There are many things that make the world go round and one of the essentials people need to pay the bills, shop for stuff and other needs is money.
People get jobs to have an income. Regardless if the person is single or married; it is what puts food on the table, the clothes on ones back and a place to stay in.
Income can be classified into 3 types. Working a desk job or being out in the field everyday selling a product is one form of income and that is called a paycheck income.
Since making a living doesnít always have to come from a paycheck every month, there are other ways which goes to the second type known as residual income where one is able to receive money for doing something in the past and this keeps on generating.
There are many forms of residual income and here are just some examples;
? Celebrities like actors, writers, authors get residual income for works that have been done like movies, books, songs, scripts and product endorsements.
? People who have money in the bank earn income from the interest that is earned over a period of time.
? Insurance or securities agents who have sold to clients stocks or life insurance packages also get income.
? A businessman who decides to start a business then when it became successful, franchises it to others is also another way a person earns residual income.
? People who have invested in the stock market and are earning dividends and bonds that mature is also another form of residual income.
? Inventors of various devices, instruments and creators of computer games and software also get income since people continue to buy and use these programs.
? Real estate owners who lease the apartment or homes to tenants also earn residual income through rent.
? Retired persons also get income through the government healthcare system that gives out money to people who are 65 years of age and above.
Another alternative is called passive income where a person gets income by practically not being involved in the business. This can be achieved from rental property or a limited partnership. Since one is not directly involved, that person does not get earnings from wages, dividends, interests or capital gains.
The two alternatives are not that far apart since working on something then earning from it which is known as residual income can be passive over time. In most cases, after one good sale with a client, one can already sit back and relax and just continue reaping in the profits.
Some examples of passive income can be the following;
? By setting up a search engine optimization or SEO, one can check the top 10 most frequented sites then put up an ad there which people are able to see and purchase the items that may be or interest to the consumer.
? Another form that can be done which is also via the net is making it pay per click. It works just like the SEO with the only difference is that one has to shell out some money initially unlike the first which is free.
? Getting affiliates is another way of earning passive income. This is done by signing up with the affiliate then earning a certain amount of commission on every sale that has been made. The other way of doing it is simply making a program that pays a sales team commission for every product sold instead of paying them a salary every month.
? Product development can also be used to help one achieve passive income if that person is really good and able to make a product then selling it through an automated system which requires little support and service. Some examples can be creating a software program which people can download and use or simply writing a book.
Setting up any business takes time. It will not be done overnight and by doing the proper research as to what one wants to achieve and figuring out the best business model to be used will really save the person time and effort from failing.
Once that has been completed, little maintenance if any is needed to keep it operational.
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