Passive Income Basics
Making money comes in a variety of ways and means. Millions and millions of people know the traditional, old-fashioned route to getting paid, and that’s through getting a job – old, yet reliable. Most people have no issues with working 9 to 5, getting 40 hours a week and getting that weekly or biweekly paycheck. Many enjoy their weekend’s and the time that’s spent working through a variety of projects and tasks then slipping out on Friday evening for a couple of days rest before starting the routine all over again on Monday. Many have walked the routine for 20, 30, and even 40 years. This is what I call pure “Active Income”. That’s fine if it works for them…it’s even better if they feel that what they are doing is there purpose in life. Others find that working in an environment that keeps you in one place for a set number of hours weekly is simply not for them, and these iconoclasts are constantly devising plans to develop a passive income.
For those that aren’t familiar with the term “passive income” or how it is defined, it’s in regards to another route of making a living. Instead of making an hourly wage where you are sitting or working at one location or within the parameters of one job and skillset, it’s a way to make money when you’re not working. That’s right, making money in your sleep is the true definition of this secondary option in the career paths that you can choose. Now, to get on the road to earning a passive income, you will need to be active in the sense that some work will be required upfront. In other words, you will be an active income earner during the early stages, but will ultimately transition to a passive income earner.
Why Take The Passive Income Route?
The reason why this is a great option to explore is because it means that you’ll be able to stop working so many man-hours and instead relax and make your own schedule. Yeah, I know that the phrase “spending more time with the family, taking unscheduled vacations, working 4hrs per week” sounds so cliché, but I recommend that you customize those phrases to your liking, internalize them, and then start speaking them aloud – in private for now. There are many forms of this passive income process, and it becomes more of a business venture than anything else.
Passive Income Example
An example of how this work is affiliate marketing. Affiliates for large and small companies are like independent sales man that forward people to a larger site through a link that they are given. When they get someone to click a link, the end user goes to an online store and purchases goods. Those goods are sent to the end user, and the payment is processed with a commission given to the referrer, also known as an affiliate.
Marketers that are making a great deal of money with affiliate marketing are essentially making money in a passive manner. They are putting up links in forums, websites, blogs, and so many other places, which is far easier than many other roads to making money – hey, I do it with companies or products that I have used with much success – see my affiliate links on the right side of this page. Imagine only having to work a few hours a day, and then going off to do whatever it is you wanted to, without as much as a sweat. You would get to call the shots, and you would decide when you wanted to work. Then when you weren’t working, the world would visit your links, click through and purchase goods that they were already going to purchase, and each transaction earns you a certain percentage of the total sale. Then, at the end of the month, you receive a deposit into your bank account, Paypal account, or a check in the mail.
If that sounds too good to be true, that’s ok, skeptics are turned into believers on a regular basis. Plenty of large and successful companies have hundreds of thousands of affiliates that are pushing their products, services, sales and more. In many ways, with enough affiliate traffic; parent sites don’t have to even advertise, as they have that paid for by incentive a work force to promote their items on an individual or global landscape.
Well, I just wanted to take a moment or two to give a breakdown of my thoughts on “Passive Income”. Please feel free to share your thoughts on “Passive Income”. I look forward to reading them.