Residual Income: How To Collect It In Retirement

When you read about residual income these days, nine times out of ten it has to do with MLM. However, this type of income has been around way before MLM came into existence.

If you must earn income to supplement your retirement, it might as well be that kind of income. Here's why. Income is often earned as a result of some type of work performed, whether it is manual or intellectual in nature.

Your earnings can have a one-to-one direct relationship with the work or service you performed. In other words, you are compensated one time for your work. To earn additional income, you must perform the work or provide the service again. This is called linear income.

Residual income, on the other hand, refers to income you earn repeatedly as a result of having worked or performed a service once. There are several ways you can earn this type of income. Here's a couple of ways that come to mind.

With information marketing, you perform research to write something of value to the public. You publish it electronically (an electronic book or eBook via a website) for a reasonable price and you continue to collect residual income each and every time someone buys the eBook.

Alternatively, you can market your work via a publishing house as a regular book, and you collect royalties on future sales of your book.

You can also decide to promote several financial products as an independent agent. You then obtain customers who need your product through various marketing methods (traditional or word of mouth advertising, TV, radio). You sell an insurance policy, for example, once to a customer.

The company you represent compensates you in the form of a commission for enrolling the customer in its program. However, your earnings don't stop with the original sale. Each time the customer renews its policy, you continue to receive income.

You can take this one step further by building an agency. You recruit and train others to do what you do. In return, you get compensated on every piece of business that they bring in. And, note that the money doesn't come out of their pocket. Rather, the companies you represent have an arrangement to compensate you for having trained and continuing to support your team.

As a result, you can train a team of professionals who will continue in their field long after you decide to stop working for good. And, you will continue to receive residual income as a result of their sales effort. If you've got to earn income in your retirement, it's about time you work smart by working once but get paid multiple times.

To find more about this type of arrangement in financial services, contact me today.

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