Don’t we all wish we can earn money while we sleep? Go on lovely vacations while our dollars grow? Ever heard of Residual Income? Well come along grasshopper and we’ll show you the way.
Active Income – what most people are familiar with, is a direct result of our efforts for a day’s or month’s work at our 8-4. We have to actively ‘sweat’ to make that money. What happens when we stop? You guessed it. Your money stops working for you.
Passive or Residual Income on the other hand, works even when you are not actively ‘working’. It is earned from such things as royalties from books, music and movies long after the work is done. It is also earned from patents, software and mobile apps, real estate and such. But while you don’t physically have to be present to earn it, you must monitor it in order to keep abreast of what’s going on.
Craig Dewe of Lifehack magazine says that in order to create passive income you need to create an asset that people would continue to want to buy. The trick he says is devoting some time to your passive income gradually since success does not happen overnight, but rather requires a lot of patience.
Here are a few ways you can create Passive Income according to expert and Lifehack contributor Katherine Eion:
You can charge a monthly or annual fee to members for expert advice on a field in which you are versed. This can be through podcasts or other forums.
Works in a similar way to Membership Community where you offer newsletters and articles on topics that are unique to your business. You can offer free advice to generate traffic and then the rest is up to you!
Have an opt in newsletter or build your list and charge a fee every time someone subscribes. Of course a functional website is a must. Then you can also design your site to sell those services. You can check out our blog on that here.
You can refer customers to well-known products and services all by advertising on your website. Eion says you can also do this via articles, ebooks, seminars etc and build your newsletter lists in a similar fashion.
Hope this helps! As usual, feel free to share and shoot us a comment below and let us know if you found this blog post useful!
Until next time.
T&T’s Entrepreneurs Team.