What Is Residual Income?
Residual income is money that is earned on a recurring basis, typically as the result of a single original action. Rather than earning an hourly wage, residual income is typically generated through an initial investment of time or money with the goal of earning continuous payments.
Once the initial investment, product, or service is made, the ongoing income that is earned is generally passive in nature.
Why Should You Build Residual Income?
Developing residual income is an important part of building long-term wealth. In fact, it’s practically impossible to do without it.
Think about this: If your only source of income came from your job, you’d have a hard time making enough money to retire. Even if you saved enough to give retirement a shot, you’d be taking a huge gamble. Without residual income, the only thing you’d have to live on is the money you have saved. Once it is gone, it’s gone.
The more residual income you can build, the better off you’ll be. In fact, it’s said that the average millionaire has 7 different streams of income. By creating passive income streams that generate money while you sleep, you’ll build wealth faster and diversify the ways you’re able to make money – which helps protect you from the loss of any one individual income stream.
Now, don’t be fooled; passive income doesn’t mean easyincome. In many cases, it takes a lot of hard work with no guarantee of a return.
With that said, building as many passive income streams as possible is one of the best investments you can make. So, if this sounds like a good idea to you, check out this list of simple ways to make residual income and get started right away!
The Best Residual Income Ideas to Start.
1. Start a Blog
Blogging is a great way to work from home and build residual income. In fact, Holly and I have been able to make enough money from blogging that it’s now our full-time careers.
Starting a blog is super cheap and fairly easy. For less than $10 a month in expenses, you can easily get your blog up and running. I mean, how many hobbies do you have that cost that little AND give you the chance to make money on the side?
For help getting started, check out our simple 6-step guide to starting a blog!
Now, don’t get me wrong. Blogging may be a good way to make residual income, but that doesn’t mean it’s easy. It’s not particularly passive either.
To create a successful blog, one that actually makes money, it takes time and a lot of hard work. However, once you learn how to make real money, blogging can provide some significant side income.
So, how do blogs make money?
Bloggers generally make money either through products/services that they sell or through advertising revenue. When it comes to advertising, bloggers typically get paid through direct ads they place on their website or through affiliate marketing.
Affiliate marketing is a form of advertising in which a blogger promotes a product or service. The blogger then gets paid when a reader clicks on a link or banner and completes an action. (For instance, the reader purchases a product.) So, once you’ve written a piece, you can continue to earn residual income from that piece over and over again.
2. Create an Online Course
Are you an expert in a field or have a specialized knowledge that others might want? Do you have certain skills you could teach that would benefit others? Consider creating an online course.
Online courses are all the rage right now, and they are a fantastic way to make residual income. Simply create the course once, put it online, and sell it for years to come!
Now, creating an online course might sound overwhelming, but it doesn’t have to be. First, decide if you’d like to use written materials, video, or both. Outline a few modules, and get started!
To build your course, consider using an online platform like Teachable. It provides everything you need to get started, and it’s super simple to use. Pricing is relatively cheap, and there is even an option to host your course for free.
3. Write a Book
Writing a book (or e-book) is a classic example of how to make residual income. Simply write the book, find somewhere to publish it, and sell it for eternity!
While getting your book published used to be a major obstacle, these days, would-be authors have several options.
If you’ve got a book you’re itching to write, you can still go with the traditional publishing route. (We published our first book using a traditional publisher.) Whether your book is fiction or non-fiction, a publisher can help get your book into print and onto shelves in both online and traditional book stores. This is still a good route, although it may take more work and be more expensive than some other options.
4. Start a YouTube Channel
Do you enjoy creating videos that are fun and informative? Think you have a personality that resonates on camera? Creating your own YouTube channel could be a good idea for you.
Video content is blowing up right now, and you can use that to your advantage. Like starting a blog, a YouTube channel could be an excellent source of residual income.
To make money on YouTube, you’ll need to build an audience. Pick a niche that you enjoy, and concentrate on creating videos that provide value to your viewers.
Once you’ve built your audience, consider monetizing your videos with ad placements. If your audience is large enough, you may also be able to gain sponsorships from companies who want you to create videos that promote their products.
Another great way to earn is to link back to your blog from your YouTube channel. Let’s say you publish a video on how to tie the perfect fisherman’s knot. From that video, link back to a blog post that sells fishing equipment. That’s two chances to earn from one video!
5. Open an Online Store
Selling your own products through an online store is a wonderful way to make extra income. If your products are digital or only need to be created once, all the better.
Shopify makes it easy to open your online shop and start making some residual income. They have hundreds of design themes for you to choose from, plus you can even use your own custom domain name. Their intuitive process allows you to focus on creating your products, not designing a storefront.
6. Build an App
From laptop computers to mobile phones, apps are everywhere these days. Why not cash in and earn some residual income by making your own?
If you’ve got the skills, building an app that could potentially make you a boatload in passive income. Simply build the app, list it in either the Google Play or Apple App Store (or both), and let the residual income start rolling in.
Have an idea for an app but don’t have the tech skills to do it yourself? Hire an app developer to make it for you. Sure, it may cost you money on the front end, but you could be pulling in residual income for years to come.