14 Spectacular Residual Income Ideas

Joseph Meyer
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Residual income is money that is earned on a recurring basis, usually as the output of a solid and trusted business. When you have a residual income, you're able to put your money to work for you. You can purchase securities or put it into CDs that are privy to your own self-determined risk and return agendas.

The best part of residual income is that you can buy the time required to plan, track, and execute your financial goals.

If you’re looking for a money making opportunity, consider a self-employment opportunity. Below are the top residual income ideas:


Starting and running a small business, whether from your home or a first floor shop, is an excellent and proven way to achieve residual income.


Many residual income ideas have sprung up in the Internet boom of the eighties and nineties. Internet marketing, blogging, and viral marketing are just a few great ideas to earn residual income.


Residual income comes from writing books, writing articles, writing short stories, and publishing an ebook.


Software development can be a residual income feature with a substantial amount of opportunity.

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Try out peer-to-peer lending.

Join forces with other investors who lend to different borrowers. The lending platform will match you with different borrowers, whose rates will vary, and you'll take your pick. As a group, you'll combine your money to make a loan to a particular borrower and will receive a share of the interest payments.

In return for the interest payments, you'll be helping a person in need and earning a little income on the side. Of course, a little due diligence is required to ensure that the borrower is legit, the terms of the loan are satisfactory and that the interest rate will be competitive and keep you in the black. For example, if you're looking for a high-rate loan, you might be able to make millions by providing a low-interest loan to a borrower who takes out a loan at a high rate.

Invest your dough in stocks and bonds.

I have found that major, event-driven swings in the stock market are often followed by a herd mentality. This means that after a huge price correction, people decide it’s a good time to buy. If you’ve been sitting on the sidelines, waiting for the market to collapse, you may want to act sooner rather than later.

Another idea is to invest in bonds. Companies and governments can issue these relatively risk-free. The downside is that returns are generally lower because they don’t offer the same chance for large profits. Still, they can be an excellent way to keep money safe.

Go Robo

One of the most widespread applications of income-generation software is in the field of robo investing … the practice of automating a number of trades made via the internet in order to reach accepted standards of diversification.

These software packages are not always linked with trading via the web. Trading platforms such as e-Toro have been designed to take advantage of price trends that users can tolerate. e-Toro is linked with the social platform facebook and therefore offers a way to make trades interactively with others.

The huge advantage of robo investors is that they are infinite scale tools in respect of the potential to demand vast amounts of transactions in fixed time frames and at a fixed price. As such, they offer a viable model to investors and brokers alike in terms of maximizing volume in a capital constrained environment.

As to the software providers, it is clear that the high stakes in the system are infinitely higher than the transaction fee income but that is where the majority of the risk is also.

Do it Yourself

One of the most exciting ways to make residual income is with affiliate marketing. This is probably the only internet marketing where you can put your effort in just once and still be making money months or years later.

This has become a very popular online business model, and I am not surprised that it's growing fast. While there are hundreds of ways that you can monetize your knowledge, time and skills, affiliate marketing gives you the ability to become your own boss while creating an online business that can bring you continuous and growing income.

So what is affiliate marketing? The simplest definition is that this is a way for you to pay a recurring commission for selling a product or a service that you promote and that requires network marketing.

This may sound a bit confusing, but think about it like this – your website becomes an online store that is supported by advertisers and products that you recommend. Every time someone clicks on your link to visit a retail online store and purchase a product or service, you make an affiliate income.

That's the simplest definition, and there are many other ways to make affiliate income, such as having your own blog, YouTube channel, or Facebook page where you publish affiliate links.

Now that you have a general idea about affiliate marketing, let's take a look at some of the best affiliate marketing ideas that to get you started on your way to financial freedom.

Try your hand with index funds.

Index funds are mutual funds that are designed to replicate an index such as the S&P500, Russell Index, or Nasdaq. Index funds can be a great way for anyone to jump into the world of investing without the complexity and expenses of actively managed funds.

Index funds don't guarantee they'll beat the market; however, they give investors a good way to participate in the gains a market makes as they keep pace with the market. And their low fees make them more attractive to those looking to invest more money but would rather not try to pick stocks.

Although there are some index funds that can come with an annual expense ratio of more than 1 percent, many come with fees that are less than 0.5 percent. Plus, you can open up an index fund with a brokerage like Scottrade that has no commission on stock trades, which can help you save even more.

