What Does Residual Income Look Like?
Residual income is also called recurring income, royalty income,
mailbox money, automated money or a host of other terms. Essentially it refers to receiving ongoing payment for work previously
done.
Example: If you write a jingle that every company wants to use in
their car commercials (you know the ones with the trendy looking
20-something year olds), you can receive a royalty check every
time your song is played. That’s one example.
Example: Place $600,000 into an account that yields 10% annually.
This produces a residual income of $60,000 per year which is
$5000 in your pocket every month. This recurring income is an example of your money working for you. The trouble is many don’t
have $600,000 to invest and even then, good luck finding 10% yield
accounts.
Example: Purchase an ATM and place it in a store. You keep the
ATM fees that are charged when a person withdraws money using
your machine. As these fees pay off the initial machine, you use the
profits to then buy a second ATM and put that into a second store.
Repeat this until you have a fleet of ATMs in a variety of stores
across town. And anytime a customer withdraws money from their
account and is dinged $2.50 for the transaction, you take that as residual earnings for hundreds or thousands of such transactions
across your network of ATMs. Those earnings come in even as you
install the pond in your backyard that you bought from me (through
one of my marketing campaigns) for $1000 last month.
How Can
Example: Over the years, you end up owning 5 houses free and
YOU Make
clear. All of them have tenants. And each one rents for $1000 per
month. That $5000 per month is residual income you receive for the
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work you initially did (which was whatever steps you took to allow
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you to own the 5 houses in the first place, as well as the work you
did in locating the tenants).
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Example: Or, of course, if you build a network marketing organization (of customers and distributors), you earn commissions (based
on the compensation plan used by that company) every time a cus-Dear Employee,
tomer buys a product or a distributor sells product (or their market-Your Job Sucks
ing systems sell products for them).
Author—Rob Toth
Example: If you build an online marketing system (or partner into
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one that’s established) and it effectively converts webpage visitors
into customers, you earn every time your marketing results in products sold… even though you’re out on the lake trying to learn your
new hobby, kite boarding.
Automated Money: Understanding Pay Per Click
(PPC) Advertising
Pay-per-click advertising or PPC (also called Cost-per-click advertising or CPC) is a phenomenon that very few are cashing in on. It’s
a relatively new advertising model. Here’s the quick concept summary (and you’ll see why this is very important education to you).
Traditionally, advertising meant putting out the $100, $1000,
$10,000 or whatever the cost was for the magazine ad, the classified ad, the radio airtime, the television commercial, the billboard,
etc. Meaning, the advertising dollars were spent up front to get an
ad in front of a moderately targeted audience.
For example, someone selling fishing gear likely wouldn’t buy a full
page advertisement in a bridal magazine but they certainly might in
an outdoor sports magazine and, of course, in a fishing magazine.
The ads were somewhat targeted but not ideal. And the dollars (as
mentioned) were spent up front.
If you did the same for your marketing projects, you better know
what you are doing as it could get costly. But what if you didn’t have
to pay in advance? And what if your ads were only placed in front of
the exact audience you chose? That’s what pay per click (thanks to
technology) now allows. That’s also what allows for yet another
automated marketing (and automated money) system.
Below you will find a video tutorial as an explanation of this concept.
Think about the applications of this. Consider what this amount of
How Can
automation and leverage could mean when combined with a product/service that is marketed through network marketing (which al-YOU Make
ready gives you a lot of fast growth, automation and leverage).
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Brad Callen’s much talked Top pay per
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about Keyword Elite. This click (Google
software has received over AdWords) ex-700 testimonials in less than pert Perry Mar-6 months of it being available
shall has this
from ecstatic marketers. It course to help
really is a “secrete weapon” you learn the
Dear Employee,
to internet marketers who advanced (and
use pay per click. This pro-most profitable) aspects of
Your Job Sucks
gram offers unbelievable fea-PPC. Register for his free
Author—Rob Toth
tures for a pay per click advertiser (and anyone course to learn more about pay
looking to create or grow an income online). Watch
per click by clicking here and
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demos of it by clicking here.
filling out the form.
Click the video below to gain a visual explanation of PPC. By skipping this concept you are leaving money on the table.
Now that you got a brief introduction, here’s where you can learn
PPC in-depth (at no charge) and start capitalizing from it. This is a
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YOU Make
Extra Money?
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Dear Employee,
Your Job Sucks
Author—Rob Toth
PAGE 33
To learn more, including the in-depth tips and tricks to Pay Per Click
advertising, donate $2 to Feed the Children (required by Success
University for the 14-Day Free Trial) and then login and register for
the Pay Per Click courses (under Elective Courses – Internet Marketing).
Click the first link below, find the same image on that website, then
find the second image on the new website that follows and you’ll be
breakthrough
software for pay
per click users
(above)
most in-depth
course detailing
the ins and outs
of the largest
PPC system,
Google’s Ad-6 Marketing Case Studies
Words (below)
“As of 2004, 934 million people worldwide had access to the Internet, according to the Computer Industry Almanac.”
Some folks will just read that statistic and pass it by. That would be
a mistake… and here’s why.
You likely know several successful businesses in your area. Maybe
it’s a restaurant that’s constantly busy and is very profitable; or a
How Can
tanning salon; or a deli. Yet the potential market size for that business is likely less than 50,000 (based on the demographics of not
YOU Make
only how many people are within a reasonable driving radius but
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also how many competing stores are in that same radius).
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I live in a city of approximately 40,000. Based on demographics,
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there are approximately 4000 residents between the ages of 21-29.
