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Residual Income An Easy Way To Make Money

The best way you can ever wish to make more money, is by receiving a residual income also known as a Passive income. This is by far the most attractive way to make money and it provides you with a constant income on a regular basis, without really having doing anything. Yes, you will initially have to put in the ground work but once you have done it once, you can enjoy your residual income for as long as people pay. When, you actually receive your income, is determined on what your source of income is from and this can be each week, month or year.

Residual Income Definition

What Is Residual Income

Formula For Residual IncomeYou may now be thinking ‘well this sounds nice but what actually is a residual income?’ There are many ways to explain ‘Residual Income’ but basically, a residual or passive income, is an income that you receive on a recurring basis. In effect, you only need do something once and you are paid for it again and again and again….In theory for the rest of your life where possible or for as long as someone is paying for a service.

One of the most well-known ways that people earn residual incomes is from songs, books, patents, TV or films. You will no doubt have heard about artistes receiving royalties for their music or tv appearances and this is a great example of doing something once and getting paid for it over and over again.

If an artiste’s song is played on the radio, they get paid, if someone records their song, they get paid. If an actor or actress has appeared in a tv show and it then gets repeated at a later date or is sold to a different channel or country, they receive royalties.


Ideas For Residual Income

There are many other different ways in which you could receive a residual income and there are many people throughout the world earning residual incomes from all different kinds income streams. The following list, are just a few more examples of how and where you could earn a residual income.

Subscription based businesses


Stock Market

Gym Subscriptions

Club Subscriptions

Dating Websites

Membership Site Subscriptions

MLM & Network Marketing Programmes

Storage Space

Website Hosting



Mobile phones

Utility Bills

All of the above, work on the basis that people pay them a set fee on a set date throughout the year to receive their product or service. This might be each week, each month or annually. For the business they are paying this fee to, it is like a wall of cash landing in their bank account on these set dates. Obviously the beauty of this method, is that once people are signed up to pay these fees, they continue to pay the fees on the same dates each week, month or year for as long as they are subscribed or registered.

So, how can you make a residual income from these?


Formula For Residual Income

The Residual Income Model

There are several ways that you yourself could use this ‘Residual Income Formula’ business model and use it to provide yourself with a regular income for the rest of your life. Obviously, if you are a songwriter then you can try to get your songs published and receive royalties through that channel. If you are a budding actor or actress and you have appeared in tv programmes, you will receive royalties as and when they are sold or repeated but sadly, the majority of people will not have this as an option.

So, taking this into account, there are two real possibilities how you can earn a residual income:

  1. Set up your own subscription based service or product
  2. Become an affiliate and promote other companies products and services

Now, if you have your own products or services that people are willing to pay you for each week, month or annually, then great.  If this is the case, you should look into setting up a subscription based business and then charging your customers a set fee for your product or services.

Obviously, at the start you will need to put the work in to promote your products and services so that people can sign up for them but once they have signed up, you just receive their money on set dates and provide them with the service.

One of the easiest residual income models to set up is something like a subscription based product such as a website, members area, newsletter or magazine. If you have a particular hobby or passion and you are knowledgeable in that field, then you could set up one of these very easily. You could provide your subscribers with useful information, ideas, tips and solutions for a small fee and they would be happy to pay you for your information.

Think about it, if you had 100 subscribers to your website, newsletter or magazine and they each paid you £4.99 per month, you would receive  £499 every single month. If you had 1000 subscribers each paying you £4.99 per month, you would have a residual income of £4990 every single month and 10000 subscribers would be a staggering £49900 per month landing in your bank account.

As you can see, this is a very lucrative formula and one that has made a large number of people very wealthy. Yes, it does involve working and you will have to work to provide a quality service or product for your subscribers every moth. Failing to do this will result in them unsubscribing but hey, if you were earning that kind of residual income each and every month, would you mind putting in the hard work?

Become An Affiliate

Ok, I guess you may be thinking “that’s all well and good if you have this kind of product or service to offer people but I do not have anything like this to offer”, am I right?.  Don’t panic because it actually gets even easier!

One of the easiest ways to make money through a residual income is to promote other peoples products and services.

This method is known as Affiliate Marketing. I do not want to go into depth explaining what Affiliate Marketing is on this page because I have written a separate article about this subject which you can view here: Affiliate Marketing.

However, in short Affiliate Marketing is simply promoting someone else’s products or services and you then receiving a commission for any sale. Most affiliate programmes offer a one time commission which is great but several offer a recurring commission which provides you with a residual income.

Becoming an affiliate is usually absolutely free and if you do not have your own product or services to offer, it is a fantastic way to earn more money.

For example:

If you were affiliated with a company that offered a magazine subscription and that subscription was £20.00 per month you could promote that company or magazine and then you would receive a commission.

Let’s say that the company offered you a recurring commission of 10% for every subscriber you referred, that would mean you would receive £2.00 every month for every person who subscribe through you.

1 = £2.00

10 = £20.00

100 = £200

1000 = £2000

Not a bad income each month for doing nothing is it? Obviously you need to refer people to the company to which you are affiliated with but once they have subscribed that company does all the work each month and you still get paid!

To learn more about how to make more money through ‘Residual Income’, please visit the ‘Members Area’

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