Passive Income

Stop Working Hard For Your Money And Let Your Money Work Hard For
You!
By

Omar Johnson
Copyright 2013 by Omar Johnson. Published by Make Profits Easy LLC
Table of Contents
Introduction

What is Passive Income?

Chapter 1 – Don’t You Need to Have Money to Make Money?

Where Do You Start with No Money?

Chapter 2 – Why Working an Hourly Wage Won’t Help You

The Hourly Conditioning

Chapter 3 – How Do Rich People become … Well, Rich?

No Different than You or Me

Chapter 4 – Different Types of Passive Income

The Best Kind of Work

Types of Passive Income

Two Examples of Passive Income

Chapter 5 – Know Your Passions

Chapter 6 – The Value of an Idea

Chapter 7 – Your Knowledge Base

Determine the Value of Your Knowledge Base

Chapter 8 – Develop a Plan

Chapter 9 – The Legwork Up Front

Chapter 10 – Use Your Existing Resources

Chapter 11 – Watch the Money Roll In

Introduction
What is money? Money is what makes the world go ‘round. It’s an
expression that is timeless and true, to an extent.

You spend forty hours or more every week struggling to get through rush
hour traffic, trying to get to your job on time, just so that you can slave
through another eight, nine, or ten hours a day before making the trip back
home.
You work hard for your money, but what is it? Money is basically a
representation of your inherent value to a company, individual, or agency.
The amount of money you earn in an hour is essentially what someone else
feels you are worth.

So you graduate high school and either head off to college (because that’s
what you think you should do) or dive right into the workforce. You see a
wide open world waiting for you, ripe with possibilities and you can’t wait
to get your piece of that enormous pie (all the money in the world).
One day, after graduation, maybe several years after you have finally started
working for that company with the health benefits and potential to climb the
‘corporate ladder’ you realize that all you’re doing is working day in and
day out just to manage to scrape together a few dollars, pay your bills, and
do it all over again week after week after week.

Before you know it, you’re stuck in a pattern and it is difficult to break free
from it.
You can’t quit: you need your job.

Why do you need your job: because you need money.

Why do you need money: to pay your bills, your mortgage, and to be able
to go out and do things and enjoy life.
You are a slave to your finances.
So wouldn’t it be great if you could be free from all of that burden?
Wouldn’t it be ideal if you could have the financial freedom to go out and
do what you wanted to do when you wanted to do it and didn’t have to
worry about your nine-to-five job? Wouldn’t it be great to be able to go on
vacation, to a sports game, to the movies, or just relax at home and know
that you’re earning money?
This kind of financial freedom will never come to you while you’re
working for someone else, where you absolutely must put in X number of
hours and you’ll be earning X number of dollars each week.

When you create a passive income stream, you move toward complete
financial freedom.
What is Passive Income?
I’ll get more into the finer details about passive income in the heart of this
book, but in a nutshell, passive income is money that you earn consistently
for a long period of time for effort you put in at one time.

A great example of passive income is a book. Writers work for many hours
writing a book, editing it, revising it, and making sure that it is polished and
the best that it could possibly be, then they publish it and each sale, each
week that people buy it generates them income.
Some of the best writers in the world still earn money on books they might
have written ten, fifteen, twenty, or more years ago.

Imagine sitting back and collecting a royalty check from a product that you
created decades ago. How nice would that be?

Each member of the classic rock band The Rolling Stones brings in about
$75,000 a year for royalties that they earn on one single song, Satisfaction.
That’s just for the song being played on radio stations around the world, as
well as cover bands playing it at shows.

Talk about an amazing passive income stream!

Of course, it’s not that likely for you to become a superstar musician or a
bestselling author (though I wouldn’t put it past you because you have the
desire to be successful, and wealthy and half the battle is having the
desire!).
But that doesn’t mean you won’t be able to generate a great amount of
passive income through other means.

To develop a passive income stream requires effort in the beginning. You’ll

actually need to work hard for a while to establish and set up your passive
income stream (don’t listen to those scams that claim you can make $10,000
, $20,000 or even $50,000 a month working only a couple of easy hours a
week … they don’t work!)

There’s no such thing as getting something for nothing (or getting a lot for
putting in very little). Some of those affiliate marketing ads are nothing but
well-disguised scams designed to separate you from the money you’ve
already worked hard to earn. So let’s stick to the basics here.

If you want to learn how to create a solid passive income stream, then you
absolutely must be willing to put in the time and effort in the beginning.
Nothing comes for free in this world.
However, that doesn’t mean you can’t become financially independent.

Imagine … financial freedom at last! Doesn’t that just sound wonderful?

Being able to generate income while you’re asleep, eating dinner, watching
television with your family …
This is the goal of millions of people around the world, yet few ever truly
achieve it.

Why?
Because they don’t understand how to create passive income.

I will teach you how to create passive income that will bring you true
financial freedom!

It can be tough trying to navigate your way around a system that has been
designed to keep you working for your money.

What you’re doing right now (assuming you go to work, punch in and slave
away for several hours a day before heading home to get a few hours of
sleep before waking up the next morning to do it all over again) is called an
active income stream.

If you stop working, you stop earning. It’s that simple.

What this book is intended to do is help you understand the core dynamics
of passive income. When you break down the basics of where to start, what
to work on or look into for ideas to create that passive income that you’ll be
relishing in for years, you’ll realize that it is essentially easy to create a
solid passive income stream for you and your family.
I’ll walk you through the reasons why working an hourly job (or even
worse, the salaried position) will never help you become financially
independent.

I’ll let you in on the secrets about how rich people became, well … rich. I’ll
invite you to discover the power and inherent value of a unique and creative
idea and how once you understand those basics, you’ll be able to move on
to creating passive income for yourself.

I’ll also get into some solid, bona fide examples of passive income that have
worked wonderfully for others through the years. By the time you’re done
with this book, you will have all of the necessary information at your
fingertips to help you generate passive income every day, each week, all
year long.

Will you be able to quit your day job? That all depends on how much
you’re willing to put into your new financial opportunity. The more effort
you put forth now, the more dividends you’ll be able to reap later on. This is
one of the key differences between working at an hourly job and creating a
passive income stream.

