The passive income It is a hotly debated topic. For some a lie, for others a dream; and for a few, a reality.
We can tell you some truths about passive income:
- It is important to clarify that they are possible to obtain.
- Even though the word “passive” is being mentioned, it doesn’t mean you shouldn’t do anything; or that they are obtained by working little.
If you have enough money to invest, you could have a passive income through stocks or renting a property. However, we are not going to focus on this type of passive income; because most people do not have enough money to create it with these methods.
Also read: Rent or buy a property. What is the best decision?
Some people get confused by Tim Ferriss book “The 4 hour work week” and they think that having passive income means little effort or less work.
However, what it is about is taking advantage of your abilities. And above all to optimize the time to increase your income to the maximum.
For this reason we want to clarify what is passive income, what is not, and how to get it.
What is passive income?
The passive income it’s money that comes from a system that works for you. A system that automates the activities of your business; making you not have to be working all the time to generate profit.
If the system works, you can spend the whole day with your family and friends, and the money will not stop coming into your account.
Additionally the passive income it is an inflow of money that is generated by having an ‘active’ activity. That is, without having to make a permanent effort for their generation.
This is the beauty of having this type of income. That it is not tied to the number of hours you work. On the other hand, it is scalable, because you can increase your income without the need to work more.
Example of passive income.
For example, the Mexican entrepreneur, Alex Cormani, an expert in business model issues, pooled his knowledge to create the book “Your business model in 7 days. The first steps to create a successful company”.
For now, this is his main product, which he sells through his website and thus sells 3, 100, 500 or 1000 copies of his book; the effort it takes is the same.
In fact, the biggest job has already been done (writing the book), now it is available 24 hours a day, 7 days a week and 365 days a year; so that anyone who is interested in the creation of a company can acquire it.
Alex does not need to be present. There will even be people buying his book while he sleeps. Now part of his time must be spent marketing his book.
The passive income requires a high start-up workload to create a product; and above all a system so that later you can enjoy the income every day.
One of the great advantages of passive income is that it allows you to focus on the important things: planning and executing new ideas; and not in the operational part.
What is not passive income?
Passive income is not a system that you create and forget about. If you do, sooner or later it will stop generating income. You will always need potential customers to visit your page, to click on your advertising, and to be exposed in one way or another to your brand.
If Alex doesn’t take care of his marketing channels or update his book, that source of income will slowly be lost.
This means that passive income is not completely passive. Even if you have money invested in stocks; you will need to regularly research the market to keep your portfolio generating profitability.
If you have a property, you must verify its condition, maintain it, review the agreements with the real estate agency, offer it to the market if you do not have tenants. There will always be something to do.
Also read: How to make money with Bitcoin (Learn for free with the best)
So get this in your head:
Creating a passive income takes a lot of work and dedication to create products and systems that work for you.
However, when the money starts coming in, the work you will need to do will be minimal.
When you have your system up and running you will need to spend some time marketing your products to reach new audiences.
Benefits of passive income.
best of passive income is FREEDOM.
You can’t put a price on that. If you love to travel, you can do it without having to request a vacation or wait for the weekend. You will be able to say “YES” to everything that comes your way.
If you are employed, working 8 to 5 is the common rule. You must stick to a schedule. That is, you are exchanging your time for money. 8 hours a day, 5 days a week, to receive a salary.
Having a passive income will require 2-4 hours a day, you own your time and decide how you want to distribute it. You could work a full day and dedicate the rest of the week to other activities.
It is possible to create systems that allow you to go on vacation for months. Although no entrepreneur is capable of separating himself for so long from his sources of income; technology allows you to check your system 24 hours a day and from anywhere in the world.
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Passive Income Examples.
Affiliate marketing.
A very common example of passive income that virtually everyone can use is affiliate marketing. Which consists of earning money for recommending a company or a product in exchange for a commission when the sale is completed. Not in vain is it one of the most interesting profitable businesses.
In other words, it is a passive income in which you do not create the product or the service. It is usually done online through an affiliate link that you can get for a specific product that you will then share with others.
If someone enters your link and makes a purchase you will earn a commission. The process is that simple. The interesting part is that you offer value to someone by telling them what the best product is and filtering all the information and all the options available. And ultimately, you’re helping people save time and making it easier for them to find information about products and services that will fix something for them.
So start with the most important. What are the pains and problems of your target audience when choosing a product or service?
An easy way to find an answer is simply to have a conversation with the people in that target audience. And once you find the product that helps them, you can search their website or even contact them to see if they have an affiliate program.
And once you have the referral links you can create YouTube videos to show people how to use these certain products. You can also talk about the product/service on social media or you can even write blog posts or create podcast episodes.
How to start with affiliate marketing?
1. Choose a product.
2. Create a niche (if you don’t have one)
You don’t have to have a huge number of followers. In fact, some brands prefer to work with “micro-influencers”, because despite having less exposure, they are closer to their audience and that translates into better “conversion”.
3. Show the product
It is important to know about the subject, otherwise it will be very difficult for your audience to believe that you are an “authorized voice” to talk about the product.
You can talk about why that product is better than others; what has been your experience with the product; What other products do you know of the company and why does it give you confidence? Or if you want to do something simpler, you can just mention it. It all depends on how deep you want to go.
How does affiliate marketing become passive income?
The video, podcast or blog that you wrote in which you talk about the product will remain “in the cloud” for a long time. So people will be watching or reading for years, something you did only once. Therefore, it remains in “automatic”.
You should not forget that this is a trial and error job. That product that seemed great to you, your audience may not see it the same and therefore you do not sell. So I recommend that you have a resilient mindset.
Other Examples of Passive Income (where you create the product)
Creating a blog is one of the most successful methods.
A blog is a web page that shares information on a specific topic (Cooking recipes, losing weight, photography, video games, etc.) and is constantly updated with new content (Articles, videos, photos, infographics, etc.).
Surely you are passionate about a topic, so you could create a blog focused on that. A blog will allow you to generate money through advertising, from the sale of your own products; or from the sale of third-party products.
If you are interested in the subject you can review the following articles.
Photography is an excellent example.
The need for companies to increase their presence on the Internet has made the demand for photographic material grow continuously.
There are portals that are willing to promote your photos and help you sell them by generating a passive income. Your photos will always be available for sale 24 hours a day and no matter where you are.
If you want to know more about this topic, take a look at this course and start earning money with photography from today by clicking here.
Writing a book is another great example.
Today it is easier than ever thanks to electronic publishing. Forget looking for an agent or a publisher; you no longer need them.
You can do it alone! eBooks have become very popular all over the world and are available at low prices. It’s never been easier to become an author, get your book published, and rack up downloads from your audience.
This is how EL James, who wrote 50 shades of gray, published his first books using Amazon’s Kindle platform. This is a great example to encourage you to try. You don’t have to write a novel, the topics are unlimited!
We also wrote our own and the results have been incredible. No one on the team had published a book before, but we put our fears and doubts aside and are about to publish another.
If you want to start earning more money selling your own book, this course could be of great help. To see it click here.
Conclusion.
Most people spend their entire lives generating active income, that is, exchanging their time for money. Creating passive income is not easy. It is not from one day to the next. The word “bottom”, you will not feel it at the beginning. But in the end it is 100% worth it.
Would you like to have more time and have a system that makes money for you?
And remember that if you are really interested in creating your own business, you can purchase our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
