The term residual income is often used synonymously with ‘passive’ income. This form of income essentially generates itself. You set up a stream of passive income that requires hours to begin with but, once established, earns money without you having to put in any further effort.
Say you wrote an ebook. At first, writing the book would take you a long time – let’s say it takes you a month of intensive work. Once the book is published, it will generate money through sales for as long as it’s in demand without you having to put in any more effort. That way, you allow yourself to earn money automatically for a small investment of a month’s work.
Residual income can be earned in a plethora of ways ranging from stock dividends to song royalties. Below are listed several of the most effective and popular methods of earning passive income every single day.
Perhaps the most highly rated method of generating automatic revenue, affiliate marketing is an excellent option for those interested in setting up a popular website/social media page.
Tonnes of companies have affiliate programs available for you to sign up to (seriously, search around and you’ll find hundreds – Nike, Amazon, Thomas Cook, you name it). If you make the cut, which is surprisingly easy to do, those companies will send you ‘affiliate links’ to add to your page. These are simply website links like the kind you’d see when browsing the web that advertise that company’s product.
Say you run a fitness blog and sign up to be an affiliate for Nike’s new line of running shoes. You’d then add these links to your blog, advertising Nike’s product to your audience.
Here’s where it gets interesting. For every sale that Nike makes through your link, you will be paid commission for. This commission could be as high as 20%, 50% even – that’s for every single sale you make.
The only tricky part is attracting enough traffic to your page to make these links profitable, however this is absolutely doable with enough research into SEO.
As mentioned previously, writing ebooks is a foolproof way of earning money online.
Dedicating a month to writing and publishing a top quality book to Amazon’s Kindle store will be sure to earn you constant income for as long as you wish. Just be sure to browse the Kindle marketplace to get an idea of which types of books are currently in high demand. Once you’ve decided on a niche, make a start on your book.
At first you may struggle to think of ideas. My advice? Simply write down everything that comes to mind. Even if it turns out as a jumbled alphabetti-spaghetti-like mess, getting thoughts out of your head and onto paper is a great way to start.
From here, try to string together your thoughts into an organised fashion and see your plot begin to form. Keep writing – everyday if you can and before you know it you’ll be ready to publish your book.
Thankfully, with the advancements of modern technology and the world of ebooks self-publishing has never been easier. Any ordinary person can now simply write a book and have it published to ebooks distributing stores.
So why wait?
Although investing in real estate requires significantly more money than the aforementioned methods of earning, buying a property and renting it out is an incredibly profitable way to earn residual income.
Be warned though – renting out properties isn’t entirely passive. There’s a lot of work involved in real estate. You’ll be in charge of dealing with customer complaints, repairs and cleaning. Even if you decide to hire staff to do these jobs for you, you’ll still be responsible of ensuring that the work is being carried out properly.
However, once a real estate property is set up it can pretty much run on autopilot. Further down the line when you’re earning decent amounts of cash you can hire people to do all of the jobs for you and simply earn a profit for doing virtually nothing.
Owning a real estate property and allowing it to run itself also frees up your time to work on establishing other streams of revenue, multiplying your overall profits and strengthening your financial position.
Investing is hands down the most reputable and effective way of earning cash. Although there are risks involved with investing, there are many safe options when it comes to putting cash into stocks and savings accounts.
The only trouble with investing is that it requires a fairly high starting budget to earn decent returns on your payments. Additionally, many investments can not be made with absolutely certainty of earning your money back. It may be that you pay money into an investment and never actually manage to earn your payment back.
Similar to investing, money that would usually gather dust in a bank account can be put into a Roth IRA or interest-building savings account. That way, your money will increase in value overtime without you even having to touch it.
The money you earn from this can then be used later on to invest in stocks and companies, increasing your profits significantly overtime.
The key to success with all of these techniques is consistency. It’s vital that you remain consistent in your efforts and keep a close eye on your money to ensure that you’re keeping on top of your financial position. Don’t be afraid to check your bank balance – you are totally in control of the money you earn and should not fear it.