The members and brokers that Brad recruited, as well as the members and brokers that those people recruited, were considered Brad’s “downline.” At the time of the divorce, Brad’s downline consisted of thousands of members and brokers, earning Brad a residual income of about $27,000 per month. The trial court was tasked with determining just how to divide the residual income, generated by Brad’s downline, between the two parties.
I have a system in place to make sure it doesn’t happen. I have my wife who is helping us stay grounded and making sure my head doesn’t grow too big. But I also say to my audience, Hey, If you see me becoming somebody different from who you know I am or who I’m supposed to be, then catch me before I get off track. I’m not about buying a huge mansion, or really fancy cars. I’m more about the family and making it comfortable at home and going on family trips and creating memories.
Similarly, you can also become a sponsor for a company. This is a lot more difficult to do. If you have a popular blog/website, then you can directly contact companies that sell products relevant to your niche. You can set up a sponsorship deal, where you promote their products on your website. In return, you receive either a flat-fee or a commission-based fee like with affiliate marketing.
Java Metals is expecting an ROE of 15% over each of the next five years. Its current book value is $5.00 per share, it pays no dividends, and all earnings are reinvested. The required return on equity is 10%. Forecasted earnings in years 1 through 5 are equal to ROE times beginning book value. Calculate the intrinsic value of the company using a residual income model, assuming that after five years, continuing residual income falls to zero.
Given the growth in the sharing economy, your junk can start to pay for itself. For example, if you have some awesome vintage furniture inherited from your grandmother sitting in a storage unit, you can rent this out to photographers for their “styled shoots” which are becoming all the rage. If your furniture is more modern but you still can’t bear to get rid of it – perhaps a home stager will be interested.
Speaking of audience, there’s a lot more I can do here. I can create an email list for buyers to join, and I can also publish other books and attempt to cross sell. I decided not to because I don’t want to do more in the college admissions business. The best resources are free and I’ve routinely turned down offers for college consulting or essay review because I don’t think I’ll be adding much value there.
Residual disability policies pay benefits according to the amount of income you have lost because of your disability. These policies pay benefits even if you can work part-time and are not totally disabled. The benefit is based on the percentage of income you earn working part-time in relation to what you used to earn when working full-time. Most companies require a loss of income of at least 20 percent compared to your pre-disability income in order to qualify for residual disability benefits.
Already have something you are ridiculously good at and you actually know how to transfer your knowledge and teach the topic? You, my friend, are halfway there to becoming a course writer for some very popular websites. Online courses have become a real hit and have taken off in sense of popularity lately, as people are starting to understand more and more that it’s not always about diplomas and which school you went to.
I simply loved this post. I am new to online business and earlier when I went through many blogs and articles, the writers all made it seem so simple and that I would get a huge income passively in a month! But now when I have started business, I realized its too tough. Its totally a different world. Sometimes its so frustrating and depressing that I feel like going back to my old office job. Atleast I had fixed income rolling in my bank. But when I think about the bad times I had in office for doing the work that I did not like, I find online business appealing as i am doing what I want to do and what I am skilled in! But till the time, I dont earn any revenue, I am at a loosing side. I want to work hard. I want to understand all these SEO techniques and all the referral programs but that makes me lost. Its too much to do! And its all about traffic! Trying to hold on tight!
I know some people assume monetizing a blog is just easier for me. After all, I can use the "juice" of my existing sites to bring a new blog attention in the beginning. Others assume it's easier because I come from a marketing / PR background (although that's no excuse, since I teach you all about that here if you take the time to look). Still, I've decided it's project-time yet again (when is it not with me?).
FYI – If you’re already a blogger and want some solid ways to increase income from posts and products you already have, I highly recommend snagging a copy of Income Boost. It’s a quick read and will boil down some of my favorite income producing methods into exactly what you need to implement like right now for instant cash. You can use the coupon code “GET5” during checkout to receive $5 off the purchase price.

The whole concept of passive income is kind of a load of hooey. Low maintenance income? Sure. I can get on board with that. But truly passive? Not so much. And I think promoting these kinds of online marketing businesses as anything different than your standard Internet-based companies is being a little bit dishonest to those who are hungry to make a better life for themselves.
All this time I’ve felt discouraged that if been studying online marketing and blogging for over five years, but don’t have a blog or a business to show for it yet. But I’ve definitely learned a lot since I discovered Copyblogger and learned the word “copywriting” in 2011. I fell in love with marketing that day and haven’t stopped reading about it since. But this is probably the first time I’ve heard any blogger say to study for years first. Wow, that makes me feel less like loser staring from the sidelines. And I look back at all the businesses ideas I had throughout the years that I would’ve wasted time on, and all of my goofy ideas for marketing as I was still finding my way to the best teachers. Well now I definitely feel like a have a degree in online marketing and blogging, and I’m putting it into action, but not without investing time to learn about my target audience and testing what will interest them.

