Linear income is directly proportional to number of hours expended (40 hrs. of pay for 40 hrs. of work). One of great advantages of residual income is that once things are set in motion, you continue making money from your initial efforts, while gaining time to devote to other things... such as generating more streams of residual income!

There are a variety of ways residual income can be earned. Following are some examples.

1) Transfer rights to a book you wrote, a software program you created, a gadget you invented, or a song you recorded, to a company that agrees to pay you a percentage of each copy of your work sold in future.

2) Become an actor and draw residual income from each of your movies, TV shows, or commercials, each time they run.

3) Let an oil company drill a well on your property in exchange for a percentage of revenue.

4) Purchase an office building or other real estate that earns you recurring income through lease or rental payments.

The above ways of earning residual income generally aren't that easy to implement. Following are some that are more attainable for average person:

5) Maintain a savings and investment program that pays you residual income in form of interest or dividends.

6) Market your own products and/or services that lend themselves to repeat sales.

I'm referring to products or services that are regularly used or consumed, and that must be purchased over and over again.

A product or service that you create only once, but sell over and over again, could also be categorized as a form of residual income (although continual effort may be required in marketing it).

Excellent point, but this assumes that you actually have some traffic to begin with. Each step of Internet Marketing Process is not just important - it's required for success. So, let's focus today on getting traffic to your site, and remember:

A. Getting traffic to your site is like putting gas in your car. You can have a great engine, but it won't go anywhere without gas. Likewise, you can have a perfect sales letter - but without traffic, it's just pretty to look at.

B. The highest traffic sites of world do not just get a little more traffic than next guy - they get exponentially more traffic than next guy. For example, according to Media Metrix, AOL's network weighed in at #1, getting more traffic than any other site in world in April of 2001. Amazon was ranked #10. Both are top ten sites... And difference? AOL had 89,000,000 visitors that month and Amazon had 19,000,000. That's a whopping difference of 70,000,000 visitors between #1 site and #10 site.

Interestingly, higher up ranks you go, greater gap between each site.

So, what's difference? Why is it that better a site gets, further behind it leaves its closest competitor? Here are their secrets:

1. They Set Up "Multiple Streams of Traffic"

Back in 1995 I observed an interesting phenomenon. I found that likelihood of someone responding to your website was highly dependent on path they took to get there.

People may ask you "what is conversion rate of your website," but that is really an irrelevant question. Conversion rates are meaningless unless they take into consideration how someone gets to your website. (Test this yourself and you'll find it to be true.)

So, I coined phrase "All Clicks are Not Created Equal." For example, traffic from a site recommending your product is more likely to generate a sale than traffic from a site criticizing your product. That's an extreme example, but you get point, right?

When people discover this, their natural tendency is to start getting picky about how they get their traffic. Why waste your time on traffic that won't generate a sale, right?

If you're paying for advertising, this makes perfect sense. However, many people mistakenly throw away traffic from free sources as a result.

High traffic sites never throw away traffic and constantly endeavor to set up new traffic streams.

Let's take worst possible traffic source imaginable: FFA pages. Traffic from FFA ads is extremely sparse. To make matters worse, this traffic is rarely source of an immediate sale. Very little amounts of lowest quality traffic in world - yep, I think that qualifies it as worst possible traffic source.

If, however, you have an automated FFA promotion going that doesn't take you any time to maintain and still brings in traffic, should you throw it away?

Maybe not...

I still have in place free automatic traffic building sources that I set up years ago. Much of traffic that comes from these free sources is of low quality, but hey, I don't lift a finger to get it any more.

Most super-high-traffic sites are constantly working on new ways to bring in traffic - many of which are not very sophisticated at all. Even Yahoo, for example, uses a low-budget "tell a friend" script on their site to encourage people to forward articles to their friends. Does Yahoo care that anyone can do this with a free CGI script? Of course not. It's just one of thousands of traffic sources they've established.

When you read #3 below, you'll realize why "low-quality" traffic may not be so bad after all...

Remember, though, if you're paying for "cheeseburger" traffic, don't pay a steak-and-lobster price. Better: get your cheeseburger traffic for free from as many automated sources as you can.

2. They Use Viral Marketing