I need inspiration, better ideas…
malenaxsiempre has written 10 entries about this goal
It’s a good visual reminder of what I want to get….
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Five Ways to Create Passive Income With Little or No Money
by Brian Lee on October 23, 2006 (Visited 175,926 times).
5diggsdigg5diggsdiggWhen I learned about the concept of passive income, I immediately became excited about it. I read every book I could get my hands on about wealth, personal finance, real estate, and entrepreneurship. Most of these books were heavy on concepts, but light on specifics. With this in mind, I went to seminars and started mingling with people who were already doing it to find out how they started. Here are five suggestions from what I’ve learned.
1) Buy an investment property with no money down.
Pros: inexpensive, huge asset for nothing but a signature
Cons: need good credit, must choose wisely, must find tenant quickly,
I was a first time homebuyer when I bought my first investment property. Banks love first-timers. They have a myriad of different programs to get buyers into their first house. Most banks will bend over backwards for them. With meager credit, I qualified for a brand new house with no money down, super-low interest rate, and $5,000 in equity, just for signing on the line. That was the fastest $5,000 I have ever made.
The catch is that first timers must buy the house as an owner-occupant, meaning the owner must intend to live in the house. This requirement, however, can be a blessing. Finding a good tenant can take some time, but if you are living in the house you won’t incur any additional expense. I lived in the house long enough to qualify myself as an owner-occupant and find a tenant to take my place. When I found a tenant, I moved into a rental apartment 1/4 the size of my house and 1/2 the monthly payment.
If you are not a first time homebuyer, there are other ways to get a property for nothing down. A creative mortgage broker can show you loans that cover the price of a home plus improvements. These brokers use creative financing to arrange a payment plan with no money down. Another method is to take over payments for an owner to get them out of a sticky situation.
It is very important to choose your property wisely. This is especially true if you have a very small margin for error in your finances. Find a good realtor who deals with a lot of investors. They will be able to help you find a property that will cash-flow immediately, meaning that the rent you receive will be enough to cover the mortgage, insurance, taxes, maintenance, vacancy fee, and all other expenses related to the property.
Don’t get sucked into the idea that you are going to make up for negative cashflow with capital gains. This is a recipe for disaster. If it doesn’t cashflow, it isn’t passive income. In fact, it’s a passive expense. There are plenty of properties out there that will cashflow, so take the time to find one.
2) Start a bulk-candy vending business
Pros: extremely low maintenance, excellent return on investment (ROI)
Cons: difficult to secure locations, requires small initial investment
Everyone has seen a gumball or candy machine in the lobby of a restaurant. Have you ever wondered who owns those machines? Most bulk candy businesses are owned by small, independent operators who have negotiated their way into another’s place of business. The vending operator either gives the owner a percentage of the revenue or promises to give a percentage to charity.
A quarter vending machine that offers three different types of candy can be bought for about $200 and the candy to fill it costs around $50. In a good location the machine can easily bring in around $25 per month. That means that you can pay off the entire asset in about six months or roll your profit into a second machine. After another six months, you can buy two more machines.
This may not seem like big money, but it is planting the seed for big money in the future. If you don’t have the money or credit for real estate, this is one way to turn a couple hundred dollars into a couple thousand.
The hard part is finding locations. You will have to learn some sales skills and utilize the power of persistence as you knock on doors. You might approach 20 different businesses before you get your first location. However, once you get a few locations, finding more will get easier.
Click here for a more detailed article on bulk candy vending.
3) Network Marketing
Pros: low initial investment, huge potential
Cons: must overcome negative stigmas, many scams out there
Network marketing is an industry that allows individual entrepreneurs to team up with a company to market their products or services. The idea behind network marketing is for the company to eliminate the costs of marketing, advertising, sales, and distribution, allowing the consumer to take on these responsibilities if they choose.
Many highly respected companies such as AT&T, Direct TV, Gap, Amazon.com, Google, Apple Computer, Macy’s, Nordstrom, Travelocity, and tons more have started to borrow from the concepts of network marketing. These companies have realized that the impact of their multi-million dollar advertising budget pales in comparison to the power of word-of-mouth advertising. When I noticed this trend towards the network marketing method, I dropped my “no way” attitude and decided to investigate the traditional network marketing model.
Most people have very negative feelings about network marketing because there have been a lot of bad apples in the industry, especially early on. What these people don’t realize is how far the industry has evolved. A few of these companies have learned from past mistakes and rid themselves of many of the negative aspects of old-paradigm network marketing. If you can find the right network marketing company today, it is possible to build passive income without a lot of money and still keep your friends.
