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16 Keys For Creating A Passive Income
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16 Keys for Creating A Passive Income

When looking into different wealth creation systems, there are a few things to look out for before venturing into business. I would like to share 16 keys for creating a passive income and what to look out for.

People are always the ones that produce the money in the first place. Without people buying and selling, there is very little hope for an income stream. Even in the case of interest on a fixed deposit, people are still needed to make it happen.

Excellent products/services should offer value to the customer. Any business that has no product or service, is usually a scam (especially online). You have to offer people value for their money!

Affordability is also a big factor. For instance, I dont find it very affordable to live off a fixed interest because I simply dont have $1million to 'tuck away'. I also cannot go and buy a house to rent out (I still need one for myself!)

High ticket items are products where the commision for sales is high. This is often the case when the product is expensive. Now I know this contradicts the previous point, although this is something that can be overcome, with a clever system! The point really is to generate high paying commissions, not neccessarily an expensive product. So, instead, the system could be designed with a very high commission structure.

Money tends to be an obvious point, although I simply want to emphasize this: you should look into systems that allow you to start receiving money as soon as possible, rather than you having to fork out money every month to simply 'keep it going'.

Selling - not everyone's cup of tea! This is another area where clever techniques and strategies come into play. I mentioned products previously and obviously those products need to be sold, somehow, by someone. So, again, I would look into an income system that either had sales built-in somehow, or that didn't require me to do sales at all!

Subsciption services are highly under-estimated, in my opinion. You can kind of compare it to affiliate marketing, except you are not getting paid for the one transaction/sale, you are getting paid monthly. This is often a huge advantage with any wealth creation system because the next 'purchase' has already been made.

Recruiting is another one, although I feel that it falls in the same category as selling. On the other hand, it has more to do with the subscription idea; since you are recruiting for a service and not really selling a product. Again, you may want to look at systems that dont require this involvement from your side.

This one may be very debatable for some - the Internet . Yes, I believe that the internet would play a vital role in any successful wealth creation system. Other than the obvious, such as saving business premises rental costs, the internet has given us the ability to communicate 24/7 and a website, for instance, can meet all of the above mentioned requirements.

Automation is another benefit of having the internet. It's pointless having a system that is not automated because someone needs to attend to it. Then it's not really a passive earning, if you have to keep working on it. Having a website, for instance, can automate the entire sales and recruitment process, including building a network of people.

Training meetings can be a hassle, trust me. They are not always convenient and most of the time, I could think of better ways to achieve the same thing. Usually though, these meetings are for sales people that are part of a team or recruiters that need to recruit other members to join their wealth creation team. Again, the internet can be a huge help!

Time is something that most people dont have a lot of. The general pace of life is hectic and you may not have the patience to follow through with any system. What I'm trying to say here is that any decent system takes time to generate wealth. There is no such thing as getting rich quick, with these passive ventures. There is a lot of hard work involved but the reward is worth it, I believe. An ideal system would be one that allows you spend as little time as possible on it every day, while still moving you towards creating wealth.

Testing a product or system is often a huge relief, as it allows you the freedom to explore and make an informed decision. If an opportunity seems too good to be true, but you are free to use the system on a trial basis, what do you have to loose? I'm sure that if someone was trying to scam you, they wouldn't let you 'test' the scam first! Aim to find a company that provides a free trial period, as you never know until you know! Even then, having a some form of guarantee would be an ideal option, after a trial period.

Personal support is always offered in a successful system. When you are starting off in any venture, it's always good to know that you have personal support, in the form of real people that can motivate you and encourage you to achieve success. They provide the much needed motivation and they are key to your learning, as some systems can be tricky to understand and follow, at first. Knowing that you have help at hand can be the difference between succeeding and failing.

Consistent and persistent work will get anyone moving in the right direction, especially with personal guidance/coaching. I mentioned before that there is a lot of hard work initially and this must be met with the correct work ethic. Dont be fooled in thinking that you can 'work hard' for 6 months (or even a year) and then sit back and relax. It may take longer as very successful systems have taken years to develop. All that I am saying here is that you need to be committed to working regularly and on a consistent basis. For example, to have a passive income from renting out your house, it may take you 10 years to save the money to actually buy a house.

My last point that I want to mention is this - you need to have a dream or a goal. You need to know where you are heading and what you are reaching for. This should form the basis for your motivation and drive you to achieve success, by being discipled and dedicated to work!

All the best in all your endeavours... there are some highly rated systems out there but keeping the above points in mind will help you to select the right one for you!

Street Talk

Great advices.. Earning passive income requires a lot of work and dediction expecially at the beginning!

  about 9 years ago

Thanks Luca4. I couldn't agree more - people tend to think of passive income as the income from doing nothing! In effect that is what you are aiming for but to get there takes lots of work!

  about 9 years ago
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