What is Residual Income?
If you’ve been in the online marketing game for long or you’re just starting to get a feel for it, chances are you’ve heard about passive or residual income.
But what exactly is residual income?
Before we look at what it is, let’s first talk about what it definitely isn’t. A get rich quick idea.
A sustainable residual income business plan is not quick or easy by any means and the people that promise you that it is and they have the secret formula for you to replicate, are usually just trying to sell you their own product.
You are their customer and that is their passive income formula.
Building a residual income business takes a lot of planning, effort, analysis, and growth. There will be numerous days where you put in a huge amount of work and think it’s just not worth it. You won’t see the returns; in fact initially you’ll probably spend a lot of your own money on establishing it.
However, nothing worth having is ever easy and takes a lot of hard work and preparation before you reach your peak.
Think of it like building your house. You need to lay strong foundations before you even start on the main structure and only then will you start to build the shell. Even though you have something that looks like a house you still have to go back numerous times to fit it out before signing off at the end.
Even after that you’re continuously going to upgrade, re-decorate, and try to add value.
A residual income business isn’t all that different. It is a business model that takes a lot of initial input in order to maximise the output at the end while simultaneously reducing the effort you need to put in. In other words, you build a business that will eventually need very little effort to provide you with a source of income. Note we say very little, not no effort!
How Long Will it Take For My Residual Income Online Business to Make Money?
There is no definitive to that question and it depends on a number of factors.
Preparation, Effort, Luck.
Now obviously you want to reduce the dependence on luck and by properly focussing on the first two elements you should be able to do that.
Preparation is the most important element and a lot of research has to be put in to give you any chance of success.
- What’s your niche?
- Who’s your target market?
- Where do they spend their time online?
- What’s your angle?
- Why makes you stand out?
There are many more questions you’ll need to answer and we’ll go through them in detail. As a general rule, you’re not going to see much of a return until you’ve been at it for six months to a year.
Most importantly, you need to ask yourself if you have what it takes to hold on for that long, putting the work in that needs to be done, without the instant rewards.
A lot of people don’t. They say they do but when push comes to shove they quit before their business gets the chance to start making any traction.
What Kind of Residual Income Online Business Can I Start?
There are many options available to you if you’re considering starting this kind of business. However, we’re going to focus on a few types initially with the aim of expanding after we’ve created the case studies of the first businesses (More on that later).
The business models we’ll look at first are:
We’ll examine how to research a profitable blog, where to find your audience, and all the options available for you to monetize. For the full guide on setting up a profitable blog, click here and for the full guide on monetizing your blog, click here.
We’ll examine writing an ebook with the objective of selling it on the kindle platform. How to research a book people will be interested in and how to market your book so people will buy it. For the full guide on becoming a self-published author, click here.
Initially, we’ll look at sourcing goods and selling through Amazon FBA. We’ll look at finding the right product to sell and marketing it so it becomes a bestseller in it’s category.
These are the three areas we’ll look at in detail in the beginning, however there’s nothing stopping your from utilising all three selling channels for your business. In fact, it’s encouraged. You should never keep all of your eggs in one basket.
For the full guide to selling on Amazon, click here.
However, even though you can do the latter two businesses on their own, it’s recommended that you start off with the blog. This enable you to grow a following and makes it much easier to sell down the road. It also allows you to scale up into a larger business more easily.
So, with that being said, click on the business you’re most interested and start reading the step-by-step guides in setting it up, what you need to do to make it a success, and what you need to avoid!