What Exactly Is Residual Income?

what exactly is residual incomeA lot of the times, people ask me “what do you do” in reference to how I earn a living. Most of the times, I tell them I am an Internet Marketer, but if I want to really dive into the detail, I will start talking about “residual income” and how it motivates my work.

In short, I focus heavily on having multiple income streams that generate me residual income whilst I am away doing other things. This allows me to have an Internet Lifestyle.

In this post, I want to answer the question that I get a lot (during the scenario above): “What exactly is Residual Income“?

It is so powerful that it warrants it’s own Blog post. I’ve also included some residual income ideas for you to consider if you are interested in this powerful source of earning.

Note: If you want a “fast start” for making passive residual income from the Internet, see below:

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What Exactly Is Residual Income?

Residual Income (also known as passive income) is “income received on a regular basis, with little effort required to maintain it“. This means that you can be away on vacation sipping a cocktail by the beach whilst still getting paid.

Monthly Payments have traditionally been a popular way of achieving residual income. Unlike “one-off” costs, you are getting paid every single month. A problem with monthly payments could be attrition rate (also known as “churn rate”): People cancelling their membership/contract etc. By paying a monthly cost, people expect to get a level of quality, support and value.

What Industries Or Sectors Can Provide Residual Income?

There are a few industries that are popular because of the “residual income” potential. For example, the Real Estate sector holds the potential to achieve residual income but is unfortunately quite “high risk“. Also, whilst it may give residual income, it may not necessarily give “time freedom“. It’s not “walk away income” if you have to spend time managing properties over time.

The Network Marketing (MLM) industry provides very high potential for residual income and time freedom. It is also “low risk”. Achieving success within Network Marketing requires hard work but very high payoffs. I am a successful Network Marketer and this is one of my main income streams. Click Here to join my Network Marketing team.

Ideas On How To Achieve Residual Income?

First and foremost, you need to decide on a sector/industry that will grant you residual income (has the potential to do so). Listed above, I have included one of my own (Network Marketing) sources that can give you both time freedom and residual income. In contrast, consultancy work cannot give you time freedom. There is always a limit on your own time. You may have clients paying you each month, but you have to work to get that money which takes away your time. In the past, I have worked as a consultant and this is one of the problems I faced.

After you have decided on an industry or sector, you then need to “produce web content” regularly that will pay you over and over again.

As an example, this Blog pays me “over and over” again. How? The content that is published never goes away. It will continue to be viewed over time and will not be dependent on my input. I can go away on vacation and still earn money through my monetized Blog. See here and here for information about having a monetized Blog.

For a full guide on how to setup your blog (quickly) and drive lots of web traffic towards it, see my totally free video course below:

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You will also need some kind of automated follow up system in place. Within online marketing, this is known as an Autoresponder. See my post here for information about setting up an autoresponder that automatically follows up with prospects to make you sales.

residual income ideasThis post has given an overview of the residual income formula and what you need to do today to achieve it. Make sure to follow the links I have given.

Finally, I also recommend that you read “The 4 Hour Work Week” by Tim Ferriss that will help you get into the “passive/residual income” mindset. This is the first book that I read on the topic and how it all started for me.

Hopefully, you now understand what exactly is residual income and how powerful it can be.

Do you earn residual income? If so, what sector are you in and what are your methods and ideas?

Let me know in the comments section below.

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