With your regular 9 to 5 job, you could certainly work harder than everyone
else and hope that you will be rewarded with a raise or promotion in a year,
or two, or five … but there’s never any guarantee.

There’s no guarantees with passive income, either. There are many factors
that go into determining whether you’ll make a lot of money or not. Some
of it is talent, but you can increase your talent just by working hard and
improving your skillset in the beginning.
However, once you hit on the right idea, once you find the right passion
within you, there really are no limitations to what you can do or how much
you can earn.

Investing time and effort today can help you generate income for years to
come. Once you begin bringing in money through passive income, though,
be warned … you will likely find other ideas popping up in your head all
the time. You might develop new ways to bring in more money and before
you know, you’ll be one of those people that we talk about in Chapter 4 …
rich!

So let’s dive in and see what we can do, shall we?

Chapter 1 – Don’t You Need to Have Money to Make Money?
There’s a common belief in the world that in order to make money you have
to possess money. This idea has been generated through centuries of
ingenuity, innovation, and creative minds.

You could have the best idea for a new line of dietary foods, but if you
don’t have the right resources, how do you introduce it to the world? You
might have a wonderful idea for a new, aerodynamically engineered
bicycle, but without the financial resources to build it, how will anyone else
ever learn about it?
For the majority of history, only those with money or the ability to find
financial support to help promote a product or idea were successful in
getting their idea out in front of the public. Once it’s in front of the public,
then the sky’s the limit, especially if you have an idea that caters to a broad
range of people.

So, for a long, long time, it was true in most cases that you needed to have
money to make money. To some degree today, that’s still true, but it isn’t an
all-encompassing rule. At least not anymore.
You could have a great idea today with almost no money to your name and
still be able to earn money from that idea.

Why is today so different than all those other years throughout history?
Well, honestly, it’s not that much different except today we have this thing
called the Internet.
The Internet allows us to reach just about the entire global population
through some savvy and creative marketing strategies that, in many cases,
cost little to nothing to implement.

You need to know how to master online marketing, but you could also rely
on your offline savvy as well to help you market an idea or product that will
ultimately make you a ton of money in the long run.
Where Do You Start with No Money?
Well, the first thing we’ve established here so far is that you don’t actually
need money in order to make money. Not in today’s world and that’s just
one more in a long list of reasons why we are living in one of the greatest
ages in the history of mankind.

If you have the desire and a stellar idea, you can make all the money you
want in the world.
So what do you need to do in order to begin making money without having
any money?

The first thing you absolutely must have is a desire.

You can sit there and claim that you want to make more money than you’re
earning, that you don’t want to be tied to a desk for the rest of your life,
working day in and day out, too often consuming your weekends and
getting very little rest, but if you don’t take action to change your
circumstances, then nothing is going to change for you.

There’s a reason why millions of people flock to the lottery machines every
week, dropping five, ten, or even twenty dollars at a time playing ‘the
numbers,’ hoping to ‘hit it big.’

Most of us simply want more than we are getting at this time. However,
most of us also don’t really have the desire to make the changes necessary
to become …
financially independent.

As I noted in the Introduction, financial freedom is a goal of many people.

No matter where you turn, no matter which industry you work in, you’re
going to find a wealth of individuals who want nothing more than to
become financially free.
Yet of all those people that you meet and talk to, how many of them actually
do anything about it? How many take the necessary steps to make
themselves financially independent?
Okay, let’s back up here for a moment … what does it mean to be
financially independent?

Basically it means that you aren’t relying on anyone else –no family
members, no employer … nobody- to determine your financial well-being
in life. When you are financially independent, you can essentially determine
how much money you want to earn at any given time.
Is $60k a year enough? How about $150k? Want more? Sure, why not?

When you’re financially independent, you set your earnings based on what
you want.
It sure sounds great when you think about it, doesn’t it? But if the desire
isn’t there, then it’s nothing more than a pipe dream.

But Omar, I have the desire! I know other people who had the desire. My
best friend always wanted to be financially independent, to be rich, but it
never happened for him. You’re not helping me here!

Well, hold on there a second.

First, you may claim to have the desire, and your friend may have talked
long and hard about how much he wanted to get away from the company he
worked for, that he just wanted to end up working for himself, but words
are not desire.
This is the point I’m getting at.

All those people who spend ten, twelve, and even fourteen hours a day
away from home (with their commute, working time, and lunch breaks that
they often work straight through), like to talk about what they would do if
they were financially free, if they were rich, or that they just wished they
could make their own hours and establish their own income stream. But
they don’t do anything about it.

That’s what I’m talking about when I discuss the desire.

It’s one thing to talk the talk, but you need to be able to walk the walk.
Wanting to become financially independent is fine, but that isn’t enough.
You need to have the desire enough to actually go out there and do
something about it.

If you recall, I mentioned that millions of people play the lottery, hoping to
strike it rich. They talk about their dreams and what they would do if they
had millions of dollars (financial freedom), how great they feel their life
would be and that they’d finally be able to do the things they’ve always
wanted to do.

Those are dreamers. They don’t really have any desire. They’re content just
working their days away, earning whatever scraps they get, and saving for
months or even years for the house of their dreams and the decent vacation
once in a blue moon.

But not you. No, you have the desire. You are willing to do something about
your financial independence.
That’s what separates you from the rest of the people who claim to want to
generate great sources of income (passive income). But you … you’re
willing to do what you need in order to make that dream a reality.

And that’s why you don’t need to have money in order to make money.
There are plenty of resources available in today’s world to help you along
your path toward financial freedom.
However, if you do have some money to invest, then it will make your
pathway a little easier. If you have the capability to invest money or find
investors for your passive income streams, you may have the opportunity to
reach a wider audience, which will, in turn, help you generate more passive
income in the future.

But the bottom line is this:

Even if you don’t have two pennies to scrape together (an old saying dating
back many decades), don’t worry … you can still move forward and realize
your dreams of becoming financially free and generate passive income.

As long as you have the desire.

Chapter 2 – Why Working an Hourly Wage Won’t Help You
In the Introduction, I touched briefly on the fact that working an hourly
wage job, or even a salaried position, isn’t going to help you become
financially independent. You will always only earn money when you put in
work every hour.

