Friday, January 29, 2010

Cash From Passive and Residual Source

Earning Passive Income is the dream of millions of people on this earth. Many of us have experienced the sheer grind and routine of 9 to 5 job and most of us realise that this is not what we want to be doing for the rest of our lives. The officedrudgery and prison like existence that this affords us fulfills a basic need, it is a way of earning money to exist and nothing more. There are very few people who can actually admit hand on heart that they truly love what they do most people would love to quit 9 to 5. Life should be about having the time and choices to do what we want when we want and with whom we want. Most people dream of earning a very good living passively whilst spending their time doing other things.

Due to its global nature, the internet is not experiencing a recession, in fact counting month on month, it is growing as millions of people are realising the true potential of working online from home. In the world of 'old fashioned' business the daily stories of redundancy, bankruptcy, cash flow problems dominate the news. Employees face a very uncertain and stressful future often not knowing from one month to the next if they have a secure future or not. This is not a satisfactory way to live it is an existence and a very stressful and poor one at that.

Passive income breaks down into 2 main categories and Internet businesses often combine both these categories so that you earn some income from your own efforts and also leverage the efforts of your team.

Residual income model - This can be generated by selling to the same group of customers for instance as with monthly sales of vitamins, or commissions generated on a regular insurance policy. It is where the 1 action creates more income over time. This income is dependent on still making that same sale month after month and requires effort on your part to generate more similar sales.

Leveraged Income - This relies on using the work of others to make income so for instance you may have a web site promoting an ebook that was written by someone else, you sell a copy and you get a commission. In network marketing you work hard to build a team they make sales and you get commissions. The key to this is that you generate an income from other people's efforts. You teach 1 person how to run their business then they go out and teach others.

It is now possible to have web sites that qualify your visitors, where they then get led down an automated sales funnel which qualifies them further and automatically gives them more information & they can then go on to make a sale online. All of this without the need for human input at all. This is the sheer power of being able to automate your efforts as the automation aspect frees up your time. Ask yourself where would you rather be, working or out having fun?

You can then go on to create multiple streams of income for example, if your business creates income from a small initial sale then creates a larger income from bigger secondary sales and also generates income from regular subscriptions and then generates income from the sales of others ie your team. This is true leverage and passive income at its best. The better your skills at branding particularly branding yourself the more successful you will become. The only input required by you is the initial setting up and regular monitoring and some regular input of valuable content. The day to day drudgery of sending out mails and following up is taken care of automatically. Income generated in this way can be to 6 or 7 figures yearly.

With the right mentor (make sure they are successful themselves), with good education, with the right business model and with the right automation in place your income can be pretty much whatever you want it to be. So, take action and do your due diligence and make those dreams come true. Remember there is NO recession here out on the world wide web and creating a 6 figure income passively is already a reality for thousands!

Labels: