A residual income is one that comes in no matter what – even when you are not working (or can not work.) It's something all of us will someday want and possibly need.
There are several paths to creating a residual income. I am going to quickly give you three ideas on how to get it done:
1. Invest small amounts of money over a long period of time.
Does not sound to exciting, huh? Well, just take a trip in a time machine with me …
Imagine your parents had begun putting away just $ 1 a day into a fund for you since the day you were born. If they had followed some simple rules, here is what you would have:
o At age 20 – $ 38,171.10
o At age 30 – $ 161,834.23
o At age 40 – $ 662,120.60
o At age 45 – $ 1,334,221.99
o At age 50 – $ 2,686,057.96
o At age 55 – $ 5,405,082.95
I think we'll stop there – you get the point.
What if you're 30 and have not been doing this? Start today and you will have another $ 327K by the time you hit 65 – put away $ 3 a day and you could have an "extra" million.
2. Use other people's money to leverage wealth.
If you never use other people's money to help you build wealth, you will limit your wealth potential.
The amount of money you have to invest in a new venture is always limited – the amount of money other people have to invest in that same venture is actually UNLIMITED.
Gary Halbert, the late great copy copy writer, uses this technique. Whenever he took a new client, he would get an up-front fee and 5% of the gross revenue from the promotion. So, he got the benefit of the sales generated by a huge investment of capital on his client's part – and it continued to come in after he had already completed the work.
Keep in mind that 5% of $ 1,000,000 in sales generated by his work is much more than 100% of his $ 15,000 fee.
3. Create strategic alliances.
Have you ever noticed that the same people seem to be on the "inside track" when it comes to new products online – and that often you seem to be the last to know? Here's why:
There are a small group of people who have large lists and have created strategic alliances with one another. When a new product is about to be launched, they get on the phone and put together a promotion that allows them to be first to the marketplace and get the lion's share of the profits.
But before you think, "Well, I can not get into that club," let me point something out: Joe Kumar, a kid from Singapore, did what almost no one does – he simply asked for admission.
And he got in, resulting in about $ 100K in sales his first full month of promoting.
Get on the phone, give a call to some "big names" on the Internet. You might just develop an alliance that will put you on the * inside * rather than out in the cold.
There are many ways to build a passive income. Three are detailed above – there are many others. Find one that fits you and pursue it. It's worth the effort.