Have you ever recommended a great restaurant or movie to someone? Have you ever told someone where you found a really great buy? Did the restaurant, theatre, or store ever pay you for your referral? That is precisely what the new generation of network marketing companies is doing.
The good apples offer a wide variety of great products or services at a great price, meaning that you don’t have to refer people to make it worthwhile. Selling something that is expensive and unnecessary is hard, but recommending a product or service that is better and less expensive is easy.
The way to minimize your costs with network marketing is to find a company that has products that are already on your shopping list. Then, replace the products you are already buying and you have just started a business for nothing. You might even find a way to save money.
The new generation of companies handles all the inventory, paperwork, and sales for you; all you have to do is refer people and the company does the rest. It is truly amazing how simple the process really is. What’s that you say? You don’t want to bug all of your friends and family? Not a problem, smart networkers use the internet, or other forms of creative advertising to bring prospects to them.
The big money in network marketing is made when a referral decides to make a business out of it. Most companies pay referral fees not only on your referrals, but on secondary referrals and beyond. Your efforts will be multiplied by the efforts of those you refer. Your business will soon be leveraged into a money making machine when some of their referrals decide to do it as a business, and so on.
Click here for a more detailed article on network marketing.
4) Create Interesting Internet Content
Pros: extremely low cost, extremely low maintenance.
Cons: some computer skills required, must have interesting content
The internet is entering an exciting new phase where otherwise average people are being rewarded for creating and sharing interesting content. There have been a group of internet pioneers such as Google, Revver.com, istockphoto.com, Amazon.com, and others, who have decided to share their revenue with content creators. This means that if you can come up with an interesting blog, movie clip, photo collection, flash design, podcast, or other form of easily distributable electronic content, you might be able to make passive income from it.
For example, as an experiment, I uploaded this 18-second clip of our cat jumping up and down to revver.com.
Now this is not the most popular clip on the internet by far, but it still generates a small amount of passive income for us. I like the fact that it only took me about 10 minutes of work to film and upload the video before I could make money from it.
People who spend the time to come up with a clever video that lends itself to a lot of peer-to-peer sharing make a lot more money. Take this next video for example. At the time of this posting, it had been watched over 3.5 million times.
Amateur film-makers aren’t the only ones benefiting from the internet revolution. iStockPhoto.com allows photographers to sell use of their photographs on their site. Just upload your photos and sit back and collect a check.
If you can generate traffic to your blog, you can make money with advertising or affiliate programs. This site is an example, but the king of monetizing blogs is Steve Pavlina. He has posted that his blog generates over $1000 per day. He is successful because he has great content and is unselfish. He will tell you on his site exactly how he did it and how you can also.
Be sure to check out my Blog Income Reports to see how much I’m making on Genius Types.
Read How to Blog :: The Manual for more details.
I love the fact that average people can be rewarded for good ideas and creative content in the internet. Creative people have a new chance to pursue the Amercan Dream.
5) Set up an Automated eBay Business
Pros: relatively easy, system already in place
Cons: time spent acquiring & shipping, must find unique product sourcing
eBay is to product markets what the Nasdaq is to the stock market! If you can find a reliable, wholesale source for a product, there are over 50 million people on eBay waiting to buy it from you at retail.
It is easy to fall into the trap of turning an eBay business into a full time job, so to keep it as passive as possible you need to automate. Find a product that you can get over and over from a reliable source at wholesale. Then automate your eBay auctions with one of the hundreds of auction software programs available to you on the internet.
The software will start new auctions when the old ones end and basically do everything for you except ship the products. Eventually, one could even hire out the shipping to his kids for allowance money.
The key to a profitable eBay business is a good product source. Even though eBay is known for rock-bottom prices, it still works on market principles. For example, you could shop eBay’s “Wholesale Lots” section to find products in bulk at a discount. Then, you would turn around and sell them one by one for a profit.
I have used all five of these techniques to produce passive income. In doing so, I have been able to quit my job and work from home. You can read my income reports for a complete breakdown. I hope that my experience has provided you with some insight on how to do the same.
How to Earn More and Work Less
From Scott Allen , former About.com Guide
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Do you want to continue working 50, 70, 100 hours a week the rest of your life?
Good! Neither do I.
Do you want to be able to take time off whenever you want to, without worrying about what’s going to happen to your business?
So do I!
