secrets
By Jack Sinclair
Residual income is income everyone dreams about - recurring income that
continues to be paid to you long after your efforts have ended.
It is much different that employment income, where you are paid for a
unit of effort. Residual income is different in that it can pay much
more than the value of the initial effort, and free up your time so
that you can begin to work on additional sources of residual income.
That's what is called multiple streams of income.
Residual income can be created in many different ways.
Here are the most popular methods:
Create a product, and sell it over and over, ideally by using an
automated system.
Affiliate program. Usually, for this to be considered residual income,
the affiliate program should be selling something that renews, like a
subscription or consumable product (so that a single customer can
produce an ongoing stream of income for you). Affiliate programs are
also called associate programs, or agent agreements.
Create copyright material. This is usually music or writing, and you
get residual income in the form of commissions for every unit that is
sold.
Compensation models. Some methods of employment do not include an
hourly wage. The employer in this case usually works out an
arrangement where a share of the profits will be paid to you in
exchange for the work you do. This is common in commercial websites
where a revenue stream is created - the web developer may be paid a
percentage of ongoing revenues rather than paid up front.
Revenue creating assets. Some assets like real estate can produce
residual income, by creating situations where rental income is
produced. Residual income in real estate can also come from the
assignment of property rights, like when oil is discovered and you
assign drilling rights to a company in exchange for a percentage of
revenues.
Network marketing. Companies that pay you to sell products and recruit
others to sell are called network marketing or multi-level marketing
companies. In network marketing, the effort is in building a group of
others that also sell the product (called a downline), and then
receiving residual income based on the sales of everyone in your
downline. It is one of the more popular ways to earn residual income,
but also one of the riskiest methods, due to problems like poor
business plans, non-compliance, and management corruption.
Investments can also be considered residual income when those
investments pay recurring income, like an income fund.
Residual income can be a gold mine for you, if you know how to secure a
consistent ongoing income stream. While some methods require skills or
creativity, other sources of residual income require only knowledge of
the opportunity, and by taking advantage of those opportunities,
residual income can be created.
Once a residual income source begins to pay, it can become extremely
rewarding. Many people who receive residual income begin to actively
seek out other methods to receive additional residual income.
Residual income is one of the best ways to achieve time freedom and
enjoy the important things in life.
About the Author
To learn some of the best ways to earn residual income on the web, visit the
residual income center.
Article Source: http://www.simplysearch4it.com/article/22228.html
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