How To Create Automated, Passive Income
Written by WorkatHome on January 21st, 2010
How to Create Automated, Passive Income
by Troy Smith
Would you rather work 40 hours a week to achieve the same amount of income as someone else makes working an hour a week? The answer to this question is pretty obvious, yet many people do not know to make this happen. A great financial legend, James D. Rockefeller, once said that he would rather earn from 1% of 100 people’s efforts than 100% of his own. He couldn’t have put it any better. Do you find it hard to make enough to get by?
The solution to this problem is the idea of a passive income. Passive income is the money-making principle that separates your time from your work. Once you set up a stream of passive income, it is on autopilot and you will have the opportunity to make money while working on other interesting projects.
Before we go further, I’d like to ask this: are you getting ahead of inflation? Statistics show that most Americans are not. Did you know that the average household income for Americans has only increased by 30% since 1968, and yet inflation says that a dollar in 1968 is worth 6 times that of today? That means that we need to earn around $225,000 a year to live at the same standards as the average income of 1968. We can get to this level by having multiple passive incomes.
One way to create a passive income is the idea of residual income. This is a monthly income from something that you put time into investing only once. You can establish a residual income by selling unique, electronic products online to a stream of customers. This method is entirely automated by allowing digital delivery and payment.
Some of these methods do not need any of your involvement such as e-books. Others do require a small amount of individual effort. Examples of this are things such as an insurance worker phoning a consumer with regards to a renewal, which is a task you can often assign to a secretary.
Leveraged income allows the labor of additional individuals to establish an income for you. In this method, you create an income off of others people’s toil, instead of your own. This strategy may or may not second as residual income, which when combined with leveraged income, is twice as efficient.
There is one other way to most effectively apply the idea of a passive income, and this is termed active leveraged income. You will have to put more effort in this approach, but by getting others to work with you, not for you, you can earn even more money. An example of this exists in the Multi-level-marketing world. You can greatly enhance your return and get closer to financial freedom.
You can have the freedom to do whatever you want to do and be whatever you want to be sooner than you think without being concerned about money. If you can simply create an item people will continuously purchase, encourage others to assist in the resale of your product, and find methods to make money off of the labor of other people, you will establish this freedom that you, and many others like you, have been searching for their entire lives.
About the Author:
Troy Smith is a leading expert in internet marketing. He tells others about proven, credible online Passive Income opportunities. His most recent promotion is The Berry Tree which guarantees success.
Tags: adsense secrets, automated income, google adsense, make money quick, passive income
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