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Autoresponders = Automatic Internet Marketing Success
Copyright 2005 Glenn McDonald What if you could send out all the information that your potential customers have requested without checking your email or answering a phone? While this may seem impossible, it is becoming more and more popular among...
Email Marketing - Your Internet Business Lifeline
It is not unusual to have high ranking at the Search engines yet see low conversion rates. In fact, someone else whose ranking is lower than yours may be making a killing online with his products. How could that happen? With all other things being...
Paying Too Much For Pro Internet Marketing Tools?
Ready For An Interesting Alternative? You can't row a boat without an oar or build a house without a hammer. And, you can't build an online business without essential online marketing tools. Sadly, thousands try (unsuccessfully) everyday. Those...
Reminisces Of An Aspiring Internet Marketer
================================================= Reminisces Of An Aspiring Internet Marketer By Tony Bhachu, Copyright © 2005 ================================================= I've spent a lot of time and money on trying to promote various...
To All Internet Marketers - How To Get My Business
More and more people are realizing that the Internet offers great potential to set up a healthy business for pennies on the dollar. This is good news for internet marketers - but it also means that they need to lift their game. Why? Because the...
 
Residual Income: The Secret to Long-Term Internet Income

The Secret to Long-Term Internet Income
© 2005 Jeremy M. Hoover // http://hoovermarketing.info

Perhaps the best product is one that has recurring monthly fees. This is known as residual income, and is the best income to make, because you make one sale but are paid month after month.

Would you rather make one sale for a one-time $65, or one sale for a monthly subscription at $10 per month? I would rather have the monthly subscription, because after the seventh month I will have made more than the $65 from the first sale, and the money will keep coming! It is possible that you can still be making money three years down the road from one sale.

Here is another example to show you the power of residual income: You work everyday for a company. Your paycheck is dependent upon your working. If you don't work on a given day and you are paid hourly, you will not be paid for that day. If your job is to make widgets on an assembly line, you must make those widgets to get paid.

But what if you were the one who patented the widget? Then you would receive income over and over again any time someone made or bought one of your widgets. You don’t have to make the widget anymore, but you get paid every time someone buys a widget! This is residual income: it is income that you make over and over again from working one time. There are many great affiliate programs that you can market that can bring you residual income. You can also start your own subscription or membership website.

A related concept to residual income is leveraged income. Leveraged income is similar in that it can be residual. More importantly, leveraged income is money that you make from other people's efforts!

To use the same widgets example, if you make widgets on an assembly line for your job, you have to do that to get paid. But if you were the one who patented the widget or the technology to make the widget, you would continually receive income every time someone made or bought one of your widgets.

As this


related to leveraged income, imagine that in addition to you working on the assembly line, you could train others to do the same work and make a percentage of each person’s income that you trained?

For example, you work the assembly line and earn $1000 each month. What if you could earn 10% of the income for each person you trained to do the same assembly-line work? You would do the work (training) one time and be paid over and over again (residual income that is leveraged via other people's work).

Suppose you trained ten new people each month, for three months. Your monthly income would begin to look like this:

1st month: You make $1000 and each of the ten people you train earn $1000. In addition, you earn 10% of their monthly income (10% of $1000 = $100 x 10 people = $1000 + your $1000 = $2000 total).

2nd month: You still make your $1000, but now you have 20 people who each make $1000. Your income is thus: 10% of $1000 = $100 x 20 people = $2000 + your $1000 = $3000 total).

3rd month: You still make your $1000, but now you have 30 people who each make $1000. Your income is thus: 10% of $1000 = $100 x 30 people = $3000 + your $1000 = $4000 total).

But wait! In your third month, 10 of the thirty that you trained each trained 5 more people. Another part of your business agreement said that you would receive 5% of the income of anyone that was trained by someone you trained. So, you have 50 more people each earning $1000, and you earn 5% of that --> 5% of $1000 = $50 x 50 people = $2500 + your month 3 total of $4000 = $6500 total in month 3!

This is the beauty of leveraged and residual income! By your one act of training someone to do the work, you will get paid over and over again from their efforts, and again if they train someone else to do the work!

About the Author

Jeremy M. Hoover makes residual income from his site, http://hoovermarketing.info/leads.htm . Get a free affiliate marketing course at http://hoovermarketing.info/amg/introduction.htm .

 

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