Don’t mistake a pension for income. Your pension is part of your hourly or
salaried income, just delayed until retirement, essentially. Some pensions
are quite valuable, almost corrupt, but they are still legal.
However, if you take a look at the current political and economic condition
of the country or even the world, you will notice that many pensions are in
trouble. Just because you have a pension with the company you’ve been
working for during the past thirty years doesn’t mean it’s going to be
available to you when you retire, or throughout your retirement.

Just take WorldComm or Enron as two prime examples of companies whose

employees spent their careers working for them, investing into their
pensions, and then lost it all when the company imploded under the weight
of fraudulent bookkeeping and other illegal activities.
Detroit is currently the largest city in the nation that is facing bankruptcy
restructuring. They are in so much debt with pension and other liabilities
that are beyond control that many financial experts expect very drastic and
serious adjustments being made to those pensions (interpret this as those
pensions being cut by more than 50% and in some cases by as much as
80%). Imagine being retired from your government job and suddenly
learning that the pension income that you expected to be there for you every
year –that you anticipated and counted on- may be cut in half or far more
than half?

We’re not living in a very honorable society anymore. In fact, there are
many aspects about society that cause people concern: concern for their
jobs (whether they will have one next week), concern for their house (many
families have a mortgage that consumes every extra penny they earn every
month and if something changes to their financial situation, then they’re in
trouble), concern for their health benefits (health insurance coverage
continues to eat away at monthly incomes and even with the Affordable
Care Act, otherwise known as Obamacare, it’s still going to be more and
more expensive to have health insurance), and so on.

When you work an hourly wage job, you will only earn money for each and
every hour you work.
When you think about it, there are only 168 hours in a week. Even if you
managed to get by with as little as five hours of sleep every week, that
leaves 133 possible working hours. Now, you need to eat, shower, take care
of other obligations such as paying bills and spending time with family (if
you have one), and numerous other things. Realistically then, the average
person could work a total of about 80 hours a week max, if they worked
11.5 hours a day, every day of the week.

That’s a lot of hours to work. Imagine putting that kind of work schedule in
every single week. You’d burn out in no time and you’d never be able to
enjoy much of life. What’s the point?
Well, some people work those kinds of hours when they’re younger so that
they can save or buy a house or …

Yes, I know. The point is that you cannot keep that kind of pace up for long.
Eventually your body gets annoyed with the lack of rest and you either get
sick, run down, or just begin to lose energy and focus.
That doesn’t even mention the fact that your employer may not have those
kind of hours to provide to you. If you work two or three jobs, the extra
running around (driving from one job to the next) will consume more
potential working hours.

Let’s say that you earn $20 per hour (a little less than the average hourly
wage in the U.S. today, which is $23.89), if you worked for 80 hours, that
$1,600 per week (before taxes). That works out to about $83,000 a year
(again, before taxes).
That’s a good income, when you think about it, but then again, you’re
working 80 hours every week just to earn that.
Let’s say that you only have one job and it offers you 40 hours per week
with no overtime. In that case, you can earn $800 per week, before taxes.
Annually, you’re looking at $41,600 a year. That’s about the average salary
for an American worker today. After taxes, you may end up with a little
over $35,000 spending money.

You might have health insurance, a 401(k), and other basic expenses that
deduct from your take home pay, leaving you with perhaps $29,000 a year.
After rent, utilities, car payments, insurance, and other living expenses, you
may end up socking away a whopping $2,000 at the end of the year, but if
you’re like most Americans, you spend that on vacation, movies, or other
recreational activities.

That decent ‘salary’ that seem so good all of a sudden appears to be quite
measly. So, how is that hourly job working out for you?

Hourly workers are limited in what they can earn every year. Even if you
have a Ph.D., you’ll find that you’re severely limited in your potential
income.
The only way to earn more money with your hourly job is to either get a
raise (which might only be a 3% to 5% increase) or get a second job.

Is there a way to become financially independent through this method? Not

really. Not unless you decide to make some serious changes in the way you
approach your working life and unless you begin to consider the difference
between active income (that money you earn for actively working an hour
at a time) and passive income, which can generate revenue for you whether
you’re working at it or resting on vacation.
The Hourly Conditioning
We have been programmed to believe that it is our responsibility to take a
job out of school working for a company and accepting what they pay,
hourly or salary. But why should that be good enough for anyone?

If you have the desire (discussed in Chapter 1) to become financially

independent, and you’re tired of being limited on what you can actively
earn (that hourly rate), then you deserve to enjoy the fruits of your labor.
Now it’s time to think about becoming rich!
Chapter 3 – How Do Rich People become … Well, Rich?
We’ve determine so far that you want to become financially independent.
Whether or not you want to become rich, however, is irrelevant except for
the fact that the rich know the secrets to true wealth.

They know how to get money. They know how to invest it. They know how
to keep it.
You’ll always see a number of wealthy people who are constantly working;
that will never change. However, do they work in order to get rich or do
they work because they are driven and that’s what driven people do?

You could work those aforementioned 80 hours a week, slaving away for
your boss, and you could climb the management ladder in the company and
end up being CEO one day, maybe 15 or 20 or maybe even 25 years from
the time you started. If the company is big enough, that could make you
very wealthy.
But you worked very hard to get there. That kind of habit that is required,
that level of discipline and being the first one at the office in the morning
and the last one to leave … those are traits that are hard to remove, even
after you’ve made a lot of money. That’s why you’ll often find very
successful businessmen and women continue to work long hours even long
after they’ve become rich.

Yet aside from a few isolated stories about how some people worked their
way to the top of their respective companies or industries, the majority of
rich people don’t make their money working for hourly wages.
They learned a long time ago that you are never going to become rich by
punching a clock and working for basic wages.

Some of the rich invested their money. Some came up with ingenious ideas
that they marketed and sold millions of products. Some capitalized on the
shortcomings or failures of others. Some were at the right place at the right
time (chance, just like winning the lottery and bringing in a few million
dollars in one shot).
For the most part though, aside from celebrities (of whom only a handful
actually have talent to earn their money … the rest is all clever marketing
and packaging of an image) and lottery winners (who make up less than 1%
of the ‘rich’ people in the world –those whose wealth is valued at over $1
million- the rich made their money, and continue to make their money,
through passive income streams.
No Different than You or Me
The rich are people, just like you and me. They are no different. They don’t
talk different, they don’t think different, and they don’t act different.

