Yesterday, we talked about how inventors can create products that spin off residual income through royalties, regular percentages of sales.
But, you say, not everyone is a new widget creator or gadget maker. True.
There are other ways for you to unleash residual income through royalties. You might want to create and sell information products. An eBook is one example.
A rather new form of book-selling, the eBook is usually offered in pdf form. Most think that offering digital products to readers is an insignificant royalty stream. You won’t make the New York Times bestseller list, right? You might not make the bestseller list, according to books like the 4-Hour Work Week and Career Renegade, writing electronic books or producing electronic products can deliver a regular stream of residual income.
Jonathan Fields, who wrote Career Renegade, points out several successful projects that created residual income for their authors in his book. Leo Babauta’s Zen Habits sold thousands of copies and, with no publisher and agent to divide up its earnings, each sale was pretty much all profit.
So, what do you need to know about creating residual income with information products?
Find a niche. Pick a subject that you like and write a book or produce a video that fills a need in that niche.
Start a blog or “platform.” You want to build a relationship with your readers so they know and trust you.
Become an authority. Build trust in your community as someone who knows a lot–or someone who can connect them with sources who know a lot.
Now, let’s look at some of the pros and cons:
Pros: The great thing about eBooks and other digital products are pretty much all profit.
Cons: You need to build an audience, which can take time. The other drawback, you’ll have to do the work. You have to write, for instance, and some people don’t like to write.
Here are some resources to help you start.
Lulu.com (publishes eBooks)
Clickbank (sells eBooks and creates affiliates for your eBooks.)
Tomorrow we’ll look at Automated Trading as a way to create residual income.
This is the fourth post in a series about ways you can create wealth and financial freedom using residual income strategies. For more information, you might want to read the third post in this series. It’s called Create Products For Income That’s Massive and Passive.