Residual income streams?

[mwg123]

A friend of mines dad used to sell insurance (all types) and although now retired still receives a tidy sum of residual income. It is also mentioned in the book "The Naked Trader" with streams through telecoms and energy companies?? Trading in something that will provide a small to moderate residual income is very appealing to me! I would not want to become fsa registered and was wondering if anyone could shed some light on any avenues I can go down, experiences or existing streams you may have working for you.

Thanks Chaps and Chapesses!

Happy New Year,

Matt

[Glassman]

Have you asked mate's dad?

[ShadownINja]

Suspect he buys and sells shares or spreadbets. If he buys shares, some shares give you dividends on a regular basis (size dependant on how many shares you own, of course). Snag is, did this guy tell you in front of his wife or did he provide bank statements?

ETA: expanding on the wife thing, he's unlikely to say he lost £20k last year on shares in front of his wife.

Edited by ShadownINja on Saturday 3rd January 22:55

[m4tt]

What he probably means is that he used to be an IFA or insurance broker and is getting renewal income from the policies that he sold. In other words he sold a policy, then gets an income from the provider when it is renewed/ anniversary passes.

Not aware of any other industries where it is common place i'm afraid.

[Eric Mc]

Other areas where residual income will come to you are incomes deriving from copyrights, patents and intellectual property rights.

So, unless you are a singer, songwriter, author, inventor, engineer, scientist, filmaker, games programmer or artist of some sort, you probably won't obtain any income from such sources either.

[mwg123]

Thanks for your advice chaps. Let me just quote Robbie Burns The Naked Trader paragraph on his residual streams." And i sold mobile phones and cut price phone calls and energy for a company called Telecom Plus. And i still do now actually from time to time via my website. I got - and still get - a cut of every phone call made or energy used by customers - it's called residual income and it pays for all of my bills even now. so i still earn from customers i sold to in 1999!" Ring any other idea bells?

Thanks,

Matt

[Eric Mc]

He's either boasting or very shrewd (or both).

If you run your own website you can obtain income by providing links to retail sites. I know someone who does this with an entusist (not PH in this case) car site where, when books are shown, a click on the book will link through to Amazon.
He get s small commissions from Amazon each time someone comes to them from his site.

[mwg123]

here we go!

http://www.utilitywarehouse.biz/videodir/home.taf?...

[Jubal]

mwg123 said:

here we go!

http://www.utilitywarehouse.biz/videodir/home.taf?...

Don't put the deposit down on the yacht just yet. The barriers to entry in their market are almost zero. Every BNI, Chamber of Commerce meeting etc is infested with them or their ilk. I won't deny that a lot of hard work could result in building a residual income but it's far from easy in such a competitive sector.

[Brown and Boris]

Eric Mc said:

Other areas where residual income will come to you are incomes deriving from copyrights, patents and intellectual property rights.

So, unless you are a singer, songwriter, author, inventor, engineer, scientist, filmaker, games programmer or artist of some sort, you probably won't obtain any income from such sources either.

This is my preferred route. Although royalties are often very small (I usually get just 12.5% of the net and only 3.75% on one thing I co-wrote) I do zippo on-going work for them. They come in whether I am here on on a beach and are what my old mentor called them 'pocket money for life'. This year one, as things are already looking slower, of the key thrusts of the business is to develop more IP to exploit for years to come.

Mind you the last montly cheque on the one I get 3.75% on was less than £4 so its the pocket money of a 8 year old!

Edited by Brown and Boris on Sunday 4th January 17:26

[mwg123]

Jubal said:

mwg123 said:

here we go!

http://www.utilitywarehouse.biz/videodir/home.taf?...

Don't put the deposit down on the yacht just yet. The barriers to entry in their market are almost zero. Every BNI, Chamber of Commerce meeting etc is infested with them or their ilk. I won't deny that a lot of hard work could result in building a residual income but it's far from easy in such a competitive sector.

My point on this one was that there are other avenues where Residual Income can be earned other that the ones Eric MC pointed out(copy below). There must be other sectors with more of a margin available?


"Other areas where residual income will come to you are incomes deriving from copyrights, patents and intellectual property rights.

So, unless you are a singer, songwriter, author, inventor, engineer, scientist, filmaker, games programmer or artist of some sort, you probably won't obtain any income from such sources either."


Thanks,

Matt

[ShadownINja]

Jubal said:

mwg123 said:

here we go!

http://www.utilitywarehouse.biz/videodir/home.taf?...

Don't put the deposit down on the yacht just yet. The barriers to entry in their market are almost zero. Every BNI, Chamber of Commerce meeting etc is infested with them or their ilk. I won't deny that a lot of hard work could result in building a residual income but it's far from easy in such a competitive sector.

Ah, that. Nearly signed up about a decade ago to one of those schemes. The one who makes the big bucks is the telco.

[Simpo Two]

Why do renewal commissions exist? Useless IFAs who sold me things years ago are still making money out my fund performance. Why can't I bill all MY old customers every year for doing nothing?