What is passive or residual income?- Before we discuss passive income opportunities, we first have to know what passive income exactly means and how it works. Passive income also known as residual incomes refers to commission or rent received on a regular basis. Very little to no work and effort is used to generate this income type. It is however very important to note that the income type is taxable and is considered a result of capital growth by tax authorities and some Financial Institutions.
The key to success- The key to passive income opportunity success lies in the identification of an income source for example a programme, that will pay recurring income on every sale, not just once-off amounts. Specifically affiliate programmes success lies identification of target audiences or groups. Once group or audience is identified these groups should be tapped into and focused on.
Benefits to passive income- The benefits to passive income include freedom of choice to work at anytime, any were, your income will not depend upon office hours, pay raises are easily achievable by merely creating more income streams, provision can be made for future retirement funding, income is unlimited and you will have more free time for yourself instead of sitting behind a desk everyday.
Online passive income opportunities- Online passive income opportunities are endless and can range anything from affiliate programming, information products such as ebooks, software products, advertising commissions, pay per click campaigns, referrals, membership sites and reselling.
Internet as residual income opportunity- The immense popularity and worldwide user-base makes the internet the most lucrative money making tool you will ever find, in the comfort of your own home. Affiliated programmes are super popular business models with free software for programme operation, easy setup, member support, business costs are minimal in terms of office space rental, equipment and hardware leasing, general overheads and labour.
Defining affiliate programmes- Affiliate programme income is derived from web pages advertising merchants’ products. The Affiliate company provides the member with the products, track sales and then calculates the commission due. Its recommended that you go with company’s who offer substantial sales commissions and who will track multiple sales clients for extended periods to ensure recurring commissions for the member. Multiple tier sales commissions are highly recommended.
What is the difference between residual income- and normal affiliate programmes- The only difference between residual income- and normal affiliate programmes is commission paid on regular bases by residual income programmes members, while affiliate programmes members receive once-off payments.
Types of affiliate programmes- The main types of affiliate programming are: Pay Per Click, which pays affiliate members according to merchant website performance, Pay Per Sale which pays affiliate members commissions based on successful referred merchant product or service sales and Pay Per Lead which pays affiliate members for trade leads
Extra’s in terms of recurring affiliate programmes- Some affiliate programmes make extra payments on several levels referred to as tiers.