rehatkopi

Starting a home based business on the Internet has never been easier. With the current state of our economy it’s one of the best decisions that anyone can do to dramatically change his/her life. It has been statistically proven that for the first time in internet history, millions of people seeking their way out in this industry every day and the numbers are continuously growing.

People come to the internet looking for answers to money problems, home loan problems, real estate problems, and looking for employment. All these searches performed on Google or any other search engine mean potential customers for individuals who already run their online business.

If you have a solution to the searchers problems, there is tremendous potential in creating online wealth.The internet has millions of searchers each day and that information will equate to a six billion dollar e-commerce revenue projected for 2011. Internet revenue is expected to continually grow exponentially every year through 2015. Conservative analysis now estimates global Internet sales at 10 billion dollars in 2016.

Since we are just slowly recovering from the recession that hit millions of people, many entrepreneurial minded people are beginning to consider starting home based business as a good idea. And they are right but only if they will do their research and due diligence.

Many who will just jump blindly on any internet advertisement that says “Best Home Based Business Opportunity” will fail miserably. Unfortunately there is nothing like Get Rich Quick Scheme or a Push of a Button Scheme that would bring money flying out of your computer. You are better off buying a lottery and hoping for a good luck or miracle to happen..

The online success will not happen overnight. It takes commitment and hard work to build a successful home based business. Only with everyday devotion the success will be built gradually. By starting home based business you have to give up two things at the beginning, time and money. The reality is that those who will invest their time and money at the beginning will see the results ten times down the road.

Learning Internet Marketing is the best future investment that you can make right now.

Here are 5 simple steps to follow on how to start home based business that can put you well on your way to building an online business this year.

1. Starting Home Based Business – Think about a type of product or service that you would like to promote and sell. Make sure to do extensive research if that particular product is what others are searching for. Find a way to promote and sell it to them.

2. Creating a Home Office – Create a place where you can close the door and fully concentrate without any interruptions. Make sure you talk to other family members not to interrupt once the door is closed. Allocate specific time blocks when you going to work on your business. Time management is the biggest downfall of many home based business entrepreneurs.

3. Invest in training and education – Spend at least 60 minutes a day learning new internet marketing skills for the next 6 months and your business results will be ten times bigger than without the proper training. You can set up your own schedule and save tons of money if you study at home instead of spending 4 years in college.

4. Leading Home Based Business Corporations – Many of the leading home based business companies promote multi level marketing programs where you tell one friend and that friend tells another friend and so on earning small commissions that build from one friend to another. Or you can tap into Network Marketing companies that offer higher end education products or lifestyle related conferences. These are great long term residual income producers that can create huge incomes for those savvy enough to market their product.

5. Top Legitimate Home Based Business – Once you have found the top legitimate home based business for you, you’ll need to start marketing that business online. By becoming a member of a legitimate MLM or Network Marketing company, you will be provided with all the necessary tools and resources, you need to be successful online. There is usually a “Back Office” with these programs that will guide you through the sales procedures. Many of these companies will even supply you with your own website. Your job is to market their products online. You simply drive traffic to it through different social websites such as Facebook, Twitter, MySpace, Google Groups, and hundreds of other sites that you join to discuss your products and services. I will also recommend to market with Google AdWords, Video Marketing and Blogging.

Starting home based business can be very easy if you have the right mindset, tools, resources, training, and system that you can follow and carbon copy.

So I decided recently I wanted to write an article on the best rated home base businesses out there. You see, recently I started one myself, and I have to be honest with you, it took a tremendous amount of research and due diligence in order to find something that suited me and fitted into what I was looking for. The internet is a big scary place for your average Joe, and if you want to find a list of the best rated home base businesses online I guarantee you will find not one, but a whole mountain of lists. The only problem with this mountain of list is that they are all different.

What use is that? One article says “X is the best business to start” and in the very next best rated home base businesses article, business “X” doesn’t even feature. I started to realise that I needed to take the information I was getting with a pinch of salt and look at it with a skeptical yet open mind. You see what I wanted was for someone to tell me exactly what I should do, or at least give me a list of the best rated home base businesses. That way I could choose between the top three and I couldn’t fail.

