passive income http://www.wisebread.com/taxonomy/term/9749/all en-US 15 Ways to Make Money Outside Your Day Job http://www.wisebread.com/15-ways-to-make-money-outside-your-day-job <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/15-ways-to-make-money-outside-your-day-job" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/000023241641.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Extra money is great. At a minimum, extra income is more change in your pocket. Beyond that, it can diversify your income sources and make your finances less vulnerable to a disruption.</p> <p>There are many types of non-salary income, but one way they're often divided up is passive versus non-passive. Consider these 12 sources of additional income.</p> <h2>Passive Income</h2> <p>Passive income tends to be investment income: Money you get for letting someone use your money or your stuff. Here are the classic categories of passive income. (By and large, this whole category is only available if you have money to invest.)</p> <h3>1. Interest</h3> <p>Interest is money you get from something like a bond, CD, or savings account, where someone pays you to use your money.</p> <p>Not so long ago &mdash; before the financial crisis &mdash; there were plenty of reasonably safe interest-bearing investments that paid 3%, 4%, or even 5% over inflation. Those days are long gone. Now, CDs or bonds can barely beat inflation, and that's only if you're willing to tie your money up for a long time. Still, interest income can serve as a secondary income stream, and the opportunities are likely to get better in the near the future. (So, be careful about locking up your money for the long term at current rates.)</p> <h3>2. Dividends</h3> <p>Dividends are your share of the income earned by companies in which you own stock, and are also earned from baskets of investments that hold stocks, such as ETFs or mutual funds. Unlike the interest earned on a bond or CD, dividends can rise or fall unpredictably, depending on the success of the firm or the fund. Although some risky companies can pay high dividends, stable companies tend to offer modest returns, typically under 5%.</p> <h3>3. Rents</h3> <p>In theory, rents can be pure investment income, like interest and dividends, but in practice, being a landlord is more like taking on a second job &mdash; you have to find tenants, accept rent payments, keep the building maintained, deal with broken appliances, and so on. You can hire a management company to do that work, but that's an extra expense &mdash; and the income still isn't purely passive, because you still have the work of managing your relationship with the management company.</p> <p>Still, rental income can be an incredibly flexible second income stream. Airbnb, RelayRides, and similar companies now enable individuals to rent out things like spare bedrooms, vehicles not in use, and earn extra income with less effort.</p> <h3>4. Royalties</h3> <p>Royalties are money that you get for letting someone make more limited use of something that you own. If an oil company operates a well on your land, they'll pay royalties. If a publisher sells a book that you wrote, they'll pay royalties. The possibilities are vast, and in essence include anything people can use &mdash; land, books, photos, patents, trademarks, etc.</p> <p>It's worth noting that most people who sit down to write a book don't end up getting any significant income from it. That's probably even more true of people who sit down to invent something. Still, books, online stock photography, and even less-successful inventions can all generate extra income and diversify your earnings.</p> <h2>Non-Passive Income</h2> <p>Non-passive means you have to get out there and hustle up this extra income in your spare time. Some take a lot of hustle.</p> <h3>5. Working Another Regular Job</h3> <p>For someone working for wages, a second (or third or fourth) job is a classic source of extra income. If you're working for a salary, you'd probably be breaking your employment agreement to work another job, but there are ways to work for pay without breaking the rules. Check with your employer to determine your company's specific policies.</p> <h3>6. Working at an Irregular Job</h3> <p>Not all jobs require a regular time commitment. Some can be done on an ad-hoc fashion, such as:</p> <ul> <li>Casual labor, like a handyman, house painter, gardener, house cleaner, or dog walker.<br /> &nbsp;</li> <li>Freelance work (usually skilled or semiskilled labor done outside the range of regular employment), such as a web designer, photographer, adult education instructor, bicycle messenger, etc. Many occupations that fall into this category require special training, certification, or even licensing.<br /> &nbsp;</li> <li>Seasonal work, such as a department store Santa, sheep shearer, etc.</li> </ul> <h3>7. Service Something That Makes Money</h3> <p>The classic option here is a vending machine. Your investment is modest &mdash; the cost of the machine, and the cost to stock the machine the first time. Your labor is modest &mdash; visiting the machine to restock it and remove the cash.</p> <p>Vending machines used to be a great way to make a modest amount of money, especially if you knew someone who would let you put a machine in a reasonably high-traffic area either for free, or for a piece of the action. You could start small and then buy more machines. Back in the day when coin-operated video games were a thing there wasn't even any restocking needed &mdash; you just went as often as necessary to take out the money.</p> <h3>8. Running a Small Business</h3> <p>Running a small business can be a great way to make money from a source other than your salary. The range of options for small business are infinite. Just for starters, virtually all the &quot;irregular job&quot; items from the previous section could be just as easily arranged as a small business. Instead of painting houses or walking dogs, you start a house painting or dog walking business. Plus, running a business may confer certain tax advantages (deductions, anyone?) which can make it an even healthier secondary income source. The next two ideas can also be structured as small businesses.