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Passive Income - Is There Such a Thing?
There are a lot of questions that people ask about passive income. Some of them are, what is passive income? How to I generate passive income? Is it even really passive? What kinds of things generate passive income?
Well, for starters what is passive income?
Passive income in short that revolves around income that you play either play a minor or no role in. It is an idea, business or investment that allow you to earn money while your attention is focused on other things.
How to generate passive income?
For example, many websites are generating passive income as we speak. They are helping someone find information about a specific topic or niche. They then place ads or affiliate links on their site, and when people come to visit they click on these ads or affiliate links and the website owner earns money.
Is it even really passive?
I often get asked, if, passive income is truly passive. Well that is a yes, and a no. Every idea, investment, or business that you take on is going to need to be started. To start you need to work at it and get the momentum going for it. Then when it is setup it needs sales, sales require clients or traffic. Once word gets out what you are providing something that people need or want then your involvement in that business becomes less and less. To a point where you need to only look at it just to make sure it is still running the way you designed it to.
What kinds of things generate passive income?
There are many things that can generate a passive income
- Affiliate product selling
- E commerce store
- Real Estate
- Investments (dividends, Stocks, Options)
- Outsourcing a Job
The reality is that passive income is all about effectively using your time, your money, and other people’s money.
Everything is going to take some time and money to grow, even passive income. But, how you do it is the key to being successful in your endeavor. For example, some people decide on a product or business idea and then are able to outsource the work to a variety of individuals. You will still need to check on the outsourcer to make sure they are providing the services that you request correctly. But, after all fees, taxes, and other income has been paid what is left over is the amount of your passive income that you earned from the outsourcing and leveraging other, people.
Passive income does come with a learning curve some of the skill sets you may want to acquire are
1. Delegation and Outsourcing
2. Coming up with Process
3. Joint venture or partner with other likeminded people
The more you do not have to manage a site or venture the more “passive” it certainly is. Because, if, you factor in extra time or money you are actually lowering your returns and we want the opposite with as little interaction as possible. Here, are four more was to develop more passive income streams.
1. Investing (stocks, bond, options)
2. Investing in assets (real-estate, business)
4. Affiliate Marketing (online Affiliates, MLM)
These are just a small sample of what type of passive income there is available. The idea is to get as many streams of passive income going as you can. The term Passive is thrown around a lot as well and hopefully you now have a better understanding of what it is and the possible ways it can work for you.