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The Importance of Residuals

money in the handsYou started your own blog about how to clean carpets. You put in weeks and weeks worth of work, put up all your AdSense ads and waited for the cash to pour in. After two months, you made a whopping three dollars. Those are hardly wages to live on.

What many people miss in the world of residuals (and blogs are debatable whether they are residual, because if you stop writing your traffic will drop) miss is that it all adds up over time. Let’s say you work at McDonald’s for an hour. You will be paid minimum wage, but just to round things out, let’s say you make $10.00. Once you are paid that $10.00 for that hour’s worth of work that is it. McDonald’s will never come back and tell you that they are going to give you more money just because you did such a great job or you look cute that day.

Now, let’s say you used an hour to start a blog. You got it set up and wrote your first article. You added AdSense links and maybe even a couple of Amazon affiliate links. In the first month, you made $1.00 on that blog. Let’s say that the traffic held steady for 10 months. You’ve now made that $10.00 you would have made at McDonald’s. Now, here is the beauty of residuals. You will continue to make money on that article. $12 a year for life (this varies of course). $12 times 50 years is $600 for the same hours worth of work.

Take that out by even part time work of 20 hours a week. You are now up to $240 a year or $12,000 over 50 years for one week’s worth of part time work. I think you are starting to see where this goes. Over time, your residual income can far outweigh your day job. It takes a lot less time than you think.

Put in just 3 extra hours on a weekend or in the evenings building residual income that makes at least $1.00 a month for each 1 hour of work (not always possible to predict, but we’re shooting for an average here and $1 is easily attainable). At the end of a year, you could be making an extra $156 a month, but likely more. Could you use an extra $156 a month without ever doing another thing? What if you kept adding to that? What if you put in more than 3 hours a week? Most people can put in 5 to 10 while still working full time. You do the math. I promise you will be amazed at how quickly residuals start to add up. I have a few ad share articles up that bring me several hundred a month and I don’t do a thing with them. The money comes every month like clock work. Bonus money that is always welcome. I also still make royalties on my books. This is another residual way to make money.

Share below how you are using residuals to increase your personal income.

About

Lori Soard has worked online designing websites, writing, editing and promoting clients since 1997. Through Promo Warriors, she's consulted with over 100 clients to help them figure out what online presence works best for them. In addition to helping people learn how to start their own businesses, she writes feel-good books about the way love and the world should be.