Monday, April 30, 2012

Residual Income Home Business Considerations

There are many advantages to having a home business. In fact, I encourage everyone to have a home business if only to capture those advantages, whether the business generates a large income or not. However, of all of the options, a residual income home business may make the most sense and offer the best advantages.

Residual Income Home Business Types

There are many ways to generate residual or quasi-residual (i.e., continuing) income while working from home. For example, if you have the necessary skill sets, you can create something that generates royalties every time someone buys a copy. Authors and musicians are examples of people receiving residual income from royalties.

There are also sales positions that allow you to work from home and that can generate some level of continuing income. Some insurance salespeople, for example, receive income not only when they sell a new policy but also every time the policy holder renews. In practice, however, many insurance agents find that their income drops off quickly when they stop selling.

Some internet marketers are also able to generate a continuing income by developing a product, driving traffic to a sales page, and arrangement for automatic fulfillment when they get a sale. However, this requires selecting a product that will remain in demand over time and developing a traffic generation system that will run indefinitely on autopilot. Many internet marketers, and especially those new to the industry, find putting together all of the necessary systems to be extremely challenging.