When it comes to work, most people are still archaic and traditional in their thinking. A good-paying job, as pictured by many, is either spending overtime at the office or straining your muscles on tough hard-hat labor. A majority of us have this typical idea that in order to earn more, we also have to continuously work our butts off.
In this era so-named the Information Generation, people are slowly awakening to the vast possibilities of more gratifying endeavors. There are more business opportunities now than before; both small-scale and big industries alike are attracting more and more entrepreneurs to venture. Homemakers who were once restricted inside their houses can now think of almost every conceivable racket and scheme to earn money–from advertising their cooking or knitting on the internet to writing novels and books and getting them published. It seems many and varied ways are devised to help people earn more while working less as opposed to working more to earn more. The World Wide Web serves as an oyster shell that provides a flourishing market to the increasing number of passive income earners of our time.
But what is really meant by passive income? What are examples of services and operations that can give us this type of income? How can we become passive income earners?
Passive income is simply income that does not require your direct involvement. Leasing properties, royalties on an artistic piece or invention, and internet marketing are some examples of familiar passive income. If you want to earn more but work less, you have to start creating income courses on which you are not directly involved. If you want to have a business of your own start thinking of a business model that aims to create more passive income. In this way, you can achieve personal and financial freedom sooner than you expected. Passive income is a great way to supplement your current job, and financial investments.
**TWO TYPES OF PASSIVE INCOME AND A THIRD HYBRID TYPE
Residual income is revenue that occurs over time from work done either one time or with minimal upkeep.
There are many different ways on which you can generate residual income across a broad range of businesses. It could be recurring income from loyal clients, or the sales you get from winning new buyers. It could be that you are not personally involved, such as an e-book sold on your sales page in the internet, or you have some personal interaction, such as the insurance agent reminding customers of renewal fees. The work required in this type of passive income is usually something that can be assigned to a subordinate.
Residual income is not entirely similar to recurring income in a sense that the latter may still require your involvement, such as a trainer or counselor with a monthly-paying charge, or the profit a caterer earns from delivering food to a local institution. Although active-type recurring income offers stability, your earning potential here still depends on your own personal production capacity.
Leveraged income, on the other hand, utilizes the work of other people to create income for you. In this type of passive income, you are making money off of other people’s labor rather than your own. Leveraged income may or may not always be residual income but when these two are combined, you will forge a very powerful model that could further boost your earning to skyrocketing heights.
The third hybrid type is a variation of the second and is termed Active Leveraged Income. Although technically not passive, this type of income income is a key strategy for earning more while working less. It requires your direct participation but can make you more money if there are more people involved.
The most common examples are one-time events, like a symposium or conference, a special class or scheduled seminar, musical recitals and concerts, or events and other parties.
Although here you are a direct participant (as a facilitator or sponsor), your earning possibility is much higher than if you were just paid a direct hourly rate. To demonstrate this more clearly, fill a room with a thousand people paying say sixty dollars each and you can cover all operational costs and still have a good return at the end.
***What should be your current mindset?
Well, step one is to not instantaneously think of quitting on your day job, as it will take some work before you are able to live off of your passive income and quit the 9-to-5. Work on developing one or several of these passive income-generating businesses gradually and you should be able to escape the rat race to finally live a life you have only dreamed of.
Consider your prospect and take your pick from the numerous ways you can generate passive income. How could you make money off the work of others? Can you conceive a product that not only people will buy over and over again but that which you can also engage others to sell?
Gone are the days when you have to work more to earn more. The time when labor and profit are the two sides of the money equation is already a bygone. With passive income, you can make even greater earnings even when you are sleeping.