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Get More Bang for Your Time – Sell Products that Earn Residual Commissions

One way to work less and play more, or at least to be able to eventually, is by promoting and selling products and services that earn you residual income whenever possible.

When you work for your employer, you get paid for the time you work, but nothing after that.  Residual income on the other hand means you get paid on a recurring basis so as long as a necessary event keeps happening.

So what is an example of this?  Selling insurance is one example of a profession where you benefit from residual commissions each year your client renews their coverage.  Skilled sales men and women who are good at networking prefer such professions because there is no limit to how much you can earn.

The bigger your portfolio of clients get, the more money you earn in residual commissions.  For example, if you sell insurance to Jane today, you may not see Jane again in the next 7 years.  But as long as Jane renews her coverage, you continue to get your commissions.  When Jane starts a family, she increases her coverage and you get more commissions.

The risk is of course that a friend of Jane starts selling insurance as well and manages to convince Jane to buy her insurance policy instead.  If Jane were to switch, your commission from Jane will stop coming.

How Does This Apply to an Internet Marketer?

As an internet marketer, I have benefited from sales of both products that pay one time commission and those that pay residual commissions.

Have a look at the Thesis icon toward the bottom right of this blog.  When someone purchases the Thesis Word Press theme based on my recommendation, I earn a one-time commission from the sale.  Similarly, there are other products and services I promote that reward in the same way.

Then there are other products that I personally use and recommend, which earn me residual commissions upon each sale and recurring sale.  For example, Aweber is the email auto responder program that I use to communicate with my blog readership.  Each time someone purchases Aweber by clicking on my affiliate link, I earn a residual commission.

Aweber charges every month for its use. As long as the customer continues to pay for the program, I continue to generate residual commissions.  Similarly, GoDaddy pays me residual commissions when I recommend their domain and hosting services.

Concluding Thoughts on Residual Commissions

Because a potential exists for earning recurring income from an activity conducted only once, hence more bang for your time investment, selling products that earn residual commissions tend to be favored by most marketers and sales folks.

And because there are no guarantees in life, growing and diversifying your income streams is critical to ensure when one well dries up, another replaces it.

Multiple streams of income provide more financial security and peace of mind, especially when you reach a point where your income stabilizes and becomes more predictable.


What are your thoughts on this subject matter?  Any experience making residual commissions?  How were you able to do it?

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5 Responses to “Get More Bang for Your Time – Sell Products that Earn Residual Commissions”

  1. I almost wish I could have a “do over” for the last three years of my Internet life. I had a product with residual income that I promoted for a few months about three years ago. I dropped it for other things, which I thought would make me more money. I still get checks from this short burst of promotion I did for this product! The one time payment stuff is done and gone. Great post!

  2. Much like you Sunil, I have a website that offers the chance at residual income. Unfortunately, I really need to put much more work into this site to reap the rewards. I currently have Google Adsense, but the clicks typically come on my most recent posts. I need to work on my SEO to attract more search engine visitors.

    I do promote Mark Riddix’s book, “How to Make $2,000 a Month Online”, which provides some residual income. I plan to have more affiliate marketing on my site in the future, but like I said, there’s more work to be done. :)

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