Invest in real estate for long-term growth.

It’s a great deal to own a second property to live in as a resident or to own a potential rental property. In most cases, you can buy a house at a decent price and rent it out. Some property owners make enough in monthly rental income to cover their mortgage and other living expenses.

Use a cash-back credit card. You’ll earn points for cash back or frequent flyer miles for each dollar you spend. You can even earn money at no cost if you find an appropriate card and pay your bills in full each month.

Spend less than you earn. There are unlimited possibilities for money making opportunities all over the Internet. Some are extremely easy, pay small amounts and take very little time. There are also opportunities to make decent money as an affiliate marketer and you don’t have to have your own product to sell.

Start a blog, website or a forum. This is a great opportunity to learn how to create HTML content for a website. You can sell advertising by placing Google advertising at the top or bottom of your site. A good idea would be to also place some text ads on the side or at the top.

Blog, baby, blog!

Do you have a passion you want to share with the world? Maybe you are an expert in something you’ve spent many years learning how to master. You could be an aspiring chef or have a knack for home improvements. Whatever your passion is … blogging allows you to connect with others who share your interests.

Blogging is easy, inexpensive and it offers amazing residual income potential. All that you need is an Internet connection, your laptop or computer and your voice! You can put all your passion into your blog and tell the world about it.

When people start to read your blog, they will begin to trust you and if they like your content, they’ll come back to read more. When they do that, you’ll be able to offer your products or services to them to make a profit.

Start a Youtube channel

And make videos on topics that people are interested in learning about. Promote your channel on other social media platforms and start to build a community around your content. You’ll want to build a community of people who enjoy learning about what you do, can help you, and will spread the word about your videos.

Build an App

If you create an app for your business, congratulations! You have just built residual income game changer. What is the purpose of your app?

Is it to help customers shop online? If your customers are able to shop on mobile, they will decide to use your app rather than the competitors. The faster and easier it is to use your app, the more likely they are to use it.

Earn residual income with a credit card.

The most lucrative residual income idea has always been a paid survey site, but what if you don’t have the time to get that monthly paycheck going.

Some people consider credit cards as a form of debt or a necessity of today’s times…and feel that making any money off them isn’t an option. But you may want to think again.

It may be an option for you effectively using a credit card.

Now before you run for the hills, I understand how many people have been stung using credit cards for their business, but if done correctly, you really can use credit cards for a residual income stream.

In this post, we’ll talk about how credit cards can be used for a residual income stream through using your credit to earn credit card rewards.

And if you’re thinking about getting a credit card, this post will even teach you how to pick a good credit card and which card you need to get that credit card business started.

I’m going to share some other tips and strategies to make even more profit out of your credit card residual income stream…including my own personal strategy.

Earn cash for doing stuff online.

It’s no mystery that affiliate marketing has been a great money-maker for many online entrepreneurs.

Here’s the deal: as soon as someone clicks a link on your website and buys a product or service, you earn a referral fee or commission investment.

The beauty of affiliate marketing is that people don’t need to fill out applications for risky payday loans, do long surveys, or buy pricey products to make their money (although in some cases, they do). All they have to do is click a link on your website and they’re in business!

Of course, you need to employ an affiliate marketing service to promote a product or service. Most online businesses use affiliate platforms to monetize their companies.

You see, while affiliate marketing is an easy way to make money, some people do not have success with it. The reason is that most affiliate programs do not know how to find relevant products for you.

Become a Brand Rep

Sell merchandise online.

By the time you’ve finished reading this sentence, over three million items will have been sold on Amazon alone, that’s according to an article on CNN. If you have a product you want to sell online, Amazon is a solid place to do it. You can sell products in bulk without too much hassle due to Amazon’s Fulfillment By Amazon program.

Other great sites to sell merchandise online are eBay, Etsy, and even craigslist.

Key Considerations for Selling Online

There are many channels and methods through which you can make money from home. Selling online is one of the most popular and convenient ways to make some extra cash on the side.

You can get started with little or no start-up costs and minimal skill set. Other than an online presence, there’s one other key criteria for making money from the comfort of your home – you have to have something that people are willing to pay for.

Residual online income is relatively easier to achieve with the right set of skills and the right selling platform. You need to choose a service or product you’re knowledgeable in and passionate about, and one to which others can relate. Once you’ve got a high-quality product to sell, you can choose from many popular online selling platforms like Amazon, eBay, and Etsy.

