As you surf the net, you would run into a wide variety of business opportunities. Invariably, each one of these will claim to have the best compensation plan available and many will claim to offer "residual income". However, a cursory examination of many of these pay plans will disclose that, although there can be a very real earning opportunity, it wouldn't truly be referred to as residual income. Residual Income Opportunities
What exactly is recurring income anyway? Simply put, residual income can be defined as any payment system in which you receive regular, ongoing payments as a result of a single sale. How often of the payments can vary greatly - they could be weekly, monthly, quarterly etc. - however they are regular and ongoing without any further selling activity when the initial sale has been created. generate residual income
Some potential re-occurring income opportunities are listed below:
Telephone calls and line rental
Mobile phone supply, line rental and calls.
Electricity supply.
Gas supply.
Web hosting supply.
Autoresponder supply (monthly rental).
Any software which is supplied based on a rental basis.
Property rental.
These are just a few examples, there are plenty more. Any product or service which is provided on the lease or rental agreement has the potential to provide you with residual income. Ideally, your customer will automatically renew each week/month without the requirement for action (effort) by either your or your customer.
There may also be some scope for recurring income with disposable or consumable products. In cases like this, the mechanics of the reorder process have a critical bearing upon your earning capabilities. For true re-occurring income, the reorder process ought to be automatic as described above. This isn't simply a matter of semantics or perhaps a pedantic definition. There are several reasons why you should target genuine residual income.
Many people who setup their own small home based business do so with the express intent of eventually replacing their salary. Due to the regular nature with the payments, residual income is fantastic for this. In fact, it's far better than having a salary when you continue to get paid for work which was done in the past.
With genuine recurring income, the automated reorder process signifies that you don't have to spend time servicing and supporting your existing customers. You can focus your energies on finding new customers and/or recruiting new distributors/affiliates, thereby continually growing your small business at the fastest possible rate.
If your customer needs to try taking some action to reorder then, despite a consumable product that needs to be replenished periodically, there is a "break point" in the process. The customer may decide to economise and do minus the product that month, they may decide to use one of your (many) competitors or they may just simply forget to acquire.
With an automated reorder system however, your customer must make a positive effort never to reorder. It's a well known fact that customers who pay for products and services by subscription are much more loyal and fewer likely to cancel. Even though they do decide to opt out they have an inclination to delay this for over they would otherwise.
Think it over for a moment. Have you ever kept a regular membership running for longer than you intended, or have you any idea someone else who has? Maybe you might even have some small but regular subscription running today that you've completely overlooked.
That, of course, is why many companies will give you a decrease in the standard rate should you set up a subscription agreement. Reader's digest understand the value of this. So telephone companies, electricity companies, internet providers and software providers around the globe. Now you know about it too - make use if you possibly can.
Finally - and let's not kid ourselves here - lots of people don't like selling. Strategies round this and it's really possible to minimise the discomfort many people feel - but it's still there at some level for a lot of of us.
Picture the scene. You've just designed a sale, you feel great and you're simply already thinking about how you will spend you money. Then it hits you - you need to do it all again today, tomorrow, next week. Takes the gloss off somewhat - right?
Now consider a slightly different scenario. You've just designed a sale. Your new customer has signed a repeat subscription agreement and you're going to benefit for months, otherwise years to come. Is that an improved home movie? I think it is.
There are other great things about residual income but, for the sake of brevity, I hope that those already discussed above provide sufficient compulsion so that you can actively seek out a minumum of one residual income stream.