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Why You Should Look for Residual-based Business Opportunities0
Residual - Movie production
Why? First, let’s explore what “residual” is referring to.
The idea of residual business model
If you are in the world of affiliate marketing or involved in performance arts or movie productions, you should be already familiar with residual income model.
In essence, residual is referring to a certain amount of payment made to the respective, eligible, recipients every time their products or services are performed.
In movie productions, this payment is made to the creators every time recorded broadcasts are replayed. In affiliate marketing, residuals refer to payments that are made to the affiliate marketers each time their downline or their referred members are selling the products or services they are affiliated with.
To me, residual income model also comes in other forms, such as royalties in franchising, royalties for authors of a book, royalties received by a rock band every time their music is purchased, and so on.
Why residual business model is well sought after
All in all, the key benefits of residual business model are passive income, lifetime income and viral effect.
Every business opportunity offering a chance to earn a percentage of what others are making or have purchased without your direct involvement in sales creation is a residual business model.
The beauty of residual-based business income is the viral effect of it - Consider this: Suppose you are a member of an affiliate program selling a widget that offers you an opportunity for residual income. The income structure of your joined affiliate program is two-tiered (most common), with the following details:
Your cut in every sales you made: 25%. Your cut for every sales made by your downline: 5%
So, here’s what you should do: Sell the widgets yourself AND refer as many prospects as possible. Selling 10 widgets ($10 each) for $100 will get you $25. But referring one active downline selling 100 widgets ($10 each) will get you $50 in passive income. And you will continue to make this passive income as long as your downline is keep working diligently for YOU - All you need to focus is on managing your downlines.
This model is adapted in many business models: MLMs (multi-level marketing), member get member business, and even the illegal pyramid schemes, where the higher level referrers will always get more than their lower-rank downlines.
Some residual-based business ideas
- Join multi-tiered affiliate program: Not every affiliate program is created equal - Find those that offers you multi-tiered, residual-based affiliate marketing.
- Write a book: If you are an expert in your niche, consider writing a book. When yours hit the best selling list, you will enjoy considerable lifetime, residual, income - hands-free.
- Create creative arts: If you are a painter, every reproduction of your painting is made, you will receive a payment. If you are a song writer, you will receive residual income every time your song is adopted by a music artist. If you are a soon-to-be Steven Spielberg, you will receive a residual each time your movie is replayed or rerun.
Ivan Widjaya
Residual business
Related posts:
- How to Access Thousands of Sales Opportunities in Tough Times
- Noobpreneur Affiliate Program
- Passive Income Business
- Vending Business - Passive Income and Recession-proof
- Flourishing Business Opportunities in Recession
About the Author
Ivan Widjaya is the Owner/Editor of Noobpreneur.com. He is a web property investor, blogger and web property maker, and currently managing and running websites and blogs on various topics under the brand name of My Web Estate.
Visit Noobpreneur's profile and other posts.
Am I an Entrepreneur - I dont Care What You Call Me0
Entrepreneur name tag
Am I an entrepreneur? Are all business owners entrepreneurs? How are they defined? Does it really matter? The real distinction is how do I define my “job” - Do you answer as follows:
My job is to do my job. When I am done with my job I go home. The following day I get up, go to work and do my job again.- to me this does not sound like any entrepreneur/business owners I know.  When one is…
Post in about business on July 2nd, 2009 by smessinger | 147 views
One More Reason Not to Use Recession as An Excuse to Procrastinate0
Cafe Yumm - Eugene, Oregon
Recession impacts every single small business owner in one way or another. That being said, not all small business owners are trying their best to beat the recession and thrive. Some small business owners do drown in the economic turmoil - Some survive, and some others going out of business.
However bad the recession is, some business owners seem to use the recession as an excuse to procrastinate. They use starting-all-over-again anxiety, this-is-not-the-right-time business analysis, and any…
Post in business news on July 2nd, 2009 by Noobpreneur | 334 views
Small Business Articles Directory2
Small business articles directory
I would like to announce the relaunch of my existing site - Small Business Articles Directory.
I have it with me for a bit over one year, and to be honest with you it just sits on my web server days in and days out collecting dust.
At first, I thought the idea would be brilliant - To run an articles directory that host all-unique articles on small business. However, the implementation is a bit problem-ridden.
