The Laws of Creating Passive Income - Wealth and Time Freedom
e m po we rne t wo rk.co m http://www.empo wernetwo rk.co m/jayso /blo g/passive-inco me/The laws of Creating Passive Income: Wealth and TimeFreedom for those who explore it.Creating an Income that allows you to continue earning money, while you are not physically present ordirectly involved is called passive income. Continue Reading As we Dive in f urther.Smart Passive Income – What do you mean?How does working 50, 80, or even 100 hours a week f or the rest of your lif e sound?Miserable right? Do you want to be stuck doing that f or thenext 40 years?Good! Neither do I.I’m sure you want to be able to take time of f whenever youf eel like, without worrying about what’s going to happen toyou or your f amily, while earning whats called a passiveincome.So do I! “Don’t make yourself irreplaceable. If you can’t be replaced, you can’t be promoted.”We can think of “being promoted” as earning more andworking less. T his def initely sounds appealing!Sure, as a business owner you can raise your prices, but until you can remove yourself f rom being directlyinvolved in all the work, there is always going to be a point where you cant increase your earnings.Passive income, on t he ot her hand, is income t hat does not require your direct involvement .T here are many types of passive income, some you may be f amiliar with include: Owning rental property Royalties on creative work network marketing.Saving f or retirement should be a goal that starts getting worked on early on in adulthood. Earning more,working less, and creating dif f erent streams of income will be essential to doing this. Whether you’re just starting a business, or you’ve been running it a while, the sooner you start thinking about how you are going to shift your business model to create more passive income, the sooner you can achieve personal and financial freedom.
Let’s look at two basic types of passive income, and a third type of income that, is a key strategy tof inancial f reedomPassive Income Streams:Residual IncomeResidual income is any income generated through indirect involvement with something. An insurance agent who gets commission every year when a customer renews his policy A network marketing or direct sales rep’s income f rom her direct customers when they reorder a product every month A marketing consultant who creates a workbook and sells it in e-book f ormat on the InternetOf ten times residual income is interchanged with passive income and both are something that you candelegate to an assistant. Read this article To Get more in-depth inf ormation about residual income.Leveraged IncomeLeveraged income uses the resources of other people to create income f or yourself . Some examples ofleveraged income are: An e-book author selling her e-book through af f iliates who promote the product A network marketer who builds a down-line and receives commissions on the sales made by people in his down-lineT he key is to make money of f of other people’s labor and resources, rather than primarily your own. Whenyou combine leveraged with residual/ passive income, it’s even better.Active Leveraged IncomeT his is a term used to describe income that requires your direct involvement, but allows you to increase yourearnings by having more people involved. T his generally constitutes a one-time event, such as: A seminar or webinar A conf erence or convention Raves and other partiesAlthough these go against the grain by requiring your direct participation, your earning potential is muchhigher than if someone were just paying you an hourly rate. Fill a room with 1,000 people paying $50 eachand you can cover many costs associated with hosting the event, while still making a prof it. T his may dif f er alittle f rom passive income, but this can be enticing too, cant it?Passive Income IdeasNow is the time to think about how to apply all of this inf ormation about passive income into a new orexisting business. You must think to yourself , can I create a product that people will f lock to? Can I engageothers to sell my product? what are some ways to make money of f of others?T he sooner you answer these questions, the sooner you’ll have f inancial and personal f reedom.My personal recommendation is to start out by leveraging
the work of others. T his will get you going right away whilesaving you time and money. Creating an online business isa great way to do this.Learning how to market online to drive tons of traf f ic to aparticular product or service, while earning commissions oneach sale, that you took no ef f ort in creating yourself ,sounds too good to be true doesn’t it? Well guess Again!Its entirely possible and thousands of people make a lot ofmoney doing it.If you want more inf ormation on how you can also createthis type of passive income f or yourself by leveragingother’s resources then click on the button below, enteryour email, and lets get you on your way to making some money.