What is residual income? Residual income is simply the result of an initial investment either in time or money with the main goal of making on-going income. A residual income can be passive or active. It can be earned by doing the work you are already doing or applying for and completing online surveys and offers. It may be a combination of these things or any combination that works for you.
The goal of this article is to discuss the passive residual income idea. The most popular passive ideas include: real estate, insurance, stocks, stamps, interest and rental properties. If you have any experience at all with any of these then you know that making money from them is extremely easy. However, none of these opportunities offer a way to build a residual income. They are all passive because the initial investments do not require any work after you receive your dividend shares.
The reason why I say this is because once you purchase any of these assets you do not have to continue to pay off the investors. This is what we call a net income stream. Another example of this would be a dividend stock. When you purchase this type of stock you have to wait until it has paid its dividend before you can receive your share of the profits.
If you are looking for a residual income opportunity then one of my best advice is to search for products or services that will give you the ability to build a passive on-line income stream. The best examples for this idea are: Rentto portfolios, stock photos, affiliate programs and rental property websites. The first three examples are excellent, because they are very low risk investments. The fourth option, stock photos, has a higher chance of becoming a passive income but it takes a great deal more skill and training to master this method.
When I talk about residual income, I am talking about residual income that will continue to exist even when you are dead. For example, if you have been a landlord for 10 years you will still be receiving rent even though you have passed on. This is true of most people, their basic monthly activities such as paying the mortgage, taxes, insurance, utilities, paying the phone bill, child care, and car payments will go on even after you die. An active income stream like this can be called a passive or residual income.
The key to building an effective residual income using the internet is to create multiple streams of passive income. This is how the super-affiliates earn five or six figure incomes every single year. However, you can start with any amount of passive income to get you started. There are some ways that you can quickly earn a residual income online. You can earn passive income using your web design skills, knowledge related to certain niches such as the guitar or painting, or even by becoming a member of a network marketing company that provides affiliate programs.
The trickiest part of residual income opportunities is finding a company to work with that will provide you with a good compensation plan. Although the internet has provided us with many ways to make money, it is also full of scams and unscrupulous businesses looking to take advantage of new comers to the industry. If you want to avoid being taken advantage of make sure you find a company where you can earn at a reasonable rate. Some examples of companies that will pay you are American Express, Discover, Nike, Progressive, JCPenny, and Kohls.
Now that you know a little bit more about what residual income includes you should now be aware of the dangers associated with being involved in business for yourself. Many people who work for themselves soon learn that they have become the victim of corporate greed. You will not have the security of a regular job once you have built your own business, and you may have to work long hours and deal with a lot of stress. This can also lead to health problems. So be very careful when considering the opportunity to build your own business.