By Betsy Falwell
You’ve already got a full-time job, which meets your basic financial needs… but is it really enough? If you’re like most people, the answer is “probably not.” But you probably don’t have the time or energy to go out there and get another job – that’s where passive income streams come in. Once you put in the work with a passive income business, you’ll be able to sit back and watch the money roll in: without lifting a finger.
Passive Income Streams: How Do They Work?
Unlike active income, which is earned on an hour-to-hour, day-to-day, or even week-to-week basis, passive income streams are generated from work you’ve already done. Creating passive income frees up your single greatest commodity: work. When you have access to passive income streams, you have more time to actively work on other ventures, without taking a financial hit. This is a key pathway to wealth creation, both for you as well as for future generations of your family.
Finding Passive Income Business Opportunities
Entertainers are legendary for finding passive income streams. Whether you’re talking about an actor, who films a movie and then collects royalties from it, or a musician, who records a song and watches the money come in, entertainers know how to make the money work for them. But not everybody has this type of talent; the key to creating passive income streams is finding ideas and industries that suit your tastes and talents.
For example, I like to write. Writing a book – whether on paper or an eBook – and getting it published is a way I could create passive income streams. The act of writing would take some time up front, but no added work on my part after publication.
Working in real estate is another passive income business. Mortgage brokers help connect borrowers to lenders initially, but can also collect trailing commissions – passive income streams – for years after the loan’s completion. Those commissions are usually 0.15 to 0.20 percent of the loan’s total value, but collecting over a series of years – sometimes as long as the loan’s term – can result in thousands of dollars of passive income for the broker.
Direct sales is both an active and a passive income business. You can either sell the products – that’s the active part – or you can set up a sales team to work underneath you; they’ll do the selling, and you’ll collect a percentage on each transaction without going door to door or hosting product parties. It may involve minimal management supervision, but if you surround yourself with a group of motivated sellers, the interaction will be minimal and the reward will be maximal.
Even operating websites can create passive income streams. Buying a website that already has a strong reputation and Google Page Rank can make it a likely target for advertisers; you won’t have to build the site’s following – someone else has already done that – you’ll just be able to collect money from sponsors.
Do you have any creative means of creating a passive income stream?
