These were the words uttered to me by a young man to whom I had been speaking about my business opportunity. I admit that I was so surprised that I just said “OK, bye”. In retrospect I should have asked him just what he thought residual income was! After all, who wouldn’t want income that you work for once and continue to make month after month and year after year?
Well here is a short tutorial for those who don’t know or understand what residual income is.
Residual income is also know as passive or recurring income- passive because once you do the work that one time(sign a new business partner , sell an autoship for a product, or sign someone to a membership program) the money that’s generated from that one transaction will continue to be paid to you at specified intervals.
Imagine that you work at an Exxon gas station where you provide such good customer service that people actually return to this location because of you. Chances are that you still only earn your $10 hourly salary no matter how much your loyal customers spend. This is what residual income is not, even if you were to earn a bonus based on your hard work, you would only earn it once.
Now lets pretend that you are a bass player. One day you’re at the home of a friend who is working on a demo that he hopes to present to a popular young singer (like India Arie maybe), and he asks you to lay the bass line. The song is good enough to not only get on the new album, but it becomes a hit, and… they keep your bass line. Guess what? Suddenly, every four months or so, you’re getting a royalty check from this work that you did one time, just sitting at a friend’s house.
What’s the difference between the Rolling Stones and The Temptations? Publishing. The Temptations did not write their own songs and missed out on millions in publishing, while the Stones wrote and performed their own music and go to the bank every time anyone uses a snippet of a song for commercials, cover tunes, movies etc.
So what if you aren’t a songwriter, artist, or author? How do you create residual income? Well you can invest in the stock market directly or through a mutual. Or you can get into a business that pays you month after month and year after year on the work that you do once.
Frankly, I can’t think of why anyone would say that they are not interested in residual income, unless of course they simply have no idea what it is.
What are you doing to create residual income? Yes feel free to leave your wonderful business opportunity links -:)