Residual Income Opportunities Exist For Everyone
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Residual income is a revenue stream earned from work for which a person has ownership. Very often this a completed piece of work that can be sold or hired out. Some residual income is also earned from work that is never complete and needs ongoing maintenance.
Royalty payments are the most recognised form of residual income earnings. Many well know personalities are extremely rich from the royalties they receive from their creations. For example, JK Rowling will earn a payment from every copy of Harry Potter that is ever sold. The payment on each sale might not be very significant but as millions of copies are sold the combined amounts make her a multimillionaire. Each book is a completed body of work but JK Rowling potentially stands to earn royalties from that finished work beyond the foreseeable future.
Authors are not the only people to earn these types of royalty payments, musicians and actors also earn residual income in a similar way. Elvis Presley still earns royalties on each piece of his music that gets radio airplay or is compiled in a new Elvis album collection. Every Elvis track downloaded on iTunes earns him a payment.
Actors also get royalty payments from the filmed productions they are in and will be paid each time their work is broadcast on television.
Perhaps a much less considered means of royalty payments is paid to inventors and patent owners. Any new invention belongs to the person who invented it and he can protect his ownership by securing the patent on it. Once that invention is used to create commercially available products the patent owner receives residual income from the sales of that product. It could even be later used as an ingredient for another product not invented by the patent owner but still warrants royalty payments. The patent on pharmaceuticals is a typical example. Royalties are still payable even after the owner is dead. The ownership of the music, person’s image or patent get passed down through inheritance.
Today there are new ways to earn fantastic residual income. The evolution of the internet has led to a boom in new mega residual revenue streams for owners of websites. The owners of Google, Facebook, Amazon and eBay can be a million miles away from their computers but they will earn an income almost every time their sites get a hit. It is not just the big names that are making significant money through internet residual incomes. There are unknown webmasters, many of whom are very young or even still students that are earning good money from websites they have created that cater to a specialized niche area.
The way to earn money from a website is through advertising. There are many advertising streams that a website owner may choose from. One of the most used is Google Adsense. Anyone who frequents the internet will be familiar with this type of advertising. They are the blocks or columns of text ads by Google that appear on millions of websites. Every time a visitor clicks on one of these ads the site owner will earn a small payment. This can translate to hundreds of dollars a week for some of the best performing sites.
The difference between residual incomes earned through royalties and those earned from website ownership is that royalties are generally received on work that is completed. With website ownership maintenance is usually very important. This is because in order to keep earning revenue, the site owner has to be sure that the site receives a continuous flow of visitors and stays high in the rankings. To achieve this the site owner must ensure that the content remains relevant and sought after and that traffic is continuously being diverted to the site. Websites must be regularly optimized and there must be as many active links to the content as possible.