Unfortunately it didn’t and still doesn’t work this way. Firstly most best rated home base businesses lists don’t concur with each other, they are all different. Secondly you need to remember that the biggest asset in your business is you. If you can’t swim there is no way you can run a swimming school. finding the right business is a very personal thing and the process of choosing one which best suits you can be a lengthy process. Choosing based on someone else’s ranking or list is not a wise thing to do.

People that want to work from home all have a few things in common. They want to work for themselves, giving them time to do what they want, when they want. They want to create financial freedom, they want to be at home to spend time with their family, and they want to create passive income for a more secure future. The problem is that when we come across a list of best rated home base businesses they all offer these exact things. What they don’t tell you is what you have to do in order to achieve these goals. People then get stars in their eyes and before they know it they have dived head first into something that just isn’t right for them.

I did exactly that, my first attempt at a home based business was a complete disaster. I was completely star struck. The promise of all that money I would make, the time I would have to spend with my family or doing the things I love, left me giddy. Then reality set in. I needed to sell. What, me, sell? I hated direct selling. Worst of all I had to sell to my family and friends. On top of all that I had no interest whatsoever in the products I was selling. All that my best rated home base businesses list had done was put me in a position I didn’t want to be in and I ended up feeling like a failure. Don’t fall into the same trap as me. In your search for the best rated home base businesses remember that one lid doesn’t fit all pots. Find what is right for you and then commit. I took the time and now have a very successful business.

If you are a business coach or consultant and have not advised your clients that a book should be part of their business, you are doing them a disservice.

Writing a business book, manual, booklet, pamphlet, guide, how-to, workbook, etc. gives a business owner (regardless of the industry) visibility, credibility, and helps validate their expertise.

If your business coach or consultant hasn’t already told you, I’m here to tell you: A book should be part of your business. Perhaps you are saying to yourself, “Well, I thought about writing a book, but I’m not a writer.” Guess what? You don’t have to be a writer to become a published author. There are resources available to help you put your thoughts, ideas, and concepts into print and/or audio. There are literary industry professionals who can help you navigate the literary industry as well as shorten your learning curve when it comes to the business of writing and publishing.

Articulating your message in print can clearly and distinctively allow you to reach people who don’t know you. It’s also an extension of the services you provide to those who do know you.

Before you say, “I don’t have the slightest idea on what type of content to put in a book,” I can assure you that nine times out of ten, your book is already written; you already have the content needed to put out a publication. If you are blogging, doing article marketing, content marketing, social media posts, or even podcasts and videos, that content can be placed in a book.

Compile, tweak, and edit your blogs and articles. Transcribe any videos and podcasts you’ve done into text. Compile those tips, resources, and techniques you’ve been sharing all across social media. And you know all those times members of your community and network have asked questions on their social media posts and you went over and commented? Use that too!

So, if you haven’t been saving and tracking your public posts, perhaps you should start doing it now. Besides, re-purposing content is amazing, so why not re-purpose it in a book?

Adding a publication as a product to your already existing business shouldn’t be an option, but instead, a necessity. Books create supplemental, passive and residual income, and if used to create multiple streams of income, can help build generational wealth.

Creating passive income streams online isn’t so ‘passive’ at first anyways. You will need to put some things in place before you can sit back ‘passively’ and watch the money roll in. But, I love earning a residual, passive income online, and so will you.

Benefits of Passive Income Streams

1. Once you get the initial work done setting up your income producing methods your income can become truly ‘passive.’

2. The freedom of working if and when you want to.

3. You can earn a passive income 24/7…even while your sleeping, or playing with your kids.

4. The ability to ‘give’ yourself a pay raise anytime you want to…just by creating multiple streams of passive income.

5. The ability to create a virtually unlimited income, only limited by how hard you want to work, and your imagination.

6. Once you get a few streams of income rolling you can begin to take it easy…long weekends, those trips to those nice vacation spots you’ve always dreamed about.

7. The ability (I love this one) to give generously to the charities of your choice.

8. You’ll be creating residual income to last for years…even if you are unable to work.

Types of Passive Income Streams

a) Affiliate Marketing

If you’ve been online for any time at all you know there is a ton of money to be made selling affiliate product (other peoples products.) And why not! You don’t have to create the product, nor take care of collecting the money, needn’t offer support, nor refunds, none of it…just send warm (ready to buy) visitors to the sales page.

