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How to Come Up with Passive Income Streams on the Internet
The economy is not in a happy place nowadays, and looking around, it does not seem as if the recession is going to end at any point soon. Instead of becoming mired in pessimism, grab your financial situation by the reigns, and bring in additional income by creating passive income streams.
What is the definition of passive income, and what do you need to do in order to develop this extra form of income?
Residual and leveraged incomes are the two kinds of passive income that can generate additional money. After you set them up, both kinds become passive; in other words, once you have created the revenue flow, the money continues to come in without effort on your part.
Residual income is income that is accumulated over time, including:
- Rent collected from property you own
- Commissions from annual client account renewals or subscriptions
- Sales of articles or media that are associated with classes you teach
- Sales of e-books or online products associated with your blog
- Selling your photographs as stock images
- Owning a company that is managed by someone you hire
What all these activities have in common is that you put them in motion, and then sit back while the income flows in over time. Oftentimes, you can generate passive income through passing on tasks to another individual, which will create some free time for you to do other things.
Leveraged income is when you allow others to work and generate income for you.
For instance, you could:
- Use an affiliate program to sell an e-book
- Turn your business into a franchise to sell to others to run
- Create a downline in a multi-level marketing (MLM) program, where people below you sell and you get commissions.
Leveraged income sources can spring from a variety of efforts. The most awesome thing about it is that it takes some initial effort at first for each one of these, and then it becomes passive.
Here are a few home-based passive income streams that you may want to keep in mind:
- eBay. Locate a wholesaler that you will be able to work with, and start up your own eBay store. Purchase items at wholesale prices, and let the distribution company employees pack and ship these items for you. If you start a business on eBay, you can sell just about any type of item.
- Open an Account with Google AdSense. With Google Adsense, you can place ads on your website and automatically generate income every time someone clicks on the links within the ads.
- Various Types of Affiliate Programs that Pay a Commission. Become an affiliate for different programs so you can advertise different products on your website. You place advertisements for these items on your business website, and you send prospective customers emails. The majority of affiliate programs offer commissions based on the total amounts of your sales.
- Discover Free Options at CafePress. CafePress.com is a website that allows you to create your very own online shop, selling personalized items, such as mouse pads, t-shirts, coffee mugs, and a variety of other merchandise with graphics you create. You can choose your own graphic design, famous quote, or your own unique slogan. You don’t need to pay any upfront money to begin the process.
- Art and Photography. If you enjoy shooting pictures, you have the opportunity to submit photographs to certain sites that specialize in selling pictures. Whenever someone buys one of your photographs, you will get extra money from royalties.
- Writing a Blog. Write about the things that inspire you, and publish your posts on your blog. There will always be individuals out there with your same passion and desiring to learn something brand new. Place a few ads on your website or blog to create extra passive income.
Generating passive income involves “setting it and forgetting it.” Once you have the income stream all set up and automated, there may be only little efforts needed afterwards. You may not become rich through your passive income streams, but setting these in motion can make a significant difference in your finances.