analyze troupe: What is Passive Income? | The Six Figure Mentors Tour

Passive income?is an income received that requires little or no effort to maintain it. Strictly speaking no income is truly passive. Every source of income requires a minimum investment of your time and/or your money.?The idea of passive income is that you don?t need to work hard, you can work smart to generate a significant income with a small effort.?Once created, a passive ?residual? income stream will by definition continue to pay you whether you?re active (working to grow the income further) or inactive (on vacation etc) for the life of your sale, customer and/or your business.

Here?s a?few examples of Passive Income?

1. Rental Income from Real Estate

Real Estate Investors accumulate wealth by buying property, holding the asset for?an extended period of time?and letting the property out to generate rental income. If the investor can afford to buy the property outright then any rental income is not only passive, but profitable ? in addition to the long term increase in the asset.

With the recent worldwide economic crisis still affecting the real estate market, creating a passive income from real estate is much riskier than it used to be. Real Estate prices have fallen, it?s harder than it?s been in many years to get loans and it requires some serious work to find that perfect property and the initial capital to pay for it.

2. Publishing Royalties

In the 1980?s Michael Jackson?signed a contract agreeing to pay him $2.45 per album sale. His best-selling album ?Thriller? sold 40,000,000 copies ? that?s a massive $98,000,000 in Passive Income. Yes he promoted the album following the initial recording and release, but the work must have been relatively small compared to the earnings from that work.

Jackson also?bought the publishing rights to?200 Beatles Song?in 1985, paying a reported?$47.5 million for the assets. Jackson earned royalties every time one of his Beatles songs were either played on the radio, performed or sold in stores.?Not only that but?Paul McCartney also had to pay Jackson?a fee to?print the lyrics to the Beatles songs (some of which McCartney wrote) in the program for his 1989 world tour.

It took J.K.Rowling almost 17 years to write the complete series of Harry Potter books. She received royalties from sales made on each and every Harry Potter book sold and with over $450 million sales worldwide, and the Harry Potter series of movies, she?s now reportedly worth a staggering $1 Billion. Every time a Harry Potter book is read, movie is seen, DVD is sold, JKR receives a little more income passively.

Tip?If you?d like to make a passive income by publishing your own story it?s easy (and virtually free!). Get a PC, write your book, write about?10 main topics (chapters), then write about?5 sub-topics under each of these main topics. Email it to a friend to proof read it and give their opinion. Tweak the content. Create an e-cover for your digital book. Visit Amazon?s Kindle Publishing or CreateSpace and set up an account. Upload your book and e-cover. Select a royalty fee option and you?re done. Any sales will give you a passive income direct into your chosen bank account. Amazon gets traffic ? you don?t even need to worry about traffic generation!

3. Product Development

Rhonda Byrne,?an Australian television writer and producer originally created ?The Secret? as a self-help film. The film revealed the secret of?The Law of Attraction?but it was such a hit with those who saw it that Byrne turned her idea into a product by writing a best-selling book about The Secret and creating and marketing a DVD of the same name. Byrne is now worth an estimated $60 million.

The lesson here is to find your passion and channel it into a product. Create a successful product or series of products, even better a successful brand and you?ll earn passive income with every sale. Again obviously it will take you time to develop your product.

Tip?Most successful products have affiliate programs so that you can earn a truly passive income by leveraging the work of others. Make sure you develop an awesome affiliate program along with your product and get others to promote the product for you in return for a small commission.

?I?d rather have 1% of the effort of 100 people than 100% of my own?

- Jean Paul Getty -

4. Internet Marketing

Paid Advertising

By leveraging the internet it?s possible to generate a passive income from online advertising.?In 2011, Google (including Google owned companies like YouTube) made $33.3 Billion from advertising revenue. Facebook made just $3.8 Billion ? advertising on the internet is big business!?The point here is that the internet is now THE space to advertise your business, company, brand or product and anyone with access to a PC and an internet connection can do it.

Google and Facebook both offer Pay-Per-Click (PPC) advertising to their users where you pay a set fee for each click-through from the advertisement to a chosen webpage. Master PPC and you?ll be able to drive highly targeted traffic to your sites with a minimum of effort. You will need some money to start.

Tip In many cases advertising online is as simple as learning how to do it, choosing your niche market, choosing your product, placing your ad and letting the internet do the rest. Anyone can make a passive income from this phenomenon?

Click HERE for Free Facebook Advertising Training

Blogging & SEO

Blogging along with Search Engine Optimisation (SEO) gives you the opportunity to advertise your message for free and in your own words. By ranking on the first page of Google?for a specific keyword phrase (we used the?Google Keyword Tool?to find out 34k people search for ?what is passive income? globally every month)?you?ll automatically attract targeted traffic to your business, company, product or service. Any sales you make from this strategy will be pure profit as blogging and Search Engine Optimisation are virtually free though it will take you some time to generate great content!

Google Ad Sense

Google AdSense ? Google pays AdSense users every time a Google Ad link is clicked. If you own a popular website and place Google ads on your website and they?re clicked you?ll receive a passive income. As we?ve said before no income is truly passive, how long did it take for you to create a popular website, how much effort was involved and how long did it take to learn how to advertise on Google?

Affiliate Marketing

Affiliate Marketing is the art of selling someone else?s products, promoting someone else?s business or service in return for a commission. In our opinion it is truly the fastest way to make a significant passive income right now. Look at the benefits. You don?t need to create. You don?t need to develop. You don?t need a large sum of money to start. You can leverage the internet!

Tip Learn how to market online using PPC, Blogging & SEO. Find a product, business or service you genuinely believe in that has an affiliate program. Join the affiliate program and start promoting via PPC, Blogging, SEO.

Earn a Passive Income as an Affiliate of The Six Figure Mentors

?We?re affiliates for The Six Figure Mentors. If you?re looking to generate a passive residual income online then take a look?

also check out??How To Make A Passive Residual Income With The SFM

So What is Passive Income?

As we?ve said no income is truly passive but huge wealth can be generated with a small amount of work. We believe Affiliate Marketing and learning how to market online is the fastest way to build a passive income from the comfort of your own home!