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Make Money While You Sleep – What is residual income?

By Norberto Mercado

So you decided to start your own at home business, now what? Contacts have been made, referrals are pouring in and sales are generating. Your ball is rolling, but that is only during your waking hours. What happens when you sleep? Are you still continuing to earn money? The answer is yes and the earnings are called residual income. Here are a few ways to earn this type of income and what to expect.

Residual income is considered the monies earned while you are not working. Often residual income is referred to as passive income or recurring income. This stream is a consistent cash flow after you have put in your investment, time and effort to generate an income source.

A common misconception of residual income is that this is much like a salaried job. Sadly a salaried job is paid based on the time put into the job, this is generally consistent with a standard 40 hour work week position. Salaried jobs are linear and the pay correlates to such. Residual income is earned while you work, while you are on vacation or while you sleep. Once you create you business and revenue stream you can continue to make money while you do other things besides working.

In a perfect scenario the idea is that residual income will continue to generate and that you do not have to interact on some level to maintain this income stream. However this is not always the case.

A great deal of effort is invested to maintain and yield a residual income. Managing your contacts and or up-lines, maintaining a certain level of customer service to ensure your present and future customers are supported, and preserving your business base is key to a continued and consistent residual income. While you can work at this as a full time job, most have been successful in treating their business as a part time job with full time income potential.

Some common residual income sources are:

• Royalties from intellectual property (book, screenplay, patents) • Subscriptions, memberships, affiliate sales/commissions • Transferring of rights (sale of a photo you took for public use) • Asset leases (pinball machines, apartments) • Savings and investment

Income sources that have the potential to generate residual income are highly advantageous for those who are seeking an additional income stream to earn in their spare time. Another advantage to residual income is that while the income can be earned and generated on a part time or in a spare time basis which can evolve into a full time income level. Some folks have found they are able to quit their traditional 9-5, salaried jobs because their residual income levels supplement their full time job income source. If you have attained the level of full time income with your residual income source the world is virtually at your fingers where you can take an extended vacation, pick up that hobby you always wanted to invest more time into and earn additional residual income through a savings and investment account.

Before your income starts pouring in you have to remember not all residual incomes are the same. While some of the more common sources are listed above, other options are available that require a bit more finesse and rigor such as networking marketing. Patience, determination, and focus are key to ensure the success of your business or project to yield consistent residual income. Albeit the idea sounds as if very little work is required, you could be highly disappointed when you find you are not receiving instant gratification as the income trickles into your bank account.

Building a business or project to produce a residual income is a great way towards financial freedom. Not all residual income sources are the same. Be sure to do your research and determine if an initial monetary investment is required. This step will help you determine which route you want to take with your business and the future earnings of residual income. All things are possible if you are willing to put in the effort.

To learn more about residual income. Click below for more.

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