Passive Income Streams:
What Are They and How Can You Get Them?
It sounds fantastic, doesn't it? The very idea of a stream of income that is passive is
incredibly attractive and seductive to any thinking person. But just what does passive income
really mean? Definitions of the term "Passive income" on the Web vary, but my personal
favourite is found at Wikipedia which seems to cover most bases.
One obvious example of passive income is the interest accrued by a savings account -
this is all very well while you have savings in place, but the problem with this kind of income is
that it is residual, meaning that in order to maintain the income stream, only the residual part
can be used. If you fall upon hard times or the interest rate drops dramatically you might have to
start spending your lump sum, then of course the passive income disappears along with your
savings. Not an ideal situation and it demonstrates the fragility of residual income.
The best kind of passive income then is continuous and does not rely on a lump sum.
Once the wheels have been set in motion then no further action is required for the income to be
generated, or as the Wikipedia definition states; "without continuing effort" - Quite simply, it
happens all by itself! Sounds good to me, but how is that kind of passive income model
There are a number of ways, but probably the most well known are royalty payments
earned for creating popular songs or best-selling books. We've all heard of the massive royalty
cheques received by songwriters and top authors. But hang on a minute; does that mean you
have to write a hit record or a bestselling novel in order to generate passive income? Well, if you
have the talent, along with the patience and perhaps a bit of luck on your side, then by all
means go for it. However, most of us fall short of one or more of the required criteria, and the
number of people earning a living through this kind of passive income alone are in the minority.
One thing that cannot be overlooked is work. Don't be fooled into thinking that just
because your time is not directly traded for cash that no work is required on your part. In most
cases a great deal of time and effort has to be expended before even the smallest amount of
passive income is realised, and this kind of 'up front' work without any obvious instant rewards
will put many off before they even get started - after all; who wants to spend their evenings
researching and writing articles for a Website when they could be out socialising or relaxing in
front of the TV? Only the very dedicated, I believe.
However, the Internet, or more specifically; the World Wide Web offers up opportunities
for the passive income seeker that would have been unheard of not so very long ago. Many
unseen and unknown Website owners are silently raking in huge profits as a result of allowing
advertising on a popular site. Imagine the earning potential of PPC (Pay Per Click) advertising
on a site that pulls in 100,000 visitors per day, or the fee that could be commanded for a
prominently placed banner on such a site. That kind of result surely justifies any amount of
up-front work? Let's not forget though that a successful Website requires ongoing work to
remain popular so it might not be considered the perfect example of a truly passive income
Some passive income streams can also be very small, requiring a combination of
streams to make up a full time living. This can again be seen on the Internet when a webmaster
has a number of Web sites each making a small amount of money from advertising (most
recently AdSense has been the favourite) - In examples such as this it is the combined force of
these smaller revenue streams that make up the overall income. On the face of it, this is not
such a bad idea when you consider that if one of the sites fails it does not have a major effect
on the overall earnings of the site owner, thereby avoiding financial catastrophe. For the belt
and braces approach a number of different advertisers would also be combined, so that (as in
this example) AdSense is not the only source of revenue.
The conclusion is that passive income although desirable to most in theory, will require
some up-front effort to achieve, and not everybody has that discipline. For the person that is
both disciplined and determined there are different ways of creating passive income streams
and the World Wide Web offers one of the greatest opportunities of our time including the
possibility of drawing income from a number of sources and combining them together into one
larger sum - this is the model used by many successful AdSense devotees. However, it has also
been seen that it is not always wise to put all of our eggs into one basket, and that a
combination of different income streams could be the sensible option long term to cover the
expenses necessary for living a fulfilling lifestyle.
Passive income? Yes please!
