Residual Income: Have You Considered Why It Should Be Part of Your Moneymaking Plan?

You probably remember your grandma telling you that money doesn't grow on trees. As a child, this probably didn't make any sense to you. But now that you're an adult and are quite capable of earning an income, you probably have an appreciation for what your grandma said and what it means.

So is earning an income a struggle? You might want to consider focusing on earning residual income instead. It's an excellent supplement to your main income stream and a great alternative to your moneymaking plan.

What is residual income?

Residual income refers to the type of income that you continue to earn out of a specific, limited and completed task. To explain it better, here is a short comparison of residual income and the more traditional means of earning money:

Traditional: You work for a specific number of hours in a given week. As a result, you get paid for the number of hours you worked. For days you don't report for work, you don't get paid.

Residual: You complete a task (time it takes until completion will vary depending on the required effort to finish it). You sell the product. As a result, you earn each time someone buys the product.

The main difference between the two is that the effort it takes to create a moneymaking product is only limited to actually producing it. Let's say you write an e-book that took you about 40 hours to produce - research, interviews, writing and editing included. Once you post that e-book as an electronic file online and market it, people will begin buying it and you begin earning from the sale of the product.

What makes residual income significantly better in more ways than one compared to the traditional form of income is that you have the potential to continue earning as long as the e-book is selling. This, after the initial effort you put in is over.

Residual income and your online business

Probably the most common platform used for earning residual income is the Internet. This is the more popular route preferred by many online business owners and network marketers. And here's why:

Convenience. It is quite possible for you to earn residual income even without leaving your home. It's been done before and many people are still doing it. Who says you need a brick and mortar office just to be trusted? Once you've built your reputation online, you could market and sell your product any day of the week, 24/7.

Small overhead. Using the Internet to earn residual income does not require a significant number of resources. In fact, many people have successfully sold their products without even owning their own websites. Of course, most people would rather have a more structured business and earn residual income through their own sites, which gives them a good amount of control.

Wider reach.

Marketing and selling for residual income online means you aren't limited by location or restricted by time zones. You could, for example, continue to earn even after you've turned off your computer or gone on a holiday. Furthermore, you could sell to virtually anyone in the world, thanks to technology that allows secure payment exchanges.

Faster turnover.

Earning residual income online is fast and easy. An ad about your product, for example, could reach thousands of recipients and prospective buyers in a matter of minutes. In just a few days, it has the potential to be viewed by at least a million people. Making transactions is also quicker. In just a few minutes, a buyer would have already sent you the payment and downloaded or ordered the product for his use.

Unlimited income.

Another distinct characteristic of residual income is its potential as unlimited income. As long as someone continues to buy your product, you continue to earn, even without additional marketing or promotions.