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What Is Residual Based Income

By David Afana

After the initial business effort has been expended when you continue to generate recurring income or passive income, it is referred to as residual income. A lot of people focus on earning salary, wages, commission, fees, etc. as means of linear income. Depending on the number of hours invested, you get a linear income. By understanding residual based income to develop true wealth, you are at an added advantage. Wealth can be defined as, at the end of the day, how much money is kept or in other words net positive cash-flow.

This is because once things are set in motion you earn money continuously from your initial effort. Linear income is directly proportional to the number of hours you have worked, generally paid in arrears. Those understanding residual based income to develop true wealth know a variety of ways of earning it. Residual income also enables you to devote more time to other things of interest because you can leverage of the efforts of others in your business. This helps to have more time to devote to the generation of additional streams of income.

A number of software programmers and gadgetry inventors now offer their services online and offline to enable potential customers to save, while promoting their ingenuity. A residual income need not be something you have to shop around for. It could be something as close to home as your skills and special abilities. The many potential avenues tapped regularly around the world to generate such an income include:

1) Buying real estate and letting it out subsequently, thus earning from rental or lease payments received on a monthly basis 2) Taking part in commercials, TV shows and movies in leisure time – students and home bound adults 3) Writers transferring rights of the book penned

A residual income as the term suggests is one that you can pick up without putting in mainstream approach. What this means is that while you are professionally engaged in an industry, your ability to serve society in some way or the other during leisure time does not necessarily have to be social-service! You could make the indulgence lucrative and rewarding. The passive income thus earned gives you a sense of balance and security, never having to ever feel threatened by a 9-5 ever again!

David Afana is a Professional Marketer. He has dedicated himself to helping others’ achieve exponential recognition and rewards by applying the Art and Science of Internet Marketing to acquire Ultimate Success by way of incorporating Financial Independence and Time Freedom in their Lifestyle. To find out more about these valuable key strategies, see here.

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Article Citation
MLA Style Citation:
Afana, David "What Is Residual Based Income." What Is Residual Based Income. 26 Jun. 2010. 24 Oct 2014 <>.

APA Style Citation:
Afana, D (2010, June 26). What Is Residual Based Income. Retrieved October 24, 2014, from

Chicago Style Citation:
Afana, David "What Is Residual Based Income"

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