Tips on Creating Passive Income
By Johnny Wall
The traditional definition of passive income is “Income generated with minimal work from your investments such as interest, dividends, royalties for intellectual property, or real estate rentals.” For the sake of this short article we will be covering how to create passive income online. Time is money, and money is time, but I’m going to show you how to invest little money and some initial time to create a steady flow of hands off income thereafter.
There are many benefits to creating passive income. Most obviously time freedom, no longer trading time for money, working 40, 60, or 80 hours a week. Another benefit would be the ability to work from wherever you want. The mobile lifestyle has never been more possible, with technology on your side, your office can be just about anywhere using a laptop and a cell phone.
There are many benefits to creating passive income depending on what you are passionate about. Perhaps you have a charity you would like to contribute to regularly. Perhaps you want to set up a residual income for your retirement. The sky is truly the limit, and there is no ceiling on the income that you can create for yourself. You are only limited by your own thinking, so think big.
Let us now discuss the different types of passive income that you can create online. The first is affiliate marketing. Find companies that offer high commissions for products and a website that provides the product, tracks your sales, and allows you to focus on advertising.
Another way to earn passive income is to sell information products, whether you create one yourself, such as a “How To” ebook, or you sell someone else’s product as an affiliate. The advantages to creating your own product, obviously, is that you own it and collect all of the income. Ebooks are fairly easy to create, as long as you have valuable content, and they don’t cost much to produce, only the price of the software, and the cost of web hosting.
There are many network marketing and direct sales companies out there looking for affiliates to market for them, as well as marketing systems that you can both use as well as promote. Setting up an online business is very smart in today’s changing economy, and nothing’s better than money coming in on auto-pilot.