Residual Income Through Business

What is residual income? Residual income is a type of income regularly received after a one time investment of money, time, and effort. When an author writes a book, he will spend time working on it. When the book has been written, he will publish it online or offline. During this time, he needs to spend some amount of money in order to publish and advertise it. He might create a website for that purpose, or look for another one where he can post and advertise such a product. At first, it’s all money out. There is no actual income at this point in time. But over a period of time, people start browsing and clicking the websites in which he advertised his book. When visitors get interested in his book and buy it, he will start making money especially when he becomes popular in his niche. Because of this, he receives a regular income even if he does not any more spend his time making another book. This type of income is called residual income.

Common to everybody, we have to work hard to earn some money. We all know that what we earned is commensurate with our work. It’s an income, isn’t it? This type of income is called linear income. Many are already satisfied with this income model because it’s quick and guaranteed. Aside from that, we can control and anticipate the amount of income we can earn for a period of time and that gives us a basis for budgeting. However, it is limited because it is also based on our energy and time. Every day, we are awake for 16 hours. Assuming, we earn $25 per hour. We work 16 hours a day so it gives us a daily income of $400. After a month, we have $12,000. Of course we need to eat and take a shower every day. We change clothes and go to work while being stuck in the middle of the traffic jam. On top of that, this work includes Saturdays and Sundays. Even if we enjoy this busy lifestyle, where can you get any more time to earn more?

Residual income is a better alternative for people who want more. With less effort, you could earn $5k, $10k, or $20k a month depending on how you set it up. Therefore, residual income is a business. But unlike most traditional businesses, residual income business can be set up without having to set aside your linear income. Since residual income business is still a business, you may need to spend a little effort from time to time. But that does not require you to give up your regular work if you still wish to work continuously. In fact, you don’t have to.

What are the types of residual income business? Residual income business is more common with artists such as singers, music composers and movie actors and actresses. They are paid for the work they have accomplished. After a certain period of time when their films or recordings are distributed in the market, they will receive a royalty fee. Every time a single copy of their work is sold, they earn a residual income. The entertainment industry is just one type of residual income business.

If entertainment is a residual income business, creativity is another type. This type of residual income business entails knowledge and intelligence. Inventors, scientist, and designers such as engineers also receive an income based on the agreed amount equivalent to their output. When another institution or any business entity uses the patent of their work, they may earn a huge amount of money. The only challenge here is that nowadays, most companies have their own R&D department that develops their own patent.

Residual Effect – How One Income Stream Creates Lifestyle Freedom For You

Have you ever wondered what type of income the wealthiest people in the world use to create their fortune and do it by working less hours?

Most people are relying on the more traditional way of creating an income for themselves and are getting know where fast; Such a way is:

Linear Income

The best way to explain linear income is money you receive when you work or trading your time for dollars. Working 40 hours a week and getting paid one time for those 40 hours. With this type of income your income is a direct result of you being actively involved continuously.

The problem with this type of income is the minute you stop working or get sick the income stops immediately. Meaning with out you being actively involved the income will not come in for you. Yes you may get vacation time but even that has a limit of 1-2 weeks then its back to work to keep income coming in.

Another problem with this type of income is that on your job you are helping your boss live on the Cayman Island or somewhere nice and warm sipping on a Margarita with an umbrella in the glass.

Here’s a good question to ask yourself, “Who’s helping you get to the Cayman Island or live the life of your dreams?

Luckily for you there is such a way to create the lifestyle you read about in the magazines or you hear about on TV. What if there was such a way to earn income continuously from work you have done right one time. Its through a income stream called:

Residual Income

Residual income is income that you continue to receive after a sale. An example of residual income is when you write a book, get paid for the initial sales of the book, but then get a percentage of all future sales. The percentage would be your residual income.

This type of income you see being generated mostly by celebrity singers, songwriters, inventors in the form of royalties.

The best thing about residual income is that it spurs off into multiple income streams for you as well such as:

Passive Income

This type of income allows you to earn income without actively being involved. Think of it this way, right now you are working 40-70 hours a week and getting paid once. How would you like to get paid for that same work you did working those 40-70 hours over and over again.

This is the true meaning of passive income this is what allows your boss to live on the beach while you slave at work all day.

The last income stream Residual Income allows is:

Leveraged Income

This is best described by a quote from one of the past wealthiest men in the world, J. Paul Getty. He said, “Id rather have 1% of 100 peoples efforts than 100% of my own!”

Leverage income allows you to earn income off the efforts of other people. Think it about if you were on vacation with your family and when you returned your bank account increased everyday. How good would that feel?