Selling online should not be a one-off exercise. Once you’ve settled on your online sales channel, it’s time to decide what you’ll sell.

Use a niche website for affiliate marketing or product sales

The advantage of affiliate marketing is that you can sign up with a lot of different affiliate programs and compare the products and offers with different companies. Once you find a company that you want to work with, you can promote their products and services on your website.

Niche product comparison websites can be monetized in two ways. The first is getting paid for views, which can be greatly improved using video as described above. The second monetization technique is partnering up with a company that offers the possibility of paid product reviews. That way you can earn commission for any product sold, and you will also be helping people choose the best product for them!

Another area where you can add your affiliate link is on your Twitter account. It will be quite hard to monetize a Twitter account directly but if you have a lot of followers, you may be able to sell ad space on your Twitter profile page.

There is an increasing demand for this particular service, which means that your Twitter page will be a well-targeted advertisement and that your followers will be able to find an answer to their problems on your website. The Twitter ad service allows you to display an ad on your Twitter profile page, Tailor Brands handles the marketing efforts behind your Twitter ads, including targeting, analytics, and optimization.

Start an Online Store

Online Stores are literally the easiest ways to generate profits online. With a ready-made or custom eCommerce website, you can quickly start a business online without programming and design experience.

E-commerce is a great example of a residual income model where you can sell a high number of products in a relatively small time period. Still, an e-commerce business takes a lot of initial investment (the traffic-building phase), in which it is natural to have losses rather than gains.

In order to turn your e-commerce business idea into a successful, profitable business you will need several things including a proven business model (e.g. drop shipping, e-commerce, subscription service, membership sites or software as a service) and a market in which to operate. And like with every business, you will need to write a business plan, build a site, and take it to the next level.

Rake In the Royalties

There are several types of royalty payments. One is the upfront “buy-out” which is being paid the upfront fee. Another is the “pay-per-use” which is when you only get paid for every time the media has been used.

The average for a “buy-out” of profits is 25%-45% of the actual product sales. And the “pay-per-use” rate is said to be 2%-3% of commercial product sales or .5%-1% for consumer products.

Anytime you see the royalty payment as residual income it means that the author is not getting paid in a lump sum, but based on multiple uses of the media used. Usually, they get paid once for the product and after that, the recurring royalties are what pays the author.

In this way, a person can make some very hefty sums of income. And although the royalties are spread out over time, royalty payments can be very lucrative once the media hits high sales figures.

The following list represents unique royalty payment ideas for enhancing your income.



If you love photography and your work hasn’t been featured in any of the online marketplaces, you can take pictures of people you know, whose interests you have in common, or who have connections to the types of products you would love to sell. Then you can use their testimonials or their likenesses to demonstrate what people who love the product think about it. Or you can use their testimonials and pictures with a “buy now” link at the end. You can also offer a free photo shoot of them using your products. Let them keep the product and use it as part of a special gift or prize package when they win. Or take pictures of items you are selling and use them with a “pay-per-click” type of ad that pays you every time someone clicks on that ad but needs to make a purchase to confirm the ad click.


Probably one of the easiest ways to earn residual income is through music sales. All you need to do is create value through understanding and altering your music and then selling it.

If you’re familiar with the music industry, then you know that there are several ways to make money off of music. From selling your music directly to labels, collecting mechanical licenses from online music services (such as iTunes or Spotify), collecting performance royalties, and collecting sync rights for use in film or television.


AI takes a lot of time to design and develop, but once everything is implemented correctly, it can run on its own. Components of your AI platform include image recognition, language comprehension, and voice recognition. Depending on what you want it to do – whether it’s to recognize human emotions or to drive a robot – your AI will require a considerable amount of work from the software team.

At a minimum, your AI should be able to detect patterns in the data it analyzes and alert a human if it finds something unusual or abnormal. As companies continue to adopt AI, expect to see AI software permeate all aspects of the workplace.

About the Author

Scott Britton is an author, teacher, speaker and consultant. He is also founder of Clickfunnels Software, which offers a platform to create, configure and launch a fully automated sales funnel for any business in any niche. Scott has been recognized as the top Click Funnels expert and is the producer of the Click Funnels Movie, the How to Click Funnels DVD, the Comprehensive Funnels Course and The Administrator’s Guide to Click Funnels.

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