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What is Residual
Income?............. |
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So, you've probably ended up here because you've
found this website promising the world and every other word is about how
great residual income is and now you've come to this page to see what
its all about? Or maybe your not as sceptical as me and really are
curious with an open mind, well read on and all will be revealed!
To explain residual income, its best to put
it into perspective against things you probably do already. During an
ordinary week you get out of bed early in the morning, have breakfast,
trip over the cat and head off to work for another day of writing,
picking, putting, typing, adding, drawing, serving, mixing, machining or
whatever your current job is. After you've fur filled your hourly
criteria (minus the hour your employer fiendishly takes back of you for
doing such outrageous things as having your lunch!) you've probably
worked an average of 7 and a half hours. You know that you are now due
to payment for those 7 and a half hours come payday, as well as all of
the other hours you have worked. You will receive your hourly rate times
hours worked nothing more nothing less! (unless you have done something
really good, or really bad). This is a "one shot" income, e.g. you work
an hour, you get paid for an hour and after you have stopped working,
accordingly, you stop getting paid.
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"c'mon! Stop ranting on and get to the part about
residual income!"OK, you may initially think I am raving mad once
you read the next paragraph but trust me on this one. What if I told
you, that you could go to work, but once you have stopped working
instead of the usual flow of money been stopped, you keep on getting
paid! Yes that right, you are not working, but you are still getting
paid! The still getting paid part is a residual income (unless your
work's accounts department has made a big error in your favour!)
Now I'm trying to second guess here but I'm thinking that you're
thinking that it seems impossible to go to work and still get pad when
your finished work. Now strictly speaking I didn't mean work as in your
day job, I mean work as in any effort you make to try and make an income
for yourself. like selling things on eBay, you may think that by taking
a photo and creating a listing isn't work, but you have put some effort
into a process which is going to make money for you! |
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Escape The Rat Race! |
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Robbie Burns, a well known
private investor has another great article on residual income which
can be found
here |
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The E-book Story |
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 This leads me straight into my first example of a type of residual
income. You decide you would like to make some extra cash, maybe to
treat yourself to a holiday, a new car or pay off some of your mortgage,
and decide that you are pretty good at writing. So you triumphantly
decide that you are going to write a small instructional booklet telling
people how to create a residual income, and you are going to publish it
yourself and sell it on eBay, and other online publishing providers as
an e-book entitled "How to get rich (slowly)".
You set up your eBay listing with a buy it now price of £4.99 (because
that's what you think your hard work is worth per copy!) with a quantity
of 100 purchases. Not only that, you know of a clever piece of software
which you install on your server (check out Linklok, see page right!) that automatically emails your e-book
to the buyer once payment has gone through. So you set up this software
on your computer and let it look after itself for the next ten days. Ten
days later you get an email saying your listing has ended and you log
into your pay-pal account to find £499 (less commissions). You have
managed to sell all of your e-books, now all you need to do is leave
feedback to all those customers thanking them for their quick payment!
I may have exaggerated with the above story, but
you get the idea? Once out have put in the initial work, and it could
potentially be hard work, an hour a day for a month? You could set up a
system which was going to look after itself and earn you money. But once
the system was up and running, you would only need do little
maintenance, maybe 30mins a week to make sure things were ticking over
ok. The money you would be making would be a residual income!
Personally I think now that everyone has caught onto the e-publishing
idea, there are so many people trying to sell e-books on the internet,
that it would be incredibly hard to implement the above method.
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The Residual Income Project uses
Linklok to deliver all digital items which has proven to be a GREAT
timesaver! |
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The Hire story! |
 Everywhere in the world there are people who want an item, but either
(a) cant afford it or (b) don't need it for long enough to justify
buying it!
I'm talking about hiring, I once heard of a small company
which was started off with an electric carpet cleaner, yes you heard
right, a carpet cleaner, one of those vacuum cleaners that you put water
and shampoo in and it washes your carpet. I don't know exact names but
lets call our shrewd entrepreneur Audrey.
Audrey decided that her carpet
was filthy and she was going to buy one of those new fangled carpet
cleaners to bring it up all fluffy and new, that was until she saw the
price, £300! for something she was only going to use once a year! Later
that evening she was talking to a friend telling her about the carpet
cleaner she saw and how expensive it was. Her friend agreed, saying that
it was pricey for the amount of times it would get used but she wouldn't
mind borrowing one to do her carpet.
Something clicked in Audrey's brain, what if she could buy this
wonderful vacuum washer sucker cleaner fluffing device, ( I may be
overselling this product) and lend it to her friends for a small charge!
The following day she decided to ask all of the people she knew if they
would like to borrow a carpet cleaner for a small fee, "as it would be
pointless buying one as it would probably only get used once a year".
(echo, echo!) Eventually Audrey has a long list of people who would
borrow the cleaner, and would be more than happy to pay for the use of
it.
Realising a good thing when she saw one Audrey went to the shop and
bought the carpet cleaner and after she had gave it a good trial run in
her own home she deemed it safe and gave it the Audrey stamp of approval
and started lending it out the following day!
Nearly every day for a month Audrey's carpet cleaner went around her
friends houses an her friends friends houses getting used. Audrey
diligently made sure she received all of the fees and eventually she had
collected enough fees which had covered the initial cost of the cleaner.
And what did Audrey have to do for this month? Maybe 20 minutes work per
day dropping off and picking up the cleaner, and when she had finished
here 20minute work she was still getting paid for the use of the item!
She had created here very own residual income, slowly, as the legend
goes, Audrey decided to take this residual income further and branched
out into other household appliances such as wall paper
steamers/strippers, portable heaters, home improvement tools etc and
started running a healthy business.
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| Advertising! |
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much explaining but is a powerful source of residual income! A good
friend of mine (Simon) owns a barber shop, one day he was approached by
a advertiser offering to pay him for the use of the outside wall of his
shop. All he had to do was to agree to let the advertiser to place a
small billboard on the side of the building and he would pay a small fee
every month for the use of the wall space! Simple that is it! Now every
month Simon receives payment for and he doesn't need to do anything
every now and again someone comes and paste's a new advert up and it
looks after itself! It just goes to show you can create an residual
income in some of the most un-obvious ways!
These are just a few example of a residual incomes
and we haven't even scratched the surface yet! To read more residual
income story's click here:
RI Businesses
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Copyright
www.triproject.co.uk 2007
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