True Residual Income
AMESSAGE FROMCEO FRANK VANDERSLOOT
The principle of residual income is a very powerful concept! Residual income is dependable income that keeps coming in month after month. It usually originates from a previous activity, but often needs nurturing to keep it coming. The peaceful certainty that someone will have a secure income throughout one’s entire life can provide a feeling of security and assurance. But very few people have had the opportunity to develop any type of residual income that will sustain them in their old age. Medical doctors don’t have it. College professors don’t have it. Attorneys don’t have it. Neither do schoolteachers, firemen, politicians, nurses, business executives, or accountants. Most people who hold 8–5 jobs can’t even imagine continuing to receive an income from their employer should they ever leave their 8–5 job. Residual income is a concept they have never really thought of or even considered. To many, the idea of residual income sounds too good to even be a possibility. True residual income opportunities are hard to find. Some suggest that authors and actors have the best example of residual income because they receive a small royalty every time their book or their movie is sold. But a closer look reveals that that income is really short lived because should
an author be fortunate enough to have his or her book hit the bestsellers list (necessary for it to produce much income at all), it usually lasts for a very short period of time—often for only a few short months. Even the most phenomenal books last on the bestsellers list for only a few years. That’s because once someone buys a book, he or she is not likely to buy the same book again, and soon pretty much everyone who would buy a particular book has already bought one. And as soon as no one is buying the book, the royalties stop coming and thus ends the residual income. The same is true for actors and movie producers. The true financial life of a movie is extremely short. And therefore, the income stream is also extremely short. So where can one find true residual income these days? In truth, real residual income opportunities are very hard to find. Oh, sure, if you own a few million dollars in bonds or dividend-producing stocks, you can have a substantial and reliable residual income stream. And owning some types of businesses provides residual income to the owner or shareholders of that business. But stocks and bonds and businesses that are substantial enough to produce significant residual income cost millions of dollars.
1 NOVEMBER 2017 | MELALEUCA.COM
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