Let me get this question out right away “do you have recurring income?” if the answer is “yes”, good for you, definitely you are experiencing the benefits and advantages of having one.
However if “no” is the answer, well now is the time to start one. Recurring income is defined as an earning that keeps coming at a regular interval even after the work has been long gone. It also does not need your immediate participation.
Some types of recurring income you may be acquainted with consist of having property, royalties on a creative or innovative work, and multilevel marketing.
If you want to earn more, work less, and have a reasonable pension, you’re going to have to begin developing earnings sources that do not need your immediate participation.
Whether you’re just setting up your business, or you’ve been working at it for a while, the earlier you begin considering how you are going to move your company structure to make more recurring income, the earlier you can accomplish personal and financial independence.
Let’s look at two primary types of recurring income, and a third type of earnings that, while officially not recurring, is a key way of making more and working less.
Types of Recurring Income
Residual earnings is income that happens eventually from work done once. Some illustrations include:
- An insurance broker who gets percentage every year when a client renews his policy.
- A network marketer or multilevel marketing rep’s earnings from her immediate customers when they reorder product every month.
- An aerobic exercise trainer who produces an exercise video and offers it at the fitness center where she teaches.
Leverage earnings controls the work of other individuals to make earnings for you. Some illustrations of leveraged earnings include:
- An e-book writer promoting her e-book through associates who enhance the product
- A system professional who develops a system and gets income on the product sales made by individuals in his down line.
- A contractor who makes a benefit edge on the work done by sub-contractors
- Franchising your business to other business owners (the best leverage income)
Active Leverage Income
This is a phrase I use to explain earnings that needs your immediate contribution, but that you can earn more cash by having more individuals engaged. This usually includes a one-time occasion, such as:
- A seminar or class
- A convention or conference
- Concerts and dancing recitals
- Raves and other parties
Now is the time to think about how to implement this in your business. Can you create an item that individuals will buy over and over again? Can you interact with others to offer your product? How could you generate income off the work of others?
The earlier you answer these concerns, the earlier you’ll have economic and individual independence.
If you want to build residual income, join us now!
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