Article Source: http://EzineArticles.com/expert/Tony_Williams/13702
Are You Looking for Ways to
Develop a Passive Income
How to develop passive income streams:
Are you interested in developing a
passive income stream to supplement
your lifestyle? There are many
opportunities to earn a lucrative
passive income stream, this is a list of
seven that you can use to boost your
income. These are available for any
aspiring entrepreneur. Included with
each income opportunity is a brief
overview, giving you a better
understanding of what will work for you
in your situation. You can utilize one,
two or more of these income
generating opportunities. So let's get
Blogging has taken the online world by storm and anyone has the opportunity to be a publisher
on this platform. It's possible to publish a blog on any content that you can think of. Here are
some figures from WordPress.com:
· 77 million WordPress sites worldwide
· 13.1 billion blog pages
· 409 million monthly readers
· 38.7 million new post each month
· 50 million comments monthly
With numbers like this you can see how a blog site can launch you to phenomenal success.
Giving you the opportunity to launch all your passive income streams from one hub. A blog
gives you the opportunity to brand yourself and develop an online presence, it's your gateway
for driving targeted traffic to your online passive income opportunities.
2. Internet publisher
In 2015 approximately $135 billion were invested by business owners and marketing teams to
create new digital marketing platforms to promote their brands, products or services. One media
source reported that 25% of all the advertising market was using this platform. 73% of
businesses polled planned on increasing their advertising budget for Google AdWords.
Different advertising platforms are:
· Google ad words 73%
· Bing ads 55%
· display networks 52%
· Facebook 52%
· LinkedIn 26%
· Twitter 24%
· smaller social networks 18%
By becoming a publisher on these platforms you can earn a lucrative passive income. By getting
targeted prospects to click and take action on the ads posted on websites, blogs, review sites,
landing pages, splash pages and other online channels you can generate a sizable passive
income stream. The more traffic you target will generate a higher potential for getting better
click-through with your ads. Helping you to sell any kind of product or service generating
passive income for you. With this type of advertising it's imperative that you develop targeted
advertising skills for keywords in the niche that you're trying to work with.
3. Affiliate marketing
Last year $14.94 billion were registered in the affiliate marketing industry, showing that this is a
very lucrative source for passive income. By using affiliate networks like ClickBank, Click
promise, Commission junction or other affiliate marketing sources you will be able to earn
commissions anywhere from 5% to as much as 90% selling other people's products. Also you
have the ability to generate even more revenue by creating and marketing your own products
through these affiliate networks. The most important factor to success is driving highly targeted
audience to your affiliate landing pages or sales pages that you have registered with. And this
should always be done with your own targeted funnel system beginning with landing pages
you've designed to collect data before sending prospects to the affiliate landing page. Or you
can use other digital marketing tools to drive traffic to your affiliate link utilizing blogging or social
media like Facebook or Twitter.
These days Amazon e-books have outpaced traditional publishing company and account for up
to 20% of the total Internet traffic. As an Amazon associate you can leverage on this traffic and
earn passive income. If you have a website or a blog that talks about a certain product or
category niche you can earn from the volume based fixed advertising rates Amazon Associates
offer for products sold through a certain category. Working with Amazon is a fairly simple
process and they will help you set up your business through their system.
Another way to earn a lucrative income online is by providing freelancing services today there is
an estimated 20% to 33% volume of independent workers out of the total size of the workforce
in the United States. And organizations are planning to increase their dependence on
freelancers, last year alone there was almost a 50% increase in freelancers hired. And the pay
is getting better for freelancers as well, increasing by 37% year on year. There is a wide variety
of skills and expertise needed for freelancers. Some of the highest rated skills that are being
outsourced by employers to freelancers today are:
· IT and programming
· design and multimedia
· writing in translation
· and smaller niche markets
So if you're interested in freelancing this could be a lucrative passive income stream for you.
6. Online content writer
These days as the search engine algorithms move towards more focused, high quality and well
written original content, the demand for online writers has been increasing making it a very
lucrative source of online income. The average hourly rate for an online writer is approximately
$27 an hour which is much better than the federal minimum wage.
7. Network marketing
Network marketing or MLM is basically a form of direct selling and is also known as person to
person marketing. In network marketing you earn by directly selling products to other customers.
