Five Minutes With Jack Ramblings Of An Insane Internet Marketer

March 6, 2012

Episode-92- Building Residual Income and Membership Style Programs

Filed under: Podcast — JackSpirko @ 4:44 pm
Calculating the Power of Residual Income is Surprising!

Calculating the Power of Residual Income is Surprising!

Today on FMwJ we discuss what I consider the holly grail of internet marketing, “dependable residual income”.   Residual income is very powerful, even 300 dollars in monthly residual income is like having about 500,000 dollars in a bank account at current interest rates that are under 1%.

Even if we went with something like a 5% bond, it would still take about 90,000 dollars to generate a 300 dollar a month safe income. Say we go pie in the sky at 10% in some safe investment that doesn’t even exist as an income investment and we would still need about 35,000 dollars to generate a measly 3600 dollars a year in income.

By contrast a 3600 or even 25,000 dollar residual income isn’t really that difficult to create online today.  Consider that at even 25,000 dollars in income (lower middle class) would require you to tie up about 500K with a 5% yielding income bond.  Yet a membership program that costs your members 50 dollars a year, you only need 500 members to do the same thing.  So this is why I feel residual income is so powerful.

Residual income can be created in a variety of ways.  Some include…

  • Affiliate programs that pay recurring commission
  • Turn key PPC programs that have a solid monthly yield
  • Organic websites that sell products each month with automated delivery
  • Turn key advertising programs (like adSense) on a site network
  • And direct membership programs with recurring billing

What other methods can you think of that will create recurrent revenue?  There are more, honestly there are a lot more.  The problem is when people hear residual they thing only in one dimension.  Such as sell something once and get paid over and over on the one sale or something like interest or dividends.  However again if we sell something and get paid even once, it can still be residual if the sales process and delivery are mostly automated and revenue is solid and recurrent.

This is a lot like owning a business that another person runs for you.  Sure they have to have meetings, find customers, deliver service, handle complaints, etc. but you don’t.  You instead pay them to do it, you take a quarterly profit bonus and perhaps do a board meeting 4 times a year.  Well, when you have sites that generate sales or ad revenue or anything it is even better.  Websites don’t ask for a raise or get sick or have children or take vacations or require health insurance or matching social security payments, etc.

I actually believe there are models for recurrent revenue online that haven’t even been thought of yet, what do you think.

Discuss Episode 92 at TheRoadto100K.com

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