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Do’s and Don’ts for the Internet Marketing Newbie (Part 1)
I, myself, being an internet marketing “newbie” (endearing term used to refer to people who have just started their own internet business and don’t know what the ---- they are doing) have learned a few things and would like to share...
Effective or Irritating: The Use of Pop Windows in Internet Marketing
Copyright 2005 Jeremy Smith A few years ago, pop-up windows were all the rage in Internet marketing. It seemed that every time one opened a web page they would be bombarded with offers for this or that. It had gotten to the point where surfing the...
EMPATHY, not “Internet Traffic” – key to home based business success?
Having EMPATHY, as we define it, could be your secret to your home based business success. You were either born with it or you were not. If you were born with it, you will never loose it. If you were not born with it, you can become more empathetic,...
Home Business Opportunity Abounds on The Internet!
Looking for a home business opportunity on the internet these days is a pretty involved process. That is, if you don’t know how to eliminate 90% of the junk that’s out there and pick among the home business opportunities that...
How To Start an Internet Business – The First Step
The vast majority of web sites are destined to fail before they are even built. Why? Because people building sites almost always put the cart before the horse. Actually, most don’t even include the horse. Evolution of Your Site New sites follow a...
 
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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