When it comes to most money making strategies out there at the moment, there are no bigger buzzwords than Passive Income Streams or “make money while you sleep” etc. Lots of companies appeal to different audiences with this topic that example may be short on money and are looking for ways outside of their jobs to earn an extra income all within the law of course!
Before we go into the different types of Passive Income Streams and opportunities both online and offline. Let’s first define what exactly is a passive income stream and what is involved in creating a genuinely passive income for yourself so you can set yourself up financially and secure your future and the future of your loved ones in the process!
Passive Income Streams Definition
Passive Income Definition: Generally speaking Passive Income or Residual Income as some people call it is revenue you earn when you’re not actually working. Active income (trading time for hours) is money that stops coming to you when you stop working, so if you stop showing up for work you stop getting paid!
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The more passive income I have come into my bank account each month, the less I have to worry from a financial standpoint about my future as I’m creating wealth for myself and not just living paycheck to paycheck!
The late Jim Rohn said it best when he said profits are better than wages, and I completely agree. Let’s jump in and look at just five ways (there are much more than that) to create a passive income for yourself next but also point out the pros and cons of creating a passive income and what to beware of if you decide to go this route.
Here are 5 Types of Passive Income Streams, see which one suits you best…
1. Affiliate Marketing:
If you’ve been on my website before you should know what it is right now but Affiliate Marketing is basically where a company or an individual promotes their product in their chosen niche but also gives other affiliates the opportunity to promote that company/person’s product too. From here the affiliates will receive a commission from the business/person when someone purchases the product through the affiliate which very often is through the affiliates website or blog that they have. The earning potential is massive in affiliate marketing and unlike your 9-5 job there is no limit with hard work obviously to the amount of income you can earn!
2. Network Marketing:
Network Marketing or Multi-Level Marketing (MLM) has been around for many years, and it will likely be around for many more years to come. Network marketing used to be just offline but now with the explosion of the internet a lot of MLM companies use online marketing to promote their products.
When you join a network marketing company, you become part of a team (a downline) where there is a pecking order so to speak. The people above you who got you to join the downline will receive a portion of the income from the product you’re promoting within the company. If you get people to join, when they sell some of the company’s product which could be absolutely anything then you will get a portion of that income for sales made.
Be careful though as if your group leader is not experienced in building a great downline and doesn’t take the time to train you or people within your group then you can be left to do it all on your own with no support and it will be a lot harder to earn a decent income from it.
Most people think of big real estate deals when the subject of property comes up but if you have a spare room in your home, attic or basement then renting this space out is another to build a revenue stream for you. It will take time to find the right tenant and all of that, but once you have the proper person in place then you’re getting it back over and over again for a bit of work initially!
4.Create and App:
You’re probably rolling your eyes right now, but building apps aren’t anywhere as expensive as it used to be. You don’t have to create anything new, just look at what is out there already, improve on it with a higher quality version and then look for ways to market your app. As always do your research first, it has to be something that’s practical and will offer people
real value and make them want to tell your friends about it. Most people I talk to don’t like paying for apps anymore but you can still make it free and monetize it with ads or upsells within the app if it’s a game or something along those lines!
This is another form of Affiliate Marketing where you promote a certain product to your subscribers in a given niche. This could range from getting them to join a membership site to a once off purchase of a physical product like a set of golf clubs that gets shipped to their home, or it could be a digital product like an ebook on how to improve your golf swing.
The one thing I will say personally about passive income streams in this day and age is that most people think the word passive means no work at all, which has a lot of people starting in one of these opportunities and not realizing the amount of work that’s involved initially. I think it’s great personally because you can start part-time and eventually put yourself in a position where you’re making more money than you ever would in your current job!
As with all industries, there are also a lot of con artists selling the promise of making significant money with little effort on the individuals end. The telltale signs are very often when the person promoting the product only talks about the easy riches that are to be had by joining up and not going into much detail about what the person is entering, as far as the product or service is concerned. If it offers any real value to the customer’s, it’s promoted to so as always do your research when deciding to put your hard earned money towards any opportunity.
I would also recommend that when you’re getting started in a passive income opportunity, if you’re promoting a product or service to the public so you can build long-term wealth and financial security for yourself, also remember to look after your customers first and foremost.Truly believe that what you’re selling them is adding real value to their lives because then it won’t be like work for you, you will build your financial fortress, and everyone’s a winner!
My favorite passive income stream that I love working on is affiliate marketing and for anyone that want to create passive income streams online on topics their passionate about then the only place I can recommend is Wealthy Affiliate, and it’s free to get started so you can see if it’s for you!
I hope you enjoyed this post on building passive income streams and if you have any questions, comments or experiences creating a passive income stream I’d love to hear them below and please share this with anyone you think might benefit from this!