Best Possibilities of Passive Income

Before I share the best ways to earn passive income with you, I want to take a few pages to review the benefits and risks of passive income. The truth is that no form of income is without risk. Even if you were fortunate enough to inherit a large amount of money, there would be some risk involved with investing it. That’s the way life works.

We have already touched on some of the benefits of passive income, but let’s review them in a bit more depth:

1. Passive income can lead to financial freedom. When you earn passive income, you can earn it any time of day or night, and from anywhere in the world. You do not have to be tied to a particular job or schedule. Once your passive income streams are set up, the money will flow into your account.

2. There is no limit on passive income. There is nothing preventing you from setting up a hundred different streams of passive income if you choose to do so. You can dedicate as much time as you wish to establishing passive income streams, and once they are set up you can sit back and collect the money. You are not limited by the number of hours you work.

3. Passive income can come from a variety of sources, which means that you can choose the options that appeal to you the most. You aren’t limited or required to do work that you genuinely dislike. You have the ability to choose work that you love.

4. You can be your own boss. When you set up passive income streams, you don’t have to answer to anybody other than yourself. You can decide when to work and when not to work. You set your own hours, and you can decide the best way to do things without interference from anybody else.

In my opinion, those are some very good benefits – and reason enough to take the time and energy to set up passive income streams. However, there are some risks and concerns to address too.

1. Setting up passive income streams takes time and effort. It might be tempting to look at passive income streams as easy and requiring little labor. However, that is an overly simplistic view and one that can lead to misunderstandings down the line. Make no mistake. You are going to have to dedicate a significant amount of time – and probably invest some money, too – if you want to get your passive income streams up and flowing. All passive income is active at the beginning.

2. Passive income streams don’t grow overnight. Even if you put in a lot of effort, it may take a while for passive income to become a stream. In fact, it may start off feeling more like a series of inconsequential drips than a true stream. You need to be prepared for the eventuality that it will take some time to get things flowing. That’s one of the reasons that I recommend starting to set up your passive streams before you quit your day job.

3. You need to diversify to ensure that you have money flowing in at all times. A single stream of passive income is not going to be enough to help you achieve financial security and freedom. The danger is that your stream could dry up, leaving you with no income at all. The best way to overcome this particular risk is to set up multiple streams of income so that even if one source slows down, you’ll have others in place that are still bringing you money.

4. Passive income can be too passive for some people. It’s a very rare person who will feel passionate and fulfilled about income streams that require little or no work. No matter what you choose to do, it’s probably best to combine some active work that fulfills and satisfies you – even if it doesn’t pay much – with passive income streams to help you earn money.

In my opinion, the benefits of setting up passive income streams far outweigh the risks. Passive income, as I said, starts out active. As long as you are prepared to do the work to make those streams flow, then passive income could be the best way for you to achieve financial freedom.

Proven Passive Income Strategies

As I mentioned in the introduction, the next three chapters will cover some of my favorite passive income strategies in depth. There are many different ways to earn passive income, and you certainly do not need to restrict yourself to the methods I discuss here. However, these methods are, I believe, some of the most reliable and easy to achieve.

Here is a quick overview so you know what to expect in the coming chapters.

■ Writing an eBook is the first method I will cover. A lot of people get intimidated by the idea of writing an eBook because they don’t consider themselves to be writers. I will cover the topic in great depth, and explain how you can get a book written with relative ease, and market it effectively. A well-written eBook can easily earn you income for the rest of your life.

■ Marketing affiliate products is the second topic I will cover. Affiliate products tend to get a bad rap because a lot of people try to market them and don’t earn any money. The reason they fail to earn money is not because affiliate marketing is bad – it’s because they don’t go about it the right way. I’ll tell you how to choose the best products, and set up your revenue streams so that they require little ongoing work from you.

■ Creating a mobile app is another popular way of creating passive income. There are a lot of apps out there, but if you can come up with a unique one, you can sell it for years without having to do any additional work. You don’t even need to be a programmer to create an app.

■ YouTube is one of the world’s most-trafficked websites and a great source of passive income if you know how to use it. I’ll explain how to set up a YouTube channel, give you tips for creating videos, and tell you how to monetize and publicize your videos.

■ Creating an online course is in some ways the most labor-intensive of all the options here, but it is also a very good way to earn significant passive income. I’ll give you tips for choosing a topic, creating a course, setting a price, and marketing your course.

■ In case affiliate marketing isn’t enough for you, I’ll talk about the benefits of creating your own product to sell, and how you can set up your own affiliate programs.

■ Product review and comparison sites are very popular, and I’ll give you some pointers about how to take affiliate marketing to a new level.

The next three chapters will go into great depth on these topics so that you have all of the tools you need to do what you need to do. You do not need to use all of these methods to attain financial freedom. What I recommend is that you read everything, and start with the method that most appeals to you first. Once you have done the work necessary to establish a stream of passive income, you can choose another method – or repeat the first one. It is certainly possible to earn money by writing multiple eBooks, or by setting up a string of affiliate websites.

The most important thing to remember is that you do not want to put all of your financial eggs into one basket. The point of having passive income is that you want to be able to spend your time doing the things you love. If you have multiple streams of income, it won’t have a significant impact on you if one stream suddenly slows down or dries up. True financial freedom means that you do not have to rely on a single source of income.