Is Passive Income Really Possible?

In today's economy, passive income is a highly sought after concept. Is it still really possible to earn passive income in this economy? Kylon and I have been fans of Robert Kiyosaki for years and have implemented several of his passive income ideas. We do NOT suggest going after every opportunity at the same time. We initiated different passive income ideas after we established one for three to four years before we moved on to another one.

What is passive income? Here is the definition from Wikepedia:

Passive income is a rent received on a regular basis, with little effort required to maintain it.

Some examples of passive income are:

* Repeated regular income, earned by a sales person, generated from the payment of a product or service that must be renewed on a regular basis, in order to continue receiving its benefits - also called residual income.
* Rental from property;
* Royalties from publishing a book or from licensing a patent or other form of intellectual property;
* Earnings from internet advertisement on your websites;
* Earnings from a business that does not require direct involvement from the owner or merchant;
* Dividend and interest income from owning securities, such as stocks and bonds, are usually referred to as portfolio income, which can be considered a form of passive income;
* Pensions.

One of the key elements of an effective passive income generator is one that provides a monthly recurrence. A fee that you receive on a monthly basis is far more reliable than a fee that may be more randomly received.

Here are some more examples of passive income ideas:

vending machines
affiliate products
monthly subscriptions
real estate investing
ebay business

You will need to find what will interest you but as stated previously, it is important to find something that will generate monthly cash flow for you. Here are some examples from our lives.

1. Real Estate - we have 2 rental properties in which we receive monthly rents. We also have a monthly fee for all of our real estate agents and loan officers to hang their license under my broker's license.

2. Ebay Business - Kylon had an ebay business where he sold designer clothes that he found at thrift stores and sold them for high profits. He made between $7,000 to $10,000 / month in years 2000 - 2002. He was on his way to find one product and automate his systems to list on ebay (true passive income model) but then he turned to the mortgage and real estate business and never turned back.

3. Affiliate products - the products that offer a monthly fee are the best in that you will be paid a monthly fee as long as the customer still uses the service. Marketing Burst, a site for creating landing pages is a great example of this. There are tons of affiliate products that you can promote so find what interests you and promote, promote, promote!

4. Monthly Subscriptions - ChatToText would be an example of a chat service on social profiles that charges a $6 monthly fee and you can have residual income for spreading the word. The downside to this is that more people are leary to give their credit card information on a monthly basis.

Steps to Start Your Passive Income Generator

1. Find your passive income generator
2. Research your passive income generator
3. Strategize how you plan to market
4. Develop a business plan of action
5. Make a daily plan of free promotion strategies such as

* posting on forums
* press releases
* social media sites

Start budgeting for paid promotion strategies such as

* PPC (Pay Per Click Ad Campaigns)
* Internet Marketing Ebooks and Videos
* Radio Promotion
* Social Media PPC

I hope this information is helpful to you. I also have 2 ebooks that you can review for more detailed information:

A Guide to Passive Income

The Cycle of Wealth

Enjoy! Be sure to come back and let us know what you decide to pursue!

Naomi Trower
Real Estate Broker
Internet Entrepreneur
@NaomiTrower

Tags: affiliate, business, ebay, estate, income, investing, marketing, passive, real

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Comment by M. Rita Metts on July 28, 2009 at 6:49am: I am sure it may be possible but I haven't had any success with it.

Comment by EntrepreneursCoachGarethEmberton on June 28, 2009 at 2:15pm: passive income is an employees mentality....true entrepreneurs understand money is a bye-product of their business as they are focused on doing what they love and because of this money and wealth flows. Because entrepreneurs do what they love they love their work and so retirement is irrelevent......so if you are in it for a passive income, you are in business for the wrong reasons....sorry to shatter illusions!

Comment by Warren A. Veach on June 19, 2009 at 7:47am: Naomi,

Nothing is truly passive. At some point, something must be "done" to generate income in any endeavor.

However, there are opportunities available that once put into motion, produce a regular, steady income flow.

As an insurance agent, after a policy is sold to a client, I will receive a monthly residual commission for the life of the policy. To many people, that would be an example of passive income derived from Direct Selling.

However, what many people don't see, is the work that goes on behind the scenes to keep that policy in place so that it remains a source of future income.

As far as MLM opportunities that provide passive income, I believe the bets examples would be those that provide a product or service that people must have, and/or are required to have in order to carry on with their daily lives and/or their profession.