</p> <h3>9. Sell Something You Make</h3> <p>The list of things you can make and sell is endless &mdash; jellies and jams, soaps, jewelry, garden produce, baked goods, maple syrup, pottery, scarves, etc. I wrote a bit about the line between hobby and small business in my post <a href="http://www.wisebread.com/make-your-hobby-pay-its-way">Make Your Hobby Pay Its Way</a>.</p> <h3>10. Sell Copies of Something You Made</h3> <p>This is a variation on the point above about royalties. Instead of letting another company sell copies of something that you've created in return for royalties, you can sell the copies yourself.</p> <p>The classic case is self-publishing a book, but there are a lot of other possibilities that fall into this category. For example, If you know how to do something, you could create a video teaching how to do it, and then sell it on DVD.</p> <p>This option really lends itself to digital sales, because the cost of production is zero &mdash; ebooks, online video courses, phone apps, etc.</p> <p>It's tough to make much money this way, because there's so much stuff out there already, often for free. Sales are likely to be low, and unless you have a very narrow, very focused niche, you're going to face a lot of competition.</p> <p>Still, this can be a win, especially if you want to create something for your own reasons &mdash; a phone app that does something you want a phone app to do, a drawing that speaks to you, etc. If you're making the thing because you want to, the extra effort to sell copies is quite small, and will probably bring in a little money.</p> <h3>11. Sell Something You Gather</h3> <p>There are still places where it's legal to collect things and sell them &mdash; mushrooms, pine boughs, sea shells, rocks, insects, etc. Success requires access to a place where you can collect, and usually requires more than a little skill in knowing what's worth collecting, and how to sell it.</p> <h3>12. Sell Something You Buy</h3> <p>If you can buy something cheap and sell it for more than it cost, you can make money on the markup. To make a reasonable profit, you usually have to add value in some way. The two classic ways are: Import the item, or repackage a cheap, bulky item into smaller units.</p> <p><strong>Importation</strong>: Say you find something sold overseas that you really like &mdash; a clothing item or a gadget or a tool &mdash; that just isn't a thing in the U.S. You can find the manufacturer, buy a modest quantity at wholesale, import them into the US, and sell them at a markup. Your added value is the capital to buy the stock and the effort handling the complexities of importation.</p> <p><strong>Repackaging</strong>: Almost anything is cheaper in bulk, sometimes a lot cheaper. My wife buys a brand of quilt soap that's good for washing wool. She can get it in 8-ounce bottles for $8 or $9 dollars &mdash; about $17 a pound. The stuff has a single ingredient: sodium lauryl sulfate, the detergent in baby shampoo. If you buy by the barrel, sodium lauryl sulfate costs less than $1 a pound &mdash; highly profitable, even after paying for bottles. Anybody can do the same thing with anything that's cheap in bulk but can be sold for more in reasonable quantities.</p> <h3>13. Teach a Class</h3> <p>If you have some skill &mdash; and if you also have some skill at teaching &mdash; you can make money offering classes. Where I live, people can arrange to teach classes through the park district, recreation center, the local library, YMCA, community college, and at least two different senior organizations. Many of the stores that sell arts or craft supplies also offer classes with local artists and craftspeople as teachers. And if you're adequately entrepreneurial, you don't need to teach under the auspices of some other organization at all. You can find your own students and teach out of a location of your choice.</p> <h3>14. Put Ads on a Website</h3> <p>Creating a blog or static website and putting Google Ads (or other affiliate programs) on it can generate extra income &mdash; just how much depends on the traffic and ad clicks your site generates. It's a competitive space, but if you can produce a quality site with adequate traffic, it may provide a regular source of additional income.</p> <p>If you have some sales skills, you can also market your site to individual companies and get them to buy ads for a lot more money. That's another piece of work, however. It would make your income a little less passive, because now you're a salesman on top of everything else.</p> <h3>15. Create a YouTube Channel or Podcast</h3> <p>If you like making videos, this can be a source of modest income. If making videos seems like a lot of work, you're going to quit before you make any money from Google Ads on your YouTube channel. Still, if you make videos that go viral, there's the potential to make quite a bit of money. Some YouTube stars derive significant income from their videos.</p> <p>Podcasts are a little more complex to monetize, because you don't have the option of just putting ads on the page somewhere; you actually have to include the ad in the podcast itself. On the other hand, the ads are worth more, because the listener is pretty much stuck listening to the ad from beginning to end.</p> <p>There are podcast networks that offer tools to help with creating and making them easy for listeners to find. Some of them also have ad networks, although you'd probably make more money if you did the work of selling your podcast to sponsors.</p> <p><em>How do you earn extra income?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/philip-brewer">Philip Brewer</a> of <a href="http://www.wisebread.com/15-ways-to-make-money-outside-your-day-job">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-6"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-new-income-streams-anyone-can-create">5 New Income Streams Anyone Can Create</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-ways-to-earn-extra-money-with-your-car">7 Ways to Earn Extra Money With Your Car</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-ways-to-make-amazon-pay-you">7 Ways to Make Amazon Pay YOU!