Residual Income is another term for recurring income. In a nutshell, there are three (3) types of income streams that you may have coming into your business.
1. If you do a one-time job, sale or perform a contract, you get paid once and the income stops there.
2. If you do a normal 9 to 5 job, you will continue to get paid as long you continue to work for your employer—often called linear income. This is the type of income that the majority of workers
“enjoy.” Even if you are a neurosurgeon, lawyer or engineer, you are only paid as long as you continue working. You stop working and the bank account dwindles.
3. The third type of income is the residual income where you are paid even after you have stopped working. An example of this type of income is where you wrote a book and as long as your book continues to sell, you continue to receive royalty income for work you did only once.
The majority of super rich and affluent people created wealth through a form of residual income. Take Elvis as an example. Although Elvis has been dead since 1977, his daughter Lisa Marie continues to receive royalties from his work. She never has to work because she has an income for life.
This is the most ideal situation of the three. Do the work once and get paid over and over again. That is the power of recurring income!
The majority of professionals that enjoy this type of income belong to the creative fields such as actors, writers, singers, and inventors.
1