Residual Income

Written by Blaire Chandler-Wilcox
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Albert Einstein articulated the theory of relativity, and was part of some of the greatest scientific discoveries the world has ever known. Yet, when asked what the greatest discovery of the 20th century was, he replied, "compound interest". Were he alive today, he might add, "...and residual income."

Residual Income: What Goes Around Comes Around, and Around, and Around

Residual income, simply put, means that the same folks that buy your product in January will come back to you to buy the same product in March. This is not the kind of income that is earned by vacuum cleaners, sofas, washing machines, or even clothes. These items are durable, as they say. Customers may become loyal and return to you after a period of years, but they certainly won't be calling you for a new set of throw pillows every other month because the first set is now all gone and they just "must have more!"

Residual income comes from selling products that are literally consumed, or used up, and must be replaced after a period of time. A brand name glass cleaner, for instance (you know the one I mean). It works better than its competition, it's used on a regular basis, and once the supply is getting low, people write "glass cleaner" on their shopping lists. Most people feel this product must be in the house all the time. This product creates residual income.

Of course, residual income is only created if what you're selling is a really great product. Residual income is derived from products that meet needs in a genuinely superior manner. Products that solve problems that everyone knows they have, and that do so in a way unique from their competition, create enormous residual income potential.

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