How The Residual Income Model Helps Us With Australian Small Business Ideas

It is a little known entrepreneurial fact that some very smart, North American, U.K. and Australian Internet marketers with online Small Business Ideas create their own passive income systems.

I recently joined one such online business called “Passive Profit ROBOT”, created by Jeff Alderson, a ‘Net genius working out of Florida, USA. I am extremely impressed with this system. It has genius-like simplicity because all I have to do is pass on a free marketing report, by referring people to my unique referrer web URL. That’s all I ever need to do! It is a very simple system where you refer people using The Internet, then you get paid regularly as they purchase marketing software and business information products through the Paypal and Clickbank merchant systems. Joining these merchant payment systems as an affiliate is a breeze too! Now for some more conventional forms of residual or passive income, such as the earning of royalties.

Just as a singer/songwriter like Michael Jackson or Sir Paul McCartney, writes a song once then gets paid a continuous stream of royalty income – or like the writer of the Harry Potter series – writes an irresistible novel then gets paid over and over again as thousands or millions of copies fly off the downtown book shop shelves!

Those royalty incomes are all variations of residual income. Or passive, automatic, monthly or annually recurring income. It’s a rather exciting prospect isn’t it? Many authors, playwrights and songwriters enjoy this recurring residual, royalty income! You can too, as a home based business entrepreneur, working with a telephone and the Internet from your home office. This is what I’ve done since 1997.

Do you fully understand, then, the business model, ideas and concept behind residual income? It is really quite a smart and yet simple business model: “You do something once then you get paid many times over again, for that clever initial action!” It could be the action of referring someone into an online business, like a nutritional MLM, for example.

Certainly, there are many types of home based work online and internet businesses that use the residual income model. For example, nutritional MLM or multi level marketing businesses that typically sell supplemental nutritional products, women’s cosmetics and household goods, like home cleaners, etc., all use the Residual Income Model. It first appeared in about 1950 and has made millions of dollars for business owners and top sales performers. It is also known as referral marketing.

They are a type of referral marketing where you refer someone once to a global home based business compensation matrix or structure then you get paid monthly recurring income at a certain percentage while they remain a paying customer of the company. The simple, compressed matrix works best. Not a complicated binary structure. It looks good in theory but does require a lot of supportive work behind the scenes to make sure your referred downline of customers does not collapse or disappear!

The critical importance of nurturing your workers:
They will all need your constant attention and coaching support, believe me.. Most people seem to work best with frequent leader’s help and reinforcement. You can even devise a system of rewards and incentives, like the large multi-level marketing, MLM companies always do. They offer holidays away to Hawaii, for instance, and frequent conferences with hotel accomodation or a cruise.

Business Editor
Geoff Dodd

• 7 Expert Small Business Ideas Just as a singer/songwriter like Michael Jackson or Sir Paul McCartney, writes a song once then gets paid a continuous stream of royalty income - or like the writer of the Harry Potter series - writes an irresistible novel then gets paid over and over again as thousands or millions......
• Why You Should Promote Residual Affiliate Programs. Interesting Facts to Remember Are you a webmaster in need of extra income? Or are you planning to set up an online business but you still don't have any product to sell? If so, affiliate marketing may be the best way out for your problems. With affiliate marketing, you won't need to worry about......
• Make Money With A Home Based Business - Make Money At Home In 2009 How difficult is it to make money working at home? You know, it's not all that difficult but with a failure rate of over 95%, the statistic suggests it's almost an impossibility. Let's be clear, starting, running and being successful home business is not the "walk in the park" many......
• Build Income Using Online Marketing With Or Without An Internet Site Internet marketing is simple and easy to do regardless of whether you are a newbie or a guru re-evaluating the industry. You can start not needing to put forward anything at all out of one's pocket. Even promoting the stuff that you have chosen can result in becoming something you......
• Starting Your Home Business Affiliate Marketing It is easy to launch you own home business today even if you have absolutely no money to invest. Becoming an entrepreneur today does not require money, it requires know-how. There are so many people who are looking for opportunities or ideas for small business options on the internet, with......

• How Much Money Will I Need For Retirement? One of the most difficult calculations to make during retirement planning is how much money will be needed after retirement to live comfortably.  It is important to have a financial goal to work towards while saving for retirement to ensure that you will have the money you need to maintain......
• Help Your Online Business Grow And Improve Taking your business online is a great move as more people nowadays are taking advantage of the convenience offered by the internet. It would also open up more possibilities for you because now you will not have to have a closing time and you could reach more people because internet......
• Debt Decisions If you are thinking about putting into practice debt leveraging in order to start creating more than one stream of income, it can seem like there are thousands of avenues open to you. For those just starting out, this can be very confusing and it is all too easy to......
• Solution Auctions Review I believe that the internet was revolutionized by person to person sites. It was the idea/action that people, regardless of distance, can interact with one another. AOL/Prodigy changed the way we could talk to each other, Napster changed the way we look at music online, Prosper changed the way......
• Why Big Companies Are Blogging? There are still some old school business people out there that consider the whole idea of blogging for their business rather ridiculous. Unfortunately for these people, they will never understand that the world is changing and blogging is a whole lot more than just a bunch of people in their......