Income, it’s what keeps our wallets fat and our bills paid. There are several types of income, and each has it’s own advantages and disadvantages. Of these there is earned income, residual income, leveraged income and passive income. In this article we will be discussing residual income and it’s benefits as well as it’s drawbacks.
First, what exactly is residual income? Residual income is income you gain by doing something once and then receiving profits from it over and over again without your needing any further effort on your part. We are all accustomed to doing work once and then getting paid for the work we do. For instance, in a traditional job you work eight hours and get paid once for those eight hours. Residual income is like working eight hours, and instead of getting paid once, you get paid for those same eight hours again and again.
Residual incomes can be and often are less per payment than earned incomes. Generally, the commissions earned on one time sales are often larger than commissions earned on sales of products that require renewals and maintenance. However, when looked at over a period of time residual income, in the end, often does have a higher amount of return.
Residual incomes are low maintenance incomes. Instead of doing the same work over and over you reap the benefits of performing those actions once. This can be very powerful as it will leave you free to pursue other avenues in your business or life.
Now that we have a handle on what residual income is and what residual incomes can do, let’s take a look at why residual incomes are important in our lives. A saying currently comes to mind; don’t put all of your eggs in one basket. One basket just may get sat on!
There are several instances in which earning an income is just not possible. You may get sick, be required to care for a family member or even decide to go on vacation. In each of these your potential for earning incomes is greatly diminished, if not altogether halted. This is where residual income can be such a large benefit. Even if you are out of commission, on vacation or if you simply do not feel like doing anything at all residual income still brings you a certain amount of profit.
In the case of domain and web hosting renewals residual income can often be considered guaranteed income. Those are products and services that require the owners to pay a monthly or yearly fee to keep their website in operation. For individual web sites this may not be a lifetime income, but often for businesses and corporations the need to keep their web site or domain active is of the utmost importance.
Keeping a diverse stream of income is important, and residual income most certainly has it’s place. Besides, who wouldn’t want to crawl in bed with the thought, “I’m making money right now.” Who couldn’t use a vacation with the knowledge that their profits are still coming in? In times of sickness it can be a great comfort to know that your wallet is not suffering from the same incapacitation you are. The security gained with knowing that regardless of what happens you are still earning an income can give one a sense of freedom virtually unrivaled.
Hi, my name is Vincent R. Parker and this is my article. Residual income is an important part of any solid financial portfolio. To learn more about residual income and for free training visit http://www.imonlinemarketing.com.
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