</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-truths-from-a-mystery-shopper-you-must-read-before-you-get-started">8 Truths From a Mystery Shopper You Must Read Before You Get Started</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/clear-out-that-clutter-15-places-to-sell-your-stuff">Clear Out That Clutter: 15 Places to Sell Your Stuff</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Extra Income freelancing investments non-passive income passive income selling side jobs Thu, 19 Nov 2015 19:03:04 +0000 Philip Brewer 1615339 at http://www.wisebread.com Best Money Tips: Winning Ways to Build Passive Income http://www.wisebread.com/best-money-tips-winning-ways-to-build-passive-income <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/best-money-tips-winning-ways-to-build-passive-income" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/5879389597_0a5544f8e3_z.jpg" alt="Winning Ways to Build Passive Income" title="Winning Ways to Build Passive Income" class="imagecache imagecache-250w" width="250" height="141" /></a> </div> </div> </div> <p>Welcome to Wise Bread's <a href="http://www.wisebread.com/topic/best-money-tips">Best Money Tips</a> Roundup! Today we found some great articles on building a passive income, getting your financial house in shape, and researching your potential house before you buy a home.</p> <h2>Top 5 Articles</h2> <p><a href="http://financialhighway.com/9-winning-ways-to-build-passive-income/">9 Winning Ways to Build Passive Income</a> &mdash; If you want to build a passive income, consider starting a website and earning money from ad sales. [Financial Highway]</p> <p><a href="http://notmadeofmoney.com/blog/2013/01/getting-your-financial-house-in-shape-for-the-new-year.html">Getting Your Financial House In Shape For The New Year</a> &mdash; To get your finances in shape in 2013, start by updating your budget. [Not Made of Money]</p> <p><a href="http://freefrombroke.com/places-research-potential-house-before-buy-home/?utm_source=rss&amp;utm_medium=rss&amp;utm_campaign=places-research-potential-house-before-buy-home">8 Places to Research Your Potential House Before You Buy a Home</a> &mdash; Before you buy a home, do some research on it on Listingbook or RealEstate.com. [Free From Broke]</p> <p><a href="http://www.mainstreet.com/article/real-estate/35-small-acts-kindness-you-can-do-your-neighborhood">35 Small Acts of Kindness You Can Do In Your Neighborhood</a> &mdash; Do something kind for one of your neighbors and bring in their trash cans. [MainStreet]</p> <p><a href="http://moneyning.com/business-idea/3-ways-to-turn-your-knowledge-into-a-business/">3 Ways to Turn Your Knowledge into a Business</a> &mdash; Turn your knowledge into a business by offering your services as a consultant. [MoneyNing]</p> <h2>Other Essential Reading</h2> <p><a href="http://www.debtfreeadventure.com/debt-problem-five-signs/">Five Signs You Have A Debt Problem</a> &mdash; You may have a debt problem if you can't buy extras without using a credit card. [DebtFreeAdventure]</p> <p><a href="http://www.marcandangel.com/2013/01/11/10-ways-to-make-life-good-again/">10 Ways to Make Life Good Again</a> &mdash; Make your life good again by helping others feel better about themselves. [Marc and Angel Hack Life]</p> <p><a href="http://www.savvysugar.com/Why-Youre-Motivated-26825177">5 Reasons Why You're Not Motivated</a> &mdash; If you are taking on too much, that may be messing with your motivation levels. [SavvySugar]</p> <p><a href="http://parentingsquad.com/how-to-eat-healthier-as-a-family-this-year">How to Eat Healthier as a Family This Year</a> &mdash; To eat healthier as a family this year, shop together! [Parenting Squad]</p> <p><a href="http://personaldividends.com/4-resolutions-for-your-romantic-relationship/">4 Resolutions for Your Romantic Relationship</a> &mdash; This year, make it a point to learn to argue without losing control. This will help your romantic relationship! [Personal Dividends]</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/ashley-jacobs">Ashley Jacobs</a> of <a href="http://www.wisebread.com/best-money-tips-winning-ways-to-build-passive-income">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/15-ways-to-make-money-outside-your-day-job">15 Ways to Make Money Outside Your Day Job</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/great-ways-to-generate-passive-income">Great Ways to Generate Passive Income</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-ways-everyone-can-make-more-money">5 Ways Everyone Can Make More Money</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-old-knick-knacks-you-can-flip-for-easy-cash">10 Old Knick-Knacks You Can Flip for Easy Cash</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-best-cash-back-credit-cards">5 Best Cash Back Credit Cards</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Extra Income best money tips career and income passive income Thu, 17 Jan 2013 11:00:33 +0000 Ashley Jacobs 965760 at http://www.wisebread.com How Much Should You Invest? http://www.wisebread.com/how-much-should-you-invest <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-much-should-you-invest" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/6848823919_724f516a05_z.jpg" alt="money" title="money" class="imagecache imagecache-250w" width="250" height="192" /></a> </div> </div> </div> <p>&quot;How much should I invest?&quot; is a question frequently asked by savers who want to start making their money work for them. This simple question can actually be quite difficult to answer since there are so many ways to invest and different people have different levels of risk tolerance. Here I will try to answer the question by explaining a few ways to invest and how risky they are, and you can be the judge on what path you should take. (See also:&nbsp;<a href="http://www.wisebread.com/investments-worth-making-with-50-or-less">Investments Worth Making With $50 or Less</a>)</p> <h2>Almost Zero-Risk Investments</h2> <p>If you absolutely don't want to lose your money, then you can put it in a high-yield savings or checking account, money market account, certificate of deposit, or U.S. treasury bond. You can put all your money into these investment vehicles and most likely be guaranteed that you won't lose any. The downside is that right now most of these are paying very little interest, so the purchasing power of your money could be eroded by inflation. If you don't have a lot of money and don't want to lose any of it, though, then this is probably the way to go.