Are you maximizing all the ways your company can profit? There are looked at residual income yet, it's about time you need to do. Wouldn't it be great to awaken in the morning and also have dozens, hundreds or a large number of emails notifying you of sales when you were asleep? Earning money when you sleep, walk your dog, run errands, etc. seems like an excellent day to me.
So, what is residual income?
Passive earnings are something you set and basically forget. What do I mean? Well, you could provide a digital download in your website. You could have affiliate links in your website and get paid each time someone decides to buy something. When you produce the content, it exists in cyberspace for the ideal clients to purchase.
You may also secure passive income from rental property, minor involvement investments, etc.
According towards the IRS, residual income is income derived from something you personally didn't actively take part in. Let's talk about investors for a minute. If you run a business as well as an investor puts up $100,000 and also the agreement is they make a percentage from sales, if that investor does not have a say in the industry, it's considered passive income for your investor. When the investor offers any kind of advice, helps manage the organization, etc. it's now considered active income in the IRS. My sister is notorious with this kind of income. She is basically her own Shark Tank and invests in countless businesses and property but doesn't actively take part in any. She fronts the money and watches the cash roll in.
The IRS includes a test to find out if income is passive or not. It's super simple. “If you've dedicated 500+ hours to some business or an activity that you're profiting from, that is material participation; if your participation in an activity was 'substantially all' the participation for the tax year, that is material participation; if you've participated up to 100 hours and that is at least around any other person active in the activity, then that is defined as material participation.” So, as the e-book in your site is not through the IRS' standards for residual income, it is passive meaning that you could set it and end up forgetting it.
Ask yourself, “am I earning money while I'm sleeping?” If the response is no, it's time to then add passive income for your business.