How to Build Residual Revenue by Having a Residual Need

By Jason McClain | June 29, 2016 | 0 Comment

Build Residual Revenue by Having a Residual Need

Residual revenue is synonymous with passive income, a term you are probably more familiar with, and it’s a very smart way to build your online business.

What is Residual Revenue?

Residual revenue or passive income is a recurring income from an asset you’ve built for your business. The basic idea is that you set up the asset or do the work once, and it continues to generate revenue for you over time. The asset can be a rental property or it can be someone else’s product you are promoting online.

Think about the bills you pay on a monthly basis: electric, telephone, website hosting, etc. The companies who are offering you those services have set up a source of revenue for themselves. They are meeting a need that you have and solving your problems.

Finding Residual Revenue Streams

Finding residual revenue streams isn’t even the hard part. You want to build a residual revenue based off of a common need. Think back on the bills I mentioned above. You’ve not going to discontinue your electrical service because you need it, right? Build your online business so that you find the closest correlation to that electric bill.

For example, let’s say your online business is helping others learn about online business. One of the first things I teach is list building because it is the most important first asset you can build for your online business. In order to do list building, you need an autoresponder. Boom, monthly revenue. Most autoresponders like Aweber and GetResponse have an affiliate program where you can promote their service. You earn a passive income off the recurring monthly fee your referrals pay for the service. Another big one for online business revenue is hosting. Hosting requires a monthly fee. Are you following me now? Makes sense, right?

Two Kinds of Residual Revenue

There are several different ways to build a passive income. Let’s take a look at how those ways differ:

  • Creating a product – You might write an ebook, build some software, or create an app. This creates residual income from 1-time direct sales
  • Promoting someone else’s product or service – This is when you decide to promote a product or service that is created by someone else. You generate residual revenue from 1-time direct sales and/or monthly recurring fees or residual need

How to Build Residual Revenue Based on Residual Need

I’m going to cover some methods to build a residual revenue based on common need both on and offline.

Wrap Up

Residual revenue through affiliate marketing is how I, and many of my contemporaries, have build a stable online business for ourselves. Choosing products and services with a residual need are merely the next level of building a residual revenue. Are you read to go to the next level? Let me hear from you in the comments!

 

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