Imagine a steady stream of income that you don’t have to continue working at in order to keep earning money. Sounds too good to be true, doesn’t it? In all actuality it is relatively easy to create passive income streams that are profitable enough to sustain your life in the way you see fit.
What Is a Passive Income Stream?
Passive income is money that comes in after you have completed working to get it. It is income from work you have already performed versus work you are currently doing. Therefore, a passive income stream is a continued flow of income from a completed task.
Sources of Passive Income
One obvious source of passive income that illustrates the idea behind a passive income stream is a savings account. You open a savings account with a certain amount of money, and that money gains interest as it sits there. You never have to deposit any more money in order for that initial amount to continue earning interest for you. Obviously the more money you deposit into the account, the more money you will make on it. But you get the idea, right?
The one problem with this type of passive income is that you must leave the initial amount in the account for it to continue to earn interest for you. So, if you have a rough patch where you need to tap into that money source, you are reducing the amount of interest you can earn on it each month.
Therefore, the best kind of passive income comes from a continuous source and does not rely on an initial lump sum in order to keep earning your income stream. So, what kinds of passive income streams require no continued effort on your part?
Royalties
This is probably the best known method of generating a passive income stream. Creating songs and writing books, articles and columns all earn the author a steady percentage of royalties on the number sold. But, let’s face it: How many of us are going to make a living in one of these ways? It certainly won’t happen for the majority of us.
Pay-Per-Click
The pay-per-click method of generating revenue is a good way for many people to begin earning passive income. In order for random passive income to turn into a passive income stream, you may need to create several small sites that each bring in a portion of your overall income. For each of these sites, you will begin using affiliate marketing to generate income. This involves allowing other businesses to advertise on your website. Each time someone clicks their advertisements, you earn a specified amount. So, the more ads you allow on your site, the more income you generate.
Benefits of a Passive Income Stream
A passive income stream offers additional income, as well as the freedom from being tied to certain restrictive schedules and working atmospheres that hinder enjoying and living life to the fullest. Some of these benefits include:
* The ability to put forth a lot of initial effort and then be able to enjoy minimal efforts once things are up and running
* Freedom of choosing your work atmosphere and schedule
* The ability to raise your income whenever you want by adding to your passive income stream
* Your income is generated all day, every day and doesn’t depend on typical business hours
* Freedom to spend more time with family, friends and taking vacations
* Unlimited income potential
* Extra income to plan toward retirement
All in all, creating ways to generate a passive income stream is only limited by your imagination. To learn more about passive income and the opportunities available to you, consult an experienced entrepreneur today.
Dominic Boykin is the owner of Work from Home Based Business and reviews popular home business ideas and opportunities. Dominic’s favorite home business is the Plug-In Profit Site where you can get your own home business website setup to earn multiple streams of income within 24 hours. Clcik Passive Income Streams to start making money with your own home based business today!
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