Typically, passive income is portrayed as a device for the rich to get richer. Those that have the money invest in passive investments such as rental units, property, big businesses, or large amounts of stocks that yield dividends. Each one of these investments can provide an excellent income with very little amounts of work, but they also need a large amount of up-front cash! So, how in the world do average Joes begin to earn a passive income?
Passive Income For Cheap
Many of us may not have the deep pockets of the wealthy, but what can we attain that also has value? I’m sure you have heard the phrase, “Time is money!” This statement says it all – we may not have the money to invest in real estate or a big business, but we most likely can invest our time.
Rather than going out and buying a passive income source, we’ll have to build it. While this is by no means the conventional approach, it still can be quite effective. Let me try to explain myself with a few examples.
You may not realize it, but a website is incredibly inexpensive to start. After you buy the domain and a years worth of web-hosting, you might only have $50 invested in your passive income project. While the website is cheap, the work has only just begun. In order to monetize this site, you’ll have to create content and optimize each article so that any search engine can locate it. This process can sometimes take months to perfect, but once it is ready, it hardly takes any maintenance and the income is quite steady.
Selling insurance is certainly not simple. When people find out you sell insurance, they often become rude and short with you, because they assume that you’re getting ready to make a sales-pitch. Sometimes your friends start avoiding you because they’re afraid that you’ll start talking about your latest life insurance plan again!
While it can be tough, selling life insurance can be a phenomenal source of passive income. After all, once you make a sale, you receive commissions on their premiums for life! What if you make 1,000 sales within your first few years? Then you can most likely lay back and just watch your bank account fill up with earnings. It takes time, but the potential for passive income is a great benefit.
You may not know it, but there are thousands of products out there that are only offered through network marketing! If you have faith in a particular product and would like to help others make money as business owners, this could be a great way to earn some passive income as well.
With this option, you will run into quite a lot of opposition. After all, this model is much different than your typical, “go to work and get paid” method. But, if you have the gift of enthusiasm and encouragement, you could build up a passive income that is limitless. Believe me, I’ve witnessed it.
Just the other day, I saw a man carrying a snow shovel from house to house, asking the residents if they needed their driveways cleared. It seemed to me that he didn’t like selling his service, but just wanted to shovel their driveways and collect his $20.
Immediately, I thought, “I could earn some passive income with this idea!” I could sell the service and set up service contracts before the snow flies next year and tell the man that I’ll pay him $15 per driveway with a guarantee of 15 houses for every snowfall – and he wouldn’t even have to talk with anyone. Because I made the sale early in the year, I’d collect $5 for each driveway, which equates to $75 per snowfall – all because I invested a little time and made a few phone calls. Passive income can be created with almost anything!
How do you plan to earn a passive income? Is it with one of my examples above, or do you have some other ideas?
This post was written by Derek.