Now, I know what you’re going to say … you’re saying, ‘Yes, they do talk
differently and act differently …’
No, they don’t. You’re focusing on semantics. Dialects.

The rich are fundamentally no different than the poor except for two basic
characteristics: they are more determined to succeed and made a choice to
succeed and they understand that passive income is the best path to wealth
out there.

Period.
Becoming rich is a choice. You may not have ever heard that idea before,
but it’s true. That doesn’t mean that if you choose that you’d rather be rich
than poor, that it’s going to happen. You still have to possess the sincere
desire and passion to succeed, but if you don’t consciously choose to
change your life, to seize what could be yours, then you are never going to
get off the path you’re on and onto something better.

The rich generally don’t stumble into their wealth by accident. They choose
their path and go out and work to make it a reality.
Now, the choice is yours … do you want to become financially independent
(which doesn’t necessarily mean rich, but you certainly control your own
income) or do you want to continue to be a slave to a company, a boss, and
the chains of hourly wages?

If you want to get out from under the rock that keeps your earnings from
soaring, then it’s time to take charge.
Let’s get into making passive income!
Chapter 4 – Different Types of Passive Income
There are actually a number of different types of passive income. However,
first we need to talk about what passive income is.

Passive income is any money that you earn from a product or service you
offer, while you’re doing something else.
If you produce a product, spending 100 hours putting it all together, you
probably aren’t making any real money doing it at that time.

However, let’s say you finally have it completed and release it for sale to
anyone who might want it. You could be sitting in your living room
watching TV and one product sells. Maybe that one sale brought you $100.
You weren’t doing anything while you just earned $100 other than watching
TV.

Now, let’s assume that you were earning $20 an hour at your job. The 100
hours that you put into that product to create it and get it ready for sale
would equal about $2,000. That means to actually earn money on the
product, you would have to sell 20 of them to make back your money.

Alright, I’m getting a little ahead of things at the moment.

Let’s say that you’ve sold 20 copies of your product already. Now, you’re
sitting there watching TV and you get a little ‘ding’ on your phone with a
notice saying you’ve sold yet another copy. That’s 21. Now you’ve made
$100 in profit from that most recent sale.

And you weren’t doing anything at the time of that sale.

Now, imagine that you were out on vacation for a week and came home to
find that you’d sold 100 products during that time. You would have made
$10,000 passively, without doing anything after you created the product in
the first place!

That is passive income in a nutshell. You begin to increase your income

without increasing your workload. That’s the kind of work most of us seek
out when we think about becoming rich.

When your products or services –the items that you sell- continue to earn
revenue for you no matter what you’re doing … that’s passive income.
The Best Kind of Work
There’s a reason why so many affiliate marketers are successful, even if
they don’t have products that are worth the paper they’re printed on. People
are constantly looking for the quick earnings, the ability to make fast money
with very little effort.

It doesn’t usually work out like that, though.

When you find a website promising that you can make tens of thousands of
dollars a month without doing very much at all, the only person who makes
any kind of money with it is the person who set up the site. All the other
people who came along and paid good money to learn the ‘secrets’ of the
trade are left providing that high monthly income to the creator of the site.

What I want to teach you, what I’m trying to show you, is that you can
certainly one day earn a lot of money every month without having to work
anymore for it. But, and this is a big but, you have to be willing to put in the
effort from the beginning.
Earning passive income is wonderful. There’s nothing like it.

In the example earlier, let’s say you’re making $1,000 a week from sales of
your product. Every week. That’s not too bad considering you have little to
no maintenance, nothing else that you have to do in order to keep it going.

But that’s not enough for you, is it?

No. You want more. You don’t want to have to go to that 9 to 5 job
anymore. So you create another product and market it. You earn the same
amount every week with it and you’ll earn that money for years to come.
Imagine now having $2,000 extra coming in each week, every week for
something you did years earlier.

Pretty nice, huh?

It’s the best.

So what kinds of items (products or services) can you offer that will bring
in that level of passive income that can one day lead to financial
independence?
Types of Passive Income
There are several different types of passive income that you can use to help
build your overall wealth. All of these have their own benefits and some
limitations. However, you are only really limited by your ability to apply
your passion and knowledge and desire to these products and your
determination to see them through.

You need to possess three characteristics, though, for passive income

streams to actually work:
Marketability
Creativity
Sustainability

Let’s look briefly at each of these for a moment.

Marketability. If your product isn’t marketable, then how are you going to
find an audience for it? If no one is going to care about it, then what makes
you think that anybody will actually want to spend money on it?
You need to have an idea (a product) that has a market for it. If you want to
create a music CD for some experimental music most people –even those
on the fringe- would call nothing but noise, then you shouldn’t expect to
sell too many copies and therefore, you won’t be making much passive
income at all, no matter how much time and effort you put into creating it.

Creativity. You may not be the most creative person in the world, but you
still need to have at least some creativity in order to find products and items
that are worth something to other people (who would buy it).

Sometimes creativity is nothing more than the shear act of will. If you want
to do something enough, then you will work harder at making it a reality,
and you will eventually come up with some creative ideas as a result.
If you give up because you don’t consider yourself to be very creative, then
you are never going to have the kind of passive income that you deserve. It
all comes down to desire and if you want something bad enough, then you
should be able to go out there and get it.

Sustainability. What good will it do you to spend a great deal of time and
effort creating something only to discover that no one wants it anymore
within a year? You need to focus on things that people will want for several
years, if not longer than that.

Writing an eBook about marketing on MySpace may have been fine a few
years ago, but MySpace isn’t even relevant anymore. Who would want to
pay anything for that kind of product?

However, creating a program or eBook that teaches people how to make the
most out of social media marketing is a different beast altogether. Social
media is something that will be around for a long time, so it will remain
relevant this year, next year, and well into the future. It won’t even matter if
Facebook falls from grace or Twitter is replaced by the next new wave of
new age social media sites, if you create something with staying power.

