In today’s fast-paced world, the desire for financial stability and freedom has become a common goal. Achieving this goal requires people to learn how to generate a second (or third) source of income. This is where residual income comes in handy. Often referred to as passive income, it is the money you earn regularly with little to no effort after the initial work or investment has been made.
As an entrepreneur myself, a business that would pay me while sleeping was a dream, and this desire made me start my first business in 2018 at the age of 21. After founding five busineses, I am presently operating three of them — all while finishing my nursing and midwifery studies and working at my regular job.
In this blog, I’ll discuss how to build residual income successfully and sprinkle some insights from my entrepreneurial journey.
Some Popular Means to Build Residual Income
Here are some popular means to build residual income:
Network Marketing
Network marketing, also known as multi-level marketing (MLM), involves promoting and selling products or services while building a team of distributors under you. By leveraging the efforts of your team, you can earn passive income from their sales.
Consider this; I started a Network marketing venture called ACN Inc. The business focused on essential services that people already use and pay for. ACN worked with people already using services related to the internet, wireless technologies, and energy.
The idea was — when someone becomes a new customer and pays their bill, you get paid. You get paid every month, month after month, for as long as they remain on their service — or for the term of their agreement. That’s residual income.
Despite being an instant hit, ACN didn’t seem to align well with my financial goals, and that’s when I started exploring other options. Subsequently, I decided to start an online business.
Online Businesses
Starting an online business can be an excellent way to build residual income. Options include e-commerce stores, drop-shipping, software as a service (SaaS), and subscription-based models.
Build a solid online presence, offer exceptional products or services, and focus on customer satisfaction to sustain and grow your business.
Towards the end of 2018, I started my website and began selling Muslim clothing from Alibaba and Ali-express. During my first month in that business, I was able to earn $380 USA. However, ‘Selling Clothes’ didn’t feel like the ultimate objective of my life. Therefore, after two months of success with sales, I decided to call it off.
I started another online business in 2022, my own Etsy shop website called NursingpreneurShop. I am still working on building this brand and am hopeful it can grow.
By now, you might think and perhaps even question my decisions about closing businesses that were yielding good when talking in terms of monetary compensation.
And isn’t that the out-and-out goal for anyone who wants to nurture different income sources?
Yes, but there’s more to it. I consider these endeavours as experiments. I was willing to take risks and learn from my mistakes. And at the same time, I was looking to find that sweet spot between a market niche and my own personal needs.
I believe that a well-selected niche and the right business model are the keys to success for an entrepreneur.
And this brings me to my next means of building residual income — Blogging.
Passive Income Through Blogging
Making money through blogging is one of the best options that anybody can think of. If you blog regularly, you can generate passive income from your blog. A blogger’s income depends largely on how many visitors they have to their blog.
I started my third business, “Nursingpreneur,” in 2020. I decided to write a blog and showcase my nursing and midwifery journey. I wanted to share my experience as a student, a nurse, and a midwife to encourage people to explore entrepreneurship and to motivate nurses and midwives to gear up for their ventures.
I have written over 38 blog articles so far on my website. I have interviewed and shared amazing stories of over 12 nurses who started their businesses or are working part-time and running their businesses.
Here are some ways to achieve success with blogging:
- Start a blog on a topic related to your area of expertise or interest
- Manage and maintain the blog on a regular basis
- Write quality content (good grammar, no plagiarism, and lots of research)
- Lay out a comprehensive content strategy that you can replicate month after month
- Tweak and update your content to appeal to your targeted audience
- Promote your blog on social media platforms like Facebook, Instagram, and Twitter
- Engage your followers through comments and being active on microblogging sites
- Offer valuable, free content on your blog (giveaways or e-books for annual subscribers)
Creating an App
Apps are the new websites. If you have an idea for an application that is likely to appeal to a wide range of people, you can create your own app. With minimal startup costs and time, you can launch a fully functional app in a matter of weeks. You can use one of the many templates that are available on the web to create your app.
Your app might be a game or one that helps mobile users perform some hard-to-do functions. Once your app is public, users download it, and you can generate income.
App development is a great way to grow your income stream.
In fact, I’ve been working on my own app for a while now. I’ve completed the business and financial planning for the same and will be launching it soon. Follow me on Instagram to stay updated.
What Are Some Other Options?
Real Estate and Rental Properties
Investing in real estate and rental properties is a popular way to build residual income. By purchasing properties and renting them out, you can generate a steady stream of passive income. Research the market, identify properties with good potential for appreciation and rental demand, and ensure proper management to maximize returns.
Investments
Investing in stocks, bonds, mutual funds, or other financial instruments can provide residual income through dividends, interest, or capital appreciation. Educating yourself about investing, diversifying your portfolio, and seeking professional advice to mitigate risks is essential.
Digital Products and Creative Work
If you have a creative side, consider creating digital products such as e-books, online courses, or software applications. Once developed, these products can be sold repeatedly, generating residual income. You can also earn royalties from creative work like music, books, or artwork.
Affiliate Marketing
Affiliate marketing involves promoting other people’s products or services and earning a commission for each sale or lead generated through your referral. Establish an online presence through a blog or social media, select suitable affiliate programs, and provide valuable content to attract and engage your audience.
Through My Lens
It took me patience, persistence, and a lot of research to find these three businesses that I’m currently running that align perfectly with my goals and plans.
If you also wish to start a business, all you need to do is START WORKING on it. You won’t lose anything (except time – well, that’s a necessity :D). But you will definitely gain a lot of skills and experience to help you build a strong foundation for running a successful business.
I don’t regret anything from the last six years of working in the business world. In fact, I have loved experimenting with new things, learning from my mistakes, creating a network, and collaborating with people.
However, entrepreneurship is not for everyone. Here’s how you can evaluate whether entrepreneurship is right for you:
- You’re fine with people not believing in your idea
- You’re not afraid of failure and consider it a part of your journey
- You have a positive mindset and believe that everything will work out eventually
- You believe that you can do anything if you put your mind to it and are willing to work hard for it
- You have a deep sense of confidence in your abilities to reach your goals
Of course, entrepreneurship doesn’t always mean working late hours or committing yourself to the business 24/7. But, at the outset of your journey, you should be realistic about the time that you will need to put in.
At the end of the day, find people who inspire you and make you hungry for your success — people who will be there to support you when you need it the most.
In Essence – Residual Income Recap
Residual income creates income streams that continue to generate funding with no work or time input, paving the door to financial freedom and independence. The opportunities to generate residual income are numerous, whether through real estate, investments, web enterprises, or creative labuor.
Remember that creating residual income involves commitment, effort, and a long-term perspective. Embrace the available options, experiment with numerous income sources, and watch as your passive income rises, bringing you closer to the financial future you desire.
Follow me on Instagram: Nursingprenur
Follow my business: Uplann
