Generate Residual Income Without Writing A Book Or A Song

How can you generate residual income? Many people dream of financial freedom and passive income, but most think residual income is only possible for artists and writers. Is that really so or can an “ordinary” person generate residual income and achieve freedom from the “rat race”?

Usually if a person wants to generate residual income he or she plans to write a book or perhaps compose few hit songs. For most people this is a concept that is probably out of our reach although there’s no harm in trying.

While you are trying to come up with a killer hook for a hit song let me suggest few other ideas that might be worth thinking when you are looking for ways to generate residual income.

First, let’s define what is residual income…

Here is a definition I found online:

“What Does Residual Income Mean?

The amount of income that an individual has after all personal debts, including the mortgage, have been paid. This calculation is usually made on a monthly basis, after the monthly bills and debts are paid. Also, when a mortgage has been paid off in its entirety, the income that individual had been putting toward the mortgage becomes residual income.”

It can also mean passive income which means it keeps coming after the work has been done, even years after.

Now let’s look at few different options.

Network Marketing or MLM

For us “ordinary people” network marketing in it’s many forms is probably the most popular way to generate residual income.

There are hundreds network marketing companies to choose from. There’s definitely no shortage of products and you can probably find something that interests you.

Many times experts recommend products that are consumed everyday, like skin care products and vitamins. These are the most popular MLM products and it is definitely a sound idea to sell something that needs to be ordered again which then creates that monthly residual income for you and your team.

MLM is getting more popular as people are looking for ways to supplement their income and Internet has really put MLM and network marketing on a global map. Now you are not limited to your friends, relatives and co-workers. You can build an international business right from your desktop, armed only with a laptop and an Internet connection. World is definitely your oyster now…

Direct Sales

Direct sales is bit different from MLM. Mostly you get compensated  from your own sales and therefore you usually make more money from your sales as you don’t have to split your profits with ten or so other people.

There are also hybrid direct sales models where there are some aspects of network marketing included, but in general, direct sales is more rewarding, especially in the beginning.

If you make a sale in MLM you can typically expect to make -, but if you make a sale in a direct sales business you can make from 0 to well over ,000 per sale.

Many times it is tempting to start a business that has a low start up cost like most MLM companies have, but it usually means that the money you make from your sales is very low. This can create a cashflow problem and people quit their business if it’s not making them enough money to cover their initial marketing costs.

Building websites

Building a few well made, informative websites in lucrative niches can be an excellent alternative to MLM or network marketing. If you have a bobby or a passion you are an expert of, you can build a site that generates passive residual income for many years.

You have to prepare to work hard again, though. Build your site consistenly over a few years and you’ll start seeing results. However, you have to do it the right way or your work doesn’t produce results you hoped for. Your site has to be built the right way, with the right keywords and you have to build lots of inbound links to your site to start generating traffic.

This form of residual income doesn’t produce results immediately. It can take up to a year or two before you start seeing real results of your hard work and this is the main reason many people quit just before they start seeing results.

Network marketing, direct sales or building websites are all good ways to generate residual income. All three require some investment and plenty of time, but they can all generate nice residual income that is passive and is an excellent addition to your salary or pension. All three can also generate enough income, if done properly, to make you able to quit your job and and live in financial freedom.