What Is Residual Income and Why Does It Make Us Happy?

Let's talk about residual income. What is it and why could it make us happy?

Residual income is defined as income that continues to be generated after the initial sale or transaction has been completed. It is also called "passive income" or "recurring income".

This is far different from a "linear income" which is directly proportional to hours worked, rate of pay, a fee, commission or a salary. Residual income can come in many forms which I will briefly mention so that you can understand the difference between residual and linear income.

1. Purchase real estate and rent out. This will give you income with little effort.

2. Become and actor or musician, any form of entertainer and you will receive residual income from movies, tv shows, recording, written songs, etc.

3. Receive residual income from a book you wrote, a software program you created, a video game you developed, a gadget you invented, any idea that may have been patented and you may receive a percentage of each copy of your work sold in the future.

These are many ideas that could leave you with residual income with very little effort. But hey, if you see things the way I do, these examples may be a little out of our reach.

Here are examples of residual income that just may be what you are looking for :

1. Network marketing. The sale of products that keep on selling even after you made the original sale.

2. Create and market your own products. Whether they be services, or products.

3. Join associates programs with agressive commission structures and residual payment structures.

4. As simple as opening up a savings account that pays interest.

There are many names for people working on the internet: seller, reseller, affiliate, associate programs, or network marketing, they are very popular on the Internet. Some of them offer similar opportunities for earning residual income.

Companies are constantly offering affiliate programs and network marketing and offer different levels of comensation. They do offer compensation for reps sending willing buyers to their offers. These affiliates work hard promoting their products and services and are compensated accordingly. Many of the programs are residual sales.

Affiliates are generally given a unique I.D. number and/or web page (url) or site, so the company can track the source of each sale and compensate the proper affiliate for the sale.

Keep in mind that many associate programs only pay one-shot commissions, rather than recurring, residual compensation for your efforts. If residual sales are what you are after, read the compensation plan carefully. It does not cost any money to join, so even if there is no residual pay offered it may be a good deal. It is wise to look for the most lucrative affiliate offers.

Linear income is great because hey, you are making money for working but given a choice, which would you rather do: work hard and get paid only once, through linear income, or get paid continuously - perhaps for years or even the rest of your life - for hard work you perform only once, through residual income?

Residual income is not easy to achieve. Remember you as an affiliate need to work hard to make the initial sale. Once it is achieved you are compensated. Once the person that you sold to sells, you are compensated and so on and so on. Depending on everyones hard work, you could make a lot of money with just one sale. So get to it and start preparing for your future.

"Far and away the best prize that life offers is the chance to work hard at work worth doing." --Theodore Roosevelt

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