And that may be the toughest thing to figure out: how do you create a
product that will be relevant not only this year, but for several years to
come?
The answer is sometimes elusive. Sometimes it’s in clear view. The key is
learning where to look and what to do to help sustain your products.

Now, let’s talk about the different types of passive income streams that you
can create for yourself:

Tangible products
Intangible products
Residual income
Investment income
I’m going to work backward on this list, to try and hopefully paint a broader
picture of passive income and how it is a very real and potentially lucrative
prospect for you.

Investment income. One of the most common passive income streams that
we know of today are investments. There are countless ‘investors’ who
place money in stocks, CDs, bonds, and other types of investments, all with
the intention of expanding wealth into the future.

Men and women place their money into these investments for some level of
‘yield’ (a return on that investment over time is known as the yield). CDs
and certain bonds offer a limited yield, or ROI (Return on Investment).
Others, such as stocks, have the potential to provide a high amount of yield,
but there are no guarantees. You could invest $10,000 on the stock market
and lose a vast majority of it before you sell your stocks.
401(k)s through an employer are investments in stocks and bonds that are
intended to increase the individual’s wealth over time. Generally speaking,
the stock market continues to grow and gain wealth over decades. Yet
millions of people saw their 401(k)s obliterated in 2007 and 2008 when the
market crashed, leading to the Great Recession.

For the purposes of this book, we’re not going to talk about investments of
this nature, but the more you invest, the more opportunity you have to earn
passive income. That’s because the money you invest is money you already
earned. Once invested, any money you make from it is extra money, so it’s
passively gained.

Residual income. This kind of income is derived from advertisement

revenue, commissions, revenue shares, or affiliate sales. If you have a
website and it’s popular (meaning people come and visit it frequently), then
you could post ads from other companies, which will generate more
revenue for you. You already have your website, people already visit it for
one reason or another, so any ad revenue you generate is considered extra,
or passive.
If you market other people’s products, trying to get potential customers to
buy through you, rather than somewhere else, this is known as affiliate
sales. I mentioned affiliate marketing earlier and that it can be deceptive,
but in those instances, I was referring to the kind of affiliate marketing that
advertises that you can make thousands a month without doing a lot of
work.

This kind of affiliate sales is different; they are more legitimate. You find a
company that offers a product or service for sale, and they offer an affiliate
program, so you decide you want to try and market it as well. You sign up
and learn about marketing.

Every time someone buys that product through your website, or through
you, you earn a commission. This concept is the same as Amway products
of the 1980s or Avon products that are still popular with women today.

Intangible products. These are items that are not physical, your customers
wouldn’t be able to take possession of them in a physical sense. These
would include eBooks, seminars, training workshops, webinars, and more.
You may also wish to create a website that requires membership.

A website that holds people’s interest enough where you could create a
‘member’s only’ portion of the site has the potential to create a large
passive income stream. Imagine having 100 members on a site, each paying
$10 per month just to gain access to that ‘Members Only’ portion of the
site. That would be $1,000 a month extra for not doing any more work than
you already have been doing.
Intangible items are arguably the most lucrative in the Internet age because
there are no production costs, aside from your time and effort and any
potential software programs that you may need in order to create them.

The fewer expenses that you have in creating a product, the quicker you
will gain on your investment, which means the quicker you’ll be earning
passive income (and profit).
Tangible products. These are the products that people can actually touch
and feel. Examples of these types of tangible products include hardcover or
paperback books, inventions that you create, DVDs, and more.

Today’s world has changed the way that people access certain products. It
used to be that musicians would only be heard if they had their music
played on the radio or people purchased a copy of their full album (which
eventually led to CDs). Now, you can go to iTunes and purchase only the
songs you want to hear without having to buy the entire album. For some
music fans, this can save a great deal of money, but they also don’t get the
tangible product.

If they want the tangible product, then they have to purchase the CD.

If you have a marketable idea (whether it’s an invention, a novel, music CD,
or whatever) and you know that people will want to purchase it, you can
create tangible items that they will be able to hold in their hand.
This can be an attractive prospect for those who like recycling their
products. For example, a person who enjoys reading fiction may enjoy a
book you write, and they may prefer the hardcover copy because then they
can pass it along to their friends or family members.

Having a tangible product requires a bit more immediate investment on

your part, but once you make that investment, every sale you make becomes
passive income for you.
Two Examples of Passive Income
I want to give you a couple of examples of passive income and how some
people made them work to their advantage.

Example 1

Mark has been involved in business management for more than 15 years
already. He’s stuck in middle management of a big company and feels that
his career –that had started out with a blaze of glory- has come to a
standstill. He took an assessment of his life a few years ago and knew that
he wouldn’t be getting much further in his career, at least not with this
company.

Yet his company keeps calling on him to provide ‘leadership’ workshops

and seminars about how to get the most from employees. One day Mark
decided that he had a passion for this topic and enough information to
create something of value: something that other people would actually pay
money to acquire. So he set out to write a book.

He didn’t stop there, either. Instead, he produced a series of online webinars

where people could visit his website and get 10 to 15 minute sessions about
a variety of different managerial or leadership topics.

He had the passion and the expertise. He was an authority on the topic, so
he began to market his products, even selling his books at his in-house
workshops (with the permission of his employer, of course). Soon Mark
found that people were visiting his online lectures and workshops from all
over the world, 24 hours of day, 7 days a week!
Mark began making enough money so that he was able to leave the
company he’d worked for the past 15 years and focus exclusively on
creating more products, workshops, and seminars.

Example 2
Some people don’t have the corporate world experience that Mark does.
Some people simply have a passion for a particular activity or topic. Sara
was always passionate about politics and worthy causes. A few years ago,
frustrated by what she kept seeing in the news, she decided to build a blog
about her feelings regarding political hot-button topics.

Over the past few years, Sara has seen her readership climb from a handful
of friends and associates to several thousand regular readers every week.
She began running a few small ads on her site (not too many as she didn’t
want to drive off her new, loyal readers) and that began generating some
revenue for her, though not a great deal.

In the last year, Sara realized that some of the political figures and topics
that she was talking a lot about had books or other products that they sold.
She took on those that had an affiliate marketing platform for them and
began promoting them through her site and her blog posts.

