Did you know that one family continues to receive royalties for quite possibly the most popular song in the world – the ‘Happy Birthday’ song? Ever wish you wrote an annoyingly overplayed ancient children’s jingle that doesn’t seem to get old? Residual income is ongoing income for the production of an initial work and has many benefits over the linear income (or ongoing payment for ongoing work – the stuff we’re used to).
Did you know that the second richest man in the world owes much of his success to residual income received from the original purchasing of three pinball machines? Warren Buffet set up the machines in various shops and collected a regular monthly income, with little, if any exertion apart from the horrendous task of manually collecting the profits.
Residual income is like an apple tree. You originally sow the seeds and the benefits (or fruits) are perpetual. You don’t have to be overly creative or talented to receive some form of residual income, although it is often associated with actors, composers, writers and royalties. Investment property purchasing is another common way of creating residual income by allowing tenants to contribute rent, paying off the purchased property and eventually providing another stream of income. This kind of income is a wonderful way of making money with little direct involvement after the initial contribution or work is completed.
While residual income is often coined ‘smart’ money – it involves determination and drive and often involves a risk component. It is not always easily achieved. However, the globe is getting increasingly smaller due to technologies such as the Internet and it has been found to be a wonderful place to establish a residual income. An increasingly popular way of attaining a residual income online has emerged recently and it stems from Affiliate marketing. This process essentially involves creating a website pre-selling products on behalf of a manufacturer. While they retain complete control over the products and the sales, the company provides commission incentives to you based on the heavy traffic flows and purchases made via your website. There are many companies that offer ‘pillars of sale’ that track the sale ladders and maximize the profits you are able to receive. Furthermore, referrals and advertising campaigns such as ‘pay per click’ can secure an alternative method of passive income, requiring merely initial effort but continuing to bear rewards.
Maintaining a residual income requires ‘smart’ thinking, which is why it is aptly known as ‘smart’ money. While marketing can sometimes be shrouded in convoluted terms and even understanding Affiliate and Referral programs is enough to make many gasp – persistence and dedication in the initial stages is the only security of discovering and reaping in this kind of enduring income.
