What’s the real difference between Passive Income and Residual Income?
We hear a lot about these two buzzwords in the financial world, and they’re often used interchangeably.
But make no mistake – there is a difference between passive income strategies and any notion of a residual income business.
And unless you know the difference between these two terms, you can’t really take advantage of what these concepts have to offer.
We all know that passive income investments are important in any financial strategy.
Leave your money rotting in a regular bank account, and the rising rate of inflation will quickly whittle away your hard-earned cash until it’s a pale shadow of its former self.
Residual and Passive Income are both common features in most of our financial dreams, but beginner passive income is also possible – and available.
In an ideal world, the residual income formula toward passive income allows us to earn money while sitting at home twiddling our thumbs.
It’s how the rich get richer.
It’s how people are able to retire at the ripe old age of 35.
Passive income became a reality for me within a year of initializing my online lead generation business and quitting my 9 to 5 from Corporate America because $10,000 per month that comes in whether I want it to or not is my idea of passive income!
I’ve never seen so much money in one place at one time, but this local lead generation coaching program walked me through exactly what it was going to take to make things like this possible:
• Toss up a simple lead gen site
• Rank it patiently and well (this is where the time and patience with business comes in)
• Reap the massive profits from the few hours of work required to make it possible
Scroll to the bottom for more information about our coaching program.
But in order to really benefit from Passive and Residual Income, we have to truly understand what they’re all about.
And in order to see this through, we need to know the difference between the two terms.
What Is Passive Income?
Let’s start off with Passive Income. If you’ve ever genuinely considered starting a blog or investing in a stock, you’re probably familiar with Passive Income.
It’s called PASSIVE income because you don’t have to do any work in order to earn it. You earn money while you sleep – you’re passive while that money is pouring in.
Income is still Passive even if you worked hard to establish it many years ago. For example, you might have worked 60 hours per week to get a blog up and running.
But today, that blog is earning seven figures per year, and you’re only working a few hours per week. This is a prime example of Passive Income because you’re still reaping the rewards of work you did a long time ago.
You continue to earn money after that initial investment – regardless of whether you invested time or money.
What Is Residual Income?
Although many people confuse Residual Income with Passive Income, the two terms have pretty much nothing to do with one another.
We hate to suggest this to you, but you might have been using the term incorrectly this entire time.
Residual Income is just another way of saying Disposable Income. It’s the money you have left over after you’ve paid all of your bills and handled all of your expenses.
In fact, Residual Income is actually a type of income at all. It’s just a word that accountants and bankers use when they’re calculating your eligibility for a loan.
The higher your Residual Income, the better chance you have of getting that loan.
The Best Ways To Earn Passive Income
So now that we know that Residual Income isn’t really important let’s focus on what really matters – Passive Income.
More specifically, let’s take a look at how you can earn Passive Income starting today.
The most obvious form of passive income is also one of the oldest.
The stock market has been around for a very long time, and it remains an ideal place for anyone to invest and grow their money.
Sure, there’s some element of risk.
But with the right tactics, you can be relatively confident that your money will grow with time.
As time goes on, you’ll hopefully earn more and more money every year.
Eventually, you can find yourself at a point where you’re earning an impressive income from your investments alone.
Investing in properties remains one of the safest choices you can make today. Whether you’re buying a house, land, or a condo, you can be pretty confident in this type of investment.
Historically, the value of the property has been steadily rising over many decades. Getting into the housing market is a good way to make sure that your money will grow with time.
In addition, many people choose to buy property and rent it out to tenants. In many ways, this is the ultimate form of passive income. As long as you continue to genuinely maintain your property and see to your tenants’ concerns, you’ll earn money each month while doing almost no work.
This rental money continues to pour in every single month, without fail. Unlike other forms of investment, there’s very little risk involved as well. It’s an extremely reliable form of passive income.
Write A Book
Whether you self-publish through Amazon’s Kindle program or seek the services of a traditional publishing company, writing a book is a surprisingly good investment.
Book royalties and purchases continue to roll in every single month, and popular books earn thousands of dollars every single month.
Once you’ve resolved to complete the hard work of actually writing the book, you continue to earn money for labor that you’ve already completed.
Because of this, writing a book is definitely classified as a form of passive income, and it’s potentially one of the most profitable ways to spend your time.
Digital Products are some of the most profitable things you can sell on the web, and once again they’re another great example of passive income.
But what is a digital product?
Examples would be online guides, eBooks, or even full-fledged online courses.
Digital Products have many advantages. First of all, they obviously don’t exist in the physical world. This means you don’t have to worry about inventory, shipping, or packaging.
Secondly, once you’ve created a Digital Product, all you need to do is sit back and watch the profits roll in. This is the real beauty of a Digital Product.
Online Courses and guides provide useful information to your customers for many years to come. Even if you have to update lessons periodically, you’re still putting in very little work for a regular, continuous income.
Knowledge is one of the most profitable things to sell. It costs very little to make your knowledge available, and almost everyone has some special skill or talent to teach the world.
All of this ensures that Digital Products are some of the most profitable examples of Passive Income.
