(It will open the article in a new tab, so that we can continue with this one too).
This one is pretty straightforward.
For example, if you created a song or some literature work, then no matter how many times it will be published, re-published, whatsoever, until the end of your days, you will be earning income for your contribution.
Or you own some copyright.
Maybe you invented something and patented your product, which is now being produced again and again.
This includes franchises, MLM, online business, blogging for business etc.
General example with McDonald’s.
If someone wants to own its franchise in his/her city, then he will have to pay a good amount of money to Ray Kroc and then have a passive income flowing.
Note: I spoke with a buddy of mine and he pointed that purchasing/owning a Macdonald’s franchise or any franchise actually puts royalty dollars into the pockets of the franchise owner.
It’s worth noting that the vast majority of franchises require that the owners be an owner/operator. And therefore you inevitably trade time for dollars.
The one scenario where you can earn some passive income is if the franchise allows sub-franchising in your city.
MLM – multi-level marketing (or online/internet marketing)- involves a promotion of the products and services, from the producer to the consumer through the web of independent distributors.
Currently, people don’t have a very good opinion about MLM, which is understandable given a whole bunch of scams out there.
When it comes to marketing, you should beware of scams and have a head on your shoulders.
Usually, people just follow the majority without relying on their own intelligence and/or intuition.
Anyway, personally I am not an MLM fan but I do advocate for affiliate marketing.
To be clear, affiliate marketing is basically having your own website where you recommend things and help your readers, earning commissions in the meantime.
If we look closely, we can find a lot of advantages to online marketing (online/internet marketing is slightly different from MLM).
First, let me briefly talk about the concept of marketing, so that you have a clear understanding on how you can earn a passive income.
And I will use an example of a sausage to explain what marketing is.
The Sausage Example
Let’s imagine the following situation.
You went to Costco and bought a sausage. You go home and you expect a sudden visit from a friend. You make a quick sandwich with the sausage.
Your friend has a bite of this sandwich, and asks: “Mmm, I love this sausage, where do you buy it?”. You say there and there.
The next day, this friend goes to Costco and buys the same sausage. Paid for it and leaves.
So, through you, your friend finds out about this sausage and went to the particular grocery store, right? Costco store increased their sales thanks to you solely based on the recommendation and what did YOU get from this?
Nothing, just friend’s “thanks”.
Meanwhile, you could potentially earn commissions from this recommendation, over and over again every time your friend goes to Costco to buy a sausage.
And notice that you don’t have anything to sell or re-sell.
Only a recommendation.
So, this is how many companies (and internet companies) work.
You become an affiliate partner of a particular company, and you recommend their products and/or services to people.
Then, these people buy the products/services, and you earn your percentage (commissions).
Final Thoughts on the Main Ways to Generate Residual Income for Years to Come
In the end, I’d like to say that there are 3.75 billion people online always looking for stuff, and no matter what direction you take your website to, with hard work, proper guidance and time, you WILL succeed.
I find that having proper education and taking action are the 2 key ingredients to online success.
Please understand that success is not an event but rather it’s cumulative in nature.
This means that every step you take now like:
building a website,
getting a proper education,
publishing regularly on your website,
connecting with like-minded people and receiving help from experts etc
… will contribute towards your personal success in the future.
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The main purpose of this blog is to share my personal experience and make it VERY easy for you to understand how online business works and how you can make money online using ETHICAL methods.
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