The 4 Major Types Of
Residual Income Businesses

They are the best automatic residual income systems which are simpler to manage compared with traditional businesses. Take note that they are just major money making models with sub-types underneath.

Note: It is better to start with What Is Residual Income page before reading further.

Ok, let us learn the 4 types of residual income businesses:

1. Internet marketing – This is simply selling online. It can be selling hard goods like DVD’s, computers, or any other physical products. This is a famous residual income model.

Other products might be electronic or downloadable in nature like MP3 music, software, e-books and the like. This option can be a more favorable way to create residual income for most online entrepreneurs. It is because there are no physical items to be delivered.

Services can also earn residual income online. Some examples are hotel reservations, freelance jobs, and real estate quotations.

A. direct selling;
B. network marketing;
C. multi-level marketing.

The categories mentioned above are the most unique business models that what experts describe as the people’s franchise business.

They are made even powerful by using the power of INTERNETWORK MARKETING.

3. Affiliated Marketing – There are two basic ways to derive residual affiliate income. These are:

A. As advertisers or merchants who build a network of affiliates. The affiliates promote the advertiser’s products. The advertisers compensate the affiliates out of sales generated by them.

B. As publishers or affiliates who promote the advertisers’ products. The compensation or commission earned by publishers usually represents a certain percentage of the product cost.

Both advertisers and publishers are types of residual income makers who work together to generate revenue. However, the usual objective of publishers is to eventually become advertisers because there are more earning potential for being such.

4. Membership sites – This is the newest among the different types of residual income businesses. People basically subscribe to them for a fee and get more knowledge and skills. Some of them are as follows:

A. Mentoring sites – Made by experts who train people to become successful in their particular fields of business.

B. Online academies – More like schools providing people with knowledge which can be useful for their careers.

C. Software learning sites – Sites that train people on how to use a specific program or software.

D. Services providers – These are basically paid services like the use of an online program, pay per view and pay per download.

Although these types of businesses are different from each other, they have common methods of automation, like:

1. Sales page – Product offer page;
2. Shopping cart – The order list page;
3. Payment system – Online payment system with the use of a credit card or PayPal;
4. Miscellaneous jobs outsourced – Use of other third party services like courier.