Wouldn't you like to take a vacation whenever you want, or have your wife stop working so she can look after the kids and still keep up the payment of your bills? Well, if you wish to achieve this, you need to build a passive residual income.
Definition of passive residual income:
The definition of traditional passive income is "Income generated with minimal work from your investments such as interest, dividends, or real estate rentals." However in this article we are discussing creating a passive income
online. Investment of time and money is initially required to build a passive income online, then possibly minimal
work thereafter.
The benefits of generating a passive income:
1. Make a strong initial effort to get your income started, then do minimal work (or virtually none) thereafter,
resulting in earning more and doing less.
2. Freedom to choose when and where you wish to work.
3. Your passive residual income is not dependent on a 9-5 work week and can be generated 24 hours, 7 days a week.
4. Able to give yourself a pay raise whenever you want by creating multiple income streams.
5. Create an unlimited amount of income - you are only limited by your imagination.
6. Have more free time to spend time with your family, friends or go on vacation.
7. Ability to give to charitable causes.
8. Create residual income for your future retirement.
Types of passive income streams to build online:
1. Affiliate Programs - passive income is derived from setting up a web site that presells a companies’ products.
The parent company provides the products, tracks the sales and gives you a commission for each sale. Find companies that offer large commissions, and will track clients for multiple sales over a long period of time (ie lifetime) so you can get recurring commissions. Make sure they offer multiple tiers (at least 2) for sales. ie you still get paid if one of your affiliates makes a sale.
One of the best examples is the 5 Pillar Affiliate Program
from Ken Envoy.
He offers a number of great products with high commissions with excellent sales materials and content to help you
presell his products.
Read the free ebook: Affiliate Masters Course to become a
high-earning affiliate champion.
2. Information Products - the web is great place to create an ebook that explains 'How to" information ie How to start an online business, How to buy a car without getting ripped off..anything that makes life easier for people. People are hungry for information, therefore if there is a need, you can create an ebook and sell it on the Net.
What are the benefits of creating an ebook?
faster, easier or teach them something, then you may have a winner.
A friend of mine created a course that educates autism kids step by step. He then sells the course on
a CD to educational institutions and individuals all over the world. He makes a nice passive income each month from his initial investment of time, effort and money. The best example is Bill Gates who created the Microsoft Corporation selling the Windows Operating System. You could do the same on a smaller scale.
4. Advertising commissions - if you have a web site that attracts 1000s of visitors a day from the search engines, you can offer to place a banner or link on your site for a fee that you collect each month. You set it up once, then
collect the passive residual income.
Read: How to Set Up a Successful Google AdWords Campaign
6. Referrals - create a network of people that offer services or products related to your business. Ask for a commission every time you refer someone. For example as a web designer, I sometimes refer clients to graphic designers, search engine optimization experts, copywriters and database designers especially when I don't have the time to do the work myself or it is outside my area of expertise.
7. Create a membership site - if you are an expert in your field and can provide the resources, knowledge and support, you can charge a monthly fee to gain access to your membership site. The more members you gain, the more money you make. Because you are an expert in your field, you can also recommend other products and services to your members, from which you earn commissions.
8. Become a Reseller - by reselling other people's services you can earn ongoing residual income.
One such example is web hosting or domain name registration. You pay a monthly fee to the reseller and you
can charge whatever you like to your customers for yourservice. Of course you must be thoroughly familiar with the
service to provide the necessary support to your clients.
Conclusion: Building multiple passive income streams is a great way to secure yourself for the future. You never know if you will be laid off from your regular job, get too ill to work, experience a disaster or want to start saving for
your retirement.
Choose one of the above types of passive income streams and
take action now, to secure your financial future.
Definition of passive residual income:
online. Investment of time and money is initially required to build a passive income online, then possibly minimal
work thereafter.
The benefits of generating a passive income:
1. Make a strong initial effort to get your income started, then do minimal work (or virtually none) thereafter,
resulting in earning more and doing less.