They've delegated, automated, streamlined, systematized, etc. Not with the intention of sitting on some beach somewhere for the rest of their lives and watching the checks roll in, but with the intention of freeing up their time to create even more value that they're inspired to create, either by leading that business to the next level of greatness and service to greater audiences, or by starting a new business.

Investing in coins and collectibles: Buffalo nickels and Spiderman comic books are good examples of coins and collectibles that can rise in value, and thus offer opportunity for passive income investors. You'll need to get up to speed on the value of any coin or collectible under consideration, but once you do so, you're on the way to price appreciation on a commodity you'll be paying a lower price to buy, and will garner a higher price when you sell.


Speaking of audience, there’s a lot more I can do here. I can create an email list for buyers to join, and I can also publish other books and attempt to cross sell. I decided not to because I don’t want to do more in the college admissions business. The best resources are free and I’ve routinely turned down offers for college consulting or essay review because I don’t think I’ll be adding much value there.
Investing in the stock market is a classic form of passive income. As you might know, with stock markets, there is some risk involved. But then again, virtually all residual income methods involve a level of risk, and you won’t find any idea that’s risk-free. In fact, stock marketing can be one of the least risky ways to earn money, if you invest smartly. The basic rules apply: Create a diverse portfolio, start with around $1,000, learn about the stock market, and create a back-up fund.
Michael Ellsberg is the author of The Education of Millionaires: It’s Not What You Think, and It’s Not Too Late, which is launching from Penguin/Portfolio in September. It’s a bootstrapper’s guide to investing in your own human capital at any age. Michael sends manifestos, recommendations, tips, and other exclusive content to his private email list, which you can join at www.ellsberg.com. Connect with him on Twitter @MichaelEllsberg and on Facebook.

I launched that in October of 2008, and that very first month I sold that book for $19.99. I sold it in a way where people could come to the site, purchase it and, immediately after, the book, which was simply a pdf file I had written, was directly digitally delivered through an email to them. And as a result of that payment, it was just money into my Paypal account. That first month, I made $7,008.55. That was just life-changing for me.


Michael Ellsberg is the author of The Education of Millionaires: It’s Not What You Think, and It’s Not Too Late, which is launching from Penguin/Portfolio in September. It’s a bootstrapper’s guide to investing in your own human capital at any age. Michael sends manifestos, recommendations, tips, and other exclusive content to his private email list, which you can join at www.ellsberg.com. Connect with him on Twitter @MichaelEllsberg and on Facebook.
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.

Easy Plugin for AdSense is a convenient way to add and manage AdSense on your WordPress site with minimal fuss. It follows all the official Google AdSense rules too, which is important if you’re serious about earning revenue from this method for the long haul. It comes with several sidebar widgets, numerous options, control over positioning of the AdSense blocks, and an easy-to-use interface.


In my case, I tried leaving the site in “automatic” mode a few times, when I did not have the motivation to post anything new. I found that my traffic, then my revenue, quickly tanked to half of what it should be. So far this has been motivation enough for me to keep writing, when nothing else would keep me motivated. But I have no reason to believe the “passive” part of the revenue would last more than one year. I can imagine revenue progressively going down, until it does not even pay for the server costs anymore.