She also set up a ‘Members Only’ part of her blog where her most loyal and
avid readers could go and comment on stories without being harassed by
what are considered ‘trolls’ in today’s blogosphere.
Both of these examples highlight the potential that exists to create passive
income from the things that you already do, the things that you have
knowledge about and a passion for.

Now, let’s get you moving toward creating your own passive income
stream, shall we?
Chapter 5 – Know Your Passions
If you want to make passive income, and you want to take charge of your
financial freedom, then it all starts with your passions.

What are you passionate about? No, by ‘passionate,’ I’m not talking about
the kind of passion that you may feel with the love of your life, but rather
the things that you truly and deeply enjoy doing in life.

For some people, playing the stock market is their passion.

For others, it’s culinary arts.

Some people may find that they are passionate about fishing and love
talking about every type of lure and where to catch the best fish and so on
and so forth.

Everyone has something that they are passionate about. So do you. You may
not think that way at the moment. You may sit there and believe that there is
nothing that you’re passionate about, or that the things you are passionate
about aren’t of any value to anybody, but that’s where you’d be wrong.

Remember, being creative, being able to ‘think outside the box,’ those are
the ways that you find what will eventually and ultimately bring you
passive income.
It all starts with passion.

Without a sincere love of or desire to do something, then what do you have?

A job.
You see where I’m going with this? It’s fine to have a job that you enjoy.
It’s great, actually. You may even have a passion for what you do, but at the
end of the day, if you are still punching a clock and earning an hourly wage,
you are working too hard for too little.

Yet most of us don’t really have any passion for the jobs we do. Some of us
had a lot of passion right out of college and when we entered the workforce,
but that changes. The longer you are in a company or in a field where
nothing changes, the more it becomes a burden and you end up with less
fire for your passion.

You need to take stock of your hobbies, your interests, and the things that
make you want to do more, no matter what it is.

Do you have a hobby?

Are you good at your job but feel underappreciated?
o If so, could you transform that energy into something people
would pay you to learn?

Are you a good writer?

Do you speak well?
o Are you engaging when you speak?

Are you into politics? Entertainment? Music? Movies?

Was there anything in your life that you wanted to do but never
got around to doing?
o There could be a flame in there that could ignite your world.

Okay, so take a few minutes to sit there and think about what inspires you,
what you love to do.

Is there anything that you love talking about with other people? Do you
share pearls of wisdom with them? Do you find yourself wanting to learn
more?
If so, then you might have found your passion. The next step is converting
that passion into an idea.
Chapter 6 – The Value of an Idea
You have your passion, you know what you want to work on (and you know
what? If you don’t have a real desire for something, but think that it could
bring you some solid passive income, you’re going to quit before you
actually see the lucrative end result, so stick with what you’re passionate
about), so now it’s all about finding the right idea.

We talked about the four different types of passive income that you can
earn, but let’s stay away from investments –that will be good for when
you’re rolling in all that extra income and have the time to research the right
investments for your future.
Do you want to write? Do you want to write a book? Do you have an idea
that is both popular and also not highly covered already?

Your idea manufacturing stream should be on all of the time. Keep a journal
with you wherever you go (and don’t forget a pen … you would be amazed
at how many times people forget a pen and can’t right down one of the best
ideas of their life before they forget it) and jot down any and all ideas that
come to your mind.
Some of them are going to seem stupid. Some will seem obvious. Some will
seem to be like everything else that’s out there.

It doesn’t matter. Write it down anyway.

No matter how frivolous, juvenile, or commonplace an idea seems, write it

down.
Some of the best ideas in history came from some of the most ordinary
thoughts.

Many of the best stories (books or movies) that have ever been told didn’t
look anything like the initial idea that the author or creator envisioned. They
evolve over time into what the audience either sees or reads.
The same holds true of ideas for making money.
Every idea has value.

I want you to remember that statement: every idea has value.

You may want to put together a web seminar (webinar) showing people how
to knit the perfect pair of socks for your family. That sounds great, it sounds
like there’s passion there. But it doesn’t sound like there’s going to be a
great market for the idea.

But what if you altered that idea a little bit and created an entire line of
clothing that is easy and cheap to make for just about anyone? You could
end up creating an instructional workshop for families who are looking to
save money on their clothing costs.
It’s just an idea, but a lot of details would have to be worked out before it
could be put into effect.

The point here is to hopefully get you to realize the value of an idea. The
simplest and even the smallest ideas have the potential to lead to something
more, something better.
They are seeds. You wouldn’t scoff at a small seed that could end up being
an impressive tomato plant that could produce dozens of tomatoes each
year, would you?

Now get going and jot down all of those wonderful ideas, will you?
Chapter 7 – Your Knowledge Base
Well, now we’ve talked about having a passion for something that you want
to make money with (passive income) and the value of ideas (never
underestimate any idea). So now you need to make sure that whatever
you’re passionate about, that you have a solid knowledge base for.

That doesn’t mean that if you don’t have enough knowledge, or that you
feel as though you’re not good enough to be considered an expert that you
can’t get there.

However, you shouldn’t ever try to pass yourself off as an expert when you
are not. That will only hurt your credibility and even though there are
millions of people out there all trying to show off their skills or trying to act
as though they are the best at something, people (consumers) will remember
those who lead them astray.

There’s a saying that goes something like this:

You can fool some of the people all of the time, and you can fool all of the
people some of the time, but you can’t fool all of the people all of the time.

You may misrepresent yourself and pretend to have more knowledge than
you actually do, and you may make some money doing it. For a while. But
before long, people will find out about you and you will end up on the
wrong side of a bad reputation. If that happens, jump starting anew will
become that much more difficult.

Expand your knowledge base first.

You may not want to spend the time or effort, or you may just want to get
started and work toward generating that passive income stream, but if you
don’t have knowledge, you will be found out.

One angry customer can be overcome. So can two or three, but the only way
to overcome those bad experiences is to be able to show the next ones your
true knowledge base.

But what if I’m planning on selling an affiliate product, such as an energy

drink?

Fair enough. Let me ask you this, then: what do you know about energy
drinks, health drinks, or getting fit and staying in shape?

