Most people who have been in the rat race for years ask one question when they look in their checking account and realize it is not enough, “what is residual income?” Residual income is when you get paid over and over for doing something one time. It is that simple. Now that we have the easy part out of the way, lets talk about using the different residual income model (s) that would allow us to be successful with residual income.
Keep in mind there are various ways to make residual income. It can be as complicated as stocks and bonds or as easy as affiliate marketing | network marketing. Nonetheless, the end goal is to make some donuts (that’s money if you are not hip), you wanted to know what is residual income, right? With that being said, I think there are some basic guidelines that we need to follow as far as a residual income model is concerned.
- Your marketing expenses should not be more than your profits, ever! The exception should be the 1st three months.
- You must do you analysis and research to pinpoint where the profit will come from.
- You must have a projection of how much profit can be made within the 1st three months.
- Why are you in this business? Is it short-term or long-term? How long can you sustain the profit?
- Set goals of how much residual income you are trying to make? How much time does it take you to reach that goal?
- Can you afford the capital needed to start investing? If so, how long does it take to break-even? This should not go past 3 months.
These are just some basic questions you need to answer before investing your money into any type of business venture. Now, if you can answer these questions and the outcome looks good, then proceed with investing. Remember, you are taking a chance on yourself. It is perfectly OK to fail, h*ll, most people fail in their first business venture. However, this is not a reason to get discouraged. Failure is the true path to success and is a great teacher. The key is to learn from your failures. At this point, this is when failures become experiences.
My personal road to making donuts was a long one. I will be honest with you, it took me a 8 years before I was able to get it right. However, I don’t regret it all. I have learned so much about making money and I’m making more money now that I have in the previous 8 years combined. This goes to show you that not quitting truly pays off.
If you are still reading this page, I’m going to assume you are still interested in ways to make residual income. If so, then you are in the right place at the right time. Although there are tons, and I mean tons, of ways to make residual income, I took some of the most basic, yet popular ways to make some donuts. However, I’m not just telling what ways are the best, but also giving you resources to help you be successful in your aspirations of making residual income.