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Passive Residual Income vs Leverage Income

There are basically two different types of passive residual income. There is a third that is not really passive income that is also great strategy for earning more money while having to do less work. It is a great way to keep your cash flow up and not having to lose your mind due to work stresses. Residual income is money you earn revenue that occurs over time and some of the types of passive residual income include:

• An insurance agent who gets repeated commission every year when a customer renews his policy

• A network marketing or direct sales rep will earn income from her direct customers when they reorder a specific product every month

• An instructor who produces a video as such and sells it where they teach

• A marketing consultant who creates a workbook and sells it as an e-book

• A photographer/author who makes his photos available through a stock photography clearinghouse and gets paid a royalty whenever someone buys something they’ve done

• A restaurant or retail owner who hires a manager

As you can see, there are many different ways that you can generate passive residual income across a wide variety of businesses. You can get repeat income from the same customers, or the sales of a product to new customers. The best part is that you that may never have to repeat the initial work involved in getting stated and still earn money. Most of time the repeat work that you have to do can be done by an assistant or secretary. You can also take advantage of personal development affiliate programs like SkyQuestCom or Success University

You should know that passive residual income is not just repeat money earned. Recurring income may still require your involvement in order to get the income such as if you are a coach or consultant on a monthly retainer, or a caterer who delivers. While this can take some time out of your time it is necessary. Leveraged income basically takes the work of other people to create income for you. Some examples of leveraged income include:

• An e-book author who sells the e-book through affiliates who promote the product for them

• A network marketer who builds a down line and receives commissions on the sales made by those that are in it

• A general contractor who makes a profit margin on the work that sub-contractors do

• Franchising your business to other entrepreneurs which is where the real money is at

You should note that leveraged income may or may not also be residual income.

Take an online tour of today’s affiliate market to see if this is the right opportunity for you.

About the Author: Chu Ern Teng is the owner of . He aspires to create awareness on Webucation to help others to achieve financial freedom through these programs.

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