I like to offer products that pay a high commission, attach long lasting tracking cookies (so you will get paid even if the prospect takes their sweet time buying.) Offering products that pay continually (like membership sites) is a sweet deal. Affiliate products that offer several ‘tiers’ of payments (those that sign-up under you get you paid for sales they make) can pay for a long time (sometime years) after the initial sale. Talk about passive, residual income.

b) Digital Informational Products – eBooks, and Reports

Creating your own digital information product can be much simpler than you might think. It can be simply putting a report or eBook already out there into your own words. This is not plagiarism, and in fact is done all the time. How long does it take? A day or two tops!

What should you write about? Ideally you want your book to answer a question, or fulfill a need of your target market. Do this well…and you could have a best seller on your hands (and that is a beautiful thing indeed!)

A couple of other things to consider is having an affiliate program in place (so others can sell your eBook for you) and you could think about making your offering re-brandable, this is when you let someone “change” some or all of the affiliate links within the eBook to their own affiliate links (not a bad option as your book could go viral.) You also (for an additional fee of course) could offer reprint rights and/or resell rights. I go over these rights in this article.

c) Create Software Products

Here again you need your software to fill a need, or make your prospects lives easier, or better. You don’t have to write code, or make to software yourself you can just pay to have it developed. Try Elance.com, or the WarriorForum.com. I have a bunch of software programs on my hard drive that I got for free…why? Cause now I’m on the software owners list! Another way to go about marketing your software is to have a free version (so everyone can see how good it is for free) with a paid version up-sell…works like a charm!

d) Advertising

Got a ton of traffic coming to your website? You can earn extra income by advertising your own product or service (makes sense to me) or by selling advertising, such as banner ads, text ads, back-links for other websites, etc.

Have a newsletter, or ezine? Sell advertising such as solo ads, classified ads, etc… very popular advertising medium right now.

If you are writing and publishing eBooks you could sell advertising space with-in them. Or, of course advertise your own products or services, or affiliate products in them…again makes sense to me.

Utilize Google AdSense, or one of the other contextual advertising providers. If you have a large popular website you could make a fair amount of income just from this.

e) Start a Membership Site

Are you an expert in your niche. Do others want/need to know what you can share with them? If so you could get paid monthly for your expertise. Be aware though you will have to provide continual value to keep your members paying month after month. You can also recommend other products or services to your members, providing another income stream.

There are about as many ways to create passive streams of income online as your imagination will allow. Think outside the box. Look online for what people want/need, and are asking about…than supply it.

YOU ARE GOING INTO A MILLION DOLLAR BUSINESS: TREAT IT LIKE SUCH A BUSINESS

There are a number of Laws of wealth creation and you need to know them and apply if you are keen to create wealth for your-self with online marketing. You cannot hope to “make money”, “get rich”, or better “create wealth”, if you do not know everything there is to know about how to do it – the rules of engagement. You are starting a business that if approached correctly can make you a multi-millionaire.

But you are simply naive if you set out to believe the empty promises of online marketers and hope that they are going to guide you to wealth with little effort on your part.

If that is your approach, from my experience, you are going to be fleeced and thrown to the wolves. On-line marketing, apart from a few mastermind gems, is an arena of very sharp marketers and you will end up like 99% of naive would-be on-line marketers; you will lose money and fail.

Warren Buffett never invests any money unless he knows all about what he is investing in and who he is investing in. And you are going into a business that correctly handled can set you up for life if you do it right. So follow the advice of Warren Buffet, do your homework. Search out and study the Laws of Wealth Creation and you will set yourself up for the road to wealth.

As an example the second important law of wealth creation is: “The Law of Open Space”. This is the key to wealth creation because it explains the central issue of wealth creation – not being under pressure of any sort. And related to this are self-management and the ability to take control.

BREATHING SPACE

When you examine the wealthy the thing that stands out is the fact that they are relaxed. Generally they live on a large property with plenty of physical space around them and this is also symbolic of both their lifestyle and their self-management style.

When you are not under pressure to keep making money, because you are not a slave to money but rather your money is a slave to you so to speak, you have a sense of breathing space. You have taken control of your life and your finances and you have created freedom for yourself. You have created the space you need to be able to breathe freely and enjoy life to the full.

When you are under time pressure, like the rich and famous, and always chasing money, you feel out of breath and you feel that the world is crowding in on you. You cannot breathe and you need space, but it isn’t there.

