Residual income is the best kind of Income for an Online Home Based Business Owner. Imagine making a a sale today and still earning monthly income on that sale a year from now, 10 Years from now, 20 years from now. That is the power of residual income. I started my first online businesses in September of 2001 and I am still earning monthly income for sales I made in 2001.

A Hypothetical example:

You find an online business where you can Earn $50 a month residual income for every sale you make. The Startup costs for this business are 0 and your monthly expenses for advertising, web page hosting,. and other miscellaneous costs are less then $250 a Month.

If you could make just 1 new sale a week at the end of 1 year you would have 52 streams of residual income (52x$50=$2600 a month). If you were to continue to make one new sale a week for 5 Years you would have 260 Streams of residual income (260*50=$13,000 a Month.) It is possible that some of your sales will not continue for 5 years. Even if you had a 40% drop out rate over the 5 years you would still be earning $7,800 a month. (7,550 Monthly after expenses)

Semi-Retirement

After you have worked for 5 years and have built up a big enough customer base to earn you 7,000 a month you go into semi-retirement. You do just enough work to sustain your income. Every time you lose a customer you add a new customer. So if you lose 1 customer a month on average you work just hard enough to replace that 1 customer.