Residual Income

What Is Residual Income?

June 6, 2008 – 5:17 am

What is Residual Income? (Originally Posted at Residual Income Defined)

Definition

“Residual income” is income which one continues to receive in repeated payments, after an initial sale, referral, or other action has been taken.
Examples of How to Make Residual Income

Example:

A visitor arrives on your website and clicks a link which leads them to sign up for a subscription to a service or publication. You then receive a percentage of every payment made by that customer, until he cancels his subscription (if he does.)

Example of Residual Income:

In some cases, when you sign a person up to become an affiliate of a particular agency, you receive future commissions on any sale made by that person in the future (in addition to the commissions he earns).

Example of Residual Income:

You sign a person up to run a certain type of ad on his website. You then receive a comission every time the ad is played on the site. A recent example of this is Pay Per Play, which just opened up about a week ago. This is a source of residual income with a free membership, while other programs charge a fee for participation.

Example of Residual Income:

You set up a website and get traffic to it, with a few hundred visits a day. You place ads on the site so that you earn a commission whenever your site visitors click an ad, make a purchase through one of your links, etc. You continue to earn money from this site, even if you go on vacation for three weeks and do little or no work on the site.

Why Residual Income?

Residual income is beneficial as it allows you to step out of the daily grind of being paid for each hour or year that you work. It allows you to continually set up new projects which then generate revenue, so that you can continually multiply your yearly income. It also allows you to stop working for some time, but still continue to earn money during that time.

At Residual Streams of Income you can find further information on opportunities and methods of building up a residual income online.