You can also earn a passive income stream by building your own network of independent
distributors otherwise known as your "network" giving you the ability to earn from different levels
of residual income from their sales and memberships.
In the last few years network marketing has grown substantially and has become the source of
income for many successful network marketers, as many as 150,000 people signed up in these
networking systems on a daily basis. There is over 50 million people worldwide who have joined
network marketing companies, reaching a worldwide sales as high as $90 billion. These days
many people utilize the Internet, to develop their network by developing blogs and landing
pages to sign up new recruits and to harvest email information to market to later. This can be
developed into a very profitable income stream possibly giving you the opportunity to finance
your total lifestyle instead of supplementing a traditional job.
Article Source: http://EzineArticles.com/expert/John_D._Stewart/303235
How to Begin Building Passive
It's very easy to get caught up in the idea of passive income. The simple formula of build
passive income streams, generate wealth, retire- seems an easy solution to financial distress
that everyone is eager to try. With all the wealth literature and gurus- Kiyosaki, Clason, and
others, thousands of people have the right
mindset and are eager to start building
wealth. They spend years building up their
knowledge and study thousands of different
ways to say the same thing- residual income
equals financial freedom. Then they begin to
ask the inevitable question- now what?
It's not enough to know about passive
income and be able to explain why it's freeing.
The concept doesn't mean anything if it's not
enough to pay your bills. Until your residual
income meets and exceeds all of your bills not
only are you not financially independent, but
you're also still under an obligation to hold a
job. Although this type of income is more
valuable than a paycheck in the eyes of the
wealth building community, first and foremost
you need money to survive. So until you
reach your goal of having enough passive
income to maintain your lifestyle without a
corporate paycheck- keep your job.
There are many reasons for this. Perhaps
the most important is the old adage "It takes
money to make money." Even the most
inexpensive passive investments cost money to start up. Without more money coming in than
out, how can you save money to invest with? When starting to build passive income streams,
deal with your debt first. Then begin saving 10% of your income for a cash reserve used
exclusively for investing. You may need to work a few more years before this grows large
enough to work for you. As you build your passive income streams, and have more and more
money coming in you will be less dependent on your job. If your paycheck is already enough for
you to pay your bills then anything you get from passive investments is all profit. You can use
this extra income to save for retirement or build your cash reserve even faster.
Another important reason to keep your job is for credit. When investing in real estate and
other things that you will need funding for, it helps to be able to prove your income. Many
investors have difficulty getting conventional financing because they don't have typical jobs. If
you still have yours, you can benefit from the lower interest rates banks and other traditional
financial institutions have to offer.
That said, never lose sight of your end goal- to eventually become financially
independent and be able to retire from corporate America. To do this you may need to spend
nights and weekends searching for ways to build wealth, as opposed to relaxing and
contributing to 401ks. You may think at first that this wasn't the lifestyle you signed up for- isn't
the whole point of building passive income streams to have time freedom? Again you must
refocus, and think about the long term. The actions you take now will go along way to retiring
you earlier than you could have ever imagined.
If you're just starting out there are many ways to build wealth without much money. Real
estate investing is one of the most powerful and profitable investing vehicles. If you have never
purchased a house before you may be able to qualify for a loan without putting any money
down. If you're interested in starting smaller, a bulk candy vending business is a great option. It
has extremely low start up costs- about $100 for a machine and $25 for candy and requires
relatively low maintenance. Blogging is another popular option that is extremely passive. There
are millions of ways to generate residual income with very little money. Although it may not
seem like a lot at first, remember that each stream you build takes you a step closer to financial
Genius Types is a blog all about leading a creative live and generating passive income.
Visit http://geniustypes.com/ to learn lots about everything from philosophy, relationships, and
the arts, to finance and wealth building. Investing and learning about money doesn't have to be
boring! When you start building passive income, you'll have more flexibility and time to explore
what you're truly passionate about! For more information of different ways to build passive
income, check out our site!
Article Source: http://EzineArticles.com/expert/Casey_Anderson/650152