Other than investing in mutual funds, resources and stocks, there are three main industries that will pay a residual income. They are insurance, investment brokerage and network marketing. Further breaking this down, there is really only one industry that will allow you to continue working where you are working, while developing a residual income part time and that is the network marketing industry.
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.
One of the disadvantages of residual income is that income received for initial efforts or investments is not immediately received. For example, if you spend a month creating a new website to generate advertisement revenue, you might only generate $100 a month in passive income. Had you spent that month creating a website for a company that was paying you, you might have hundreds or thousands of dollars upfront that you could use to pay for immediate expenses and purchases. If you don't have an immediate financial need, delayed income could be an advantage.

The last plugin I’m going to talk about here today is Sensei from WooThemes. This plugin offers another way to create courses, take on new students, and offer assessments within the WordPress dashboard. Though you can use it as a full LMS, it’s also useful for setting up a course and then walking away. Automatic assessments make it totally possible to accomplish this.

This startup work is something that anyone involved in establishing passive income will admit requires some serious elbow grease. It’s the great exception to the whole notion of “passive” income in that it’s decidedly not passive. And for the most part, this is acceptable. People seem to get on board with this idea. “Hey, if I just buckle down and do a bunch of work right now, I’ll be able to sit back and enjoy the fruits of my labor later.” It’s a simple enough concept.
I think also a very good way to earn a nice passive income is investing in Cryptocurrency, especially in Masternode Cryptocurrencies, which provide a passive income in coins, also those carefully picked coins grow in value, so it’s a double gain! And a great coin to invest in at the moment is GINCOIN, which is the fuel for a really succesful project. Find more at GINCOIN Website: https://gincoin.io/ 😉
On the blog aspect, you need to keep posting regularly, otherwise ultimately your traffic will tank (and so will your revenue). That can also be outsourced to some extent: you can pay people to write for you. But your audience are not morons: if you’re open about it they might be ok with it once in a while. If you’re not open about it: they’ll notice.

I wonder what the avg number of hours/week (over a year) would be for something to be considered “passive income”. To me, it’d be under an hour a week. If I was able to earn money from something with that time investment, the hour a week would be mostly a time investment in checking on things that it’s still working and setting the course back on track.
For example, if you were a trusted private wealth advisor or stockbroker, then I’d even argue this is the best way to earn passive income from your knowledge, since it’s recurring revenue and suits your target market, who want constantly up-to-date information.  PS I admit this is becoming a lot less passive given the ongoing report writing you would be doing.
An interesting story going back to my LEED book — when I sold that book the first month, about 20%-25% of the customers were people who had already passed the exam. They emailed me and said Pat, I wanted to buy this book from you because I needed a way to pay you back for all the information you shared for free with me to help me pass the exam before.
You can start a blog with a free theme technically…you do this through WordPress after you install it with one click on Bluehost. This is an important distinction…..the free themes aren’t available through Bluehost, but rather WordPress itself. So you will sign up for webhosting with Bluehost, install WordPress, then search within WordPress for free themes.
Most workers earn income by performing tasks and receiving compensation from an employer or a client paying for services. Earned income is compensation made through active work that results in an immediate payoff. Residual income, also known as passive income or unearned income is money you receive periodically that does not require constant active effort. Passive income has several notable advantages and disadvantages with respect to earned income.

