Here is an opportunity to make a single transaction with the ability to pay once … and then be paid again and again. Thousands of merchants offer this great compensation plan. But first you need to understand some differences.
That residual income may continue, but it is not necessarily predictable. Recurring income will come again when the transaction continues. Passive income means that money will likely come back after the initial transaction without any additional effort on your part.
Given this, both residual income and recurring income can be classified as passive income. Some merchants are already familiar with multi-tier commission models, so the commissions associated with passive income are just another twist. This compensation model is common with merchants who have some form of subscription or continuity of participation.
Here are some common passive income situations (Chapter 13 offers platforms and directories to help you find them):
Subscription Services: A good example is LifeLock. They offer a subscription service to help people avoid identity theft. If you are an affiliate for them, they pay you a portion of the monthly/annual subscription fee for as long as the customer continues to pay for the service.
Membership programs: Continuity programs where people get a set of services by becoming a member. You find members for the merchant, and you are paid an affiliate commission as long as the customer remains a member. This type of program is common in niches such as fitness, exercise, dating, small business groups, etc.
Web Hosting: Once one gets a website, he will definitely need hosting along with related internet products and services. As long as the website is being hosted for the customer, the merchant is happy to pay an ongoing affiliate commission.
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