Building a Source of Residual Income
Building a Source of Residual Income
Residual Income, what is this magic thing? What’s the beauty would this be for you and your life?
Residual income (also called passive income or recurring income) is the income you receive from the result of a work or investment you have made in the past. It brings you earnings month after month, even without you having to do anything.
Most of us had been working hard in our job and we receive our pay at the end of each month. But that does not give us a residual income. That is linear income or one-shot compensation like fees, wages, commissions or salary. We are only paid if we work; and we are not paid if we don’t work. And we are only paid with an amount just enough to keep us on the job. There’s no employer who is motivated enough to double your pay for the quality service you provide; they pay you only barely enough so that you will not leave your work.
Residual Income for Authors, Actors, Investors and the Likes
Authors, composers and song writers, actors, inventors and the like are the ones who earn residual income. They receive royalties month after month for the job they have done in the past. These royalties can even be transferred to their children. If you are talented as these people, you might be receiving your residual income month after month.
Businessmen and investors are also the same. They have the money for capital to build business or invest in stocks of companies. After some years of their effort, they reap earnings month after month. If you were able to save money and be able to dish-out money to invest in a business or stocks, you might be receiving your residual income month after month as well.
If you are a landlord owning apartments for rent, you are also earning residual income. As long as your tenants pay you the rental pay month after month, you will gain the benefit of your investments to the real estate you own. If you were able to save money and bought properties, you might be receiving your residual income month after month if you put those properties on rentals.
Residual Income for Network Marketers
If you are a network marketer and have downlines (members recruited under your) and regular customers, you may earn residual income. As long as your customers and your downline – including their customers – continue to purchase the product(s) of your company, you will earn your residual income month after month. For example, you have a health product that costs $50 monthly, you earn $10 monthly. If you have 100 clients that are on auto-ship monthly, you will earn $1,000 month after month! From your handful of recruits, and each one these recruit will recruit as well, your team will grow to a big consumer base. Thus, you will be receiving your residual income month after month.
Residual Income for Online Marketers
For Online Marketer, a good place to earn residual income every month is to refer people to membership sites. With the monthly recurring fee of the people you sponsored or referred, you will receive your commissions. For example you were able to sponsor 50 people to a program that pays $20 commission. You will earn $1,000 month after month! As long as these people are satisfied with the service the program provides, you will receive what you have worked for.
If you are one like me relying on monthly paycheck to paycheck, we have to do something to create for us a source of residual income. Take a look for a possible option how to build the source of residual income. You can be a network marketer or an online marketer by investing a small amount of money. Maybe you have a talent that hasn’t yet discovered. You can start saving 10% of your income and slowly build your investment portfolio. Making small changes in our lifestyle may help us achieve the goal of having a source of residual income that will support us, especially when the day comes that we will be out of the workforce.
If you are thinking about starting your part time business in network marketing or internet marketing, I can provide some ideas to get you started.
Here’s to your success!
JUN PASION – Online Entrepreneur