Passive Residual Income

The concept of passive residual income is relatively self explanatory in that little effort needs to be expended to attain extra cash. Some examples of this type of revenue can include stock dividends, interest earned from bank accounts, or royalties on previously created work. Many, if not most, sources of income for the average person require some kind of action on the earner's part. An individual may go to a job, put in eight hours of work and receive a paycheck in reward. This kind of earning is simple to understand. Money that comes in do to very little effort is considered passive. Creating passive residual income can increase the earning potential of most workers. And who is not in favor of earning more money while putting in less work? A landlord who owns a piece of property and decides to rent that property has created a monthly source of passive revenue. This landlord does not have to reconstruct the property in order to receive payment. The property continues to exist and earn money each month with no effort on the landlord's part, other than basic maintenance. A writer creates a novel that becomes wildly popular. As the years pass, the novel continues to sell. The writer will continue to receive payment for years since the work on the novel was completed. This is another example of a passive source of earnings.

Work that continues to earn money year after year is something that many entrepreneurs and business owners aspire to. There are many examples of passive residual income. A salesman may work hard to secure business for a company, particularly if this sale will be renewed each year. Once the initial effort has been made, revenues continue to flow in year after year with very little actual work involved. Repeat insurance customers earn money for their agent when their policies automatically renew year after year. The agent who initially sold the policy just has to sit back and cash the check. Even retail business owners can benefit from this approach. If an established commercial venture is run by a manager, the owner reaps earnings while leaving the work to those who were hired to perform it. Its all nice work for those who can get it. The trick is to come up with a sound plan for earning passive residual income. A major benefit of these kinds of returns, aside from the fact that the beneficiary does not have to perform any work, is that the recipient is free to work for other wages while this income mounts up automatically. In some cases, a venture has worked out so well that a recipient may be able to retire from work altogether and live off the proceeds of these earnings.

Within the area of passive residual income are a variety of revenue sources. The concept of leveraged funds deals with individuals who leverage the efforts of others to produce earnings. Examples of these kinds of earnings can include companies that sell business franchises to others, contractors who hire sub contractors to do the work, or marketers who receive commissions on sales that were secured by others. Active leverage earnings will involve a little more effort on the part of the recipient, but still has its passive aspects. For example, a musician is booked for a concert. Payment for this musician is based on the number of tickets that are sold. The performer will basically do the same amount of work no matter how many people attend the concert. But if tickets sell well, the performer will make more money with no extra effort. The same holds true for classes, workshops, seminars, conventions, conferences or anything else that hinges on attendance. Receiving passive residual income in this manner will generally yield a higher earning potential than straight salaries or hourly pay. In general, any time that an individual can put in effort up front and reap benefits later with little effort, passive earnings have been attained.

The freedom and flexibility that can be achieved through returns of this nature are very attractive to many earners. Applying the same principles, many entrepreneurs are able to earn additional passive residual income by creating multiple income streams. These extra revenues can be used to spend more leisure time with family members. Those who are interested in increasing their charitable giving can do so with these proceeds as well. In addition, funds that may be needed for retirement or to pay for a child's higher education needs can be amassed without taking on additional salaried jobs. Gaining extra income in this manner does require a certain amount of hopeful surrender. The Bible records Jesus' words regarding submission to God and self sacrifice. "For whosoever will save his life shall lose it; but whosoever shall lose his life for my sake and the gospel's, the same shall save it." (Mark 8:35)

Some other sources of passive residual income can include affiliate programs, membership websites, and online newsletters or other publications. Affiliate sales involve selling linked advertising on a website and receiving commissions on any referred sales. Membership websites allow participants to have access to online material for a subscription or monthly fee. Online newsletters or publications can be great places to sell advertising. E-books also present an opportunity for generating revenue long after the initial work has been completed. And e-book can stay online and attract web traffic for as long as there are interested readers. These web pages can be used to create income through advertisement sales and affiliate links.