Residual Income For Life VS. No Residual Income For Life

If you could make a sale and get paid once, make a sale and get paid many times over, or make a sale and get paid residual income for life, which one would you choose? This is a choice that we all have as Internet Entrepreneurs. I have taken part in all three, and I strongly feel that residual income is the best type of income. I want to explain why – but before I do, let’s dig a little deeper.

AdSense – Residual Income = No

You create a website or a blog and have AdSense enabled. Someone clicks your link, and you get paid only a few pennies to a few dollars. This is a one-time payment; you will receive no more payments after that click.

  • Pros: The sale was easy, quick, and free.
  • Cons: The payment is very small and only one time.

Clickbank – Residual Income = Yes/No

You find cool products on Clickbank that fit your niche; you effectively market them and make a sale that results in a healthy 35-75% commission.

  • Pros: The payment is significantly more than AdSense and you may have generated a sale organically.
  • Cons: The sale may not have generated for free (used AdWords) and it still is only a one-time payment.

Clickbank, also displays products that invoice the customer monthly. These are clubs, memberships, access to certain software, etc… Recurring-invoice products are a bit more difficult to sell, but it definitely can be done. These are the better Clickbank products to sell when you are looking to make more money. You’re getting paid for the sale as well as a recurring payment month after month as long as they are actively subscribed.

  • Pros: The sale may have been generated organically and the payments are recurring on a monthly basis.
  • Cons: You may have paid for the sale. Also, the customer eventually decides that they no longer need the monthly membership. They cancel, and your checks come to a halt. You do not have no control over the situation.

Network Marketing – Residual Income = Yes

Make a sale once and get paid for life. This is a similar concept to the monthly payments through Clickbank, as explained above. The only difference is that this industry pays more, the payments almost always increase, and the payments should never stop. How is this possible? The answer is retention.

To retain someone and to prevent them from leaving is actually quite easy – you simply teach them how to profit within the industry! See, the reality is if they are profiting in their own business, they will never want to leave. Therefore; residual income for life. Because of the payment platform of the Network Marketing Industry, as said before, the income should always increase.

The Funded Proposal

The concept of the funded proposal is that you have a cheap targeted product, or group of cheap targeted products, that you can sell to help continue the growth of your business. Sure, AdSense and Clickbank are a good thing in the beginning – it allows the newcomers to make a few dollars while they are learning as well as building their online presence. To me, the funded proposal is only the beginning to something large.

Lots Of Profit, Little Effort

As Internet Entrepreneurs, we all have two things in common; we want to work as little as possible and make as much as possible. I am guilty as charged! That’s why most of us started a business on the Internet in the first place – we know how powerful the Internet is. Wealth can be created at an incredible speed on the Internet – if done properly.

We all know how to make our businesses run almost fully on autopilot. So the way I look at it is that the choice really comes down to how much we want to make. Do we want to make money online through a series of one-time payments or by building a truly residual income for life – utilizing the Internet. Which is better? You decide. Hope you enjoyed.

This is a guest post from Brock Blohm.


54 thoughts on “Residual Income For Life VS. No Residual Income For Life”

  1. Good post. I dont agree with your decision about AdSense. Adsense is a mixture of Residual and non-residual. At first it is, but after good optimization and traffic, it become residual.

    Regards
    Adesoji Adegbulu

    1. arun says:

      Rightly said, once worked and paced, adsense becomes residual for life

    2. PPC Ian says:

      Totally agree that AdSense is residual if your traffic is organic and requires little ongoing optimization/work. That’s my personal biz model.

    3. Actually Adsense is not very residual. I make about $150/mo off adsense on my site but all that money is dependent upon the fact I continue to post good content. If I stop the money stops (there for its not truly residual).

      1. Brock Blohm says:

        It seems to me that we are all missing one piece here. AdSense is not true residual income. The actions that we have done (good SEO) allows us to make many profits per month on a monthly basis, but, the payment itself is not residual – it’s a one-time payment.

