Many people would love to quit the rat race to do the things they enjoy â€“ whether it is to spend more time with their family or to pursue some long held dream. Unfortunately, most people don't even save enough money during their working lives to fund a comfortable retirement, never mind save enough money to enable them to give up work early. If you would like to leave work early and quit the rat race for whatever reason, then one way to do this is by creating passive income streams. This article will show you how to create passive income streams.
What are Passive Income Streams?
If you think about any business then it's a bad idea for all the income generated by that business to be generated by a single client, because if that client stopped using the business then the business would go out of business. Thus, it's essential for businesses to have multiple streams of income.
Now think about your personal financial situation. Most people only have one source of income â€“ their pay check. Take this away and most people are in dire straits in a short space of time. Now imagine having multiple streams of income to the extent that if you lost your job then you could continue to survive and even thrive. Now imagine more: extending this situation so that your non work income streams provide more income than your job. This would mean that you could easily quit your job and pursue interests you enjoy â€“ be it spending more time with your family or following other dreams.
A second income stream might be something like getting some additional part-time jobs, but this defeats the point, as if you took your main job away then you're still exchanging your time for money and no closer to being able to pursue your dreams. That is why in this article I'm going to focus on passive income streams. Passive income is money you earn even when you're not working. Imagine earning income whilst you sleep â€“ that's passive income. In particular I'm going to focus on passive income streams you can create in a flexible way around your current job without spending any money (or a very small amount of money). So let's jump straight in and look at 3 different, minimal outlay income streams.
1. Write articles for money on the Internet
Pros: zero cost, potential upside, zero maintenance
Cons: time consuming, time taken to see regular income, you receive < 100% of revenues
If you like to write and have lots to say about interesting topics then it's possible to make money by writing articles on the Internet. There are many sites which offer revenue shares with writers such as Hub Pages and Info Barrel.
How this works is that you create the content and place it on a site such as Infobarrel. Then search engines such as Google will index your content. If your content is interesting then people will be pointed towards your content from Google when they search for that topic. When viewing your articles adverts will be displayed on your posts. There ads will be related to the content being displayed on the site and so won't be too annoying to the visitors to your content. If an advert catches the eye of the person reading your article they may click on it. When this happens you earn money â€“ it's as simple as that.
How much you earn will depend how lots of factors including how many people visit your article, how much advertisers will pay to advertise, what percentage of people reading your articles will actually click on your ads, and what the percentage revenue share is with the site hosting your articles.
Infobarrel is the best site I've found to host articles in terms of revenue share. They offer 75% of the total amount earned from advertising, which is the best I've seen. You can sign up for Infobarrel here, or search the Internet for related sites.
2. Create a Blog
Pros: Minimal cost, huge potential
Cons: Lot's of work, not really passive income, big competition, computer fluency needed
This is a huge subject so I will only cover it in its most basic form here. The process for this is that you create a blog using tools already out there, such as WordPress. Once you have your blog created you need to keep adding content too it until you are receiving lots of traffic. Your blog should be created around a specific topic or niche (such as dog leads, cat tricks etc). To get lots of visitors you'll need to write articles frequently and make them interesting so people find them and come back to them.
Once you have created you blog and are getting lots of visitors then you're ready to monetize your site. This sounds so easy and you've probably already heard about people like Steve Pavlina who are earning in excess of $1,000 per day from their blogs. But as in everything, for every big success there are thousands of failures. This is because it takes a really long time before you start to see a return on your investment.
In my case it took a full year before I monetized my blog, at which point I was only earning approximately $20 per month. 18 months later things had moved along nicely for me and I'm now making enough from that one blog to pay my mortgage each month. The point I'm trying to make is that you need to be prepared for the long haul if you want to make money from your own blog.
3. Set-up an eBay Business
Pros: millions of users waiting to buy your product on eBay
Cons: difficult to find unique product
eBay provides you with easy access via the Internet to potentially millions of users waiting to buy your products. The idea here is that you source an interesting product and start to sell it on eBay with a particular profit margin added on top.
It can be difficult with this option not to let it turn into a full time job. However, you can always outsource the packaging etc to someone else once you become successful to regain some of your free time.
As mentioned in the con section above it can be difficult to find a unique product. Not only that, even if you do find a unique product, it can be just as difficult to find a reliable supplier.
How to Create Passive Income: Conclusion
I have used all three techniques to create passive income. All of the techniques have their pros and cons which I've described based on my experiences with these approaches to creating passive income. Obviously the level of success you have with each approach will depend on multiple factors and you may be more or less successful than others. One thing is for sure however â€“ if you don't take steps to at least try to create passive income then it's unlikely you will ever succeed in creating it. So why not give one of the above options a shot â€“ they all cost nothing except your time, and they may just enable you to quit the rat race early. I hope this article has given you some good tips on how to create passive income.