Types of Residual Income

Type of residual income

Remaining income is often referred to as passive income, i.e. the ability to earn money when not working. Recurring income types are not limited to royalties. Remaining income is synonymous with passive income.

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Remaining income is often referred to as income in the form of passivity, i.e. the capacity to make a living when you are not working. This is also regarded as income generated with a singular endeavour. And there are many specialists who make residual income, among them online marketing specialists, assurance merchants, computer business owners and even stockholders.

A few even deserve several types of residual income. Individuals who own stocks often get quaterly dividend payments from the issuers of the stocks. Dividends are paid on the basis of company earnings. As a rule, distributions are very small and are calculated on the number of stocks you own. If, for example, you get a 10-cent per 100 stocks distribution, your quaterly payout will be $10.

Dividend can change over the years, but you can usually continue to make it as long as the company is viable. At the same token, leveraging income earns gains from the effort of others. One example of networkmarketing is liveraged income. Everybody is obligated to buy a $50-100 permonth product, and you make 10 per cent on the sales of your six channel partners.

In the course of your six sales partners will gain employees for the company and your down line will increase on many different level. Therefore, you earn cash with the effort of others or earn debt-financed income. In fact, many successfull networkmarketers earn more from foreign income than from their own work. Underwriters, licensing agencies and publishers of magazines rely on extensions for a large part of their winnings.

Individuals who buy auto or homeowner insurances basically reaffirm their policy in making quarterly or semi-annual outpayments. Thereafter, he may try to do an occasional up-sell, but his income is usually residual. The state licensing authorities are also counting on the fact that although driving licences and days are required by law, they are renewed.

Players, vocalists and playwrights make license fees for their films, song or work. Often performers and creators get license fees for many years, even after their death. The licence fees are normally payable every three months.

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