Monday, September 29, 2008

Exploring Different types of Residual Income

By joe cotroneo

There are numerous types of incomes. The two most popular forms of income include that of linear and residual. Most of us are familiar with linear income. This is the income that we receive from the means of a fee for a service and/or product that is provided, a salary that we receive from an employer, and a particular wage that we are paid from performing a certain job or duties. Once we acquire the pay from our linear income, we can expect to receive no more compensation for that particular job. However, residual income is slightly different. With this particular type of income, we can continue to generate money even after we have provided the goods and/or services.

The benefits associated with residual income are easy to understand for many business owners. Keep in mind that one of the most fascinating benefits of residual income is that it persists in providing income on a continual basis. Residual income allows a business owner the time to purse other interests or projects, while actively making money. This means that you can thoroughly enjoy indulgence of compensation even after successfully completing the project when involved yourself in projects that present residual payments. A residual project keeps on paying, repeatedly.

There are a number of different types of residual income. These are many possibilities when it comes to aquiring a residual income.

You can have successful compensation for many years with residual income ideas such as writing a book, writing music and artwork as well as creating just about any type of computer software and other types of residual income projects. Although there are many individuals who may experience complexity in generating these types of media, nonetheless success will come in hardly any time at all, especially when you create an unusually well received piece of work while creating residual income.

Interest on savings and investments is also residual income. If you know how to invest, you could collect a good deal of interest over time.

Sales commissions, like those earned by insurance agents, realtors, and other professionals, count as residual income. Generally, these are commensurate with the amount of the sale. Most commissions are a percentage of the sale total, however, some correlate directly with the number of sales, instead.

Today many individuals create their own business, whether it is an online business, a real store or a home business. The profits made from such business experiences are that of residual income. When you offer services or goods that require maintenance monthly, yearly or by subscription this is especially true.

Many individuals have a large amount of land in which numerous natural resources are available. If you are one of these individuals, it is important to know that certain companies will pay you a residual income if you allow them access to the resources that are contained on your property. Normally, you will receive a payment initially, and be offered a consistent income based on the sales of the resources. This is a great method to create a residual income.

Affiliate marketing manufacturers provide an array of services and goods that create continual earnings long after the sale is successfully complete. They also allow for generation more income by making referrals to other interested parities. Many successful business owners enjoy the percentage benefits in the sales of their referrals as well.

There are numerous methods and techniques for creating your own residual income. You must keep in mind however, the knowledge that a residual income may not be sufficient to live off. When you are interested in these types of residual income, you will need to research many settings while becoming active and involved with more than just one method or technique of residual income. Once you match the income of both residual and linear, you may find yourself leaning towards making more money by using these methods or techniques of income.

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