</p> <h2>Slightly-More-Risk Investments</h2> <p>If you have more than a few thousand dollars to invest and do not want to do too much work, then it is quite easy to just put your money in a <a href="http://www.wisebread.com/mutual-funds-for-wise-bloggers">mutual fund</a>. However, there are thousands of mutual funds that put money in a variety of investments, and you need to investigate which is best for you. Personally I have invested in one of Vanguard's Target Retirement funds that invests in a variety of index funds. It is a low-cost and low-maintenance option if you want to invest for the long term without having to do much work. However, if you do take this path and you invest in mutual funds that are mostly stock based, you need to know that it is possible for the funds to vary wildly with the ebbs and flows of the stock market. If you tend to panic when you watch your money go down or if you need the money right away, then this is probably not for you.</p> <h2>Investments With More Risk and Work</h2> <p>If you are into research and do not mind watching your investments often, then you can try your hand at building your own stock portfolio by buying individual stocks or ETFs. I have not done this before, but I do have friends and family who like to do technical analysis on the stock market and trade stocks for the short term. They usually park a lot of money in cash and then only place a small portion of their capital on each stock pick or &quot;bet.&quot; Many times the stock or ETF is sold within hours or days of their purchase. Some people also trade options, but that's not for beginners. If you want to try your hand at picking stocks, then I would suggest not putting all your money in right away, because it is possible to lose a large chunk in the matter of days. Some people call this speculation, not investing.</p> <h2>Investments With Lots of Risk, Work, and Possible Reward</h2> <p>When you know some investments well, it is possible to invest without putting up any of your own money and instead borrow the capital you need. For example, some real estate investors will borrow 100% of the money they need to buy houses and then either quickly flip the house or <a href="http://www.wisebread.com/should-you-become-a-landlord-instead-of-selling-your-home">rent the house out</a> and then refinance. Other investors borrow the capital for a business and then pay the loan back over years with the business's cash flow. These methods of investing require a lot more work, and if you don't know what you are doing, you are almost guaranteed to lose money. The upside is that if you make money, you are doing it with other people's funds and you can repeat the process and make more money. If you want to go down this path, you would need to do a lot of research and learn about the business you are targeting. You also need to invest quite a bit of your own time.</p> <p>I have left out a lot of other investing possibilities in this brief article, but the truth is that how much of your time and money you should invest to make more money is completely up to you. That may not be the clear cut answer you were expecting, but what is clear is that if you have saved money, you should probably invest as much of your capital as you can so that eventually you will have an income stream that lets you be <a href="http://www.wisebread.com/financial-independence-is-more-than-just-a-number">financially independent</a>.</p> <p><em>How much of your money and time do you invest to make more money?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/xin-lu">Xin Lu</a> of <a href="http://www.wisebread.com/how-much-should-you-invest">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-quick-ways-to-decide-if-a-company-is-worth-your-investment">4 Quick Ways to Decide if a Company Is Worth Your Investment</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-too-much-investment-diversity-can-cost-you">How Too Much Investment Diversity Can Cost You</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/learn-how-to-invest-with-these-5-stock-market-games">Learn How to Invest With These 5 Stock Market Games</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-questions-to-ask-before-you-sell-a-stock-or-a-fund">10 Questions to Ask Before You Sell a Stock or a Fund</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/great-ways-to-generate-passive-income">Great Ways to Generate Passive Income</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment beginner investor passive income risk Wed, 12 Dec 2012 11:00:31 +0000 Xin Lu 957728 at http://www.wisebread.com Great Ways to Generate Passive Income http://www.wisebread.com/great-ways-to-generate-passive-income <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/great-ways-to-generate-passive-income" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/3412060489_9a61077f6b_z.jpg" alt="woman holding cash" title="woman holding cash" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Earning income passively is a dream for most people, since it essentially means you make money without putting in a significant time investment.&nbsp;Most sources of passive income will require time and some money to get started, but if successful, these opportunities can generate income for you long-term and without your direct involvement. (See also: <a href="http://www.wisebread.com/4-reasons-why-everyone-needs-side-income">4 Reasons Why Everyone Needs Side Income</a>)</p> <p>Here are some great ways to generate passive income.</p> <h2>Create a Product</h2> <p>You can earn passive income by creating a digital product, whether it is an e-book, audio file, video, or some type of presentation, and then sell it over and over again automatically. Once the initial creation of your product is complete, the sales of the product become passive if you set up an automated system to deliver prospects to your sales page, collect payment, and send out their purchased product.</p> <p>Other opportunities for passive income by creating a product might include writing a physical book and getting it published &mdash; ongoing sales of your book are earned passively. Some people become television writers, and when their series is picked up for reruns, royalties earned are considered passive income.</p> <h2>Sell Advertising</h2> <p>As a website owner or publisher of a popular e-zine, magazine, blog, or newsletter, you can sell advertising space. While you will have to do the initial legwork to create a successful website with a large following, once established, advertising revenue is a passive income opportunity where other business owners will pay you to include an advertisement on your website or in your newsletter.