How to Make Money By Creating Passive Income
One of the easier ways to to gain financial independence is to reconfigure your life so that a substantial portion of your income is not actively earned by your labor. Instead, it must come from passive income. The basic idea of passive income is that it is money received with little or no effort required to maintain the flow of income once the initial work has been done.
Some common examples of passive income are:
Selling information products
One popular strategy for passive income is establishing an information product, such as an e-book, audio course or DVD, then kicking back while cash rolls in from the sale of your product.
Information products can deliver an excellent income stream, but they’re hardly a passive activity, Tresidder notes.
“It takes a massive amount of effort to create the product,” he says. “And to make good money from it, it has to be great. There’s no room for trash out there.”
Tresidder says you must build a strong platform, market your products and plan for more products if you want to be successful.
“One product is not a business unless you get really lucky,” Tresidder says. “The best way to sell an existing product is to create more excellent products.”
Once you master the business model, you can generate a good income stream, he says.
Make sure you’re earning a top rate on your savings.