5 months ago, I decided to create my own online business. I was really exacted because It was always my dream to earn cash by working from home to be able to unite my family and to retire my father that had been working as a security far away from home. My family and I only used to see him three times a year. I would like to change it, and online business gave me a possibility to make my dream to become real. I really was committed to giving all my self to succeed in building a successful online business. As a matter of fact, I failed to do it on my own. I was so disappointed because it seems that I was born to fail. It was 22nd June at night, I was hearing a motivational speech, so one of the guys said,” Copy what successful people’s strategy as your own, and you will get the same result that they have”. That opened my mind because that was the secret, I did not realize that there are a lot of people in this marketing a year. So, I took some online courses from gurus. Following their steps. right now where am I? I am now a successful online business of 22 years old trying to retire his father. I really thank people a lot that have the mindset to share this priceless information in this blog. Indeed, thank you.
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"What makes business work is creating value. If you're going into the business with the intention of not creating value, but of having it magically provide money for you, then you often make really bad choices. The business that you're investing in or creating doesn't tend to be creating value for its customers or for anyone. So it doesn't tend to spit off the cash you're hoping it will. So many times I've seen people pursue passive income, and end up having active losses instead. They just spend a lot of time and money trying to push responsibilities off on other people and having it not work."
If you’re interested in putting some of your content behind a paywall, our very own Protected Content is where it’s at. This plugin makes it easy to create a membership site that sells access to just about anything. You can protect your content in a number of ways based on certain posts, pages, categories, links, keywords, files, and more. This is a quick way to earn some income from your site.
Residual benefits are typically calculated as a percentage of both the policyholder’s loss of earnings and the benefit that the policyholder would receive if he or she was unable to work. For example, say a worker who has a disability policy sustains an injury that prevents him from working full-time. The worker is physically able to be on the job part-time, and is able to earn 60% of the amount that he used to earn. The disability policy pays out $1,500 a month as normal benefits. The residual benefit is calculated by taking the amount of income loss (which is 40%) and multiplying it by the normal disability benefit of $1.500. The resulting residual benefit comes to $600 a month (40% x $1500).
Peer-to-Peer Lending: Earn up to 10% in returns by lending individuals, organizations and small companies who don't qualify for traditional financing through peer-to-peer lending platforms like Lending Club. You can lend $100, $1,000, or more to borrowers who meet lending platform financial standards. Like a bank, you'll earn interest on the loan - often at higher returns than banks usually get.
I still don’t consider it an area of expertise. When I started Smart Passive Income, that was the month I launched my ebook for the architecture site. I didn’t consider myself an expert. It was just something no one had taught me about. People were talking about online business but not about how to automate the process, so I just wanted to create a platform to give it all away. I still don’t know everything about it, but through trial and error, I’ve learned about the process and recorded it.
One absolute valuation method which may not be so familiar to most, but is widely used by analysts is the residual income method. In this article, we will introduce you to the underlying basics behind the residual income model and how it can be used to place an absolute value on a firm. (The DDM is one of the most foundational of financial theories, but it's only as good as its assumptions. Check out Digging Into The Dividend Discount Model.)
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?).
Now you have some of the basic dos and "do it if you feel like its." But how can you actually earn money from your blog? First and foremost, if your blog is in your specialty area, you should absolutely use it to promote your freelance writing services (even if just linking to your professional site). It can be a highly effective way of increasing business in general. But let's forget about that and think about more direct income from your blogs. Here are the tools and strategies I used to take my small business blog from nothing to a four figure income in just a few months:
Bonus: If you own land and the rights to the minerals below it, then you can let an oil company drill on your property and earn a share of their revenue. Read this full guide on renting out your property for fracking. Landowners who live on mineral-rich property have made thousands of dollars from this method. In order to learn more about your rights as an owner of natural resources, visit the National Association Of Royalty Owners.
The underlying idea is that investors require a rate of return from their resources – i.e. equity – under the control of the firm's management, compensating them for their opportunity cost and accounting for the level of risk resulting. This rate of return is the cost of equity, and a formal equity cost must be subtracted from net income. Consequently, to create shareholder value, management must generate returns at least as great as this cost. Thus, although a company may report a profit on its income statement, it may actually be economically unprofitable; see Economic profit. It is thus possible that a value deemed positive using a traditional discounted cash flow (DCF) approach may be negative here. RI-based valuation is therefore a valuable complement to more traditional techniques.

During the trial, Karen offered proof that she and Brad had built the business together, and that the downline was the result of their joint efforts – not just Brad’s. Karen argued that the residual income from the downline should therefore be split at a 60/40 rate on a monthly basis. Brad, on the other hand, asked the trial court to value the business. Upon valuation, the court could either allow him to buy out Karen’s share or direct that the business be sold, with the proceeds being split 60/40 between the two parties.
In fact, this post is a perfect example of this in action. I created the products I mention throughout the post over the past two years, and I set aside some time to write this post…and from now until my blog no longer exists, this post will continue to earn revenue from product sales! It’s as simple as that. I just have to help people with this post. And I hope it is helping you!! 🙂 
I spent about $45 on Facebook Ads targeting clicks to my book on Amazon. I paid around $0.30 CPC, and 155 clicks in total, but I couldn’t track how many sales were from Facebook, and I didn’t see ROI because I estimated 3–5 ad-driven book sales, which is at best $9 per additional sale. The other issue is that Amazon doesn’t tell you anything about who’s viewing your page or referral sources, so it’s hard to close the loop.
Another variation of this model is to pay for advertising and then earn affiliate commissions from people who click on the ads. Years ago, when advertising on Google and Facebook was cheap, lots of people made a lot of money this way. Nowadays, it’s still possible, but it’s much more difficult, and you have to be much more sophisticated. Nevertheless, I thought I would mention it, because it’s still a viable approach, especially in certain niches.
This book is a definite must read, and in the top 5 out of this list.  My favorite use for this book is to help people decide what business model to pursue – for a start anyway.  ie info product v membership site v affiliate marketing.  Since Joel compares them all and shows you the major challenges for each (along with how-to guides), the task becomes a lot easier.
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