FINANCIAL SPACE

Financial space is an important part of being wealthy. Financial space is created by spending less than you earn from passive income. If you earn $10,000 per month, but only spend $6,000 and invest the balance in secure and profitable investments you will soon have substantial reserves.

When the income from these investments which we call “passive income” (because you are not working actively to bring in the income as you would do in a job) is greater than your expenses then we say that you have achieved wealth. When your reserves can provide an ongoing passive income for you for the rest of your life, without downgrading your life style then you have achieved true wealth.

WORKING MONEY

Another aspect which needs to be faced is the factor of the percentage of your money that works for you and the percentage that works for others. While not every cent of your income can be formally invested, an important aspect of wealth creation has to do with the percentage of dead money you allow to pass through your hands. Buying food for example is an expense and is generally dead money. It makes the supermarket owner wealthy but does not bring anything back for you in financial terms. When you are also able to get this dead money to work for you, you are really able to create financial space for yourself as almost every expense now generates an additional income.

PASSIVE INCOME GENERATES WEALTH

The poor live in crowded homes in crowded ghettos and they have no space of their own. This causes them to feel overwhelmed and anxious and the pressure causes them to kick the dog and occasionally also the wife and children. They are not conscious of this however. The middle class have more physical space, but they allow themselves to be pressurised by lack of time, lack of reserves and lack of passive income. They spend what they earn. Most of their income is active income and they have no reserves to fall back on and so they have to keep on working everyday.

This pressure also gets to them and they feel that the world is pressing in on them on all sides. In fact they are imprisoned by their life-style and cannot escape the prison walls created by their own lack of control. The rich are temporarily financially independent but only the truly wealthy experience sustainable financial freedom, which is entirely different.

FINANCIAL FREEDOM

Only the truly wealthy have a sense of wide open spaces. Only the truly wealthy have both passive and recurring income where a significant percentage of their money works for them and they are not burdened by having to get up every day to personally make more money. Being surrounded by physical space and having financial space as well as spiritual space makes all the difference in the world.

This is true financial freedom and is the difference between operating on the competitive plane as the rich do, and the creative plane where the wealthy operate.

When you have created financial freedom for yourself you feel exhilarated and free, and you are, because you have created freedom for your-self out of nothing, except your self-control, your imagination and your co-operative spirit.

But simply knowing all this will not deliver the result. To create space for yourself you have to work at it and set out a plan. You have to embody this information into a new way of life and begin to live it every day.

ORDER AND HARMONY

Another aspect of the Law of Open Space has to do with order and harmony. Wealth operates in harmony with the laws of the universe which are based on perfect order and harmony. The wealthy person innately understands these principles and their life and their work space is ordered and harmonious. A cluttered work space generally reflects a troubled and cluttered mind and a good place to start in ordering one’s environment is to ask the question: “Who do I need to Be to live in a space of order and harmony”?

SCIENCE OF GENERATING WEALTH

But it is important to understand from the start that creating wealth is not so much about what you Do but about who you need to Be. There is also a Science of Generating Wealth and it sets out some important markers with respect to who you need to Be to create wealth. Follow these key principles along with the Laws of Wealth Creation, or as I prefer to call them The Laws of Wealth Generation, and you cannot fail to create wealth for yourself and empower and uplift the lives of all those you come into contact with.

Owning a home-based business can be a fun and exciting experience. It can also be a difficult and challenging type of business to find success in. It can be very lucrative or it can be very stressful in addition to a complete loss of money!

In this review we will look at the advantages and disadvantages of owning and operating a business like this as well as if it is a good idea to do or not. If you are interested in making a substantial amount of income working for yourself, it could be a terrific idea. However, if you are interested in making a steady paycheck working under someone else to make their dream come true, you may want to stay away from owning and building a Home-Based Business.

The Advantages

There are tons of advantages to starting, owning, and building your own business from home. Advantages include job security, financial freedom, being your own boss, less risk, more opportunities and much more!

Job Security: The problem with a traditional job is there isn’t any job security. At any second, that job could end. Even if you work for a multi-million dollar company, there is always that chance that somebody in the corporate office could make a mistake leading to the loss of your job and many others or the entire business crumbling. They may have to lay you off due to loss of profits. Or, in some cases, your job could be entirely replaced by machines. If you start, own, and build your own home-business, you have absolute job security. In order to succeed with your business, you must have the education and understanding of how the business works in order for it to grow. Therefore, is something happens and your business crashes, you can simply open another one in the same 24 hours.

