You can build a steady flowing income in many different ways. Dividend type cash flow, for example, is a residual income paid out through investments.

When stable investments keep making profits and sharing them with stock holders this allows you to have more financial stability. Stocks or other investments that do not have high pay outs to shareholders are more volatile and likely to fall in value thus decreasing your investment.

High payout investments frequently result in less management fraud and theft because their is less capital for them to be tempted to steal from you. Low pay out investments leave easy money in the hands of management resulting in much higher overall fraud to investors.

Producing passive income like this is not easy to do but becomes smoother as you gain knowledge and understanding of what constitutes good paying investments. For every type of residual income investment, you are interested in, you will need additional knowledge to identify the good ones. A one time investment of time or money, to earn an on going residual income, can result in passive income. Some feel it is impossible to get money for doing nothing, but that is not entirely true.

It is realistic for you, when properly educated, to invest in a security one time and continue to earn from it. Television and theater movies are examples.

Movie and television stars make a visual and sound recording one time and get paid every time it is sold or exhibited. The income from this is true residuals.

Writers make money for years after finishing a book. Playwrights get paid for years for stage plays or movies they write the story lines for. This is just one example. There are many more.

An excellent web site is another example of how you can turn a one time investment into residual income. It can use excellent preparation and execution, by you, of marketing to bring an extra steady payout from a residual income home business to you.

You can call this optimizing your web site to build a passive residual income. Any good paying web site takes massive attentive preparation including testing.

Powerful keywords, you can find from research, should be in the headlines and title of your web site. Carefully focused keywords and article content for your niche web site are needed in the set up to help it get high ratings by online group raters.

High web site rankings take time. This is almost a tradition now. You will see some inter net marketing stars get high rankings fast but they will frequently crash and burn when rules change and their clever tactics are outlawed by the rating rulers.

Higher rankings of your site will bring more targeted visitors and more sales. At this point you can go into cruise control and even hire others to handle routine tasks and problems for you.

Talented online teachers will frequently tell you to build a list to succeed. A list you build, nurture and work yourself is money in the bank.

Guard it and treat it well for it can make you residual sales generated by your constant feeding of good, fair priced products into it. Good inter net training programs tell you the money is in the list.

You can build a list, fairly easily, by gathering email addresses from your web site and regularly sending them useful information you work to find via auto responders. You now have credibility with them and their trust.

With the trust of your mailing list you can use auto responders in another way. This other way is automated email. Send your list a good offer and let them respond to the auto responder if they wish to order.

The answers can be sent back to them quickly raising high customer satisfaction. With this will come orders on a regular basis.

The system is fast and easy to set up. There are several reliable auto responder companies you can use online to send responses and regularly scheduled emails to your list. Auto responders can answer a list of questions the same every time cutting mistakes. The replies are quick and can be sent any time of the day, night or year.

I have received lots of auto responder information, several times, over the years and was able to make a good purchase decision without ever talking to anyone.
All buttons were pushed and a purchase was made.

Special offers can be sent out this way. Leads and customers like the clear message so they can make a buying decision.

Once set up, auto responders can take care of a lot of work and make your affiliate residual income program a free standing business for you for a long time. This is what this type of income is all about.

The principle is the same for other businesses. Set up a clear cut, understandable sales system and then let it work for you indefinitely. This is the beauty of residual income valuation formulas.

It does take effort to build and research an investment, web site or auto responder. It is surely not earning income for no effort but the concept is as good as compounding interest. Your business or investment works for you day and night.

You invest a little or a lot into your financial business and get a long term residual return. Your capital, money, time and investment works hard for you. This is why residual income has always been so popular among intelligent investors and entrepreneurs.