Passive Income – How to Create Multiple Streams of Income
The reason you have have probably found this post is you’ve come to realize that passive income and creating multiple streams of income are the ways that most of the rich and successful people have attained their wealth.
Multiple streams of income means you’re not reliant on only one source for your money. Most people work one job and look at this job as the only way they can make money. If they need more money, they simply think about working more, equating the hours they work with how much money they can earn.
This is not how to get rich.
Having multiple sources of income means that over time, you build separate businesses, investments, or passive flows of income that continue to make money for you, whether you do any work or not. Some sources of income will need continuous work to bring in money, but in addition to your job, they can be a great way to supplement your income for additional savings or a necessary purchase.
Sources of income such as real estate, whereby you rent a property or properties to create a source of income may seem passive, but they still require a lot of work initially and on an ongoing basis to maintain the properties and take care of tenants. Other sources of income, such as investments in the stock market and bonds will provide you additional sources of income after the initial research and investments are made.
The point is, there are no real sources of ‘passive income’, whereby you can make money from doing nothing. Anyone or any organization that promises you ways that you can either make money fast, or make money without doing any work is lying to you. There will always be work involved and if you want to keep making money, you will have to keep learning and developing your knowledge and skills, which takes time and effort.
How to Create Multiple Streams of Income
That being said, there are some great ways you can create multiple streams of income for yourself, with some requiring more work than others.
1. Create a Secure Source of Income
Many people make the fatal mistake of trying to create multiple sources of income without first securing their main source. The main source can be a job or a business, but before you can start looking for new ways to make money, ensure that your main source of income is well taken care of and will not be negatively affected by your new endeavors.
Some people start a new business in the evenings, after they are finished with their job. This new business requires a lot of time and attention, and they spend more and more time trying to get it off the ground. They work long hours on their new business, so much so that their performance work suffers. this could result in them losing their job or having the opposite desired effect, a lower income.
2. Create a Skill or Knowledge Base
No matter what has happened in your past, you must have certain skills and abilities that you excel at. Even if you don’t, taking the time to finding and developing new skills that other people require is a great way to create value.
The reason people will pay you money for your services is because you can give them something they need but don’t have the time or resources to acquire.
This is how lawyers, doctors, and other professionals make their money. You don’t have to become a medical professional to create multiple sources of income, but you do have to find ways that you can develop your existing skills and increase your knowledge to the point that others will pay you for what you know and can do.
Use your unique gifts, life experiences, abilities and value to offer. Find out what yours is and create ways to make money from it.
3. Find Your Market
Based on your skills and abilities, find out who you are most qualified to serve. With the information that you know or the abilities that you have, find the people who will need what you have to offer and determine how you can solve their problems.
One you have determined who your market is, get yourself known by as many of them as possible. Create a visible presence and ensure that as many people as you can help find out about you.
Now that you’ve determined some key areas that you can increase your knowledge and develop new skills, its time to create some multiple sources of income.
Passive Income – How to Create Multiple Sources of Income
Here are some ideas of how you can make money both passively and actively, on top of your main source of income.
1. Sell Your Own Product
Based on the information that you have and the particular skills that you have developed, you have to find ways in which you can share this information with your market. One way to do that is by using products.
When you sell products and services in this way, you are basically selling information that will help others achieve their goals.
Based on what you know, you can write an ebook and self publish it, you can record an audio or video program to get your knowledge across, or create coaching sessions where you are able to spend one on one time with your clients to help solve their problems.
Creating digital courses and training programs is a great way to build a step by step guide for people who need the information that you have. As long as there is a demand for your product.
2. Sell Other Peoples Products
When we talk about selling other peoples products, we’re talking about drop shipping and wholesaling. Drop shipping is the process whereby you find a product that is in demand, and find a source that will sell you that product and send it directly to your customers. You will make a small premium every time you sell the product, as you will add a percentage to the selling price based on how much you can buy them for.
Wholesaling involves a bit more risk, as you have to buy certain products in bulk to get a discount, and hope to be able to sell the individual products to make a profit.
This process will require some research to find the right products, but once you have determined a product line that you like, you can automate the marketing, selling, and delivery of the product to your clients and create a passive source of income.
3. Become an Affiliate
As well as creating your own products and selling other products at a premium, you can also become an affiliate for a whole host of products and services online.
If you are not yet ready to create your own products, you can find an experienced and successful affiliate marketer who has coaching and mentoring programs already, and sell their products for a commission. There are hundreds of successful coaches and mentors online who have affiliate programs, systems whereby they pay marketers of their product a commission for every sale they make for them.
Selling other peoples products is a great way to get started with multiple sources of income without the initial investment of having to create your own products. It can also give you experience in how to create similar systems for yourself in the future.
You can market affiliate programs using Google ads, Facebook ads, Twitter ads or by creating your own website. Just ensure the money you spend on marketing is less than the commissions you earn.
As soon as you create a successful method of marketing that brings in more money than it costs, this system can be automated and become another source of passive income.
This process is always ongoing, and once you start on the journey of creating multiple streams of income, you will be constantly developing and learning new skills that you can share with others by selling products and services. By comitting yourself to creating these new sources of income, investing as much of the additional money in creating new sources of income, you will streamline your way to success and financial freedom.
Now check out these posts, to help you manage your money and invest in your future.
Mehdi KA is an inspirational blogger and motivational speaker. He has traveled to over 43 countries and enjoys writing as a way to share his experiences and life lessons.
In theImportance.net he shares content that he believes can help people to achieve their goals and live a fulfilling life.