        The income I am talking, if you could compare it to AdSense, would be if someone clicked, and you made income off of that one click. See the difference?

        Sure, being paid monthly off of a site, without doing anything, is nice. But the TYPE of income is not residual. That is the point I was trying to make. Hope this makes sense?

        Didn’t want to confuse or offend anyone ;).

    4. SEO Malta says:

      I don’t agree, Adsense is not residual. In my opinion it’s a good start but only to save a capital that can be invested in more profitable projects.

      1. Erwin Miradi says:

        It actually depends on how you looking at it. I agree with Adesoji that Adsense is residual income when you have done good optimization and get high traffic.

        1. Brock Blohm says:

          The income is not residual. The clicks are.

          Great SEO allows for RESIDUAL CLICKS. Therefor, residual payments. The income, though, is not residual.

          Hopefully this clarifies it a bit…

          1. SEO Malta says:

            @ Brock

            I agree with what you’ve mentioned

  2. Games Dunia says:

    I agree with you that “residual income is the best type of income” and If we can follow some rules we can live well with that easily.

  3. Brad says:

    I have to disagree with that Adsense statement.

    I’ve build one website that I’ve build 5 years ago, and haven’t touch the site since; and it brings in almost 1k a month. Personal testing shows, 75% of the time it earns more EPC then affiliate offers. CPA offers are hit and miss/ ( to much maintenance for me).

    And just to emphasize the point, I’ve been paid every month for over 5 years,.
    for no work – this is what I define residual income is 🙂

    This reply was just to point out -Adsense is a residual income generator FOR ME.
    Everyone just needs to find what works for them!

    -Brad

    1. PPC Ian says:

      Very well said, Brad. This is my take on AdSense too. I also bring in a good residual income from AdSense.

      1. But he is not recommending that format …

    2. Ron says:

      And the best part of your system, Brad, is people don’t duck behind corners when they see you coming!

      1. Brock Blohm says:

        @Brad: I left an explanation above that may clarify a few things. 🙂

        @Ron: Nobody ducks behind corners when I come, either. I have never knocked on a door, made a cold call, put up a flyer, or placed an ad in the paper. It’s an amazing industry when you know how to do what 97% do not.

    3. Erwin Miradi says:

      Yeah, almost everyone here seems to disagree with that Adsense statement.

  4. Mate Hegedus says:

    Make one sale and get commissions every single month… sounds good 😀

    John, are you gonna post my guest post I sent you?

    1. Boy sounding like you have gun and asking John to add your post here …. Lolllz

      1. Erwin Miradi says:

        LOL. Maybe John didn’t reply the email. But asking through the comment is smart though.

  5. For me the choice is simple, YES to Residual Income. I’m working hard towards securing a steady and on-going residual income. My head is always working on finding new ways and opportunities to achieve that goal 🙂

    Not there quite yet, but there is a light at the end of the tunnell, just gotta keep doing what works well.

  6. fazal mayar says:

    The problem with adsense is that income vary even if you have good recurring traffic coming up each month but if you have very solid traffic, adsense can also be residual.

  7. Hey Brock,
    I read Robert G Allens Multiple Streams of Income Book about 10 years ago and one thing that he strongly recommends is creating residual income streams.

    I have an invention that I am working on that I intend to receive royalties from for life.

    1. After that you will enjoy your rest life near beach house …. Lollllzz

      1. Brock Blohm says:

        😉 You got it, ZK!

    2. Brock Blohm says:

      Awesome, Justin! I’m with ya. Royalties are great as well.

      I have a few on the back-burner. I have yet to bring them out. I really should, though. Pretty kick-butt!

      Residual for life 😉

  8. That’s why John simply love aweber …

    1. Erwin Miradi says:

      Yeah. John has been recommending Aweber as far as I can remember..

      1. John is recommending aweber before you start blog commenting here 😀

  9. John says:

    I Love this blog every time I visit another very informative post to read and learn from.

    1. Brock Blohm says:

      I’m with ya, John. Always good stuff on JohnChow.com 😉

  10. fas says:

    Residual is a must I think for better profits in future.

