How Do I Create Passive Income?
In today’s economy, passive income is a highly sought after concept. Is it still really possible to earn passive income in this economy? Kylon and I have been fans of Robert Kiyosaki for years and have implemented several of his passive income ideas. We do NOT suggest going after every opportunity at the same time. We initiated different passive income ideas after we established one for several years before we moved on to another one.
What is passive income? Here is the definition from Wikepedia:
Passive income is a rent received on a regular basis, with little effort required to maintain it.
Some examples of passive income are:
- Repeated regular income, earned by a sales person, generated from the payment of a product or service that must be renewed on a regular basis, in order to continue receiving its benefits – also called residual income.
- Rental from property;
- Royalties from publishing a book or from licensing a patent or other form of intellectual property;
- Earnings from internet advertisement on your websites;
- Earnings from a business that does not require direct involvement from the owner or merchant;
- Dividend and interest income from owning securities, such as stocks and bonds, are usually referred to as portfolio income, which can be considered a form of passive income;
One of the key elements of an effective passive income generator is one that provides a monthly recurrence. A fee that you receive on a monthly basis is far more reliable than a fee that may be more randomly received.
Here are some more examples of passive income ideas:
real estate investing
You will need to find what will interest you but as stated previously, it is important to find something that will generate monthly cash flow for you. Here are some examples from our lives.
1. Real Estate – we have 2 rental properties in which we receive monthly rents. We also have a monthly fee for all of our real estate agents and loan officers to hang their license under my broker’s license.
2. Ebay Business – Kylon had an ebay business where he sold designer clothes that he found at thrift stores and sold them for high profits. He made between $7,000 to $10,000 / month in years 2000 – 2002. He was on his way to find one product and automate his systems to list it on ebay (true passive income model) but then he turned to the mortgage and real estate business and never turned back.
3. Affiliate products – the products that offer a monthly fee are the best in that you will be paid a monthly fee as long as the customer still uses the service. Marketing Burst, a site for creating landing pages is a great example of this. There are tons of affiliate products that you can promote so find what interests you and promote, promote, promote!
4. Monthly Subscriptions – ChatToText would be an example of a chat service on social profiles that charges a $6 monthly fee and you can have residual income for spreading the word. The downside to this is that more people are leary to give their credit card info on a monthly basis.
Steps to Start Your Passive Income Generator
1. Find your passive income generator
2. Research your passive income generator
3. Strategize how you plan to market
4. Develop a business plan of action
5. Make a daily plan of free promotion strategies such as
- posting on forums
- press releases
- social media sites
Start budgeting for paid promotion strategies such as
- PPC (Pay Per Click Ad Campaigns)
- Internet Marketing Ebooks and Videos
- Radio Promotion
- Social Media PPC
I hope this information is helpful to you. I also have 2 ebooks that you can review for more detailed information:
Enjoy and come back and let us know what you decide to pursue!
Naomi Trower AKA
Passive Cash Gal
Real Estate Broker