Here are some examples of income types:
Recurring Income
Recurring income is an income that is generated on a recurring basis and at a regular interval. While some companies may have other sources of income like one-time projects, their primary source of income is from recurring revenue.
In today's world, recurring income is all about marketing. There are many ways that you can generate recurring income through marketing.
Some examples of recurring revenue include subscription-based businesses, membership fees, and advertising.
For example, individuals can sell their own products on Amazon and get a commission. They can also market other people's products on social media and offer services such as web development or SEO.
Non-Recurring Income
Non-recurring income is a type of income that is generated by the sale of goods or services that are not regularly repeated, rather than recurring.
The best example to illustrate the differences between recurring and non-recurring incomes is with a restaurant. If someone was to eat at a restaurant every day, then their annual visit would add up to be close to $10,000 dollars per year. However, if someone only ate at the restaurant once a week for lunch, then their annual visit would only be worth about $500 per year.
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Some forms of non-recurring income include:
- Dividends: Dividends are financial payouts that a company pays out to shareholders. They can be used to cover costs, as well as reinvested into the company in order to grow their stock value.
- One-time payments: A one-time payment can include a prize, gift card, or bonus. These are the types of payments that most people think of when they hear the term, "non-recurring income."
- Bonuses: Some companies offer bonuses as part of their overall compensation package to employees as a gesture of appreciation and to share in the company's success. These bonuses can be given as cash or in the form of stock options or other forms of incentive stock units (ISU).
Commission-Based Income
Commission-based income is the amount of money a person makes from getting a customer to purchase an item. The commission-based income can be the result of the sales, referrals, or leads generated by these individuals.
Commission-based income is one of the most common ways for people to make a living online. This type of earnings can be found through affiliate marketing and lead generation
Commission-based income is a form of income that is earned from selling a product or service to a customer. The customer pays the commission to the company and the company keeps this commission as its profit.
Affiliate marketing is an example of commission-based income.
Referral-Based Income
Referral-based income is the process of earning a commission or fee when someone else signs up for a company's service or product.
There are many different types of referral-based income and some examples include: joining a network marketing business, joining an affiliate program, or selling a product on Amazon.
There are many different ways to make money with referral commissions, including selling affiliate products, such as eBooks and programs, or referring a reader to an article or blog post so that they can enter a contest.
Residual Revenue
Residual revenue is a type of income that is generated after the initial sale of a product or service. It's typically calculated by subtracting the cost of goods or services from the initial sale profit.
Residual revenue is generally associated with subscription-based models and software licenses, but it can also be generated by other types of products or services such as consulting engagements, charity donations and donations.
This type of revenue can be collected through different channels like webinars or a membership site where customers are charged monthly fees for access to content.
A popular example of residual revenue is when a company sells a product that has a monthly subscription or membership. For example, Apple TV. Once the customer buys Apple TV, they are then charged $15 per month to continue receiving additional content such as video apps, tv shows and movies on the device.
While this type of business model might not work for every company, most companies with this type of model tend to make more money than they spend on their customers because they sell other products or services to them as well.
Many associations, associations, and not-for-profit organizations generate residual revenue from memberships and donors. For example, if someone pays $100 for a lifetime membership for an association, their annual membership fee is $25. If that person pays another $100 in one year, then their annual membership fee rises to $50.
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