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4 Ways to Generate Residual Income

Updated on April 4, 2012

There are many popular ways to make money. But how much money do you want to make? I will provide a list of the top 4 ways to make a residual income stream.

1. Options Investing:

Option investing is an excellent way to earn money. Although, it is not for everyone the ones that do get into it have seen some fantastic results. To leverage their options as quickly as possible, many investors are searching to sell naked puts and covered calls.

Put and Call options:

This type of option will give you the option to repurchase the stock at a set price or sell the option at a specific price. The price is determined by you, and you can specify the specific criteria to meet is.

Naked, Put Strategy:

This is a unique way to make a profit in trading option. This strategy is based on selling options that you do not own. With this unique approach, you get the end premium fee after the person sells the stock to you at the price you set.

Covered Call:

This strategy is used to sell open call options against the stocks you already own. If, you have some stocks that are not doing too well, and you want to clean up your portfolio this is an excellent way to make a little profit on them.

You still get the actual profit from the commission, but it give another buyer the option to purchase these stocks from you at a price that you have set. This way you don’t lose the money that you are putting in. Because if, the option and stock do not sell then you still get to keep your stock to try again on another day.

2. Tax Liens and Tax Deeds:

With, the real estate, market in constant fluctuation and many people abandoning their homes due to foreclosure this can be a lucrative way to make some extra income. This strategy allows potential investors to get homes for mere pennies on the dollar in some instances. Basically, each county and the town has property taxes that must be paid on an annual basis by the home owner to these government entities.

Property taxes are used for many things from infrastructure, schools, new projects and other things that the public requires. If, the county is not able to collect on these funds then the budgets need to be reevaluated.

The county taxes the home from the people that have not been paying the taxes. They allow investors to pay the property tax of the delinquent homeowner. The county will then receive the funds necessary to still get its public services running and it will give the investor a couple of options.

a. If, the home owner gets caught up on the back taxes they owe. Then they will have to pay a plenty for being late. In some counties, this can be as high as 50% of the original tax bill. The county can offer half of the 50% late fee back to the investor. On top of the original fee.

b. If, the home owner decides not to pay taxes on the home then the investor has the option to purchase the property in a tax deed auction. In today’s market, its not uncommon to see many 100k homes sell for less than 20k. These are only a small percentage of the actual home value. In this case, the investor gets a house and an enormous profit. Some counties hold these tax deed auctions every month, so check when they are holding them in your area.

3. Network Marketing

Network marketing is not a new concept just one that has tremendously expanded. Basically, these types of networking opportunities you talk to people or use any type of marketing you see fit to sell a company’ products you represent. For example, everyone knows the AVON lady that comes around once a month to sell Avon products. This person does a form of network marketing and earns a commission on everything that she sells. This is only one example, but there are hundreds of companies out there looking for representatives to get the word out about their products. Many will pay up to 75% commission for every referral or sale. So, do a little home work and see what you might enjoy selling.

4. Monetizing Your Website

No matter what type of information you provide or services you render you are able to make money off of your website. Many people use advertisers to make a little bit of extra income. Using things from Google ads, PPC marketing, affiliates programs and others you can make a decent little profit. Having a website is not it there is work involved in getting traffic, advertising, and other types of information that you want to do to get the most out of each visitor.

These are currently the best practice right now to make a neat little residual income stream. So if, you are searching for a small but possibly lucrative income stream then think about getting started in one of these 4 directions.


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  • Kadmiels profile image

    Kadmiels 5 years ago from Florida


  • Kadmiels profile image

    Kadmiels 5 years ago from Florida

    im not sure where you are talking about suzy?

  • incomeguru profile image

    Oyewole Folarin 5 years ago from Lagos

    Nice information, voted up! Monetizing your website using google ads is of course a sure way to earn passive income. But like you mentioned above, without good traffic you'll never make a dime.

  • profile image

    SusieQ42 5 years ago

    Great ideas but I got a little confused with your next to the last paragraph. I enjoy writing about online income and even wrote a hub about the stock market simulation games. Interesting, although I don't know that much about the stock market.