But, you don't need to go further than that. You can simply write it and publish it and collect the income. That's all. Send out a couple emails to your list (if you have one) or post it on social media, and there you have it. Passive income. Now, the amount of income you receive depends on the quality of the book you've written. How well did you craft the message? How targeted was the information to your audience? It counts.
Personality -- Personality's great if your intention is to build a community around your blog. But newsflash: that's not the "right" way to blog (nothing is), nor is it the only option. My small business blog went from $0 - $2000 per month in just a few months, and it was pretty much devoid of personality. There aren't many comments there. I've never made an effort to change that. The posts are simple new and how-to posts. They're not opinions in most cases. There aren't many reviews. I never blogged there to build conversations. I blogged there to earn from my writing. And I have. On the other hand, my PR blog also monetizes rather well. That blog completely revolves around my no-bullshit personality when confronting PR and social media issues. On the other hand, AFW has personality injected, but is also more instructional than NakedPR is -- it falls somewhere in the middle. No method has really proved better than the others overall. It's all about knowing what the niche audience really wants (community vs news vs instructional content or some mix). Sometimes you'll guess wrong.
The Four Hour Work Week – The book speaks to the value of time and how to leverage it. He encourages you to create a business that supports your lifestyle. I also love his concept of having mini-retirements along the way, rather than waiting for someday when you have the time but not the health. There are some step-by-step guides in the book that are extremely interesting to read. It’s definitely changed the way I look at work. Here’s a full review.
I wouldn't think of a high yield savings account as a source of passive income but your savings should be getting something (less like Seinfeld syndication residuals and more like a commercial jingle residuals!). It won't make you rich but it's nice if your baseline, risk-free rate of return on cash is 1% or more. The best high yield savings accounts (or money market accounts) offer higher interest rate and there is absolutely no risk. CIT Bank currently leads the pack with the highest interest rate.
Almost all of these ideas require starting a personal blog or website. But the great thing about that is that it's incredibly cheap to do. We recommend using Bluehost to get started. You get a free domain name and hosting starts at just $2.95 per month - a deal that you won't find many other places online! You can afford that to start building a passive income stream.
Do you know of a successful business that needs capital for expansion? If so, you can become something of a small-time angel investor and provide that needed capital. But rather than offering a loan to a business owner, you instead take an equity position in the business. In this way, the business owner will handle the day-to-day operations, while you will act as a silent partner who also participates in the profits of the business.
Becoming an affiliate for a company can be a great way to start earning commission by writing about their products. Mind you, this isn’t the same as getting paid to write a review, as affiliate marketing is paid by commission. However, most serious affiliate marketing programs require you to have a website, which as you’ll see will become a requirement progressively more as we go down the line.
If retirement is a goal of yours (and who doesn’t want to retire someday?!?), it’s important to learn how to start investing. In fact, funding your retirement accounts should be at the top of your list. While these accounts won’t help your immediate situation, by stashing cash now, the residual income they create should help propel you through your golden years.
If you're looking to get started in real estate, look at a crowd funding solution like RealtyMogul. It works similar to LendingClub - you commit as little as $5,000 towards a property. When the property is fully funded, you become an owner, and will receive your share of the earnings and appreciation in the property.  Check out RealtyMogul to learn more. 
Another drawback of residual income is that future income payments are often not guaranteed. If you spend a month building a website to generate residual advertisement income, the actual amount of income you make can fluctuate over time and it may fall if the traffic to your site declines over time. Similarly, companies can slash their dividends and tenants can move out of rental units, which can decrease passive income. With earned income, you get a certain amount for your services up front so you don't have to worry about future earnings.
One of the best books for Passive Income is Passive Income: 3 Manuscripts. This whole book shows you how to use cryptocurrency to create automatic monthly income. This book contains details description about Passive Income with clear conception. You will gain a deep, practical understanding of real-time earning technique through real-world examples of Passive Income with this book today.
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For those who prefer a more do-it-yourself style but still want their investments to be managed automatically, a robo-advisor like Betterment may be better suited. After completing an initial questionnaire, this program will automatically invest your money based on things like your risk tolerance and time horizon. They’ll even rebalance your portfolio when necessary – all automatically, of course!
Lenders may be willing to remove family members from the residual calculations if a non-purchasing spouse or a working-age child has sufficient income to cover their monthly debts. This can include children who receive Social Security or disability income, child support and other forms of income, provided it’s likely to continue for at least three years.
Think and Grow Rich – This classic was first published in 1937 but is still regarded as one of the best business books of all time. Why? The author, Napoleon Hill interviewed 40 millionaires to understand what made them successful. He tries to take all the wisdom from these interviews and organize it for his readers in the form of 13 principles that he believes can help anyone become successful. It’s still relevant for everyone today.
#4. Offer free download: Before you even sell, ask yourself, “What is the purpose of my book?”. If you are using your book as a way to establish authority in your niche then giving away your book as a free download. If you don’t want to give away your whole eBook for free, then give a few chapters to them  Again, make sure you are collecting those email addresses in exchange, so that you can follow up with a friendly email to close the sale.
eCourses – If I have a step-by-step process to share, I’m likely going to offer it as an eCourse. That’s something I’m working on right now. As it’s more intensive and structured than an eBook typically is I am able to put a larger price tag on this project. My funnel is getting a little smaller at this level, but there’s a high probability that many of those that purchased the eBooks are going to be interested in the eCourse.
In my case, I tried leaving the site in “automatic” mode a few times, when I did not have the motivation to post anything new. I found that my traffic, then my revenue, quickly tanked to half of what it should be. So far this has been motivation enough for me to keep writing, when nothing else would keep me motivated. But I have no reason to believe the “passive” part of the revenue would last more than one year. I can imagine revenue progressively going down, until it does not even pay for the server costs anymore.

Every stage of my progress has been met with a lot of doubt and fear but every time I’ve conquered that fear, amazing things have happened on the other end. That’s been from the beginning with Green Exam Academy, to now where I’m getting paid to do keynote speeches. I just got back from Australia and was able to go there with my family but also do the keynote for the ProBlogger conference. If you’d asked me to do that five years ago, I would have immediately said no because I was definitely afraid of speaking. But now that I’ve crushed that fear, it’s been one of the best and most fulfilling things I’ve been able to do, so  if you have fear, it’s a sign that there’s something amazing on the other end.
Finally, market your available photos. Get active in photography forums, social networks, guest posting about photography will help you a lot. You probably aren’t going to get rich selling photos online, but you can earn some extra cash passively.  Say you earn $1 per month for every image listed and if you have 50 images available for sale, you may be earning around $50 per month.
PS Joel also throws up the whole coaching idea in this book, and whilst it’s not at all passive I just wanted to mention it, because this is one of the ways to create a six-figure business for yourself if you are a true expert in an arena.  ie you can use passive income info products (that generate say $30,000 a year) to pull in the customers for your 1-1 or mastermind style coaching service (that brings in say $100,000+ a year).
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