If you shrug your shoulders, then why in the world would you want to sell
some kind of drink like that? Because it’s there?

In order to be successful at selling affiliate products, you need to promote

yourself as an authority on the subject. You have to know how to get people
to notice your product, and to convince them that they should buy it from
you.

The only way to achieve that is to expand your knowledge base.

The only way to expand your knowledge base is to read, study, and observe.

Read. Read anything and everything you can about the subject. If you want
to write books on how to write, you better know just about everything there
is to know about story structure, plot, characters, and so on. If not, read and
learn.

Study. What you learn, put into practice. You study by doing. As you study,
you absolutely must be willing to make mistakes. It’s here, during this
stage, that your mistakes don’t cost you anything. They help you learn. For
writing, that would be the act of writing. Writers are not born … they are
made. For this example, if you want to be a writer and teach others how to
write, you must be willing to invest the time and effort into that endeavor.

Observe. By observing, you are paying attention to what other men and
women have done and are doing within your chosen field. When you watch
and observe the best, you begin to absorb the manner in which they go
about their craft.
Determine the Value of Your Knowledge Base
Even if you are not an expert in the field of your choosing, that doesn’t
mean you can’t generate passive income from it. However, you need to
understand your value.

If you don’t have a great deal of knowledge, that doesn’t mean you can’t
generate passive income while you increase your knowledge base. Yet you
do need to understand your value.

Why would someone want to pay you the same as they might pay someone
with 10 years more knowledge and experience than you?

The answer is they won’t.

So learn your value. Only charge what’s fair for the value that you bring to
the table. And continually increase your knowledge base.

The more you know, the better you are at something, the more you can
charge. And that is where passive income really gets rolling for you.
Chapter 8 – Develop a Plan
Okay, so now you have your idea and you’ve begun to increase your
knowledge base on the subject. Remember, even if you don’t know a great
deal about the topic of your idea, you should at least have a passion and a
starting point (if you’re planning on developing a program to teach people
how to fish for bass in lakes, then you should at least have a passion for
fishing and some level of understanding on how to catch bass –the right
lures to use, times to fish, and locations).

Next it’s time to develop a plan.

Developing a plan requires some thought and consideration on your part.

You need to define your monetary goals, understand the market, know
your target audience, be realistic with your goals, calculate your
expenses, and develop a schedule.

Let’s take a look at each of these topics more closely.

Define your monetary goals. If you don’t know how much you want to
earn through your new endeavor, then how could you possibly be able to
determine if you’ve been successful or not?

How much do you want (or need) to earn each and every month? This
doesn’t mean that you will earn that much, but you should have a goal in
mind before setting out on your process of making it a reality.

Once you come up with a monetary goal, be realistic about what it would
take to achieve that (through passive income). Would one product or service
be enough? Or will that take a series of different products or services?

Do you want to be able to quit your tiresome day job and become your own
boss, establishing yourself as an expert on the subject matter in question?
How much money would that require?
Remember, when you determine your monetary needs, you have to
calculate taxes and health benefits in as well. You will be fully responsible
for all taxes, including Social Security (if it applies to you) and any other
local or federal level taxes.

Once you determine your monetary needs, this should give you a
foundation upon which to build.

Understand the market. No matter what market you plan on getting into,
you need to understand it. Who are your competitors? Are there seasons or
months that are more lucrative than others? Would you benefit by changing
product focus at different times of the year?

These are just a few questions that you should be asking yourself when it
comes to understanding the market. You may have passion, but that doesn’t
mean the market will move to you because of it.

You need to be able to draw upon your experience and know-how but only
so far as to fit into the market itself.

What do I mean by this? Let’s use the previous example and you want to
talk about fishing. There are many different aspects of fishing that people
care about. However, if you live in the middle of the country, you probably
don’t need to be talking about ocean fishing or the best reefs to catch sea
robins. You’ll focus on what is pertinent to where you live (your market).

It’s tempting to want to spread out and enter a variety of niches, but usually
what happens is that you become a diluted brand, obscure, and lose revenue
as a result. Know your market and refine it to your passions and knowledge.

Know your target audience. Know who your ideal customer would be.
Understand how they think, how they search for information, how much
they spend, how often they purchase items within your niche, and anything
else you can think of with regard to their shopping habits.
What age group are you targeting? What services do they tend to use to find
new information? Do they seek out tips? Are they early risers or those who
stay up well into the night?

Knowing your target audience is a fundamental key to any business success,

but it will be crucial to helping you develop a nice passive income stream.

Be realistic with your goals. This should be a bit obvious, but you may be
surprised to learn that far too many people who seek passive income are just
not realistic about their goals.

I want to be earning $10,000 a month by the end of the year, is an example

of one unrealistic goal. This doesn’t mean that this person would never
make that much money a month through passive income –in fact, it’s very
possible and reasonable. However, it takes time, dedication, and
perseverance to achieve those goals.

Be realistic with the amount and the timeframe that you give for your goals.

Calculate your expenses. Yes, you will likely have some kind of expenses
when it comes to getting started earning passive income. But that doesn’t
mean they have to be significant.

But you said we didn’t need to have money to make money.

I did, and that’s true. And yes, there are ways that you can develop
programs and ideas to sell that wouldn’t require one penny from you, but
they may take time, they may limit your earnings potential, or they could
possibly keep you from realizing your goals because they end up taking
longer than they should.

If you want to go that route, there’s nothing wrong with it.

If you would rather make some kind of investment in your new business
venture, then determine how much you might need (calculate a daily,
weekly, monthly, and annual budget) and how much you can afford. You
may not be able to afford what you need, but then again, there are plenty of
ways to do things on the cheap.

Develop a schedule. This last point is arguably the most important. You
need to develop a schedule, some kind of plan that you will stick to, such as
how much time you’ll devote to your passive income endeavor, when
you’re going to work on it each day or which days of the week, and stick to
it.

Many people have no problem developing a schedule, writing down that

they will spend an hour in the morning working on their projects and an
hour in the evening, but then they don’t stick to it. What good is having a
schedule and not working with it?