2. Freedom to choose when and where you wish to work.
3. Your passive residual income is not dependent on a 9-5 work week and can be generated 24 hours, 7 days a week.
4. Able to give yourself a pay raise whenever you want by creating multiple income streams.
5. Create an unlimited amount of income - you are only limited by your imagination.
6. Have more free time to spend time with your family, friends or go on vacation.
7. Ability to give to charitable causes.
8. Create residual income for your future retirement.
Types of passive income streams to build online:
1. Affiliate Programs - passive income is derived from setting up a web site that presells a companies’ products.
The parent company provides the products, tracks the sales and gives you a commission for each sale. Find companies that offer large commissions, and will track clients for multiple sales over a long period of time (ie lifetime) so you can get recurring commissions. Make sure they offer multiple tiers (at least 2) for sales. ie you still get paid if one of your affiliates makes a sale.
One of the best examples is the 5 Pillar Affiliate Program
from Ken Envoy.
He offers a number of great products with high commissions with excellent sales materials and content to help you
presell his products.
Read the free ebook: Affiliate Masters Course to become a
high-earning affiliate champion.
2. Information Products - the web is great place to create an ebook that explains 'How to" information ie How to start an online business, How to buy a car without getting ripped off..anything that makes life easier for people. People are hungry for information, therefore if there is a need, you can create an ebook and sell it on the Net.
What are the benefits of creating an ebook?
- Easy to create - you just need the ebook creation software. Takes a short amount of time - you can create an info report in a few hours or days. A large ebook may take
several weeks or months.
- Low cost - costs will include ebook creation software, web site design, web hosting and marketing. Once you this set up, with good promotion in the search engines, you can make sales from your ebook 24 hours a day for years to come.
- Add an affiliate program - increase the number of ebook sales sales by getting other people to sell it for a commission. This enables you greatly increase your passive income.
- Allow reprint rights - charge a fee for people that will have the complete reprint rights. They are able to place
there own affiliate links in the ebook and sell it for the same price to others.
faster, easier or teach them something, then you may have a winner.
A friend of mine created a course that educates autism kids step by step. He then sells the course on
a CD to educational institutions and individuals all over the world. He makes a nice passive income each month from his initial investment of time, effort and money. The best example is Bill Gates who created the Microsoft Corporation selling the Windows Operating System. You could do the same on a smaller scale.
4. Advertising commissions - if you have a web site that attracts 1000s of visitors a day from the search engines, you can offer to place a banner or link on your site for a fee that you collect each month. You set it up once, then
collect the passive residual income.
- Newsletters,or ezines - offer advertising space in your
ezine. The greater number of subscribers you have the more
you can charge every time you publish.
- eBooks - offer advertising space in your ebook. Give the
ebook away for free or even place links in it from
affiliate programs you recommend.
- Google AdSense - place Google Ads on your web site. When
someone clicks on the ad, you get a commission for every
click. If you have 100s or 1000s of pages on your site, you
can earn a substantial monthly income.
Read: "How to monetize your web site with Google AdSense"
Read: How to Set Up a Successful Google AdWords Campaign
6. Referrals - create a network of people that offer services or products related to your business. Ask for a commission every time you refer someone. For example as a web designer, I sometimes refer clients to graphic designers, search engine optimization experts, copywriters and database designers especially when I don't have the time to do the work myself or it is outside my area of expertise.
7. Create a membership site - if you are an expert in your field and can provide the resources, knowledge and support, you can charge a monthly fee to gain access to your membership site. The more members you gain, the more money you make. Because you are an expert in your field, you can also recommend other products and services to your members, from which you earn commissions.
8. Become a Reseller - by reselling other people's services you can earn ongoing residual income.
One such example is web hosting or domain name registration. You pay a monthly fee to the reseller and you
can charge whatever you like to your customers for yourservice. Of course you must be thoroughly familiar with the
service to provide the necessary support to your clients.
Conclusion: Building multiple passive income streams is a great way to secure yourself for the future. You never know if you will be laid off from your regular job, get too ill to work, experience a disaster or want to start saving for
your retirement.
Choose one of the above types of passive income streams and
take action now, to secure your financial future.
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