Residual income on the other hand isn’t quite as golden as passive income. More work is involved and less freedom. Residual income gives up many more possibilities as we now have direct customers. Monthly or yearly services and membership sites are two good examples of residual income business models.
The goal of the residual model is to break out of the project based model where you provide a service, such as building a website, and then go looking for your next client. The idea is to keep a steady stream of monthly or yearly fees coming in.
Monthly Or Yearly Services
There are many services that companies need that can be provided by somebody who has a reasonable amount of Internet experience. To insure that we stay focused on a residual stream of income the services below should be provided on a monthly or yearly basis with a six month minimum agreement;
- website hosting
- website update and maintenance
- search engine optimization services
- pay per click marketing management
- content creation and editing services
- newsletter management
- strategy and consulting services
Membership & E-learning Sites
Here the primary business model is to charge individual or businesses on a monthly or yearly basis to learn or obtain quality information. As most people do not remain as members of a membership site for more than six months or so on average an E-learning site that offers a six month course or longer really has a very similar result to a membership site.
Companies and individuals are willing to pay for a wide variety of quality and expert knowledge and advice. Almost any field, category or niche could possibly succeed however you do need to provide quality, value and genuine expertise. Here are a few examples of successful membership and E-learning website as of this writing;
- expert advice to restaurant owners ($99 signup fee and $13 per month)
- learn how to be a professional graphic designer ($20 per month)
- write and publish your own book ($49 signup fee and $20 per month)
- increase profits from your business website ($20 per month)
- how to run a profitable photography business ($7 per month)