Two such examples would be:

1. A utility such as the electricity to run their home. I represent a highly competitive company that is a provider of electricity and gas in Texas and Georgia.

While work is required in order to establish the customer base initially, once a customer is in place, I receive a regular passive income from their use of something they are going to use whether they get it from me or not.

The billing for their electricity is done by the company, and my commissions are forwarded to me.

2. A product a licensed professional is required to purchase in order to maintain the license their respective state has issued in order for them to business in that state.

As an state-licensed insurance agent in Texas, I am required to take Continuing Education courses on a regular basis in order to maintain my license which allows me to do business in the State of Texas, as are many other professions not only in Texas, but nation-wide as well.

Again, while work is required in order to establish the customer base initially, once a customer is in place, I receive a regular passive income from their use of something they are required to purchase on a regular basis in order to stay in business.

Once registered as a client, the company provides each customer with 90-60-30 day notices of their upcoming licensing requirements, provides the courses online for the respective state and profession, and handles all the notification of the state that their requirements have been met.

All 3 of the above, in my opinion, constitute an example of "passive income".

If you'd like to know more about any of the products or services I represent, or the opportunity they provide, just drop me a line on my profile page.

Have a GREAT day,
Warren

Comment by Neelakantan Sadasivan on June 18, 2009 at 2:47am: Hi thanks a million for this nice concept.Feel that you hve to work for making this happen!
Sadaboy India.

Comment by Ashish Kumar Mishra on June 17, 2009 at 3:35am: Yes, Its absolutely possible. And I am working with set of People who are getting it.
They are not going to work from Monday to Friday. Enjoying life and best part is they are ready to help people like me to get it too.

Comment by Octavio Ochoa on June 14, 2009 at 4:00pm: Today more than ever residual passive income is possible but also is necessary.

I would like to mention one of the most powerful sources of residual income, it's call LDI or RRIBO.
There are 2 videos where we can see the whole concept. Let's pay close attention because it can be something to consider in today's economy:

RRIBO ? CLICK HERE

LDI---->CLICK Here

FOR A MORE DETAILED INFORMATION ABOUT HOW TO START WITH YOUR OWN LDI BUSINESS CONTACT ME BACK:

Sincerely,

Octavio Ochoa
octavio_ochoa@yahoo.com
www.WorkYourFortune.com

Comment by j viramontes on June 14, 2009 at 3:52pm: I guess it all comes down to your definition of "Passive". If that means signing up and then sitting on the couch 24/7 ignoring your business then no, i don't think passive income is possible for that individual. But if "Passive" means setting up a system that you maintain so that you can be earning 24/7 without you physically attending to each idividual sale then yes I think it is very possible.

Offer something useful and helpful to others and they will come. Give and you will receive.

j

Comment by damian wise on June 13, 2009 at 9:47am: I have to agree with lion wolfe. Plus I dont want to waste my life as a parasite sucking on some dumb twit stupid enough to be at the end of the feeding line. Money is NOT the only thing people want or need and even if I am wrong and there IS passive income... its not for me baby.

Comment by Jacqueline Brewster on June 13, 2009 at 9:37am: Well, "Nothing is for free" - and that includes passive income! I have been involved in a couple of Affiliate programmes in the past and yes whilst they can generate passive income it does require commitment and hard work - you have to market yourself, your products, network like crazy, recruit and train your team. Depending on the product or service you sell - it may take 2-5 years before you really start to reap the benefits but then your income will soar. So yes, if you're truly disciplined and not afraid of hard work - enjoying a passive income is achievable.

Jacqueline Brewster
www.enerjii.com/health

Comment by Octavio Ochoa on June 13, 2009 at 6:53am: Thank Naomi, for this great article.
Passive Residual is perfectly possible. As you mentioned there a lot of sources of royalties generation. You mentioned some of them.
In today's economy and with the future that comes to our economy is highly recommended finding our vehicle to financial freedom.
I would like to share with this smart audience a video that talks about financial challenges people are having today, the why's of these situation and how RRIBO can change dramatically the personal financial future of committed people.

Let's take a look and I would like to receive your comments back:

RRIBO---->>>>RESIDUAL INCOME VEHICLE!

IT HAS BEEN A PLEASURE TO PARTICIPATE WITH MY COMMENTS ABOUT THIS IMPORTANT ISSUE.

SINCERELY,

OCTAVIO OCHOA
RESIDUAL INCOME BELIEVER
http://www.workyourfortune.com