</p> <h2>Own a Business</h2> <p>When people think of <a href="http://www.wisebread.com/small-business/passive-income-for-every-entrepreneur">passive income</a>, chances are they will immediately think about an online business of some type. The internet makes it possible to start and run a business with low start-up costs and low overhead expenses &mdash; which means more profit in your pocket. It also creates opportunities for automation, and anything you can automate provides a potential passive income stream.</p> <p>While it&rsquo;s often easier to break into the world of passive income online, passive income is not limited to the internet.&nbsp;Any business you own can generate passive income for you if it is established the right way. If you hire people to fulfill the day-to-day activities of your business, your business should generate a profit after all the expenses are paid.&nbsp;The profit you receive as the owner of the business is passive if you aren&rsquo;t directly involved in the daily operations.</p> <h2>Become a Landlord</h2> <p>People who own apartments or commercial space earn passive income through the rent payments they receive from their tenants.&nbsp;You receive the payment every month simply because you own the property; and you aren&rsquo;t exchanging a direct service or time for the rent payment.&nbsp;There are of course, responsibilities that come with being a <a href="http://www.wisebread.com/so-you-want-to-be-a-landlord-part-i">landlord</a> &mdash; but many people find the experience rewarding and a way to establish consistent income without directly trading their hours for dollars.</p> <p>If buying a property to rent out is out of your comfort zone, you can start on a smaller scale and rent out an extra room in your home, your garage, or even your driveway. <a href="http://www.parkatmyhouse.com">Park at&nbsp;My&nbsp;House</a> will tell you the &ldquo;value&rdquo; of your driveway and help connect you to people looking for a place to park near event venues or who just need a place to park their vehicle in your area.</p> <h2>Investing</h2> <p>A variety of social lending opportunities online allow you to earn a return by helping fund other people&rsquo;s loan requests in <a href="http://www.wisebread.com/peer-to-peer-lending-prosper-marketplace-or-lending-club">peer-to-peer lending</a>.&nbsp;Your total investment in the peer-to-peer lending site is generally divided up across multiple borrowers to help reduce your risks, but your money helps others gain the money they need, and you benefit by earning a return on the investment in the form of interest.&nbsp;Two of the more popular social lenders include <a href="http://prosper.evyy.net/c/27771/27132/994">Prosper</a> and <a href="http://track.flexlinks.com/a.ashx?foid=1029882.227343&amp;fot=9999&amp;foc=1">Lending Club</a>.</p> <p>When saving your money in a bank, take some time to compare savings accounts to earn as much interest on your money as you can. If you meet minimum balance requirements, you can also earn interest on money saved in a checking account. Earning interest on your money is a passive way to increase your income, so you may as well take some time to discover your highest earning potential.</p> <p>You can also build an income investing portfolio to create passive income while growing long-term investments. You may include a variety of investments from dividend stocks to CDs, bonds, and annuities, with the goal of earning money quarterly, semi-annually, or annually without having to sell the investment.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/debbie-dragon">Debbie Dragon</a> of <a href="http://www.wisebread.com/great-ways-to-generate-passive-income">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-10"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/freelancing-a-beginner-s-guide-to-doing-it-right">Freelancing: A Beginner’s Guide to Doing It Right</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-freelance-jobs-that-pay-surprisingly-well">11 Freelance Jobs That Pay Surprisingly Well</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-clever-ways-people-are-making-money-from-pok-mon-go">8 Clever Ways People Are Making Money From Pokémon GO</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/15-ways-to-make-money-outside-your-day-job">15 Ways to Make Money Outside Your Day Job</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/make-your-hobby-pay-its-way">Make Your Hobby Pay Its Way</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Entrepreneurship Extra Income Investment extra money passive income start a business Fri, 04 May 2012 10:24:15 +0000 Debbie Dragon 924887 at http://www.wisebread.com Trading Work for Never-Ending Weekends: How to Retire Early http://www.wisebread.com/trading-work-for-never-ending-weekends-how-to-retire-early <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/trading-work-for-never-ending-weekends-how-to-retire-early" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/4747349294_5cf24ecd73_z.jpg" alt="man on hammock" title="man on hammock" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>I&rsquo;m a long way from retirement, but I&rsquo;ve definitely had those days. You know the ones I mean &mdash; when you&rsquo;re tired and irritable, when it&rsquo;s cold and gray and windy, when everything feels like more of the same old thing, when you haven&rsquo;t had time to do your laundry let alone spend time with your friends, and, on top of it all, the thought of grinding out a few more decades at the office seems utterly insurmountable.</p> <p>If you hear the word &ldquo;retirement&rdquo; on a day like that, it probably sounds a lot more like &ldquo;emancipation&rdquo; (I know it does for me). After all, if you didn&rsquo;t have to work, you could spend more time with your family and your friends, catch up on your golf game, take up new hobbies, travel the world...