Financial Freedom: Passive or residual incomes are types of income streams you will be able to create from owning your own home-business. Passive incomes, meaning you don’t have to work eight hours, five days a week, in order to earn a paycheck. Residual incomes, meaning you do the work once and correctly and you could be earning paycheck after paycheck even 5 years down the road. By achieving these two types of income streams you are able to then spend more time with your friends and family or go on vacation whenever you choose.

Being Your Own Boss: If you own your own home-based business, nobody is going to tell you when you need to work; there is no type of deadline on a certain assignment. You’re not going to fire yourself due to not accomplishing a certain task. You set the hours, you set the deadlines, you set the workload, and the best part is there is absolutely no penalty for not completing these things.

Less Risk: This mainly relates to a comparison level of owning a traditional business to a home-business. Generally speaking, a traditional business requires a large start-up cost while a home-business requires a much smaller one. However, all businesses have a start-up cost. A home-based business has much less risk because you’re not using that much money to get the business started and as mentioned before, if your business crumbles it will be much easier to start another one and try again.

More Opportunities: When owning a home-based business, the sky’s the limit. You are the only deciding factor of your growth. If you decide you only want to work for two hours, two times a week, you probably won’t experience much growth. However, if you treat it like the legitimate business and income opportunity that it is, you will be able to experience significant growth and promotion. You could go from making an annual income of $36,000 a year to $76,000 the next year. If you stay on the same path of growth and stay consistent, depending on your business, you could experience a $150,000 annual income the next year.

Keep in mind, there are plenty more advantages to owning and operating your own home-based business but these are five that I found to be the most important rewards or benefits to in relation to making money for yourself.

The Disadvantages

More Stress: You solely determine the success or failure of your business. You handle everything from top to bottom. When there is a problem, you are the one who has to fix that problem. However, when there is a success, you are the one who reaps the rewards. Hypothetically, if there are 12 problems in which occur in one year, you have to fix them all. Therefore, you have to accept all the headaches and stress of your own failures or problems in addition to accepting the headaches that come with scourging to find a solution.

More Challenges and Difficulties: As mentioned before, generally when you are an employee of a traditional business you have an entire team to work with you and help out during almost any circumstance. However, when you own your own home-based business, you are the only employee. You are your OWN employee in addition to being your own BOSS. You have nobody else to blame but yourself for failures or not accomplishing a goal or deadline that you set for yourself. Get used to frustration. Frustration is sometimes needed in order to achieve personal growth.

Working Alone: Sometimes a traditional job with a company is great because when a huge problem occurs, you have the ability to work with a team to find a solution and fix the problem. However, when owning your own home-based business, it’s you and you only! You must take the time out and accept all the headaches of finding a solution, which can be extremely difficult at times.

Distractions: When owning a home-based business you could easily be generating $7,000 a month of pure profit. Even with that type of income, you will be working at home! Therefore, friends and family tend to think you do absolutely nothing! As silly as it may seem, it happens! So don’t be surprised if your friends or family stop by unexpectedly to “hang out”. They don’t see the work you do, so in their mind, they think you don’t work. It’s important to remind your friends or family that when it’s time for work, It Is Time For WORK!

Procrastination: As mentioned before, nobody is going to tell you that you need to complete a certain assignment at a specific time. You are your own boss. You have to be self-disciplined and self-motivated to get things done! Generally, with a home-based business that’s the most important part. Education and information is, of course, very important. However, finalizing the work day in and day in is the absolute most important aspect of a home-based business. You have to wake up each and every morning ready to go with no delays!

To Conclude

Owning, starting, and building a business like this can be a very exciting and lucrative thing to do. However, it can come with many difficulties and challenges. You have to have the education and information in addition to being self-disciplined and self-motivated.

The World’s Strongest Material- 200 times stronger than Steel!
Yet Flexible
Conducts Electricity Better than Copper

Graphene compares in significance with the Stone Age, Bronze Age and Iron Age. We will call Graphene the Graphene Age. Graphene is an allotrope (form) of carbon which consists of a single layer of carbon atomes. They form a hexagonal lattice of 2D material. It is ultra-light but also extremely tough. It is 200 times stronger than steel yet flexible. It is the thinnest material possible and is transparent. It is a better conductor than copper and is a perfect barrier.

