4 Keys to Create a Passive Residual Income
As a full time worker, or even a full time entrepreneur, there’s a limit to how much income you can generate from individual efforts. Since time immemorial astute business men and women have engaged in wealth building by leveraging the efforts of their employees. Nevertheless, building wealth through employees is not always an effective method, since as a general rule employees never strive to work as hard as the employer because they are not entitled to the same level of rewards. An alternative option to creating wealth is through network marketing because every member’s returns are pegged on the performance of the business.
Without divulging too much, some of the ways of creating passive income include:
1. Network Marketing
Network marketing is an innovative approach of generating a constant stream of income by just working smart without engaging in direct sales. Despite initial skepticism from the public, the concept has gained ground, and acceptance, in the businesses world with even multinationals in the beverage, telecommunications and auto industry adopting it. The concept is based on the philosophy that for me to grow I have to empower others to grow. This in the long run leads to a sustainable business model because everyone benefits.
2. Property Investment
As general rule passive returns should involve little or no direct involvement, however you should have some control over the enterprise. Owning rental property fits into this description. Rent from real-estate provides one with constant income without much hustle. In addition, it requires minimal overhead costs apart from the routine maintenance costs and property taxes dependent on jurisdiction located.
3. Royalties
As the world becomes increasingly interconnected there is a dire need for technology transfer and knowledge sharing. From this market need, great opportunities are available for those innovative and creative enough to package their skills and make them sellable. One avenue is through royalties from book sales, and licensing or intellectual property patent. This avenue may seem too demanding requiring a stroke of genius to pull through, but on the contrary all one needs to do is identify a need, develop a product, and market the product.
4. Information Products
A simple way to earn income online is to create an Information Product. You can write an eBook, record or audio program or create a video. It’s quick and easy. And since there is no cost to sell a product that can be downloaded online, you earn 100% profit!
To sum it up, there are numerous avenues of creating wealth with the major difference being the cost benefit ratio. Passive streams of income enable one to build wealth without much effort since most of the work has been delegated or was done at some earlier point. For newbies in the wealth creating journey, network marketing offers numerous benefits because it is less capital intensive and the rewards are huge, although it is dependent on personal effort.
Thomas Holthus is a Business Mentor who teaches people on strategies to start and run a successful business. He has a background as a Senior Program/Project Manager and System Engineer with extensive experience proposing, winning and managing high technology programs. For a Free Video with tips on how to start your own business, visit http://yoursuccessandwealth.com/wealth/.
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