Is Residual Income The Holy Grail Of Internet Marketing?
If you?ve been researching an internet business recently you have no doubt heard the term ?residual income? bandied about. Or perhaps you?ve received emails offering ?streams of income? and wondered what they were talking about.
The term ?residual income? has actually been around for many years. It simply means getting paid month after month and year after year from the original sale. Instead of selling one product for a onetime payment you sell a series of products or services that continue to make money long after you have made the sale.
There are examples of this concept all around us in our daily lives. For instance, when you sign a contract for cell phone service, the cell phone company will receive residual income each month for the life of the contract. When you renew your auto insurance policy your insurance agent gets residual income. The best example of a stream of income is the money you receive from rental properties. As long as your properties are occupied, you continue to collect rent checks month after month.
So you could sell a product and get paid once for the sale or, for about the same amount of work, sell a product or service that pays you once a month for the next three years. Let?s say you sell an e-book for $37 and you get to keep $20 from the sale. You?ve earned $20 but now you have to sell it again to someone else to get more income. Wouldn?t it be better to make one sale but continue to get payments or residuals from that sale?
Now $20 a month doesn?t seem like much money but if you build your sales up to one hundred customers you would then be earning $2,000 a month. If you add to that some other income steams you just might be able to earn enough money each month to quit your day job.
Affiliate marketing is a great way to open up several ?streams of income.? You could become an affiliate of a web hosting company. As long as the customer continues to pay for their web hosting each month you will be earning money from that sale. Or you could be an affiliate for an internet advertising company. Every month the company provides services and each month you receive a portion of the revenues.
There are several ?affiliate marketing? websites that offer you a turnkey business with much of the work done for you. They have researched the best affiliates and plugged them into a customized site for you. When someone goes to your site and clicks on a link to the affiliate, you get paid for anything they buy. The affiliate keeps track of your earnings and sends you a check each month. If the person linking from your website then buys their own turnkey program, you get a percentage for everyone who signs up from their site!
Multi-level marketing can also help you build up your residual income. The added bonus of this system is that you also earn residual income from the people below you in your ?down line.? You get a percentage of what they sell every month and if there are enough of them your monthly earnings can be significant.
Whatever you do, research the opportunity and ask the hard questions about compensation and what percent you will earn. Don?t fall for the ads that promise instant wealth and making huge profits while you sleep. It takes time to build up your residual income but its well worth the effort.
Tom Miller has an MBA in Management from The University of Akron. He owns several internet businesses including affiliate marketing sites that utilize the ?Streams of Income? concept. For more information visit the following site: http://www.tamcomarketing.com/pips.html
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