The University of Manchester is working with Graphene in the following applications:

Energy
Membranes
Composites and Coatings
Biomedical
Sensors
Electronics
Wearable Technology

Unbrakeable Mobiles

Indium-tin oxide is the material used for touch screens now, but it is brittle. Graphene’s flexibility and durability together with its conductivity properties will transform everyday devices. You could wear your smartphone on your wrist. Your tablet could be so thin and flexible, you could roll it up and put it in your top pocket. You’d never have to worry about braking your phone again. It would be virtually indestructible.

Graphene in Batteries

Samsung have developed graphene batteries that can now charge mobile phones and car batteries faster. Much faster! With a conventional lithium battery, it takes about an hour to recharge a mobile. The new graphene battery could recharge it in 12 minutes. That is a 5 times faster.

Samsung also wants to improve electric car batteries. Imagine fully charging your electric car in only one hour. To do this, scientists at Samsung Advanced Institute of Technology have synthesised graphene into a 3D form – using silicon dioxide. This 3D form (known as a graphene ball) is used to coat the electrodes of the battery. The result is a massive 45% increase in capacity, and has, as said earlier, 5 times the charging speed.

It’s difficult to get energy in and out of traditional batteries quickly. For example, if you take an Electric Ferrari, you can’t get from 0-60 in 3 seconds? Because graphene is such a good conductor, super capacity batteries could release the kick of energy needed to hit that 0-60 in 3 seconds.

Energy Storage

The 45% capacity increase has other uses. The University of Manchester is testing graphene battery storage with wind and solar power for the national grid.

Graphene Filtration

Graphene oxide membranes are able to form a perfect barrier for liquids and gasses. They can separate organic solvent from water and remove water from a gas mixture. They can even stop helium, the hardest gas to block. Manchester University are currently testing grahene membrane’s for water filtration, gas separation and desalination.

Graphene Semiconductores

Due to it’s unique properties of thinness and conductivity, researchers have seen graphene’s potential as a semiconductor. At only 1 atom thick, graphene can conduct electricity at room temperature. These two useful properties could mean an end to silicon computer chips for graphene chips. The research has already shown that graphene chips are much faster processors than silicon chips.

Graphene used for Biomedicine

Graphene displays a lot of useful properties. It has high electrical conductivity, thermal stability and is 200 times stronger than steel. All these properties can be applied to biomedics. It could be applied to healing skin wounds; drug delivery inside the body and potentially change the behaviour of cells inside the body. e.g. Cancer treatment.

Grahene-infused Packaging

Plastic packaging might seem impenetrable but water molecules can still pass through them. This can effect the lifespan of food, electronic goods and medicines.

With a single layer of graphene fused onto polymer packaging, the water absorption is reduced by a million times. Products are then protected from dust, bacteria and water.

For example, a moisture-sensitive device such as an organic light-emitting diode must have water restricting packaging. Graphene infused polymer have increased the diodes lifespan by more than a year compared to 30 minutes with a non-graphene polymer.

Oh, and I forgot to mention the potential use of graphene coatings as a water-repellant surface. It could find use on ship’s hulls, pot/pan liners, glass surfaces(mirrors, windows, windshields) and textiles.

Residual income (“passive”, “recurring” or “leveraged”) is by far the best type of income available to most people. Once you set the wheels of residual income in motion, you can continue to earn money day after day after day, without much, or sometimes any, additional effort. It can be dependable income that keeps coming in month after month, year after year. Residual income is usually based on a previous activity, but sometimes needs nurturing to keep it coming.

One of the ideas that make residual income so powerful is that residual income is not directly proportional to the number of hours invested or number of products/services sold. It is income that continues to be generated after the initial effort has been expended. With residual income, 40 hours of work can garner much, much more than 40 hours of pay.

Understanding the idea of residual income is easy if you consider the word “residue”. Residue refers to something left behind as a result of something else. Residual income if left after the work is finished and keeps paying over and over again for the work you have previously done, even if you stop working on that project. Very few jobs have an option for residual income.