There’s a saying in the corporate world: “Don’t make yourself irreplaceable. If you can’t be replaced, you can’t be promoted.” As an entrepreneur, this is still true in its own way. Let’s think of “being promoted” as earning more and working less. You can raise your prices, but until you can remove yourself from being directly involved in doing the work that generates the income, there’s always going to be a limit to how much you can earn, and it can only increase very slowly.
Passive income, on the other hand, is income that does not require your direct involvement. Some kinds of passive income you may be familiar with include owning rental property, royalties on an invention or creative work, and network marketing. If you want to earn more, work less, and have a decent retirement, you’re going to have to start creating income streams that do not require your direct involvement. Whether you’re just starting your business, or you’ve been running it a while, the sooner you start thinking about how you are going to shift your business model to create more passive income, the sooner you can achieve personal and financial freedom.
Let’s look at two basic types of passive income, and a third type of income that, while technically not passive, is a key strategy for earning more and working less.
Residual income is revenue that occurs over time from work done one time. Some examples include:
An insurance agent who gets commission every year when a customer renews his policy
A network marketing or direct sales rep’s income from her direct customers when they reorder product every month
An aerobics instructor who produces a video and sells it at the gyms where she teaches
A marketing consultant who creates a workbook and sells it in e-book format on the Internet
A photographer who makes his photos available through a stock photography clearinghouse and gets paid a royalty whenever someone buys one of his images
A restaurant or retail owner who has grown to the point of hiring a trustworthy manager
As you can see, there are many different ways to generate residual income across a wide variety of businesses. It may be recurring income from the same customers, or the sales of a product to new customers. It may require no personal involvement whatsoever, such as an e-book sold on a web site, or it may require some personal interaction, such as the insurance agent calling the customer to remind them about their renewal and ask them if they want to change any of their coverage. Often, it’s something that you can delegate to an assistant.
Note that this is different from merely recurring income. Recurring income may still require your involvement to earn the income, e.g., a coach or consultant on a monthly retainer, or a caterer who delivers lunch every Monday to the local school board. While this “active recurring income” offers welcome stability, it also tends to tie you down, and you still have limits on your earning capacity based on your own personal production capacity.
Leveraged income leverages the work of other people to create income for you. Some examples of leveraged income include:
An e-book author selling her e-book through affiliates who promote the product
A network marketer who builds a downline and receives commissions on the sales made by people in his downline
A general contractor who makes a profit margin on the work done by sub-contractors
Franchising your business model to other entrepreneurs (the ultimate leveraged income)
Again, there are many different models in many different businesses. The key is that you are making money off of other people’s labor, rather than primarily your own. Note that leveraged income may or may not also be residual income. When you combine them, that’s even better.
Active Leveraged Income
This is a term I use to describe income that requires your direct participation, but that you can make more money by having more people involved. This generally involves a one-time event, such as:
A seminar or class
A conference or convention
Concerts and dance recitals
Raves and other parties
Although these require your direct participation, your earning potential is much higher than if someone were just paying you a direct hourly rate. Fill a room with 1,000 people paying $50 each and you can cover your facility cost, promotional cost, and staffing fees and still have a nice chunk of change left over.
Now is the time to think about how to apply this in your business. Can you create a product that people will buy over and over again? Can you engage others to sell your product? How could you make money off the work of others?
The sooner you answer these questions, the sooner you’ll have financial and personal freedom
My goal over the next year is to develop some passive income streams.
There are three broad categories of income: earned, portfolio, and passive.
Earned income is simple to understand, if you get and keep a job, you’re making earned income. The problem with earned money is that if you can’t work for some reason, the money stops flowing. Cash flow is usually pretty steady so long as you have solid employment. Of course there is a risk in relying too much on just earned income. If you are injured or sick or get laid off all of the money coming in dries up.
Basic investment advice is to diversify to mitigate risk. The same advice holds for income. Having two people in the household working helps but delving into other forms of income protects against even more scenarios.
Building an investment portfolio is pretty straight forward. Read some books to learn about how investing works, then find a broker, open an account and start buying and selling stocks or mutual funds or whatever. There are two ways that stocks make you money, through realized appreciation in value, and through dividend payments. The biggest problem is that it takes a sizable chunk of money in order to make enough money to live on, or even get started. The stock market has historically returned about 8% per year. At that rate to realize an income of $50 000 you’d need over $600 000 invested in the market. Seems hard to achieve. That’s why portfolio income is usually not realized until retirement. Up until then the money is hopefully continually invested and compounded.
