You are doing it wrong if you constantly have to deal with customers, or even exert a lot of time, energy and money attracting new customers.
The whole point of having residual income streams is that they should work on auto-pilot.
One way to think about residual income streams is as a profit engine. You build it, you turn it on, and it continues running on its own.
While you may have to occasionally perform some maintenance to ensure it is running efficiently, or add fuel to keep it motoring, 99.99% of the time you don’t have to do anything to it at all.
It will simply keep pumping money into your bank accounts while you do whatever makes you happy.
Does that sound like a pipe dream?
A decade or so ago I would have agreed with you. But then the Interwebs happened.
The ‘net is an unbelievably powerful tool. It allows you to connect with people all over the world instantly and essentially for free.
So instead of having a customer base of a few hundred or a few thousand people, your pool of potential customers is in the billions — with a “B”.
There are two approaches to creating high-profit residual income streams. The first has to do with what I like to call the “profit ladder”.
Setting Up Your Profit Ladder
In business, you offer products or services (or both) for money. What these are depends on your niche. Your niche can be anything at all, but it
probably should be something that you enjoy because, most likely, you will be working within that niche for a long time.
Let’s say, for example, you like to golf. In fact, you are passionate about it. That’s a good niche because there are a lot of other people worldwide who are also passionate about golf.
Okay, so to create a high-profit residual income stream, you want to find products or service related to golf. But you don’t want to find just one product. You want a whole array of products, preferably that carry increasingly higher price tags.
Why? Think about it: If you sell somebody a golf bag, for example, you might make $50 profit on that product. Your customer is happy because they got the golf bag they wanted at what they consider a fair price. End of story, right?
Push Your Customer Up the Ladder
Why squander the positive connection you have created with that customer? Instead, you can capitalize on the trust bond you have created with that customer by offering them another golf-related product, one that has a slightly higher price tag (and slightly higher profit margin). Let’s say it’s a set of titanium clubs.
The customer buys the titanium clubs and is pleased. So now you offer them a set of video golf lessons with a respected pro golfer. They buy that. So then offer them a weeklong golf excursion at Pebble Beach. They bite.
Multiple Sales > Single Sale
So rather than making $50 on a single sale, you have earned $2,000 or more by continually pushing your customer up the profit ladder. Because you have nurtured a trust bond with that customer, they are going to be open to buying whatever you are selling.
And while not all of them may not make it all the way to the top of the ladder – which in this case is the Pebble Beach trip – if you have a huge pool of customers (which, thanks to the Internet, can potentially be billions of people), you can easily see how a lot of money can be earned.
One last thing to note: You can use affordable – and many cases free – tools to set up your online profit ladder so that everything is done for you automatically.
Once you build it and turn it on, you can enjoy residual income streams that divert money into your bank account 24/7/365.
So what’s the other way to make money using residual income streams?
[Grab a free (for a limited time!) copy of Nomad Income, and jump to Chapter 3, Nomad Fundamentals]