This is another topic I touched on in one of my previous articles. Residual income is any money that continues to flow in long after you've set up a system. Think of your landlord. All of the rent that you and your fellow tenants pay, go to his pocket. How much work does he do for that money every day? Almost none. But at one time, that landlord worked very, very hard to save up the money to buy the building in the first place. And that's how residual income works. Work hard once. Work smart once. And reap the benefits for a lifetime.
There are many ways to go about doing that, and that's what I'll explain here.
- Start a blog
As you probably know, most blogs and web sites make their money off of ads and affiliate marketing. How this works is, you create interesting content to get people to want to go to your page or blog. When people click on the ads, you make money. When people click on the affiliate links, you make money. Thus, the more traffic you can get, the more money you make. Once you set it up right, people will continue to visit your site, click on your links, and you will make money off of that, long after you've done the work.
If you're interested in making money with a blog, you need to have a passion to write, or else you will get bored, and you will not be able to produce quality content, which kind of defeats the purpose, doesn't it? However, I personally beleive that anyone can become a passionate writer, so long as they write about a topic that they are interested in. At the end of the day, writing is a medium of expression, and who doesn't like to express themselves?
- Build a web site
As I mentioned above, most web sites make money off of the ads. You can also make money off of selling products on your web site. You will need a solid plan as to what kind of content you will provide, how you will drive traffic to your site, and at least a couple of hundred dollars for designing the web site and advertising it. Don't just jump into something like this- make sure you do lots of research as to how to build a successful web site, how to do business in general.
This kind of thing takes lots of time and commitment, so I wouldn't recommend this to anyone who isn't the business-minded type or doesn't feel passionate about it. But the beauty of doing a web business - or business in general- is that you can choose what kind of business you want to do so that you will end up feeling passionately about it. Just choose something that you like. Anything. And think about business ideas related to that. If the idea doesn't excite you, you're not thinking hard enough.
- Start a business
If the idea of business excites you, why not go ahead and start a full-fledged business? Start off by doing lots of research on how to start a successful business. They way I say "research" may make it sound boring, but if you find the right books, and if you're truly excited about the idea of one day owning your own business, you'll enjoy the research phase. A few books I would recommend for starters are, (in this order) Rich Dad Poor Dad, The 22 Immutable Laws of Marketing, and Ready, Fire, Aim!
You may have noticed by now, that the common theme between the three of these, is passion and ambition. You must be passionate about something; you must be excited about the mere idea of reaching your goal, because only that excitement will give the energy that will fuel the long nights that you're going to be staying up, working hard. That excitement will give you the energy to face all of the obstacles that come between you and your goal. That excitement will keep you going no matter how tough things get, and things will get tough, but you'll deal with it, because you are passionate about what you are doing, and know what waits for you at the end of all of that hard work.