Is been on the Internet for years and it will not go away, people asking what is the best way to make passive income?
There are many ways to make money on the Internet today, but long-term income is not going to be achieved by every one of them. When I think of long-term income, I like to think regarding passive income.
You may be wondering what passive income is just based on the title of this article, so I want to address that from a variety of different angles in this article.
Before I do that, let me just give you the definition of passive income as I perceive it. To me, passive income is income that continues to come in with very little effort on the back end.
In some business models such as network marketing, one of the selling points is what is known as residual income. In actuality, residual income and passive income could be considered to be the same thing.
So, let’s break down what the best way to make passive income is, and how you can take advantage of this very powerful income-producing strategy.
When building an income, I like to think regarding building an asset. For example, setting up a website utilizing the Google AdSense business model is a passive income stream once you have the traffic coming to your website.
This is a business model where you can develop multiple websites, and each one of those is an income-producing asset. Because of the passive income that comes from this type of a business model these websites are in demand and can be sold in the future, hopefully for a profit.
This may not be the case in other income streams you are earning. What could other kinds of assets be passive income? This is what is working for me today.
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Building an email list that you send out messages to is a very passive income stream once you have the email list built. I know people who have pre-programmed their email autoresponder to send out messages as much as five years in the future.
People on the list continue to receive emails, and if they reply to an offer in the email, and make a purchase, the owner of the list is making money. This is a hard thing to build, but the long-term passive income from it makes it an asset.
Another way you can build passive income is to join a business opportunity where you can build your sales force. Immediately network marketing comes to mind. So does affiliate marketing when you are in a program that pays you to recruit new members and you earn a percentage of their sales.
The nice thing about building a sales force of your own is once you have it developed you continue to make money in the future for the work you’ve done in the past. Of course, this only is true if the people you have recruited continue to make sales.
One of the ways that this has effectively been done in the past, and is continuing to be done now and in the future, is by setting people up in their businesses. When this happens, they have a vested interest in their success, and you’re compensated to help them achieve that.
This is great because you don’t have to set up your own business or develop your products. You join a company where the products are already in place, and you begin to make sales on those products. Then you recruit people and teach them how to duplicate what you have already done.
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Some business opportunities have a monthly membership fee that you earn a commission on. This is another great way to make a passive income because every month that the membership of your customer is active you earn a commission.
The membership fee is collected by the company that you’re in business with, so you do not have to worry about that every month. Once the payment is processed, you earn a commission, and that is sent to you directly from the company you are in business with.
Therefore, it makes sense to join business opportunities where you can promote products that have this monthly membership billing. Wealthy Affiliate is this type of a program, and I highly recommend you look closely at it.
Other examples of monthly billing programs you can earn money on would be website hosting, autoresponders, training programs, and so on.
We all pay a monthly membership for things ourselves such as Netflix, cable TV, smartphones, and so on. If you can find an affiliate or network marketing program representing products people are using their everyday life this could be a passive income stream for you.
As I said, I’m a big proponent of passive income programs, and I have laid out several ways you could earn a passive income of your own. Let me just point out a few of the negatives that come along with this type of income.
One downside is that people that are spending money on a monthly basis, some of them will cancel their membership. You see this again in network marketing programs where people are on AutoShip, and the distributor is earning a commission on those sales until they cancel their AutoShip.
In any program where you’re getting paid to recruit, or sell, products that are earning you a monthly income you can expect a certain amount of attrition. Therefore, you may have to continue working to replace customers that are no longer active in earning you the passive income that they might have in previous months.
Building passive income streams are worth the effort in my opinion. Most of us have careers where we have to get up and go to work every day, and the minute we stop working, the minute our income stops as well.
Building a part-time business that earns you passive income stream is one way to protect yourself against downturns in the job market that we all go through one time or another.
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