Everyone in the world should be familiar with what it feels like to have a cold right? Right. It’s also a safe bet to say that most folks have passed their cold along to somebody else without even knowing it. Then the cycle probably continued with that person passing the cold they got from the first person on to someone else in the same fashion.

Well much like that cold being passed around alot of residual income businesses are built on the foundation of people passing something around too. Businesses have been created and toppled on what people pass around to each other about that business. What people pass around when it comes to a business are their experiences. Pleasant experiences usually garner possitve words of recommendation while negative ones have the opposite effect.

Most businesses grow through word of mouth and that repeat business allows them to make a residual income. Residual income is made when a customer or client comes back to do business at the establishment over and over again. counting on the residual income can mean the difference between staying open and closing down for a lot of businesses.

Take a minute to think about your consumer value. Lets say you enjoy a certain food establishment and you frequent it about once a week, or month, or even once a year.

When that restaurant looks at you they see someone that is very valuable because even if you only came once a year that would still add up to money for the restaurant year after year.

At this point because you keep coming back you are considered as a residual income source for this business.

Once you are able to harness the power of giving away a cold along with giving your customers good experiences, you will be able to start and grow a great residual income business.