With a traditional job, where someone pays you to perform a task (or tasks), you are limited by the structure your boss and company set up for you. A true entrepreneur quickly learns how to maximize every moneymaking opportunity, creating not just one narrow stream of income, but rather multiple streams.
Even if all you want to do is churn out $1000 worth of copywriting for clients each week or bring in an extra $600 each week doing blog designs for no more than one or two clients at a time, you’re literally throwing money out the window if you don’t add at least one stream of passive income to boost your earnings.
When you work for yourself – especially when you yet haven’t gotten to the stage of outsourcing – it can be disastrous if you suddenly get sick and can’t work for six weeks. You either want a couple more designers or copywriters in the wings, if you’re a designer or copywriter yourself, or you want another stream of income regularly dumping cash into your bank account.
Passive income is an income-generation system that keeps perpetuating itself once you’ve got it properly set up and running. You receive a nice little (or big) check every month, without having to do any additional work.
Of course, “passive” income is never entirely passive. It does require some initial research and setup; the more thoroughly and carefully you research the passive streams you are interested in adding, and the more care you take in the initial setup, the better your results will be, and the less time you’ll have to put into it later.
Recurring income is money that comes in automatically every month, or any other regular interval. It may not necessarily be passive, in that it may require time and effort on your part in order to keep people interested in paying you on a regular basis.
Of course, if you can manage to establish an income stream that is both passive and recurring, it’s like finding the Holy Grail!
In the next step, we’ll determine your most appropriate supplemental business model(s) and how best to incorporate them into your main model. Who knows? Perhaps one will even replace your main model.
Starting A Business 1-2-3
The premier step-by-step interactive training system
for starting your business with confidence and clarity