Generating Passive Income

There are several ways to generate and/or increase passive income; start a business, buy into a franchise, join a network marketing group, or get into real estate.  All require education on your part…and some more than others.

Network Marketing

There seems to be a negative stigma associated with network or Multi-Level Marketing (MLM); often times they are called “Pyramid schemes.”  Believe it or not, the pyramid is the most solid architectural structure…just look towards Egypt.  If it is a pyramid, think of yourself as the apex, the top of your pyramid.  Alone, you are not much so you have to recruit a team, then train them to do the same…all at the same time you and your team are selling the products or services offered by the company.  Network marketing companies offer some of the best business training with very little upfront cost to you.  Do your homework one the company to determine if it will be around next year, or five.  I have seen that Amway is making a comeback…it’s worth a look.

Starting a Business

If you decide to start your own business or buy into a franchise, do some research.  Find out if your area needs this product or service.  When starting a business, you don’t have to like the product/service offered, but it helps.  Do some serious research, go to your local college, often times they have a Small Business Development Center (sponsored by the Small Business Administration.)  Talk with them, they are a wealth of knowledge, and might be able to assist you in getting funding.

Passive Income from Real Estate

This brings me to real estate.  I will focus on this in another entry, but a quick overview as to the benefits of real estate are the multiple streams of income.  There are 5 ways to make money from one property.  But ultimately, if you can buy a property and rent it out for a monthly profit of $100, my question to you is: How many times would you do this?  My answer…do I have to stop?

Another few sources of passive income can come from inventing something or writing a song.  The options are endless.  Above and beyond this, do not quit your job yet.  Consider it when your passive income alone exceeds your monthly expenses.  Find a reason and set a goal; I want an extra $500 per month, I want to pay off my car/boat, WHATEVER!  Set your goals and do what is necessary to meet (or exceed) them.  Your best asset is you mind!

Related posts:

1. Types of Income - Passive Income vs Active Income etc.
2. Personal Finance Education