Residual income in its simplest definition is income that is repetitive in nature, often as a result of efforts already exhausted in the past.
A good example is monthly commissions generated by an insurance representative when he or she sells an insurance policy.
Thanks to technological advancements and evolving business models that reward individuals based on performance, earning residual income is easier today than it’s ever been previously.
One can earn residual income from home today, without incurring the expenses necessary when one has a job they drive to. Not only can you earn residual income from home, you can earn it on the side without committing to stringent conditions of a second job.
As beneficial as the concept is and as many people are now doing it relative to the past, there are still a ton of opportunities out there as the market is far from saturation. In the grander scheme of things, a very small percentage are aware and engaged in activities that produce residual income, especially from the comforts of their own home through one of many home based business options.
If you have ever considered this route before or are currently contemplating engaging in activities that produce residual income, the biggest trap you need to be aware of is the get rich quick trap. The internet is full of false promises, mostly scams that capitalize on people’s desires to earn residual income.
Many that are not scams are pyramid schemes that often favor only the few who are on top of the pyramid. There is nothing wrong with pyramids as long as you’re on top right J
This is one of the two biggest reasons I recommend implementing your own idea to generate residual income. You can start a website or blog like I did and market affiliate products for residual commissions. You can also earn residual income from monthly advertising on your website. You can create a product or service that has a recurring payment scheme, or sell others’ that pay on a recurring basis. Also consider a membership site option.
In case you are wondering, the biggest reason I advocate going solo is because of control. When you ride someone else’s bandwagon, you have no control of the direction the wagon is headed in. Heck, the wagon may ask you to get off at any time. So what about all the time, hard work and effort you have already invested?
The key is getting started, because once you do, you can leverage your success and “know-how” into another venture that generates residual income for you as well. Once you have a few of these established, you can start living large from the cash that trickles in on a recurring basis from each.
Creating multiple streams of residual income is the name of the game, and ensures that you have a steady flow of cash coming in even if the amount is sometimes not 100% accurately predictable. This is precisely what the wealthy do, or the ambitious that become wealthy in the process.
You hear about famous celebrities write books, give speeches, launch new lines of clothing, fragrances, restaurants and night clubs all the time. Why do they do this? Aside from diversifying their income streams and effective tax planning, they are looking to build multiple streams of income to ensure money is coming in consistently even when they are busy traveling the world and relaxing on isolated islands.
All that translates into one thing, FINANCIAL FREEDOM, and as I stated earlier, you do not have to quit your day job to get started. I am a big advocate of starting a side business even when you have a full time job and don’t have to.
There is more than enough time outside office, such as nights and weekends, when you can build a business that will generate residual income for you and allow you to achieve the financial independence you’ve always wanted.
Many of my websites, including this blog promote products and services that pay residual income. I also earn residual income from my rental properties, investment in a small business and investment portfolio.
I love the peace of mind, financial freedom, flexibility and mobility these avenues have provided for me. That is exactly what this blog is all about; helping hard working and busy professionals get more out of life the same way I have been able to.
You can read a more detailed definition of residual income in my post titled passive and residual income here.