  11. Great point. The key is to not give up- keep working at it. Most people give up too quickly before they realize their success.

    1. Brock Blohm says:

      So true. SO true! It’s crazy. If people would follow through and fail to give up, it’d be amazing to see how far they have got. Many give up without realizing how close they actually are to where they wanted to be…

  12. KONTI says:

    adsense i believecan be a residual source of income for life i it continually recives non stop traffic.

    1. Brock Blohm says:

      I clarified this at the top of the comment section. Hope this helps 🙂

  13. Games Dunia says:

    It’s a Good Theory, i should stand out on this, not against this.

    1. Brock Blohm says:

      Ohh, not a theory my friend.
      Residual for life. 🙂

  14. Steven says:

    The best residual income for me is property investment!

  15. Stocksicity says:

    I’ve tried clickbank for a while for this but never really got anywhere with it. I may have started too early and given up too early, waiting for one of my sites to get a bit more popular before I put it back up.

    But yeah, who wouldn’t want residual income for life.

    1. Brock Blohm says:

      “But yeah, who wouldn’t want residual income for life…” Exactly

      The only people that can limit ourselves – is ourselves. If you want it bad enough, you will do whatever it takes to make it happen. Best of luck!

  16. Great post, but i think everyone talk about residual income is all about multiple marketing but it seem like everyone forgot the true residual income. Adsense is great and affiliate marketing is also good too but the true residual income is putting your money to work for you. For example invest money in something that give you a good return for years and after years is much less work than trying to find the traffic and earning from the traffic. Rich people make money work for them invest and invest wisely. Learn the compound interest and use that to earn residual income.

  17. Hi you stand a True Logis “Residual Income For Life” and yes it is right.

  18. Gift Ideas says:

    Nice comparison about Clickbank & Adsense.

  19. Max_from_London_newbie says:

    Hi everybody, I’m a brand new reader of John Chow, literally since 1 hour..and I’m not a blogger. But after having seen his video about the DOT.COM life I feel inspired.I’m Italian, living in London since 2010, my professional background is in sales, from stores managing to representation.I’m passionate in Techs and stuff like that..so it seems here you all are experts in the field..at the age of 33,am I still in time to start from scratch trying to achieve a residual income by blogging and internet?It’s been a while since I started looking for it..please could you advise me to start from zero to the right direction…I would really appreciate it. My email: [email protected] thanks Massimiliano

  20. I like your comparison. I think Clickbank is better as long as you can maintain your affiliates and get your checks coming.

    1. Brock Blohm says:

      I’m not a huge fan of either, really. Big money and true residual is where it’s at (in my opinion).
      I like Clickbank better, but it depends on the site. Some sites, this wouldn’t be good. Some would. Some would be best with a blend of both.

      Either way, they both help with funding in the beginning…

  21. 5x5 workout says:

    To get good health we to do freehand physical exercise .
    Now -a-days its easy to keep our body in our control.

  22. Gordon says:

    Wow. The posts on this site looked very interesting and credible. But then I got to this one. Multi-level marketing is a scheme that borders on fraud. It preys upon the good nature in people and plays them for suckers. Do some reading before you believe a word of this. http://en.wikipedia.org/wiki/Multi-level_marketing and http://en.wikipedia.org/wiki/Multi-level_marketing, and many others.

    1. Brock Blohm says:

      As an FYI, there is no business model or charity that is set up with out a pyramided structure. The only difference between network marketing and any other business is that in traditional business, you start at the bottom and work you way to to the top. In network marketing, you are at the top of your own business.

      To think that everybody above you gets rich when you join is ignorance. ANY person that joins can make an incredible amount more than the person who enrolled them. No question about it.

      Like every business, you are paid by your efforts. That is it. You treat it like a business and you get paid like a business. Treat it like a hobby and you will be paid like a hobby.

  23. residual income for life… sounds tempting and unbelievable. worth to give it a try.

  24. Adsense is not helping to earn much and i would like to suggest click bank,info links are offering good income

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