Residual Income Formula

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In the world of accounting, the Residual Income Formula is as follows:

Residual Income (RI) = A – (B x C)

In this context (Accounting) residual income is the metric by which they measure the returns earned by a department which is in excess of any set minimums or requirements.

In the residual income formula above, A represents the department’s net operating income, B represents the minimum set required returns (assets) and finally, C represents the mean (average) operating assets of said department.

If you’re into accounting, I hope that helped. But, if you’re into making residual income from home, then allow me to delve into something more!

Passive Income and the Residual Income Formula

For online marketing, the residual income formula is much different. Recurring passive income is the king for online marketers. Generally, as with any business (online or off) a marketer can earn a commission when selling someone else’s product or service. In this way, the marketer doesn’t need to worry about creating a product or service, they simply bring together a company and a customer (or client.) Thereby, the company that manufactured the product OR developed the service makes money and the client obtains the product or service they desire. The marketing person gains a commission on creating the environment for the two to meet.

The more common term for this process is affiliate marketing. The company has a system to track each affiliate marketers clients and know how they arrived at the companies website (although, sometimes this can yield direct purchases from the affiliate marketers website – but, let’s not go down that rabbit hole.) Affiliate marketing is huge and there are several major affiliate marketing warehouses that Fortune 500 companies can list their products and service to enlist the aid of thousands of affiliate marketers looking for good commissions on the sales they make.

The Affiliate Marketing Formula (or model)

As indicated above, affiliate marketing is selling someone else’s product or service in order to obtain a commission on the sale. It’s much like a brick-and-mortar car dealership. The kicker is this though, affiliate sales typically are one-off, meaning for each client you you create a sale for, you get paid commission only once. Then, you need to create more clients by developing more web traffic (visitors) to your sales advertisements. (These advertisements are generally provided by the company.) But, let’s take the affiliate marketing formula one step further.

The Residual Income Formula

In the context of affiliate marketing, there is a totally different residual income formula than that of the traditional accounting models. Within the major affiliate marketing warehouses that I mentioned above, there are companies that will sell expendable products or monthly services to clients that are in need of them. Thereby, the client pays for these products over an over again OR needs a service on an annual or monthly basis. Also, these companies are willing to pay the affiliate marketer on the same annual or monthly recurring basis.

So, for those of us aware of the “recurring subscriptions” or “passive income” this is how the affiliate marketing residual income formula is most advantageous. We can make a sale one time to a client and the company that owns the product or service will pay us for as long as the client remains a customer to that company. This is smart, passive income.

There are not nearly as many companies offering recurring payments or recurring subscriptions online as there are traditional one-time affiliate marketing programs. But, there are several. You simply need to know where to look and how to filter for recurring. And, that involves learning, education or training.

How, some of you reading this may already be skeptical. But, website hosting is a huge and perfect residual income formula service that many online affiliate marketers have created huge success in. Unfortunately, it is a very, very competitive market. But, there are other products and services for residual income in addition to website hosting. SEO is another. But, again, very competitive.

Now, you may still be skeptical and I don’t blame you one bit. As I mentioned before, either on this page or on several of our other pages, I have spent thousands online testing out different so-called businesses and programs. I have been bit many times and lost a huge amount of cash and time and created so much anxiety after the fact. So, I would like you to ponder this. This recurring business opportunity is free to join, check it out and even EARN money. Put your credit card away and fully check this out. I feel you’ll be as impressed as I am.

But, what if I could introduce you to a business opportunity with totally free training that could help you discover how to build a website around your favorite topic and earn recurring, passive income at the same time. (yes, recurring, passive and residual are almost synonymous and you’ll see me interchange them quite often.)

What if I could help you with a blueprint of how the six figure earners began in their niche before it became flooded and learned how to market effectively to build an online presence that was totally involving the residual income formula?

Beyond that, what if I told you could could join, start your training, and EARN while you LEARN without any out-of-pocket expense? Yep, you read that right. I won’t cost you one single dime! Not a penny, nada! Zilch! Nil! 🙂

And, unlike other scams out there, this company has a proven 10 year track record. No hype, just honest step-by-step training that is beyond anything else out there. And, no, we won’t leave you in the dark once you have joined. Live support is available every single day. We are 100,000 strong and proven to effectively help you take your passion and turn it into an online successful business.

Now, this is no get-rich quick scheme; far from it. Affiliate marketing may be new to you. And, like with anything new, there is a learning curve. But, this online business opportunity is the real deal. You will instantly gain access to the most complete online marketing training available – over 500 modules, videos, live support and free website hosting. You will get the chance to learn how to build an online business from the ground up with a solid future and passive recurring income. You simply have to be willing to put in the time to learn to do it the right way.