True meaning of passive income and how to generate passive income
Passive income may be defined as income that does not require direct physical or mental effort 100% per cent of the time. In a way interest on bank accounts can be included in the items regarded as passive income. Similarly income or dividends from shares can be also because all they require is the investment of your money which are then traded into shares or stock of the company. The company then uses the money to create a dividend for you and the company.
Probable the most fruitful of passive income comes from Royalties either from something you have invented, or written, designed or sung. For instance I think John Lennon's 'Imagine' song took two hours in total to produce yet the song still generates income for his estate 30 years on...Similarly the man that invented the first can opener the estate still derives royalties from the design patent & the royalties that come from it...
The bottom line is either you invest your time your money or both.
With most start up businesses say such as Omega-trend you have to come up with about $300 dollars for a starter pack and find a omega-trend member who is willing to sign you up. Usually they are and then the best thing is to be guided by them as to where to go next. Usually the first issue is to get a contact list of people who you can contact about the product and services that say omega-trend offer. You then ring these contacts and say something like. Ive got a product or service that can generate residual income for you that requires little of your time. Would you be interested in earning more money ?. So on and so forth until they become member and start doing the same toying. Eventually you can have a large network of affiliates who you get a percentage of the profit generated by all the sales. This can be quite lucrative. Some of the earlier superstars earn 10,000 dollars week. It must be remember though that they are the ones at the top of the pile and there fore they have already invested considerable time coaching their affiliates and ensuring they select the right ones to train...
Other forms of passive income might be working for Amway or Avon. With these you promote products and services to friends acquaintances ands other social networks in time you generate affiliates who are accountable to you and with that you earn some of the profit that the affiliate makes.
On the Internet income is generated by the number of people that visit and read your site and as well purchase products that are advertised on your site...
With this you need to ensure your properly registered with each advertiser and that the code is in the right place on your site ands active !
More by this Author
Diana Krall arguably the greatest female jazz singer of our time
Snooker is a great game for young and old alike. Here are a few tips for beginners
The French Resistance fighters changed the fate of World War Two. Despite a very high risk to themselves resistance fighter were able to subvert and considerably slow and sabotage enemy advances.