That is mainly the target audience for a nightclub. There are three
nightclubs in town almost next door to each other and they compete
for these same 4000 potential customers. That’s 4000 potential cus-
tomers.
Dear Employee,
Your Job Sucks
Author—Rob Toth
Here’s the real slap in the face…
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With the Internet, a business owner has a potential market of 934
million customers! As if that wasn’t appealing enough, the internet
and its technologies (such as pay-per-click as well as other strategies) allow the business owner to “open their virtual doors” only to
the exact market that’s a perfect fit for their product or service (and I
talked about this a bit earlier in one of the videos).
Now we’ll put this in action with six online marketing examples.
Hint: If you’re really savvy, you’ll start combining this education with
what you learned about the leverage and geometric growth potential of a network marketing based company. What effect do you
think combining the two concepts would have on your income?
Case Study #1 – Shoe Polish
In this example, you market shoe polish. If you market it online and
don’t want to waste time and money on advertising in potentially all
the wrong places, your quickest way to a lot of customers is through
pay-per-click advertising.
Let’s take a look at some of the statistics of how many searches
were made (demand) for the keyphrase “shoe polish” last month
alone. We’ll be using the publicly available data from Overture.
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YOU Make
Extra Money?
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What you see above is the approximate statistics of how many
searches were performed for our chosen keyphrase “shoe polish” (which is shown as the plural “shoes polish” at the top of the
list). On the far left, you will find the number of searches and on the
right is the keyphrase. Related key phrases are also listed as part of
Dear Employee,
the query results.
Your Job Sucks
Author—Rob Toth
Here’s an important note regarding how to read the numbers listed.
First of all, they are statistics for only one month (in this case April
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2006). More importantly, these are statistics for only one search engine (Overture / Yahoo). For a more accurate internet-wide number,
you’ll want to multiply by 10 (depending on which expert you listen
to, some will argue that Google’s search volume is 7 times larger
while others say it’s 10 times larger but seeing as there are a host
of smaller search engines as well, 10 is a fairly accurate number to
use).
Going back to our example, we can see that in April 2006, the keyphrase “shoe polish” was searched an approximate of 14,000 times
(1413 x 10 as we mentioned for the internet wide stats).
If you were marketing shoe polish, you would have the opportunity
to have your ads displayed 14,000 times (assuming you listed the
ad in all of the large search engine pay-per-click programs). Additionally, you could bid on a host of related terms (some of them are
provided in that same list) and have your ad displayed for those
moderately targeted phrases as well.
If you have a quality ad (that gets a lot of attention and a lot of
clicks) and you also have a quality webpage (and quality product)
that converts a high percentage of visitors into customers… then
you potentially have 14,000+ customers that are brought to your virtual door-step by the search engines every single month. You don’t
have to look for them, they come to you.
Let’s look at our next example.
Case Study #1 – Fishing Gear
In this case you are marketing fishing gear. Let’s take a look at the
online demand (searches) for the keyphrase “fishing gear”.
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YOU Make
Extra Money?
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Dear Employee,
Your Job Sucks
Author—Rob Toth
You can see that the market for fishing gear is considerably larger
than that of shoe polish. As we learned in the first example, take the
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number listed on the left and multiply it by 10 for an internet wide
approximate demand (not just for the Overture search engine).
We can see that there were approximately 140,000 searches for the
keyphrase “fishing gear” across the internet in April 2006. That’s
roughly 4667 searches per day. Again, this doesn’t account for the
dozens (or hundreds) of related key words and key phrases.
Case Study #3 – Personal Development
This example is worth including as earlier we talked about a service
that really is very beneficial to anyone looking for alternative education. And, of course, I have hit on the topic of the necessity for alternative education at several points throughout this book. But what
kind of demand is there for “personal development?”
If you read through the keyphrases listed, you will find interest in
personal development training, coaches, seminars, courses and
How Can
more.
YOU Make
We can see that the keyphrase “personal development” was Extra Money?
searched approximately 200,000 times in April 2006 across the
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Internet. This translates to 6667 searches daily for just the phrase
personal development. So certainly there is a market there to con-Page 56
sider.
Case Study #4 – Marketing Software
Dear Employee,
Software usually provides a good marketing opportunity as it often
Your Job Sucks
offers a high return-on-investment. I talked about a marketing soft-Author—Rob Toth
ware that offers a $500 commission on each $597 system sold
(bundle of marketing education, tools, software etc).
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Let’s see how many searches the phrase “marketing software” saw
in April 2006.
New cleansing
and food technology promotes rapid fat
release through
nutrition and
At 120,000 searches internet wide, there’s certainly a respectable
detoxification.
market. Keep in mind this is only for the exact phrase “marketing
software” yet there are many variations. Not to mention software is
often searched for by the name of the software or the specific func-
tion of it. And because of the often high return-on-investment,
that’s a healthy market to cater to.
The last 2 examples take us into the big leagues. These are the
top searched keywords but they are also very competitive mar-How Can
kets…
YOU Make
Extra Money?
Case Study #5 – Weight Loss / Diet
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The keyphrase “weight loss” and keyword “diet” have consistently
been among the most searched words online nearly since the first
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days of the internet. It’s no wonder that the weight loss industry in
North America alone is a $110 million per day giant. That’s per
day! Consumers are constantly left trying to wade through hype
and false promises made by various potions and lotions that prom-Dear Employee,
ise overnight weight loss (often without considering health and
Your Job Sucks
safety).
Author—Rob Toth
Let’s take a look at some of the numbers for this market.
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As seen on and
featured in...
Yes you’re reading that right. There were nearly 10,000,000
searches internet-wide for the key phrase weight loss in April 2006.