Here you will learn the essentials about passive income. What it is and what it isn’t, what you will need and how to set realistic expectations. This is all very important if you want to succeed with passive income so make sure that you read this entire short article.
The golden rule of passive income is:
You are not trading your time for money
When you have a job you trade your time for money. Most people hate their jobs and go to them out of necessity. Passive income will help to turn your fortunes around and hopefully help you to quit that day job that you hate.
Selling freelance services is also trading time for money unless you are using arbitrage. If you charge so much an hour for what you do and then you have to do it this is not passive income. The arbitrage model is different.
Here you will find the customers and then farm the work out to other freelancers so that you can make a profit on their efforts. This is an example of passive income and it can be a very lucrative model if you do it right.
Setting Realistic Expectations
If you have the wrong expectations about passive income then you are setting yourself up for a big fail. For some reason a lot of people think that passive income means that they will not have to do any work or very little work. Software that will make you money online with a few mouse clicks really doesn’t exist.
Whenever you see a passive income method advertised that claims there is next to no work involved run a mile! This is just a marketing gimmick to get you to buy the product. To be successful online you will have to be prepared to work hard as well as work smart. There are no free lunches.
You will not become a millionaire overnight with passive income while sitting at home in your underwear. Get rich quick schemes do not work. It is certainly not advisable to give up your day job and hope that passive income will replace what you were earning quickly. The chances are that it won’t.
What you certainly can do is make money faster than with conventional business methods. If you were to open a shop you would have to pay for stock, advertising, staff and a lot more. You would be lucky to break even in the first year.
With online marketing there are not likely to be any heavy costs like this. Unless you are selling physical products you will not require stock. You don’t need a shop as your website is your shop. You may need some full time staff eventually but not at the start.
It certainly is possible to build a passive income business online. Don’t let anyone else tell you that it isn’t. If you dream of working from home and earning more than you could have ever dreamed of then you can do it with the right mindset.
Get a Website
You will certainly need a website for your passive income business. If you are promoting your own products or other people’s you will need landing pages to do this. Don’t be a cheapskate and go for a free blog from WordPress.com or Blogger.com. This just makes the wrong statement about who you are.
Have you ever purchased anything from one of these free websites? Or given your email address in exchange for a valuable gift? Probably not so don’t expect others to do it either. Get your own domain name, some web hosting and use the WordPress self hosted platform for your website.
Decide on a Niche
You have two choices here really. You can choose a niche that you are really passionate about or you can choose one that you know will make you money. If your passion is in demand then you should be really on to a winner!
Are there products and services sold regularly in the niche of your choice? Use Google and enter your niche keyword. Are there Adwords ads for the niche? If there are this is always a good sign.
Create a Passive Income plan
When you have a passive income plan you are a lot more likely to succeed. There are a number of things that you need to consider and here are some of the really important things:
- How much time can you dedicate to your passive income business?
- What products or services are you going to create or promote?
- How will you get traffic to your landing pages?
- How will you collect visitor leads?