In general teachers don’t have it. Neither do lawyers, doctors, firemen, politicians, Indian chiefs, business executives or accountants. At least 80 % of people have jobs that offer no chance for residual income. And often many of these people that hold traditional 9-5, M-F jobs can not expect or even plan to continue receiving an income from their employer should they ever leave their position. They (and mostly likely, you) have what most people have – linear income.

Linear Income

Linear income (“Transaction Income”, Fixed Income” or “Earned Income”) is basically a one-time compensation or payment in the form of a fee, wage, commission, or salary. Linear income is directly proportional to the number of hours being invested or number of products/services sold. You do something once and you also get paid only once. It is probably the type of income you receive from your job right now.

The vast majority of people work each day and earn linear income. They work for 40 hours a week and get paid for 40 hours. Some people put in 50-60 hours of work and still only get paid for 40 hours, but that is a different issue. For most people the effort they put in is directly proportional to the income their employer pays out. This is not bad, but it is not great either.

The problem with linear income is that if your work effort drops or stops due to sickness, newborn, lay off, etc., your income drops as well (after your vacation/sick leave is used up). You may have been the star performer in your office the month before, but that will not matter. Your current check will only reflect your most recent effort. With linear income No work = no money. Residual income allows you to change the normal flow and make money even when you are not working.

Now that we know the difference between residual and linear income, let’s look at the benefits of residual income.

Benefits of Residual Income

Many of the benefits of residual income are obvious, but I’ll run through them to make sure they are all clear.

1. You can make an initial effort to get a residual income stream started, then do minimal work (or virtually none) thereafter, resulting in earning more money for little to no effort.

2. You can have the freedom to choose when and where you wish to work. Keep your favorite pajamas on all day if you wish.

3. You can worry less about getting sick or being disabled and unable to work. Expectant mothers can create a residual income and not have to worry about missing time from work after delivery.

4. You can have the ever-so-fun feeling of earning income even when you are not at work. It is a great feeling!

5. You have the ability to increase your income whenever you want by working and creating additional income streams.

6. You can have all the usual benefits of working from home.

7. You can have more free time to spend time with your family, friends or go on vacation or create more income streams.

8. You can do it in your spare time if you choose. Don’t want to work full time? No problem!

9. You can prepare for future expenses easier. – Ex. Know you want to buy a car in 12 months? Instead of saving your current income to pay for it, you can create a new income stream that will cover the car payments. Same for college or retirement.

Drawbacks of Residual Income

I’m going to be honest with you. Nothing in this life is perfect. Sorry if that bursts your bubble.

Creating your first residual income stream is often difficult as the payoff can be uncertain and often far away. For all its disadvantages, linear income is predictable, consistent, and usually comes 1-2 weeks after you finish your work. Residual income will require dedication in the face of unknowns. This is why most people never bother to develop a residual income stream. They don’t reach their expectations in time so they quit before they even really begin. Others have estimated that this usually happens somewhere between 1 and 12 months.

One of the first things you need to realize is that success and a better financial situation will not happen just overnight. Apparently it usually takes anywhere from 1 to 6 months to start seeing results of your work with residual income — depending on the type of the business model, the opportunity, compensation plans and other factors. Know this going in, but also consider that once you start seeing results you will never look back. Your motivation, your excitement, your satisfaction, your determination, and ultimately your income will all skyrocket.

Examples of Residual Income

Now that you know what residual income is, how linear income differs, and the advantages and disadvantages of it, here is the way you can get it.

1. Rental from property How to get it: Purchase a home, apartment complex, office building or other real estate and charge people to live or work there.

2. Royalties from publishing a book, singing a song, being involved in a movie or from licensing a patent or other form of intellectual property How to get it: Write a book and get it published. Get a song on the radio. Produce or act in a movie/T.V. show/commercial. Invent some cool gadget. Make a neat software program. There are other steps, but I’m guessing if people were doing these, they would not be reading this article.

3. Earnings from a business that does not require direct involvement from the owner or merchant; How to get it: Create and grow a business and then sell it to someone else or have a manager run it for you.

4. Pensions How to get it: Work at some job for a long, long time and then retire.

5. Percentage of the revenue from a company that drills on your property. How to get it: Buy some property, hope it has cool stuff like oil/gold/diamonds underground, and then let a company start drilling.