You need to develop a reasonable schedule. If you know that you won’t be
able to stick with something, then don’t write it down. If you know that you
won’t be able to work on Wednesday evening, for example, because the
kids have their karate lessons, then don’t state that you will.

When you are honest with yourself, you develop trust in yourself to actually
follow through.

When you develop a plan that you will follow, when you carry through with
that plan, then eventually you will begin to watch your bank account grow,
even while you’re out having a good time with your family and friends.
That’s the beauty of passive income.
Chapter 9 – The Legwork Up Front
When I talk to people who are trying to develop passive income and tell
them that they absolutely must be willing to put the work up front, their
eyes gloss over and I’ve already lost them.

But I will tell you honestly, if you aren’t willing to put in the effort from the
beginning, then don’t bother even trying.

Do you have to work at developing a passive income stream?

Yes.

Is that active work?

Yes.

So what makes it passive income if I actually have to work for it?

Your active effort comes in the beginning, up front. You don’t get
something for nothing. Nobody is going to hand you a bunch of money for
doing nothing. Even lottery winners had to actually take action, some risk,
up front in order to have the potential for winnings (success).

If you’re not willing to put in the time and effort in the beginning to develop
your plan, find the perfect idea to market, to create that product, and market
it, then you have no chance of earning passive income.

It’s that simple.

You need to take charge and be willing to do whatever necessary to get the
ball rolling and see it through.

Once the legwork is done, then you’ll be able to sit back, relax, and enjoy
seeing that income pour into your account.
Just remember, you will be actively working on develop whatever product
or service you plan to market, but when you begin to generate sales, the
money you earn will first go toward that initial investment of time and
money. Once your profits are higher than your investments, every dollar
you make from that point on will be passive income.

If you do it right, you should be earning money passively for a long, long
time, opening up a world of possibilities.

Now, one quick word about existing resources.

Chapter 10 – Use Your Existing Resources
We all have resources. You might not think about them as resources, but
they are there. And you should be willing to use them to help you build
your business.

What could be some resources at your disposal?

Colleagues at work. Family and friends who know other people who may
have an interest or knowledge about what you’re planning on promoting.
Suppliers for your company. Community activists. And much more.

Many people feel awkward using the resources that they have at their
disposal. They might not feel comfortable asking family or friends for help.
Don’t be afraid. Just don’t ask them to buy something from you just so that
you can make a sale.

Instead, if you know that someone in your network has a particular skill or
has access to something that could benefit your endeavor, don’t hesitate to
ask for their assistance. The worst that could happen is that they tell you
‘no.’

But you won’t know unless you ask.

The people who end up being the most successful in life are those who used
the resources available to them when they needed it.

Being afraid to rely on your network, or assuming that you don’t have a
network or any resources at your disposal is a cop out. Everyone has
resources surrounding them all of the time.

Now, get out there and put those resources to work for you.
Chapter 11 – Watch the Money Roll In
You started reading this book because you want to become financially
independent. You are tired of working so many hours every day and having
limited income potential.

Passive income is your pathway, your gateway to a new way of life. It’s the
road that leads you to true financial independence.

Once you put in the effort and time to developing your ideas and turning
them into realities, and once you establish a marketing strategy to get them
out in front of the consumer public, no matter whether you got it all right
the first time or not, you will be able to enjoy watching the money roll in.

Will you become rich from your very first idea? Not likely, but it should
still bring you in a fair amount of money. If it doesn’t, then it’s an
opportunity for you to learn, make adjustments, and correct the errors the
next time around.

The next time around?

Listen, even the most successful businessmen and businesswomen in the

world rarely ever got it right the first time. They made mistakes, had
failures, but they learned from their mistakes and corrected them the next
time around.

As long as you are persistent and focus on your ultimate goal, and as long
as you sincerely desire to become financially independent, then you can.
And you will.

You’ll see the money begin to roll in.

You’ll wake up one morning, check your figures and see that you just
earned $100 while you slept.

A few days later, you come home from being at the gym and see a notice
that you earned $260 more during that time period.
Does it feel good? No, it feels great.

The more you earn passively, the more you’ll want to keep pushing and
getting more passive income.

Before you realize it, you’ll be financially free and able to do all those
wonderful things you always wanted to do.

Now, doesn’t that sound awesome?

So what are you waiting for? An invitation? You won’t get one when it
comes to passive income streams.

Just go out and do it!

Other Books Available By Author On Kindle, Audio and Paperback

The Killer Instinct: How To Master It and Achieve Anything That You
Want
Winning Habits: Getting Rid of A Loser’s Mentality

Conquering Your Fears

How To Create A Profitable Ezine From Scratch

The Secrets Of Making $10,000 on Ebay in 30 Days

The Complete Guide To Investing in Gold And Silver: Surviving The Great
Economic Depression
How To Sell Any Product Online:”Secrets of The Killer Sales Letter”

How To Make A Fortune Using The Public Domain

Search Engine Domination: The Ultimate Secrets To Increasing Your

Website's Visibility And Making A Ton Of Cash
Creative Real Estate Investing Strategies And Tips
How to Make Money Online:"The Savvy Entrepreneur's Guide To Financial
Freedom"

How to Overcome Your Self-Limiting Beliefs & Achieve Anything You

Want
The Secrets of Finding The Perfect Ghostwriter For Your Book

The Creative Real Estate Marketing Equation: Motivated Sellers +

Motivated Buyers = $
How To Start An Online Business With Less Than $200

How To Market Your Business Online and Offline

Money Blueprint: The Secrets To Creating Instant Wealth

Affiliate Cash: How To Make Money As An Affiliate Marketer

How To Promote Market And Sell Your Kindle Book

AudioBook Profits: How To Make Money by Turning Your Kindle,
Paperback and Hardcover Book into Audio.

The Fine Art of Writing The Next Best Seller on Kindle

Fast Cash: 9 Amazing Ways To Make Money Without Having To Work At
A Job

Money Magnet: How to use the Laws of the Universe to Attract Money into
Your Life
 This le was downloaded from Z-Library project

Your gateway to knowledge and culture. Accessible for everyone.

z-library.se singlelogin.re go-to-zlibrary.se single-login.ru

O cial Telegram channel

Z-Access

https://wikipedia.org/wiki/Z-Library
ffi
fi