There’s no doubt about it … having a passive income is a great idea. Having multiple streams of passive income is even better!
So, what is passive income?
Passive income is basically income that you generate without doing much for it on an on-going basis. For example, if you promote a product that gives you recurring commissions, you put a little effort into this initially, in promoting the product and making a sale. But then you sit back and relax while the on-going monthly commissions continue to flow in. That’s it in a very simple form.
Depending on the income stream, there is usually some on-going effort required. The main thing here though is that the income doesn’t rely on you working x amount of time in exchange for an hourly rate.
In fact, often the work you put in during those early days will be for $0 return at first, quite possibly requiring you to invest some money to get started. I know, that’s not sounding very exciting so far, but we’re getting to the good part. When done correctly, the pay-off will be that you then put less in over time but the profit can continue well into the future.
Now, the better option is to have multiple streams of passive income. This is where you’re earning an on-going passive income, but from multiple different sources.
Benefits of multiple streams of income
The reason passive income is so good pretty much goes without saying. But the point is that if you can focus on setting up a few sources of income in this way, it allows you to earn more without working more every single week.
By growing this type of income from different sources, it offers you added protection should one of those income streams suddenly stop. For example, if you’re earning an affiliate commission from a membership site and that membership site closes.
You’ve heard the saying “Don’t put all your eggs in one basket”, right?
Passive Income Ideas
Okay, so it’s pretty obvious that having multiple streams of income – passively – is the way to go. But how do you develop these?
Here’s a list of just some forms of passive income:
- Create and sell a digital product
- Create and sell physical products
- Promote affiliate products – particularly ones with recurring income
- Invest in real estate
- Create some videos and upload to YouTube, enabling advertising
- Invest in a business
- Create and sell and online app
- Create and sell software
- Licensing your photos or images
- Drop-ship via your own e-commerce site
- Re-sell services online
- Build an investment portfolio
That’s just the beginning!
Some of these will take more work to set up than others and some are a lot riskier. But they are all worth considering, depending on your current circumstances, your experience and skills and the amount of money you have available to begin with.
You may want to take some time to learn more about some of these systems and even invest in some training or professional advice too.
Don’t get me wrong – most, if not all, of these suggestions will take some effort to set up and some will take more time and focus to manage long-term.
However for the most part, either these need little on-going management once up and running or it’s not too difficult to appoint someone to manage these for you. Yes, you’ll need to pay someone if you want to outsource the management. But it can be done. Just make sure they’re doing a great job so you’re still making a profit after paying all necessary costs.
Whether you’re looking for some extra long-term income or are looking at multiple streams of income as your sole income, these ideas are all worth considering.