6. Interest income or dividends. How to get it: Buy a bunch of stocks/bonds or leave a bunch of money in a savings account. Accrue interest/dividends. Note: Unless you have millions tied up in stocks and bonds, dividend interest will not be substantial money. With $500,000 in a 5% bearing account, you would make $25,000 a year in interest/from dividends.

The above ways of earning residual income generally aren’t that easy to implement. So how does a regular guy make residual income? Answer – Online.

How to make Residual Income Online

1. Create and Market Your Own Information Products – the web is great place to sell an eBook that makes life easier for people.

Why sell an ebook?

A. Cheap and easy to make. B. Takes a short amount of time – you can create an eBook in a day or two if you really want. C. Self-publishing your own information products is a great idea. The main advantage is that as publisher you get 100% of the profit, versus a small percentage of royalties through traditional publishing companies. Also important is that you get to decide when, where, and how to market your product. Complete control.

Write articles – In addition to writing articles that generate affiliate sales, you can write for various websites and share in the income your article generates. ex. include, eHow, Smorty, and ReviewMe.

2. Creating software products – if you have an idea for a software product that will help people do something faster, better, easier or teach them something, then go for it.

3. Referrals – create a network of people. Ask for a commission every time you refer someone to a product or business.

4. Become a Reseller – resell other people’s services/products.

5. Advertising commissions – if you have a web site/blog/newsletter/ebook that attracts lots and lots of visitors you can offer to place a banner or link on your site for a fee that you collect each month.

6. Create a membership site – if you are knowledgeable about a subject, you can charge a monthly fee to gain access to your membership site. More subscribers = more money.

7. Affiliate Programs – Join affiliate (referral, reseller, associate, bounty) programs. Companies arrange such programs to compensate affiliates for promoting their products and services.

These 7 options can be done by practically anyone, but I will focus on the last one as I believe it has the best combination of ease of set up, expense of start up, and potential size of revenue stream.

Affiliate Programs with Residual Income

The concept of affiliate marketing is very easy. You simply join with a merchant as an affiliate, promote their products on your website/blog/newsletter, etc., and receive a commission when someone buys something from them. The company you join with creates, maintains, supports and provides the products, tracks the sales and gives you a commission for each sale. Your job is to drive traffic to the pages/site that promote the affiliate products. The more traffic, the more commissions. It is like word-of-mouth advertising except you get paid for the referral.

Affiliate marketing at its best is a Win-Win-Win

Win – The customer gets useful information and buys a product or service with more knowledge than they normally would have. Win – The business get a new customer they would not have had otherwise. Win – The affiliate makes money.

Note: There are two ways to get residual income in affiliate marketing 1. Promote products that include an option for residual income 2. Get your affiliate pages into web searches where people can find them on their own

If you have an affiliate program where you constantly have to drum up customers to buy your affiliate’s products, you are back to a sales job with linear income. To avoid this, find companies that will track clients for multiple sales over a long period of time so you can get recurring commissions. A few companies will pay you as long as the customer you found for them buy products or services. Also try to get ones that offer multiple tiers for sales so that you still get paid if one of your affiliates makes a sale.

Conclusion

Imagine you go in to work tomorrow and your boss says, “For each hour you work this week, I’ll pay you for 8 hours of work. Also, you can work as many hours as you want”. How many hours do you think you’d put in that week, 50, 60, 80, 100? Imagine putting in 60 hours of work that week and getting paid as if you had worked 480 hours. How awesome would that be? That is what residual income can do for you.

Very few people have decided to develop any type of residual income. Given a choice, which would you rather do: work hard and get paid only once, through linear income, or get paid continuously – perhaps for years or even the rest of your life – for work you performed only once?

Realize that approximately 80% of people that retire early are self-employed. Wouldn’t you like to take a vacation whenever you want, or have your spouse stop working so he/she can look after the kids and not have to worry about money? Having a stream of residual income can free up your time for these things or it can allow you to recruit new customers or grow your business into new areas while still earning commissions from past efforts. This is a great way to earn a long-term income from home. Put in the effort today and you can receive money for years to come.

Building multiple passive income streams is a great way to prepare for the future. You never know if you will be laid off from your regular job, get too ill to work, have an unexpected expense, or just get too tired of waking up early and fighting traffic. If you are interested in the benefits of residual income and you are willing to put in the effort to achieve them, you can achieve a stream of continuous income.