Recurring Income Streams - 4 Effective Methods You Can Use
One of the great things about having disposable income is that you have the ability to create a recurring income for yourself, even if you just put it into a high interest savings account. However there are several more effective ways of creating recurring income streams, regardless of whether or not you have some capital behind you already.
Let's start by assuming you do have a lot of savings first of all. In this instance there are basically two methods you can use to generate an income for yourself. The first is simply to invest your money into property and rent it out to tenants.
You should ideally buy cheap properties at auctions or place advertisements in the local press that target distressed sellers in order to give yourself greater opportunities to generate substantial capital gains. In the meantime though, you will of course benefit from a steady recurring income through the monthly rental payments.
Another way to generate an income is to invest your money into the stock market, and more specifically in quality companies that have a high dividend yield. A lot of quality companies pay yearly dividends between 2% and 4%, which is okay, but you ideally want to look for high-yielding companies such as the utilities providers because some of them pay between 6% and 9%.
Ideally you should buy them when they appear to be oversold because not only will you lock in a higher dividend yield, but you are also more likely to benefit from any increase in the share price if you ever decide to sell the shares at a later date.
If you don't have much money behind you, then there are two equally effective ways of generating recurring income, both of which are related to online marketing. The first is to promote affiliate products which pay recurring commissions.
For example if you promote online services such as autoresponders, web hosting services, membership sites, etc, you will earn a commission every month (or every payment period) for every single customer you refer (who remains a member). So if you referred 100 people to a stock advisory service, for instance, that costs $30 per month and pays 50% commissions, then you would earn a recurring commission of $1500 (100 x $15) every single month.
Another equally effective way of generating a recurring income online is to promote network marketing programs. These programs, also known as MLMs do have a slightly negative reputation, but there are some excellent companies out there who have some very lucrative programs.
The key to success is to pick a company that provides good products first and foremost because these products are much easier to sell. You also want to sign up to a particular program under one of the most successful performers who can offer to train you personally. This is because as a result of this training you will then be able to train your own downline members, which will help them become successful and will obviously result in much greater recurring income for you.
So as you can see there are lots of ways you can generate recurring income streams, whether you have some existing capital behind you or not, but the four methods I've mentioned in this article are definitely some of the most effective.
