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What is a Residual Income?

Real Estate

This has historically been one of the best forms of long term income although it is not as passive as some other forms. The idea with real estate investing is to buy a property for as cheaply as possible and then set up the payment structure so that the rent will cover all expenses, including principle payments, and still provide a monthly income. When people are real estate investors this is exactly the process they go through. Buy a property, rent it out for more than the monthly expenses, and derive the reaming rental cash flow as income.

Intellectual Properties

This is a wide area which can include many forms that generally focus on the entertainment industry. For example, if you write a book and it is popular you can easily receive royalty checks for years to come. Every time a book is sold in the future you get a small amount but these payments can add up over time. These long term residuals need to be written into your contract so make sure it is specified.

You can see the same idea at work in the music industry, television, and movies. If you compose a song, or sing one for that matter, you can receive income each time that song is played in a public place or each time a copy is purchased. This is really where the big money is in the music business and, unfortunately, many artists don't understand this until after they have signed away their rights.

Internet Business

The internet is a very good income play because after you develop a website and create a stream of customers it really can work on auto pilot. The visitors come to the site and you sell them something to solve their problem. Everything can be done automatically including payment on credit cards. You may have to go back once in a while to tweak the site or maybe add more products but, in general, you can let it run on auto-pilot and receive the cash stream every month.

There are literally hundreds of different [http://www.onlinechristianbusinessopps.com/best-residual-income-options-and-o...]residual income opportunities available. The key is to find something that you can spend time or money on early that will continue to provide a positive cash flow with little or no work on your part. You can find more at the [http://www.onlinechristianbusinessopps.com/]Christian Business Opportunity blog.

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