Recurring Income Streams

Internet marketing is not about selling just one product or service. If you go into a high street shop there will be a range of items on the shelves; very different products but from within one particular specialism. A hardware shop may have everything from carpet tacks to sophisticated power tools; from paint to plumbing items; from hand tools to light fittings. All very different products but all come under the traditional view of “hardware”. Internet marketing is just the same. An internet marketer will be selling a selection of products all from within one topic or “niche”, as it is usually known. Within that range of products it is fairly certain that there will be items which generate recurring income streams, or ‘passive income’ – to use another common appellation.

There are various ways to create recurring income streams in an online business. One of the most effective and widely-used techniques is through the use of membership sites. Subscribers will pay a monthly fee and, in exchange, receive items of interest in the form of newsletters and other information related to the particular niche. Subscription fees are usually very reasonable giving excellent value for money. These sites often have access, via a sign-in, to a useful resource of yet more information, videos, software, etc. all of which will be free within the monthly subscription fee. There is special software now available which will give an online marketer a framework for running such a membership site. Inevitably some of the more advanced software is fairly expensive but there are some systems available which will do the job perfectly well, especially for a new business, at relatively little cost.

Another popular way of generating online passive income is through a ‘Disc-Of-The-Month’ offer. This will often develop from an initial DVD offer of 2 or 3 discs from a much larger set. The remaining discs will then be offered on a disc a month basis as a backend product. A similar approach can be applied to an ‘E-Course’, where an introductory offer leads to a full course of tutorials delivered on a lesson a month (or week) offer. With both these scenarios quality is the keyword. The initial offer has to be of the best possible quality or the follow up will not be an attractive offer to most customers.

For each of these strategies payment is set up to contribute a monthly fee, all of which happens on automatic pilot. It is a feature of recurring income that the internet marketer, once the subscription is set up, has little to do but check his bank statement each month. This form of passive income has always appealed to those who run an online business, being paid many times for work done just the once. Having several such projects within a business, all creating passive income streams, is an ideal situation as the internet marketer has a guaranteed income every month on which he can rely. This is obviously of great help in forward planning and assessing future investment.


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