Residual Income Opportunities on the Web
November 11th, 2011 Filed under: residual income opportunities — Small Home Business AuthorIf you are looking for a business which can develop into a residual income stream then the internet is a perfect place to start. A residual income is one in which you do work, or make investments, up front and then reap the rewards for years to come. An online business fits this bill perfectly because once you build the website and develop a stream of visitors to it the rest can be set on auto-pilot.
There have been many fortunes made on the web buy using this exact business strategy. Find a need people have and develop or find a solution to that problem. Build a website offering that information for sale with an automatic payment and fulfillment system in place. Next, use search tactics to develop a steady stream of visitors to the site who are looking for exactly the solution you offer. Once it is all set up you can let it run by itself and then find another need and do the same operation. This is called “Rinse and Repeat” in the industry. It means you just keep creating websites over and over again and each one sends you money each month for very little effort.
The theory of residual income really got a bad name back in the 1980′s and 90′s with all the programs sold promoting Real Estate as passive income plays. The theory is you buy a property and then rent it out. Everything is structured so that the rental payment covers the expenses, including the principal payment on the original loan, and the remainder you can keep and spend. In theory this sounded great and a lot of people got into this game because it sounded so easy. There were just a few problems that were not addressed though. What happens when the renter’s two year old tries to flush a toy down the toilet and they find out about it till 11:00 at night? More than likely you will get a call and have to get out of bed to unclog the sewer. Believe me, this is anything but passive.
Or, what do you do when the roof needs to be replaced or the fridge gives out. These are all expenses that crop up and can wipe your income out in no time. When you really look at the number, real estate investing is not the wealth builder it is made out to be.
Building websites on the other hand requires the initial investment but then there is very little maintenance. You may need to go in once in a while to update the products or to keep your customer flow active but in general once it is build and functioning there is very little future actions required.
