The Power Of Residual Income And Why You Want It

Want to start pulling in residual income but don’t know how or where to start? Then stick around cause I’ll be explaining exactly what is residual income and more importantly, why you want it!

Before we get started, let’s first look at what various types of income…

The Power Of Residual Income:  Three Types Of Income

  1. Linear Income- Also known as work income, requiring one to keep working in order to make money. Employees would fall in this category; those who receive a salaried income or an hourly wage. It’s basically income where you trade your time for money.
  2. Residual Income- Also known as passive or leveraged income. You basically receive money from something you invested in, either via your time or money or both, which continues to pay you irrespective of whether you continue working or not.
  3. Portfolio Income- This is income derived from paper assets, dividends, interest, royalties and capital gains.

Residual IncomeThe Power Of Residual Income And Why You Need It

From the above income descriptions, it’s obvious that residual income is the most profitable form of income especially when you consider the fact that:

You earn it whether you’re working or not; whether you roll over or roll out 🙂

This means that you can be on vacation in Europe, at home spending time with your family or simply living your life as you see fit, and the income is continuously generated on a recurring basis.

How To Tap Into The Power Of Residual Income

I know by now you must be asking yourself how you can start earning residual income and the answer is actually much simpler than you think:

Simply invest in a money making machine

What’s a money making machine you might ask?

It’s an automated business whose income potential is far much greater than its operating expenses or overhead, e.g. if you acquire a customer at $20 but that customers buys something worth $100 then you’ve made a profit of 80 bucks.  Now repeat that:-)

In the physical world or traditional business if you like, residual income can be present in the form of:

  • Real estate, e.g. rent from property
  • Royalties from a book or from licensing intellectual property, e.g. next time you purchase a CD or DVD you paid passive income to that artist or producer for something they did one time.
  • Pensions
  • Network marketing

In the online world, residual or passive income may be in the form of:

  • Affiliate earnings
  • Google AdSense and other display network earnings

It may also be good to mention that not all forms of residual income are equal.  You may come across investments that require a lot of input in terms of capital and time, while others require little input to get things rolling, e.g. real estate may require a lot of capital and there’s always the risk of people defaulting to pay rent while in network marketing there is a low barrier to entry and minimal risk.

It may therefore be advisable to go for a money making machine whose residual income far exceeds the expenses incurred.

It’s not how much money you make, but how much money you keep, how hard it works for you and how many generations you keep it for-Robert Kiyosaki

Curious how to produce residual income now?  If you’re open, email me below, perhaps we’re a fit!  But do your homework, ask questions and hopefully this post gave you some better insight into the power of residual income!

(Blog image above courtesy of

Did this help you, did ya get value? If so, I would greatly appreciate if you commented below with your thoughts and shared on Facebook!

To your success!

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Jeff McGeary is a home business entrepreneur and marketing coach. With a background in Corporate America and pharmaceutical sales, Jeff branched out and began his home-based business journey in 2010, quickly becoming a top earner and leader in his company. He is passionate about teaching and training others and is a Major in the Army Reserve.

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