Three Ways to Use the Internet to Earn Residual Income

Urban legend is rife with tales of people becoming millionaires overnight by launching Internet ventures. Legend, of course, is almost always a convoluted mix of truth and lore. However, entrepreneurs with realistic expectations and tenacity may be able to earn residual income using the Internet.

Residual income can be defined in two ways. Economists refer to residual income as money that is leftover after paying one's monthly bills. It's often referred to in a household budget as "mad money" or "extra money."

It may also be defined as money that is earned on a continual basis with little time invested. A person who earns residual income this way expends effort at the beginning of the venture. Money begins to trickle (or roll) in as the business begins to get off the ground. Eventually income will continue to flow with little or no ongoing effort to generate it.

An example of this type of residual income is an actor who works on a commercial. The actor's contract may state that every time his commercial is played he receives payment. The actor may spend 10 hours working on the set. However, he may keep receiving payments for months or even years after filming the commercial. Every time his commercial airs, even decades later, he earns residual income for it.

Most people who earn residual income through Internet ventures do not become millionaires. Some have, and it's possible to do so with an ingenious idea and good business sense. It is possible though to make a significant amount of money this way.

Starting a full-fledged Internet business can be complicated. The average person may want to stay away from this. But even the average citizen can earn residual income using one or more of the following means:

1. Internet auctions. Sites such as eBay have brought garage sales to a whole new level. Average people who initially turn to Internet auctions simply to lighten their attic loads become hooked on the earning potential. Anyone with an eye for a bargain or the unusual may find success with an Internet auction business.

2. Affiliate marketing. Affiliate marketing is a broad term. It usually refers to receiving payment for driving website traffic from one's own website to someone else's. You provide a link (in the form of an ad or button) from your site to another. That website pays you a commission for each customer that clicks the link. The more affiliates you have, the more you can make.

3. Blogging. This one takes a bit of practice and a rudimentary handle on basic grammar and spelling. Start a blog devoted to a particular niche or subject. Familiarize yourself with how to use keywords effectively to garner quality search engine rankings. A bit of work is required to keep your blog fresh and updated. However, you need don't need to do this daily. You may be able to get good rankings with as few as three to six updates per month. Next, sign up to host pay-per-click advertisers (i.e., Google AdSense.) Ads will be targeted to the subject of your blog (keywords). You get paid whenever a visitor clicks on the ads.

These ideas can help you earn residual income and give you experience making money on the Internet. You can expand your virtual empire as you learn more and hone your expertise. You'll enjoy the extra cash and may even eventually amass those elusive millions after all.