In this article I talk about some different ways to build a good residual income online and offline.
Residual income is a term used to describe income which keeps coming in, without you having to work any more to get continuing payments. Residual income is also referred to as passive income.
An example of residual income would be a musician getting paid royalties for sales of their albums, but most people will never be a rock star, so in this article I will lay out the different ways that anybody can possibly build a good residual income.
While many people who buy real estate only see it as an expense, real estate is probably the biggest source of residual income in the world, to landlords who get paid in rent from their tenants.
Most real estate experts would suggest that you start with an investment property, and if you don't have enough money to pay it off quickly, join a real estate investment partnership, so you can pay the loan down together, refinance it, and make it positively geared, and a good source of residual income, because your tenant pays more than your loan reypayments.
At this point, you can duplicate, and borrow more money to do the same thing again. I would recommend you do some serious research if you want to become a property baron.
99% of people will fail at affiliate marketing, which is almost worse than the success rate of a musician. You have to really know what you're doing, because you are competing against experts. Don't buy those scam sites that tell you that you can get thousands of dollars a week with no experience, if you just pay them $9.99.
You either have to know search engine optimization, spam emailing, social marketing, or pay per click advertising like you have a degree on it, or you won't make much. There is simply too much competition for all the best products. I did talk to a guy who makes $2000 a month from selling Clickbank products, but I still don't know how he does it.
Network marketing has a really bad name, although the one percent of people who do make it work have a residual income that pays them enough to retire on. You have to watch out for pyramid schemes and scams, particularly online.
If the product isn't something that everyone will buy, or if there are too many levels, or it costs too much to join, watch out, because you will have to be an amazing salesman or internet marketing expert to make it work.
I got involved in one of these network marketing scams in the offline world once, and they were selling a phone service, which I though would save people money, but when it launched, I found out they were charging the same amount or more than the other phone companies. I got my $500 back, but I was very disappointed, and I wasted a lot of time, and looked stupid, so watch out.
Building Websites Online
You don't neccesarily need to be a computer genius to make a website that people visit regularly, although it helps if you know a lot about search engine optimization and what people are looking for before you start.
You have to do some keyword research, and find a niche that doesn't have too much competion, but has large search volumes. I won't go in to it too much here, but I talked to one guy who was making $3000 a month in residual income from the advertising on his many websites.
I just write articles on Factoidz, I can't really be bothered trying to build a massive residual income myself, because it usually has a risk involved, or it can be a waste of time.
(update), two years later, Factoidz is now Knoji, and I am making close to $1,500 a month online, check out what you need to know about the internet and follow the prompts.
My friend bought a business where he sells companies an sms service, where they can text their customers with details of sales, or special offers. He has built it up to about a thousand a month so far, although it cost him fifteen thousand to join.
Residual income never happens fast, unless you are lucky enough to be a rock star, or something similar, but if you work hard, and don't give up on a good thing, you may be able to retire early with some of these ideas.