Residual income revisit.

Employee works over time either to get promoted or earn extra money. The idea of trading more time for more money is so deep into their head that they have little clue on what is passive or residual income. To them, residual income is for lazy people. It's for those who don't like to work and expect money to come into their pocket. Let's revisit the idea of residual income.  

Residual income is income that does not require your direct involvement. For example owning rental property, royalties on an invention or creative work, and network marketing. If you want to earn more, work less, and have a decent retirement, you're going to have to start creating income streams that do not require your direct involvement. Whether you're just starting your business, or you've been running it a while, the sooner you start thinking about how you are going to shift your business model to create more residual income, the sooner you can achieve personal and financial freedom.

Let's look at two basic types of passive income, and a third type of income that, while technically not passive, is a key strategy for earning more and working less. What sort of profession can give you residual income? 

• An insurance agent who gets commission every year when a customer renews his policy
• A network marketing or direct sales rep's income from her direct customers when they reorder product every month
• An aerobics instructor who produces a video and sells it at the gyms where she teaches
• A marketing consultant who creates a workbook and sells it in e-book format on the Internet
• A photographer who makes his photos available through a stock photography clearing house and gets paid a royalty whenever someone buys one of his images
• A restaurant or retail owner who has grown to the point of hiring a trustworthy manager

Another example of residual income is called leveraged income. This income leverages the work of other people to create income for you. Some examples of leveraged income include:

• An e-book author selling her e-book through affiliates who promote the product
• A network marketer who builds a downline and receives commissions on the sales made by people in his downline
• A general contractor who makes a profit margin on the work done by sub-contractors
• Franchising your business model to other entrepreneurs (the ultimate leveraged income)

It is not uncommon for someone to have multiple residual incomes. For example, an insurance agent may get involved in a network marketing business and earn income from both his insurance policy commissions and the commissions from the sales of his downline. Many successful businessmen have multiple residual incomes. This is possible because they are not trading their time for money. With time freedom, they are able to embark in extra businesses which generate extra income.