Best Residual Income Opportunities: 5 Main Ways to Create Passive Income (2018)

Passive income streams 2018: The 5 main ways to build passive (residual) income in 2018 and beyond. How to create positive cash flow and eventually become financially free.

Ever thought about residual income opportunities? Do you know what are the best passive income streams that have been proven over time?

Read along to learn about the top 5 best residual income opportunities in 2018 and beyond. 

I hope you’ll agree with me when I say:

Life is not possible today without a sweet passive stream of extra revenue… Or is it?

Well, finding that sweet passive income stream that suits you best when you start out isn’t an easy job.

But wait, why does residual income matter?

It matters because it doesn’t eat up all your time.

Generally speaking, there are two kinds of income: linear income and passive (residual) income.

Linear income involves trading time for money.

Example: lawyer, doctor, teacher etc – these people do their job and they earn their salary. If they stop working, then they stop receiving income.

Simple as that.

Passive income is a totally different story.

Passive income is a kind of income that comes to you all the time, even if you are sleeping, for the work you have done only once.

This income does not depend on daily activities, and it is an integral part of the financial independence.

Interesting, isn’t it?

So, what can be done in order to start earning passive (residual) income?


Through my research and personal experience, I know that there are top 5 ways to create passive income (click on the link to jump to the section you want to read):

5 Main Ways to Build Passive (Residual) Income

Let’s examine each one individually.

UPDATE: Due to an impressive popularity of this post in the search engines, I decided to create a new article that provides an even more detailed information on residual income.

In the following article you will learn about: 

  • why the poor get poorer and the rich get richer,
  • what are the sources and types of passive income, and,
  • what are the 7 best passive income ideas to generate residual income in 2018 and beyond.

Click to read: “Best Passive Income Sources: The 7 Practical Ideas to Generate Residual Income (2018)“.

(It will open the article in a new tab, so that we can continue with this one too).

1. Royalties

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.

Royalties as one of the main ways to create passive (residual) income in 2018 and beyond

When I found out about this type of passive income, I decided to join the Chandler Bolt’s Self-Publishing School, who is the 7-time bestselling author on Amazon.

My thinking was that when I do create and publish my books, it will be an additional source of passive income on a monthly basis.

  • I read the case studies of bestselling authors from Self-Publishing School who made $1,287, $5,500, and even $12,424.03 (!)
    • … with additional royalty checks coming in every month.
  • If these SPS students made it, who says we can’t?

So, even if it is 1 cent as their % and the product is being sold worldwide, can you imagine the income these people receive!?

Pfff, these people are millionaires for sure.

Plain and simple. 

Now, let’s move on to the second type – real estate. 

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2. Real Estate


I think I don’t need to talk too much here.

Real estate it is the old school of investing, even with rates going up if you buy an apartment building or a house and keep it long term.

Also, you don’t need to do the maintenance as you can just hire a property manager and they do all the fixing, looking for renters and so on.

You are just an investor.

Basically saying, once you own a house, condo, offices whatsoever, you can easily rent it out and have a positive cash flow, correct?


Passive income?


Robert Kiyosaki, the author of “Rich Dad Poor Dad“, focuses a LOT on real estate as a way to create positive cash flow. 

Now, let’s move on to the third type of passive income. ​​​​

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3. Investing


Investment is the type of earning % from your capital.

Do you have $1,000,000?


Too bad.

You could put your money in the bank and earn a pretty good interest on it.

Same idea with making investments in the market.

The tricky part is making a good portfolio that does bring you passive income. And in order to create a portfolio, you have to learn how to make it best.

You will seriously have to gain proper knowledge if you want to become a successful investor.

At point in time in life, I still don’t invest but I read a lot of books on investments and all the financial matters to be truly successful in this sphere.

One of my #1 book recommendations, especially for young adults, is Ramit Sethi’s IWT book (see Amazon reviews here).

Now let’s move on to the fourth type of income – marketing (sales). 

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4. Marketing


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.

NoteI 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).

(For example, Amazon is one of the common ways people make money online with).

The thing is that the company doesn’t advertise in the media, now the company pays YOU for your advertisement/recommendation.

By the way, in some way this should rather be categorized as “sales”, which is exchange of goods/services for money, as opposed to “marketing”, which is the process of satisfying customer needs.

I guess this is all I have to say about marketing.

So, these are the 4 main passive income streams available out there.

Now, I wanted to add a few words about internet (online) marketing. 

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How to Create Passive Income With the Internet

I have just a few words to add about creating passive income online.


In most cases, online income comes from having a blog, being in affiliate programs, selling your info-products and creating popular videos on Youtube (just to name a few).

Before, people created blogs to share their thoughts with others, but now, for the most part, they use it to express themselves as a professional.

Usually, having a blog is necessary for people who are involved in the information business and sell their knowledge in the form of information products.

With a blog, you can build a high-trust relationship with your audience and convert your visitors into clients who will want to buy your products or follow your recommendations.

Most people tend to over-complicate it but the basic process of making money is the following:

  1. Choosing an interest
  2. Building a website
  3. Attracting visitors
  4. Making money online


Beginners usually worry a lot about having no technical knowledge, but in 2018 building a website is dumb simple!

What is extremely important is to have proper guidance. 

When it comes to everything about building a successful online business, there is only ONE program I really recommend – and it’s called Wealthy Affiliate.

(Here is how this online business community has changed my life.)

There you will learn the following:

  1. understanding how to make money online,
  2. why having a website is the foundation for a successful online business,
  3. how to create a website for free, from scratch in the easiest way possible,
  4. creating content and getting your site ready for search engines
  5. why proper education and guidance is important if you TRULY want to succeed online.

Just to name a few.

Click Here To Create Your FREE Account!

You will have all the training, tools, and support at your fingertips.

You will feel blessed. 

If this is something that interests you, further details are here. ​​​​

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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.

My #1 Recommendation ↓

When it comes to my top recommendations, there’s only ONE program I really recommend. 

It helped me get started online and create profitable websites from scratch. Thanks to this training platform, I am able to lead a laptop lifestyle and have a business that travels with me.

Click here for the exact blueprint I followed.

What is your most preferred way to build passive income?

Do you agree that the aforementioned examples are the main ways to create residual income in 2018 and beyond?

Let me know in the comments below!

Best Residual Income Opportunities: 5 Main Ways to Create Passive Income (2018)
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