</p> <p>Hold on a minute. If you&rsquo;re slipping away into sweet reverie, you might need a reality check. Here it goes. Retiring early is no dream &mdash; it&rsquo;s a goal, and an ambitious one at that. That isn&rsquo;t to say you can&rsquo;t or shouldn&rsquo;t go for it. But unless you strike it rich in the lottery, succeeding at retiring early will mean careful planning, hard work, and near-superhuman self discipline. Here&rsquo;s what you&rsquo;ll have to do to make it happen. (See also: <a href="http://www.wisebread.com/deciding-what-you-want-out-of-retirement">Deciding What You&nbsp;Want Out of Retirement</a>)</p> <h2>Save &mdash; a Lot</h2> <p>You probably already know that experts recommend that you save a lot for retirement. Exactly how much is a matter of debate. It&rsquo;s also highly personal, as it depends on your lifestyle, what you want to do during retirement, and (everyone&rsquo;s least-favorite calculation) how long you think you&rsquo;ll live. This is where things get tricky in terms of retiring early. In essence, working for a shorter period of time puts you at a disadvantage on both ends of the saving equation: you&rsquo;ll have fewer earning years, and more years during which you&rsquo;ll have to rely on your savings.</p> <p>So how much might you need to save? Rather than start with someone who makes six figures, let&rsquo;s look at averages. The medium income in the U.S. is $50,000. Average life expectancy is almost 78 years. If you are 35 and would like to retire at 60 with 80% of your pre-retirement income, you will need to save about $1 million &mdash; and that&rsquo;s assuming you get the estimated Social Security payment. You can check out the <a href="http://cgi.money.cnn.com/tools/retirementneed/retirementneed_plain.html">retirement calculator</a> I used to figure this out, but no matter how you fiddle with the numbers, retiring early will add up to a big one.</p> <h2>Live Cheap</h2> <p>Saving enough to retire early will mean living on less than you make, and you&rsquo;d better get used to it; your Spartan lifestyle will become even more crucial when you stop working. When you&rsquo;re working eight (or more) hours a day, a wide-open schedule can seem like a dream come true. But there&rsquo;s another financial benefit to working that you may not have thought of &mdash; being stuck at work all day leaves you with much less time to spend money.</p> <p>So what about when you&rsquo;re retired and have nothing but time? Can you keep yourself occupied and keep your spending in check? This can be a real challenge, especially when expensive hobbies and travel are part of your plans. This is why having a lot of savings and using careful planning are so important. A good financial planner can help you with this, but when you don&rsquo;t have earning power, you need a good cushion to ensure your money lasts. After all, the last thing you need is to run up against the end of your savings when you&rsquo;re too old to go back to work.</p> <h2>Stick to the Plan</h2> <p>Because retiring early is a challenge, it&rsquo;s important to have a clear plan for how you&rsquo;re going to get there. Exactly how early do want to retire? How much will you need to save to make that possible? These are questions you need to answer to ensure you&rsquo;re on the right track to making your goal a reality. A <a href="http://www.wisebread.com/9-signs-you-need-to-fire-your-financial-planner">financial planner</a> can help you run the numbers. Then it&rsquo;s up to you to keep that plan on track. The numbers make it sound easier than it really is, at least for most of us. Living on less can be tough &mdash; especially when everyone around you is spending like there&rsquo;s no tomorrow.</p> <h2>Find a Source of Passive Income</h2> <p>If you&rsquo;re not familiar with the term passive income, you&rsquo;re missing out on one of the sweetest deals in the investing world. In essence, passive income is income that&rsquo;s generated without your labor. In other words, you don&rsquo;t have to work for it &mdash; or at least not as hard as you have to work for most of the other income you&rsquo;ll earn in your life. Investments such as dividend stocks and real estate, or royalties generated from something you&rsquo;ve created such as a website or book, are considered passive income. Once a source of passive income is up and running, all that&rsquo;s left for you to do is accept the check in the mail.</p> <h2>Rethink &ldquo;Retired&rdquo;</h2> <p>A member of my family retired in his 60s, but was soon back to working part-time. Why had he chosen to go back to the grind?</p> <p>&ldquo;You can only play so much golf,&rdquo; he told me. As an energetic, healthy, and active guy, he just wasn&rsquo;t happy without some real <i>work</i> to do. He has flexible, part-time work that he enjoys, and he&rsquo;s still home in time to have lunch with his wife.</p> <p>Retiring at 65 used to mean a handful of years of retirement. Now, it can mean 20 or more. So, while you may relish a lazy Sunday now, those long, uneventful days may not have the same appeal when they become an everyday reality. If you&rsquo;re hoping to retire early, consider including work in the picture. It&rsquo;ll make it easier to afford the things you enjoy. Plus, the time you spend working might even make that extra leisure time more enjoyable.</p> <h2>Understand the Risks</h2> <p>Retiring early isn&rsquo;t easy. It does have its rewards, but it isn&rsquo;t without risk. Medical or other unexpected expenses can dry up your savings too soon; you may not enjoy a life of leisure as much as you&rsquo;d hoped, and, not least of all, the financial and personal sacrifices you have to make to retire early can have a cost, too. If it&rsquo;s really a different kind of life you want, you might want to ask yourself whether you can start living it now, perhaps by pursuing more of the things you love, or <a href="http://www.wisebread.com/25-awesome-websites-to-help-you-get-a-job">finding a job</a> that you can be happy going to for a few more years. No matter what you choose, just be sure to avoid jumping at a dream. Those coveted post-work years can be sweet, but don&rsquo;t kid yourself &mdash; it&rsquo;ll take a lot of hard work to get there.</p> <p><em>Are you working toward punching out early? Or have you successfully made the leap to early retirement? I'd love to hear about how you made it happen!</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tara-struyk">Tara Struyk</a> of <a href="http://www.wisebread.com/trading-work-for-never-ending-weekends-how-to-retire-early">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-tell-if-youre-on-track-for-retirement">How to Tell if You&#039;re on Track for Retirement</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/dream-job-or-day-job">Dream Job or Day Job?