Look, passive income is a byproduct of your assets that you have positioned to bring in the type of income that most could only hope to dream about; that’s why local lead generation for local businesses is the ideal model for getting to where you want to be, with a part-time hustle that generates well-beyond a full-time income!
If you’re looking for better options on how to rake in passive income, you could pursue physical and tangible real estate, or keep your focus on virtual real estate, so you don’t have to fork out tons of money upfront in order to see your personal income skyrocket – and that’s what is available in our lead gen coaching program if you act fast.
Products in the physical world can be tremendously profitable as well, and this is yet another example of potential passive income.
We know what you’re thinking. Selling products takes a lot of work. How can that be considered passive income? Well, product sales can classify as passive income – but only under certain business models.
Examples would be Product Distribution and Affiliate Programs. In both business models, you’re relying on other people to sell your products for you. As the owner of a profitable brand, you can sit back and earn comfortable profits while others do all the heavy lifting.
However, you can also earn passive income as an Affiliate Marketer, from the other side of the exchange. Posting Affiliate Links isn’t exactly difficult to work. And if you’re posting those links on content which is getting tons of views, earning a great income seems like a walk in the park.
Affiliate Marketing, in general, is a great example of passive income. It takes very little effort, and the profits can be staggering.
Why Pursue Passive Income?
Now that you know all about the various types of Passive Income, it’s time to figure out why you should even bother with this method.
Honestly, it’s much easier to list the benefits of Passive Income rather than the drawbacks.
Because there are practically zero disadvantages when it comes to Passive Income.
Here’s why you should consider getting involved in Passive Income today:
The first reason is the most obvious. You Earn Money While Doing Nothing. Can you think of a better situation? Even if you’re only earning a handful of cash per month through Passive Income, it’s a thing of beauty. What this provides is your acquisition of unparalleled freedom.
If you wanted to, you could quit your job and still earn an income. You can travel the world. You’re free to do whatever you want.
But there’s another important reason to get involved in Passive Income, and this is an even bigger advantage. When you’re earning Passive Income, You’re No Longer Trading Your Time For Money. Most jobs give you a certain amount of income based on how much time you work.
With Passive Income, those rules don’t apply. Your income is no longer limited by an hourly wage. Instead, you decide how much money you earn. Your income is based on your intelligent decisions, and that can result in limitless possibilities.
If you truly analyze the one percent, you’ll quickly learn that these “elites” all have one thing in common.
They’re heavily invested in passive income.
In many ways, this the only thing that separates the truly wealthy from those who are always struggling to reach their financial goals.
Remember, money isn’t the most valuable resource on this planet. It’s time.
Who is “richer,” a banker who works 40 hours a week in an office for decades, or a man who is free to travel the world, spend time with his family, and pursue his dreams?
Even if the banker earns more money, his lifestyle doesn’t make him wealthy. He is trading away the most valuable resource he has – time — all for a rather mediocre salary.
In reality, the people who invest in Passive Income always have greater earning potential than those who focus solely on a regular job.
Passive Income allows us to enjoy life to its fullest extent, while also making more money that we could ever hope to earn with a regular job.
Getting started early with Passive Income is the best decision you could possibly make.
The final question is whether or not you’re ready to take the plunge.
The Best Passive Income Business Model is Local Lead Generation in 2020
You have numerous options ahead of you for how to bring in more cash. Some can require a higher upfront investment than others, but one of your more common matters is the length of time required in order to see your efforts become fruitful.
Any get rich quick scheme that self-advertises promises of candy and good stores (metaphorically speaking) is nothing more than smoke and mirrors; a reliable income is going to require:
• Sound education
• Patiently gathering your own experience
• Investments in your endeavor
• The belief that you can make it happen
Most people simply don’t stick with something long enough to see the fruits of their labor come to life; if you’re steadfast and committed to what you started, then it’s only a matter of time before you figure out how to make it work for yourself in the end.
I, personally, still see value in local lead generation because it’s the fastest and most flexible way to work from home, on a part-time basis, and still build a quick income that can manage to turn into a full-time value of a monthly salary.
Think about it:
• Each lead gen site can bring in $750 to $3,000+ in a given month
• They take less than a full business day to set up, optimize, and rank
• These virtual real estate assets operate on free traffic from search results
• They work on your behalf 24/7/365 to bring in more cash whether you choose to work on the projects or not
With little in the way of required maintenance, I can personally attest to the fact that you are destined for passive income even if you only put in a couple of hours every day after work is complete – that’s what I did, and I still walked away from my day job.
Just look at one of my first lead gen sites which still helps a limo rental service company to this day; I never visit it or work on it, and it still rakes in $750 per month – remember, I still haven’t touched this in over a decade, and it’s producing awesome results!
That’s what’s possible with our lead gen coaching program – you can get an over the shoulder, do-as-i-do teaching of what it takes to build a monthly income that’s passive, predictable, and reliable.
If you want more time freedom and the cash to spend while you enjoy your days, or even if you want a portable business where you can take your laptop with you on those exotic family getaways, then quit reading or looking for the golden solution and get hustlin’ on our lead gen coaching program so you can see results for yourself!