Creating more wealth is one of the driving forces that exist in today s society. There are many ways that a person can increase there overall wealth and with the use of the internet there are more and more methods to generate wealth arising daily. On average the wealthiest people in the world use seven income sources at any given time. What this meant is that while most people have one to two jobs to support themselves the people that are more than supporting themselves generally have four times the number of income streams. 
How could someone have the time to have seven full time jobs and still have time to sleep? The thing is no one ever said these income streams were “full time.” The wealthiest people in the world generate that wealth by letting their money and effort go one working for them long after they themselves have stopped. These people incorporate some of the best passive income investments into their income strategies and then relax while money pours in from work that is already finished.
What is Passive Income
There exists three main income sources: Active Income, Portfolio Income, and Passive Income.
- Active Income is any income earned through the classic job methods. This is the most common income everyone earns and the one that destroys your time to generate wealth.
- Portfolio Income is any profit generated from investments. This includes capital gains, Interest, and some dividends and royalties.
- Passive Income is any income earned through a means that required no regular, continuous, or substantial activity.
Creating passive income streams is one of the best ways to increase you overall net worth without permanently increasing your net work. There are a couple of different views on what exactly is a passive income. The official definition from the IRS is that:Passive Activity and At-Risk Rules.”
While this definition is extremely important for tax reasons, I am more focused on the style of earning, a work front loaded income stream.
In conversation, I would say a passive income stream is exactly what it sounds like. A source of income that once set up continues to produce a profit without your direct overseeing and control. There are a ton of different strategies that use this model as a means to generate consistent profit. The greatest part is with the expansion of the internet into new niches the number of passive income options increases as well.
Passive Income Strategies
The number of passive income strategies is increasing with the ever-increasing boundaries of the internet. Here are some of the older more well-known strategies:
- Rental Properties – Owning land/property is the oldest form of earning a passive income stream. This method has been being used for decades and is one of the most profitable. This profitability comes with the drawback, one of the largest starting costs.
- Rent out a Room in Your House – Renting out a single room in your home or subletting a room in your apartment is just one level below flat out owning rental properties outright. The largest drawback can also be the greatest benefit being that you get a much closer interaction with you renter.
- REITs (Real Estate Investment Trusts) – Another level down and here we have REITs. These are basically crowd funded rental properties. It has the benefit of being professionally run and managed. The drawback is that it earns reduced returns to pay for that professional management.
- Dividend Income – Dividends are like the job well done bonus for owing certain stocks and ETFs. Dividends are usually a small percentile return based on the total investment into the market. The drawback is that they are usually small percents and the stocks themselves are susceptible to the swings of the market.
- Peer-to-Peer Lending – This is one of the somewhat newer strategies that has really taken off with the expansion of the internet. One of the leading lenders is Lending Club.
- Write a book – Royalties are the name of the game. Create something new or individual and be paid for its creation. You can earn royalties from writing a book, creating a new patent, or creating licensed materials for others to use.
- Affiliate Marketing – Affiliate marketing is simply earning a commission for turning people to a product. This is generally done through a page, website, or ad. In its simplest description its online retailing. There is a huge budding market for this kind of varied work.
This is in no way the total list of passive income strategies. there are many more ans new ones being created all the time. In my opinion I prefer strategies that let me front load all the necessary work. These strategies then need occasional monitoring, updating, and collecting of funds. If I had to pick one that I believe everyone should have going for them it would have to be affiliate marketing through website creation. Its simple, productive to everyone, and can produce a regular profit for content that has already been created.
Website Creation Is The Best Time Investment
When I think about my investments into my passive income streams I use a three variable system to evaluate which one is the most time effective and profitable and cost efficient. Simply put when evaluating I consider the starting cost, the time required to create and service, and the profit earned. These three values when compared basically tell you which method is the best percentage wise.
Well, obviously, there is a high degree in variability with the results of these comparisons over time. When you consider how much any given business venture has, including my own commitment to it, I have come to find that these results change drastically from person to person. For me and many others online work and creation tops the list due to its ease of mobility, lasting income effects, lack of most normal time frames, and general anonymity.
- Ease of Mobility – Working on an online platform gives you the freedom to work from pretty much anywhere on earth (given the right service provider).
- Lasting Income Effects – Working online and creating an online business is essentially creating a totally automated system. Simply build the necessary parts and assemble everything correctly and watch it go.
- Lack of General Time Frame – Because you’re working online you can generally create and service your business on your time. This can be a daily occurrence for some or a monthly event for others or even further.
- General Anonymity – While there is a high degree of interaction and responding to peoples needs this can be done through service or pen accounts.
Website creation and the use of affiliate programs creates an astounding return on investments when considering the extremely low starting cost and lasting income ripples. So now I’ll lead you through a very brief tutorial about building an online business.
Building a Website a Quick Walk Through
Creating a website in its most basic form is an extreme;y easy, in its most advanced form its extremely complicated. My aim is to give you the easy version and let you graduate level by level to the more complicated ideas and processes that can be involved with a website. When creating a blog, website, or online business the first decision is pretty much the hardest decision to make. That decision is “What goal do I want to tailor my online work towards?”
- Choose a Niche or Direction
This first step can be super simple or super difficult. The idea is that you should have some direction that you want to push your website towards. I have found that the first website you build generally takes the longest of them all and is usually the hardest because of choosing a less than optimal direction. This is also hard because once you’ve made this choice its kinda permanent.
- Choose a Name
Next up in the difficult decision list is picking a name for your website. This name will basically appear on everything you write and add to your website. This name will hopefully also be your URL or web address.
Create your website on a host
- Fill with content
Content is king. Creating content is going to be your number one duty once you have your direction and name decided upon. It really comes down to your going to write, write, and write some more. Then once your done writing you’ll sit down, get comfy, and write even more. The good thing about this is that if you have chosen your niche well this writing really doesn’t feel like much work at all.
Get Started Now
Well, this is the end. This is now the scariest part for you. You’ve gotten the information you need to get started the move is now to begin heading down which ever path you choose to go. Which ever venture you decide to use to begin your passive income stream lifestyle with I strongly suggest starting now. NOW. Like right now. The sooner you get started the sooner you will start to generate net profit. The moment that starts to happen you see the true potential of your venture and you can really grasp how these methods could be life changing.
If your not sure where to begin I would suggest checking out the Wealthy Afflilate Training program. It is a great tool to begin with.
Good Luck and all the Best
-Atlas Tupper
Please leave me any Questions, Comments, Suggestions, and Your Experiences below