Perhaps the best product is one that has recurring monthly fees.
This is known as residual income, and is the best income to make,
because you make one sale but are paid month after month.

Would you rather make one sale for a one-time $65, or one sale for a
monthly subscription at $10 per month? I would rather have the
monthly subscription, because after the seventh month I will have
made more than the $65 from the first sale, and the money will keep
coming! It is possible that you can still be making money three
years down the road from one sale.

Here is another example to show you the power of residual income: You
work everyday for a company. Your paycheck is dependent upon your
working. If you don't work on a given day and you are paid hourly,
you will not be paid for that day. If your job is to make widgets on
an assembly line, you must make those widgets to get paid.

But what if you were the one who patented the widget? Then you would
receive income over and over again any time someone made or bought
one of your widgets. You don't have to make the widget anymore, but
you get paid every time someone buys a widget! This is residual
income: it is income that you make over and over again from working
one time. There are many great affiliate programs that you can
market that can bring you residual income. You can also start your
own subscription or membership website.

A related concept to residual income is leveraged income. Leveraged
income is similar in that it can be residual. More importantly,
leveraged income is money that you make from other people's efforts!

To use the same widgets example, if you make widgets on an assembly
line for your job, you have to do that to get paid. But if you were
the one who patented the widget or the technology to make the widget,
you would continually receive income every time someone made or
bought one of your widgets.

As this related to leveraged income, imagine that in addition to you
working on the assembly line, you could train others to do the same
work and make a percentage of each person's income that you trained?

For example, you work the assembly line and earn $1000 each month.
What if you could earn 10% of the income for each person you trained
to do the same assembly-line work? You would do the work (training)
one time and be paid over and over again (residual income that is
leveraged via other people's work).

Suppose you trained ten new people each month, for three months.
Your monthly income would begin to look like this:

1st month: You make $1000 and each of the ten people you train earn
$1000. In addition, you earn 10% of their monthly income (10% of
$1000 = $100 x 10 people = $1000 + your $1000 = $2000 total).

2nd month: You still make your $1000, but now you have 20 people who
each make $1000. Your income is thus: 10% of $1000 = $100 x 20
people = $2000 + your $1000 = $3000 total).

3rd month: You still make your $1000, but now you have 30 people who
each make $1000. Your income is thus: 10% of $1000 = $100 x 30
people = $3000 + your $1000 = $4000 total).

But wait! In your third month, 10 of the thirty that you trained
each trained 5 more people. Another part of your business agreement
said that you would receive 5% of the income of anyone that was
trained by someone you trained. So, you have 50 more people each
earning $1000, and you earn 5% of that --> 5% of $1000 = $50 x 50
people = $2500 + your month 3 total of $4000 = $6500 total in month 3!

This is the beauty of leveraged and residual income! By your one act
of training someone to do the work, you will get paid over and over
again from their efforts, and again if they train someone else to do
the work!

© 2005 Jeremy M. Hoover // http://hoovermarketing.info

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Jeremy M. Hoover makes residual income from his site,
http://hoovermarketing.info/leads.htm. Get a free affiliate
marketing course, and free reprint rights, by sending a blank email
to jhoover@f...