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-one-woman-retired-at-60-and-traveled-the-world">How One Woman Retired at 60 and Traveled the World</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-ways-to-handle-a-forced-early-retirement">5 Ways to Handle a Forced Early Retirement</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/book-review-early-retirement-extreme">Book Review: Early Retirement Extreme</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Retirement early retirement passive income saving for retirement Tue, 20 Mar 2012 10:00:20 +0000 Tara Struyk 912724 at http://www.wisebread.com 5 Ways Everyone Can Make More Money http://www.wisebread.com/5-ways-everyone-can-make-more-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-ways-everyone-can-make-more-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/5857529411_035bea9a5b_z.jpg" alt="cash in planters" title="cash in planters" class="imagecache imagecache-250w" width="250" height="188" /></a> </div> </div> </div> <p>If someone asks you whether you'd like to make more money, I bet most of you would say yes. The follow-up question would be &quot;Why aren't you making plans to make more?&quot; When a specific method to make money is mentioned, people usually make a quick decision as to whether it's feasible. Some people can quickly adapt to the method and start making money, but what if you are the type who keeps saying no? Are you actually ready to make more money? To help you figure this out, let's look at the handful of ways people are cashing in, and see if you are willing to do what it takes. (See also: <a href="http://www.wisebread.com/25-ways-to-make-money-today" title="25 Ways to Make Money Today">25 Ways to Make Money Today</a>)</p> <h3>1. Start a Business</h3> <p>Many people find their riches from a company that they started, but opening for business doesn't always mean looking for capital from investors and trying to materialize an idea that may take years. An entrepreneur who mows his neighbor's grass runs a business, and the lady who consults on makeup for people's weddings has a business too. I started MoneyNing.com with no funding, and it's grown to an enterprise that supports multiple people. You can start small too.</p> <h3>2. Change Jobs</h3> <p>Loyalty is cherished in any company. There's no doubt about it, but there are very few success stories of a person who moved up the ranks of the corporate ladder working for only one company. For most people, the big break (in other words, the huge increase in salary) really only occurs when they change positions to a totally different company (or at least department). Do you want to make more money? Perhaps you should dust off your resume and start trying to land interviews. People are paid to contribute, and one of the best ways to improve a business is to hire someone from a totally different company who can inject fresh ideas. Who knows? You might become the star at your new job just because you adapted what you already know from your old company to the new culture.</p> <h3>3. Ask Your Boss</h3> <p>If you like sticking with the same company, then <a href="http://www.wisebread.com/underpaid-here-s-how-to-fix-it" title="Underpaid? Here&rsquo;s How to Fix It.">ask your boss</a> how you can earn more. Let him know, respectfully of course, that you'd like to earn more money and see if the pair of you can work out a plan. You will want to have specific goals with a reasonable timeline so when review time comes, you can be factual about your progress.</p> <h3>4. Get a Second Job</h3> <p>Using more hours of your day to make more money is tough work, but it's probably the quickest way to earn more bucks. I would argue that you should find part-time work that can grow into a better source of income than your primary job, because when you work two jobs, the first job will usually suffer. Examples include a small business you are trying to start or a different career that you think is more promising. Either way, don't take this decision lightly and weigh the pros and cons.</p> <h3>5. Start Saving, and Enjoy Passive Income</h3> <p>Once you have amassed a small fortune, you will see the benefit of saving as your passive income grows without much intervention. Dividends, interest payments, and appreciation are mainly why so many people can seem to live without doing much work. There are ups and downs, but if you can stay the course, the long-term picture is usually pretty.</p> <p>These five methods are how people generally earn more. I bet you already knew all these right? But if you always thought you wanted to make more money and haven't yet, re-read all of the above and honestly ask yourself whether you are willing to do what it takes. Are you really ready? If you are, here are 15 more specific ways to earn more money.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/david-ning">David Ning</a> of <a href="http://www.wisebread.com/5-ways-everyone-can-make-more-money">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/cool-convenient-cash-11-easy-ways-to-make-money-online">Effortless Ways to Make Money Online That Don&#039;t Require Skills</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/15-ways-to-make-money-outside-your-day-job">15 Ways to Make Money Outside Your Day Job</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-great-side-jobs-for-introverts">10 Great Side Jobs for Introverts</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-ways-to-turn-your-stress-into-money">8 Ways to Turn Your Stress Into Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/make-your-hobby-pay-its-way">Make Your Hobby Pay Its Way</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Career Building Extra Income making extra money passive income side income Tue, 23 Nov 2010 14:00:05 +0000 David Ning 323158 at http://www.wisebread.com Passive Income for Every Entrepreneur http://www.wisebread.com/small-business/passive-income-for-every-entrepreneur <div class="field field-type-link field-field-url"> <div class="field-label">Link:&nbsp;</div> <div class="field-items"> <div class="field-item odd"> <a href="http://www.openforum.com/idea-hub/topics/money/article/passive-income-for-every-entrepreneur-scott-allen" target="_blank">http://www.openforum.com/idea-hub/topics/money/article/passive-income-for-every-...