Residual Income

Residual Income: How to get it, and why you want it!

Do you know what Residual Income is? Everyone wants it.

Let us start with why you want it.Residual Income

Residual Income is when you are paid for an action you have taken in the past. Even after this action is done.

Example: You invest in a stock. This investment pays you dividends, and when you eventually sell it, you also earn capital gains, or losses, but you lose the future residual income.

Business IncomeFor a business: they create a product or service, then hire sales people and spokespeople to market their product or service. Once you have purchased this product or service, if you like it, you purchase this again when you need it.   They are earning income from the quality of their product or service, and their marketing, based on the clients positive experience.

Can you earn residual income for your work as an employee?  Income

The answer to this in general is NO.  You are paid a salary or hourly rate for your work. While you will possibly have a paid vacation, when you stop working, the income stops as well.

Example: You are paid 15$/hour. You work 25 hours per week, and get 2 weeks vacation paid per year. This would mean that you are earning approximately 375$ per week. To earn more income from this job you would need to increase your hours or pay per hour. This is in the control of your employer. If you were unable to work a few hours, your income would decrease.

What if the hour of work you do could earn you income at that time, and each time that person consumed the product or service into the future?

Let us use an example:

You sell a product which costs a client 100$ each month. They like this product, and decide to continue to consume this monthly. Each time they buy, you earn 25$.

So, in month 1 you have 5 clients. So, you earn 125$ in month 1.

But in month two, they have shared how much they love this with others, and you have found new clients as well. Let us say you now have 12 clients. You are now earning 300$.

Let us say that for the next 10 months you add only 5 new clients each month, and all clients continue to buy due to their experience, and your relationship…

Month 3      300$ + 5 (25) = 425$

Month 4      425$ + 5 (25) = 550$

Month 5      550$ + 5 (25)= 675$

Month 6      675$ + 5 (25)= 800$

Month 7      800$ + 5 (25)= 925$

Month 8     925$ + 5 (25)= 1050$

Month 9     1050$ + 5 (25)= 1175$

Month 10   1175$+ 5 (25)= 1300$

Month 11    1300$ + 5 (25)= 1425$

Month 12    1425$ + 5 (25)= 1550$

Over the 12 months you have earned a total income of 10300$.  For adding essentially 5 clients per month, and maintaining a good relationship with the existing clients. If you have done a great job, then this number of clients often grows due to their experience as well. The beauty of Residual Income is that if you stopped selling, you would continue to be paid this 1550$ going forward, as long as the clients continue to buy.  You only had to sell the products to the clients once. However if you keep going and adding new clients each month, this residual income continues to grow. 

Keep in mind that if the product, service, or relationship is bad, they will not continue to buy the products or services you sold, and this residual income will diminish and fade as clients stop buying.


How can you get it?

Real EstateYou could invest in something: stock, Real Estate, or a business. You would want to assess the risk and cost, versus return. 


MusicYou could write a book, a song, or act in a movie.  This would create a Royalty, and this residual income is paid each time someone buys your book, listens to your song, or watches your movie.

You can join an organization which pays its partners residual income.  

You can monetize blogs, YouTube, or Instagram if you can create enough of a following.



Successful people such as: Oprah Winfrey, Warren Buffet, Richard Branson, Donald Trump, and so many others, have amassed fortunes through residual income.



I enjoy the benefits of residual income from my work in helping others to succeed as Network Professionals, and within my Network Organization. I also have more than 1 residual income.

Residual Income

If you wish to Subscribe to Future Blog Posts, please follow this link.


Let me know what you liked best....

Leave A Response