Having that portfolio there however will reduce the risks of working paycheck to paycheck.
The third and probably nicest yet most difficult form of income to receive is passive income. The most common source of passive income is from real estate and property. Renting out a room in your home, or buying a home, and renting it are some examples. Other examples include royalties from books and patents, and some network marketing businesses. There are two major benefits to this form of income.
Generally the income is regular. Perhaps you get a check in the mail once a month from a tenant.
Once the stream is set up, there is very little work required to keep it going.
Unlike portfolio income, passive income won’t swing into the negative. Where as it is possible for the market to crash, taking with it all you’re hard earned money. A good passive income will be checks in the mail and not bills. Unlike earned income, it’s not dependent on how much time you put into it.
The problem with passive income is that it is usually hard work to set up in the first place. That upfront cost keeps most people away from making a passive income.
Here’s my list of great passive income ideas:
Write some software
Become a partner with a business
Invent something and patent it
Join a network marketing business (one with a good training program)
Write and sell an e-book online
Build a portfolio of photos to sell
Create a product and sell it through affiliates
Develop a business idea and outsource everything possible
run Pay-Per-Click advertising campaigns
What do you think? Do you have any more ideas?
One of the ideas that I’ve had the most success with is affiliate sales on the internet. Â I make money every month by selling information products through the various websites that I maintain and with online advertising. Â If you’re interested in learning how that works I’ll recommend you read about the clickbank code. Â It is by far the simplest way I’ve found to earn a passive income. Â (By the way.. Â that link is an example of how I do it)
Read more: http://www.halotis.com/2007/05/23/passive-income-ideas/#ixzz1NQ9QFCTK
Also check out Automatic Blog Machine
Read more: http://www.halotis.com/2007/10/02/finding-passive-
I made a promise to myself to develop a through understanding of how to make passive income. It turns out that it’s much harder than I had expected.
I was inspired by some books that I read at the time to really figure everything out and start making passive income for myself. The Rich Dad Poor Dad books made the impression that passive income was really the best way to “get out of the rat race” and really become rich. Then the 4 hour workweek gave me the impression that starting a “muse” was just a simple matter of doing some quick testing and then launch a website. The devil is in the details. It turns out that while making $1 might not be that hard, getting to the $100/day point takes a while, and there are a lot of subtleties.
As I’ve found in my research about making passive income online, there are many different approaches. Here’s a short list:
Find a manufacturer or wholesaler and open a storefront.
Become an affiliate for someone else’s info products (ClickBank)
Make money with Adsense.
have a few good quality sites that you write content for and drive traffic to them
use a program to generate hundreds of websites and drive traffic to them.
Find other advertisers out there that pay on a action rather than a click.
Sell text links on your site.
Create a product and put it on Clickbank (or another affiliate marketplace) for other people to sell
That’s just a few different approaches. Again the devil is in the details. Can you consider all these to generate truly passive income? Probably not. Maintaining a good quality website or sites is not always easy. If you create a product how do you know if it will sell? How can you generate the traffic necessary to make money on advertising?
Tim Ferriss’ book “4 hour workweek” was great motivation but the truth is that the approach to testing that he advises in the book takes a huge amount of time. I tried that approach. It takes a long time to develop a good sales letter. The first draft is never going to convert very well, especially if you don’t have a background in copywriting. You need hundreds of people to visit the site in order to quantify the conversion rates, and even more if you want to optimize by testing different versions. That is the hole in the Tim Ferriss approach.
Then I came across the 30 day challenge. I learned a lot about the importance of keyword research, and optimizing pages for Google. Ed Dale, and Dan Raine have a good understanding of how to structure the whole approach, and with very little effort get started on something that has a real chance at making money.
There are a lot of subtleties to making passive income online. With enough work, the pieces will eventually come together.
Read more: http://www.halotis.com/2007/10/02/finding-passive-income/#ixzz1NQ8CEHoI
Also check out Automatic Blog Machine
I’m really into paying off my debts so I can buy a property to rent it.
What is passive income?
Renting a propertyA house,a commercial property,books,DVDs
DONE I. Opening two RG saving accounts in order to create $360 dollars within a year just by withdrawing money deliberately.
*part A is done, now I must work on part B
Opened the account
Now I must withdraw deliberately
II. Redeem MC rewards for cash
10,000 points for $100
current points 9,377
III.Create my 1st project ASAP
malenaxsiempre has gotten 113 cheers on this goal.
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