Requirements For A Passive IncomeBy Floyd Taylor
June 19, 2018
Now, going back to the initial question, there are certain requirements that a Passive Income must have:
A passive income must be scalable: regardless of the initial amount of money, this income must always be able to grow, up to the limit that we want … and not, as far as we are forced necessarily (as in a job).
Passive Income Is Other People’s Payments: Obvious, is not it? Where else would the money come from? You must get other people to give you their money constantly. One way is to have the same people pay you month after month, or that new people are arriving and you have proof of income with a fresh cycle of people paying.
Passive Income Is Value Generation: If you do not generate value, how do you expect those people to pay you? Ideally, your income structure should allow you to benefit people, to the point where they are interested in paying you for the benefit they receive.
Passive Income, Are Systems: A system is a set of elements that transform an input, an output … like the digestive system (which transforms food into nutrients and other things). A passive income must be a system that transforms a need, combined with a generation of value … in money.
Passive Income Must Be As Automatic As Possible: If your passive income requires a lot of work after it is working, it may not be as passive.The above are the main characteristics of passive income.Here I want to share some examples of real-life passive income.
Examples of passive income
A good way to understand Passive Income is through examples, such as the following:
Internet business.But those that are well structured have all the possible characteristics of an ideal passive income.For example, in my case, I started “blogging”. which is simply another way of saying: “writing free articles”.And how did he earn money writing for free? Simple: With advertising.At the beginning and at the end of each article, I had a block of advertisements, managed by Google Adsense. which paid me a few cents per click.If I had many visits daily, those cents were converted into several dollars, and several dollars a day, generated tens or hundreds of dollars a mont that simple.I did not hire people, I did not pay employees … and even, I did not have to worry about checking anything.If I stopped writing definitively, but the site was still online, given the positioning and recognition of my blog. this would continue to receive the same number of daily visits, and even, possibly that amount increased.So if I forgot my site for 6 months or a year (or the amount of time I wanted), upon returning . would have a few accumulated payments.People clicked on advertising even while they slept since my site works 24 hours.This is a completely automatic system, and the effort that required me was simply to bring traffic or many visits to my blog.Structure the advertising system was simply to place some codes in my blog, in the programming part. something that took me maximum, about 10 minutes.