With the fast changes in economies and the high cost of living, everyone is continually looking for opportunities to earn extra money. Most jobs do not pay enough, and retirement is a thought that causes anxiety. Efforts to save up for our golden years may not suffice and this will mean a life of poverty due to inflation. What alternative sources of income are there? Is there a way to ensure you continue to earn money and curb inflation?
One could choose not to retire and continue working but this brings in a different issue. With age comes a myriad of health problems that we may not be able to predict. What if we are not able to work because we are incapacitated? Is there a different way? A better way to earn a living? The simple answer is yes there is. Residual income allows you to continue earning out of your past efforts. You work on something once and you continue earning from it for as long as it is relevant. This does not mean it is easy money especially not in the beginning. However, the effort is well worth it considering that you will continue earning from it once you set the business in place.
First we need to understand residual income. A conventional business capitalises on its networks of distribution to reach customers to generate income for the business. With residual income opportunities, you are the business. You build a system around your abilities, services and product that will allow you to continue earning money in the future with minimum effort.
Like any other business, residual sources of income require a lot of self-development, patience, hard work and resilience to build the system in the beginning but in the long run, it is worth the effort. The advantage of most residual income opportunities is that they provide the opportunity for almost anyone to be wealthy while conventional business structures allow only a few owners of the business to build wealth (residual income) Below are a some ways you can create residual income.
- Writing a book. This is the most obvious way to earn from past work. You write a book once but continue earning from it for life as long as the book is relevant for the target audience and addresses issues the target is facing. Writing a good book may take a lot of time and money in research, editing and graphics. However, it is well worth the effort when it becomes a best seller or is used for learning as you will continue to earn from your efforts for many more years.
- You could extend its worth by adding training material, movies, and developing tools around the book. Periodically reviewing the book and producing newer volumes is another way to extend its life. Each of these options provides a new source of residual income.
- Selling online. If you have a good product, the internet offers a great opportunity to distribute your goods and reach many people without the need to meet them and convince them to buy. The reach is broad; within and outside your vicinity. To get the traffic you will need to be paid advertising, Good copywriting skills will help you reach your desired audience. You may still need to produce the product however there are different ways to get production going and then reduce or totally eliminate the time you actually spend in production. One way is;
- Licensing; The other option is inventing a product and licensing it to other producers who have an interest in improving their product or offering using your technology. This allows you to reap from your original hard work researching and inventing.
- Multilevel / Network marketing; though infamous due to, ironically, poor marketing. These are not pyramid schemes and neither are they get rich quick schemes. They require a lot of learning and hard work which often may not be communicated by the eager salesperson. Network marketing and other residual income opportunities mostly capitalise on technology and customer networks to rich new customers. The difference between conventional businesses and MLM options is the distribution channel.
- Franchising; This may not be a perfect residual income opportunity but is a business model that allows you to earn many times more from a process you have perfected without equally increasing the same effort. You still have to learn to manage the franchise and deal with issues that come up with franchisees.
These are just a few ways you can start working on ways to earn residual income and stop worrying about your future.
Why should Africa prefer residual income type business?
A simple answer to this is that in developed economies with the highest number of millionaires like the US the high number of millionaires have made their money through multi-level marketing and use of the internet and technology.
Simply put to address poverty go where the money is and is going; networks are something we understand and technology we use (mainly in the form of mobile phones). I believe this is the future for African business. Business in this area is bound to gain traction sooner than later. There may be issues we have to deal with but addressing poverty can be done only when the financial issues of a majority of people is addressed. This is one way to do so.