Residual income means that once you have set the wheels in motion you can continue to collect money - possibly forever! Who wouldn't want to have a business that puts money in your pocket day or night, whether you are working or not?

Is residual income only a dream? For many enterprising individuals it is not just a dream - it's a reality. The concept is simple - Do the hard work first and collect on it indefinitely. By understanding the business models that this principle applies to you can also start making residual income.

CREATE A PRODUCT FOR OTHERS TO SELL

Writing a book tops the list for one of the most popular methods of creating residual income, but you can also create other products such as software programs or even a physical product. The key is that you want the business as automated as possible so that once you've set it up you don't have to continue working as hard.

How does it work? Traditionally if you write a book you sign with a publishing company for royalties or sell your book yourself. The hardest work is creating the book. However, once the book was finished you can continue collecting profits on every sale.

The same is true if you choose to sell a product that is made and delivered by another company - often called drop shipping. By creating a sales page on the internet that will appeal to your audience you can continue to collect profits on the sales of your product or book without having to do the work each time.

If you have a special knowledge about a particular topic, or if you are skilled at research and writing, you can likely find a topic worth writing about. If you need to sell with little overhead you can even write a book in PDF format that can be downloaded rather than traditionally printed and shipped to the buyer.

If you choose drop shipping of a physical product, find something you can create an interesting website around. Share lots of information with the prospective buyer and create a professional sales page. With the proper combination of marketing skills and interested customers you can create a system that works even when you don't!

REFERRAL AND TIERED AFFILIATE PROGRAMS

Many online business use affiliate programs as an easy way to create a sales force. If you are good at promoting a program or product to others you may find that you can generate profits from a second tier sales force that you recruit.

This form of residual income is also common in other businesses including selling makeup, natural cleaners and insurance products. Whatever your passion there is likely a business that will appeal to you.

Once you've created a sales force you can start collecting a percentage of their sales. With hard work and dedication you may be able to rest from your efforts while your team continues to work for you. Creating your own book or product AND recruiting a profitable sales force combine for the ideal business model for making residual income!