A passive income opportunity can either be a dream or a nightmare. You might spend months investing time and money into a scam or it can finally be your key out of the rat race. Here is the lowdown on what you need to know.
Where to Find It
Passive income opportunities aren't scams but there always is risk involved. A legitimate opportunity usually involves some sort of business building. Either you can recruit other people to work for you, if you get a percentage of your referrals income then you can spend more time elsewhere. The one downside to this is that oftentimes these kinds of opportunities come and go. This may involve basically selling to a lot of people. You have to put your reputation on the line for an opportunity that may or may not pan out.
This is why it's really beneficial to leverage existing sites with good reputations or to just build your own. Sure, there will always be some maintenance and upgrades involved but think of it as a long term investment. If an article only earns you a few dollars a month it might not seem like it's worth it. However, if the same article also earns you money next month and you don't have to do anything to it then you really start to see the potential.
How to Build It
This is the most difficult part of a residual income business. You need to find out who to trust and which information to follow. As a rule it's almost always a good idea to avoid shortcuts. These can be hazardous to your wallet and even your website over time. Instead, try to find the few basic tried and true principles that all of the different outlets have in common. For instance if you were building passive websites then you'd want to focus in on getting links, writing good content, and SEO. You can spend years trying to take different shortcuts or you can just do it right the first time for a better chance at success.
This is probably the biggest obstacle in your way. Sure, you've probably heard success stories but you really have to spend several months or even years to make sure that you get to the income level that you want to. You really aren't going to know if you are doing it right until you actually succeed. You'll want to find ways to stay motivated on days when nothing seems to be happening. If you go with a business that you truly enjoy it's going to be easier to keep it going.
It also helps if you get everyone else involved on board. You may have to spend some late nights working away for just a few cents difference. You want to make sure that your spouse really is ok with the time away you're going to have to spend. Teenagers may have to take over some of the chores.
Getting to the PassiveSstate
If you look at a lot of successful people you'll realize that their job description changes but they never really get to the passive state. This has a lot to do with the fact that once you see the potential you just want to keep going.
One thing that you're going to have to consider eventually is outsourcing. You need to keep in mind that this is so important because eventually you can pay other people to do the work for you. However you will still have to clock in. It's important to make sure that your standards are being kept. It can be just as much work to train someone as to do it yourself. However, when you have several people working for you, you'll see that you get a lot more done then when you were going it alone.
The downside to this is the stress involved. You'll constantly need to check to make sure that people are submitting original work and using good business practices. You may have to fire someone who isn't up to par. Plus, employees' lives are constantly changing and freelancers may always be on the go looking for the next best thing.
There is truly passive income but it does take a lot to get to that level. Plus, if you stop working on one item you run the risk of it eventually falling apart. Really, what will hopefully happen over time is that you'll get to truly do what you love so work won't feel as much like work. You may be able to free up a few hours a day and eventually get away from your office job. Working for yourself gives you a lot more freedom but it still is work. Plus there are a lot of different risks involved which you need to weigh carefully both before you start and all along the way.
The thing about residuals is that they change by month, most of the time without warning. It's a good idea to have a lot of different options as well as a backup plan if you ever need to return to your day job. This can be a supplemental income or even a full time career depending on the amount of work that you are willing to put in.
One thing that you'll need to be aware of is the math. You may find yourself calculating that if you only made as much as your best day then you could quit your day job. You need to be aware that eventually you can get to this level but you don't want to count on it. You just need to really try averaging things out so you consistently see what you actually make.
Make yourself save for a rainy day. This might not have been your dream. You may have envisioned buying a boat or a house. However, giving yourself this stability really does allow you to take risks which are important in this line of work. You'll need to reinvest in your company to expand, get new software, and outsource. Even in this instance being responsible still pays off. It really does take discipline. You need to make yourself work everyday even when you don't see the value. You also need to be responsible with the money you do earn. Over time savings build up to give you a nice nest egg that can keep you financially secure because things change from month to month.