Firstly, you need you…
Post in announcements on July 1st, 2009 by Noobpreneur | 171 views
8 Steps to Selling Your Business0
For sale
The selling of your business requires a certain sequence of events that need to occur to allow a smooth organized process. Selling of your business IS a process, and requires an organized planned out approach.
There is considerable effort that goes into the process of buying or selling a business. The process requires not only persistent efforts of both the Buyer and Seller, but also cooperation with respective attorneys, accountants, and or adviser’s.
Below is a summary of those 8…
How to Negotiate and Find a Deal on POS Systems0
Busy point of sale
POS systems make transactions process more efficiently, improve management of inventory, and can even increase sales. Having a system that isn’t right for your business can actually end up costing you more money in the long run so it is important to find the right one. Whether you operate a restaurant or a boutique retail store, a POS system generates reports, processes transactions and sends information to other departments.
If you’re thinking about switching to a new system,…
Post in business negotiation on June 30th, 2009 by Betsy Brottlund | 148 views
Seven Ways To Lower Your Legal Fees0
Rooftop legal consultation
It is no secret that attorneys charge a lot for their services. Hourly rates of $350/hour are not uncommon in the legal industry. Once embroiled in litigation, clients have committed to paying their attorney, often with nothing to go on but blind trust. In today’s world, that simply is not enough. Sooner or later, clients are receiving $30,000 bills every month from their lawyers with nothing to show for it.
While businesspeople by now believe that the high cost…
Post in business negotiation, business resources, business tips on June 30th, 2009 by rtauler | 129 views
How to Outsource Your Business Functions the Right Way1
Outsourcing
With today’s uncertain economy, bootstrapping and going frugal are the most sought after business strategy. Like it or not, business owners are pushed to count every penny (and even to count their blessing.)
Outsourcing is often coming up as a solution because it offers business owners two major benefits:
- Cut costs and other resources
- More resource to do what’s more important
Not all outsourcing is good - Some do result as intended, but some are actually leaving the business owners with more costs related…
Post in business tips on June 29th, 2009 by Noobpreneur | 307 views
The Impact of Michael Jackson to Business World0
Michael Jackson music
The surprising death of the King of Pop, Michael Jackson, has shocked the music enthusiasts all over the world. Not only MJ’s fans, his death is also impacting the business world in good and bad ways.
On the upside, MJ is on demand - His death jumps sales of MJ’s music and memorabilia, online and off line. Amazon.com, for instance, enjoys a surge of demand on everything related to Michael Jackson, mainly music. In RollingStones.com and Apple iTunes.com, MJ…
Post in business news on June 28th, 2009 by Noobpreneur | 299 views
10 Business Ideas Requiring No Financial Investment to Start With0
Tutoring
The recession changes people attitude toward money and employment.
More people are becoming frugal, more entrepreneurs are becoming bootstrappers, and more ex-employees are entering entrepreneurship.
All three of the above combined, you would want to start a business that requires minimal investment. Take heed, there are business opportunities that involve no financial investment to start with - Not even a dime.
10 business ideas to start requiring no financial investment
- Online business / make money online
Blogging, SEO/link building, online freelancing, selling goods online are…
Why Getting Fired Can Help You to Get Into Entrepreneurship2
Pet grooming business
You probably have heard this a bit too much: Getting fired from your job pushes you to enter entrepreneurship.
But I couldn’t help finding more and more evidences, confirming that getting fired is often, indeed, a blessing in disguise.
Here is one of the case study: A top story from a local news broadcast that, once more, proves that being made redundant is actually help you to get on to entrepreneurship bandwagon and achieve financial independence.
Check out this video:
Casey Fluno,…
How to Survive Retail Slump2
Gift store
Retailing is one of the hardest hit industry in today’s recession.
Empty stores, bored sales promotion staffs, depressed store owner… The thought of going out of business is looming days in and days out.
50% discounts won’t work anymore. Freebies don’t attract visitors as they are intended. Friendly customer service is no longer making much difference.
All the marketing and business theories we knew just don’t work anymore. Those theories don’t answer what recession challenges.
Are you familiar with these tips (or new…
Post in business tips on June 24th, 2009 by Noobpreneur | 424 views
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