</a> </div> </div> </div> <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/small-business/passive-income-for-every-entrepreneur" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock_000009027401XSmall.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="166" /></a> </div> </div> </div> <p>Archimedes once said, &quot;Give me a lever long enough, and a fulcrum on which to place it, and I will move the world.&quot; Leverage is a powerful concept. It's the fundamental difference between being a freelancer and being an entrepreneur: being paid for your time vs. making money off the efforts of others or your own past efforts.</p> <p>Passive income is that concept carried to its logical conclusion: maximizing your income with a minimal amount of effort by yourself or your employees. There's no such thing as 100% passive income &mdash; even putting money in the bank takes a little bit of effort. And there's no specific cutoff point at which active income becomes passive income, i.e., there are degrees of passivity.</p> <p>For example, taking orders online and having the product drop-shipped from the manufacturer is highly passive, yet it still requires maintaining the site, engaging in marketing, etc. Taking orders by phone is slightly less passive, since it requires having employees to answer the phones. But if the profit from the sale is significantly disproportionate to the cost of the order-taker's time, it's still passive. If, on the other hand, your sales process requires an actual salesperson to call on prospects, possibly multiple times, it's not passive income.</p> <p>Now that we have a better picture of what passive income is, why is it important for every entrepreneur? Let's consider five ways in which passive income can be incorporated into your business strategy.</p> <h3>1. Cash Flow Stabilization</h3> <p>Entrepreneurship is a rollercoaster ride. In <a href="http://www.openforum.com/idea-hub/topics/money/article/how-to-think-like-a-bootstrapper-scott-allen">bootstrapped companies</a>, cash flow is even more important than sales. When the cash stops flowing, your business is dead. By investing early in creating passive income streams, you can ease the pain of the <a href="http://ad.doubleclick.net/clk;218396076;41475586;v?http://www201.americanexpress.com/sbsapp/FMACServlet?request_type=alternateChannels&amp;lpid=298&amp;openeep=17460&amp;ccsgeep=17460">cash flow</a> shortages that will almost surely come. The first time those few hundred or few thousand dollars of passive income help you meet payroll, pay rent, or keep you from overcharging your credit cards, you'll be glad you spent the time to set it up.</p> <h3>2. Revenue Maximization</h3> <p>Passive income is all about making more money with your available resources. Isn't that actually one of the main goals of every business? Passive income strategies will improve your bottom line, period.</p> <h3>3. Exit Strategy</h3> <p>So long as you are personally involved in the day-to-day operations and generation of revenue, you can't retire, or move on to your next venture, or spend the summer on a round-the-world cruise. You'll also be locked in to being an employee of the company for a period of time if you ever sell it.</p> <h3>4. Employee Benefits</h3> <p>Your employees are locked in just like you are. The more you can apply passive income principles in the business, the more you can give your staff freedom of time and location, and pay them based on the value they create, rather than just for the hours they work.</p> <h3>5. Self-supporting Marketing</h3> <p>Many forms of passive income also serve as marketing for your core business: books, white papers, special reports, videos, etc. And the beauty of it is that once you have it going, that marketing channel pays for itself, at least partially.</p> <p>There are many different models for passive income. While some businesses may lend themselves to it more readily, nearly every business can figure out some kind of passive income stream that's related to their core business in some way.</p> <p>Passive income can generally be broken down into two categories:</p> <p><strong>Residual income, </strong>which is received over time from a one-time initial effort, e.g.:</p> <ul> <li>A consulting firm that creates and sells a collection of special reports and white papers<br /> &nbsp;</li> <li>A yoga studio that produces a video and sells it, both in their own shop and online<br /> &nbsp;</li> <li>A CEO who publishes a book related to the company's core business<br /> &nbsp;</li> <li>A local tour company that takes photos of the city's landmarks, makes them available on stock photography sites, and receives a royalty when they're sold<br /> &nbsp;</li> <li>An innovative product company that licenses its patent to other companies to build similar products. You can make money from your competition!</li> </ul> <p><strong>Leveraged income </strong>is money you make from the efforts of other people, particularly those who don't represent a fixed overhead for you, e.g.:</p> <ul> <li>An online retailer selling through affiliates<br /> &nbsp;</li> <li>A real estate broker, who makes money from the efforts of individual agents<br /> &nbsp;</li> <li>Direct sales as a distribution channel<br /> &nbsp;</li> <li>Franchising your business (the ultimate leverage of your business model)</li> </ul> <p>How can you apply these principles in your business? Can you create an information product of some kind? Do you have intellectual property that you could license to other companies? Who can you get to sell your product for you on a commission-only basis? Is there a product you can sell that can be drop-shipped from the manufacturer? Are there other companies with complementary products that you could sign up as an affiliate with and promote their product?</p> <p>No matter what your business, you can apply the concepts of passive income as a key part of your financial strategy. Master them, and maybe we'll see each other on that round-the-world cruise!</p> <script type="text/javascript"> federated_media_section = "gold"; </script><br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/scott-allen">Scott Allen</a> of <a href="http://www.wisebread.com/small-business/passive-income-for-every-entrepreneur">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. 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