Every product or business has what’s known as a “Product Life Cycle.” Each and every product or business goes through the following four phases:
- Market introduction stage
- Growth stage
- Maturity stage
- Saturation and decline stage
What effect this has on your effort to create residual income? Your residual income source is either growing or dying. Some residual income steams will last through your lifetime but some may dry up pre-maturely – it is great to enjoy the benefits of a residual income stream for the period it lasts. But eventually outside factors will decrease the profits. Eventually, every residual income stream that you create will go away forever. Nothing lasts forever: it is the law of life.
I am a great believer in the power of residual income—but one has to be a realist. Eventually every stream of income you create will disappear. This is why it is important to continue creating multiple sources of residual income. If you create large number of income streams they will be in different phases of growth, maturity and saturation stage. All your income streams will not dry out at once. Your cash flow will continue uninterrupted.
Even as you are enjoying the benefits of one residual income stream, you should be in search of new residual income streams. These are known as “growth activities.” Once you create a residual income stream, its maintenance will take very little of your time. You have to use your time creatively by engaging in growth activities to multiply your residual income streams.
“The key to wealth and happiness in today’s world is to create multiple streams of income using diverse models and combination of passive and active income in areas where your passions and talents can be most thoroughly engaged”