Passive Income – from work you do
There are certain jobs or professions you can choose that will allow you to build up a passive income. In this post we are going to have a look at some of them.
This is my 4th post in this series on passive income. If you have not read the first three you can find them here:
The first two here are professions I know well, the others I understand and know people who earn a passive income from them.
I live in Australia so there may be differences in the country you live in if you are not Australian. Having said that when I was working as a financial planner I attended an International conference in the USA and met people from all around the globe and it seemed like it all pretty much worked the same way.
Financial planners place investments on behalf of their clients. The two most common ways they charge for their services are by accepting commission or charging a fee. Either way the fee is ongoing by way of a “trail commission” or a ongoing fee.
So basically the planner does the initial work and then receives ongoing remuneration. Now this should not be totally passive income as the planner should be keeping a careful watch on the clients investments. Perhaps the word recurring is better here. Nevertheless it is a far better option than always having to generate new business.
I was a partner in a firm that licensed financial planners for some years. This means we as owners of the company shared in the ongoing passive income generated by our planners. This is using leverage to enhance ongoing income.
My husband is a mortgage broker in Australia. Brokers receive commission for obtaining loans for clients. There is also a trail commission paid on the loan. This is probably a little more “set and forget” than in the financial planners example. Over time a broker can build up a nice residual or “passive income”.
In today’s world it is much easier than it was in the past for someone to become an author. In the past if someone wrote a book they had to find a publisher who would then pay them an ongoing royalty on their book sales. In the case of authors not being accepted by publishers they could elect to self-publish at their own expense and then they needed to find a book distributor.
I worked with the Australian organisation that published Rich Dad Poor Dad and other books by Robert Kiyosaki. We also published books for other speakers. Typically in that model the speaker/author would tour as a PR exercise. We also engaged professional public relations experts.
Today with eBooks and kindles the world has changed and it is much easier to have a book in the market place. Of course you then need to market it.
So in theory you write the book once and then receive an ongoing passive income from repeat sales. In my experience though you need to be part of the marketing equation. If you find yourself with a best seller as Robert Kiyosaki did with Rich Dad Poor Dad then you have a winner.
In this profession solo artists or groups record albums that sell and they receive royalties. I am sure the records or CD’s sell much better when the artists tour. Then they also receive income to play live but of course this is not passive income. Usually they will sell CD’s at their concerts and that is passive income.
Musicians can also have their music used in TV or movies giving them another income stream.
When I think of an artist I think of someone painting a beautiful painting for months then selling it once. Clearly that is not creating a passive income.
It is however possible for artists to create a passive income through art licensing as well as print-on-demand or creating an online business.
Artists can license their work to organizations that create and sell the artwork on things like greeting cards and calendars.
Not everyone has the talent to be a writer, musician or artist and you may not have any desire to be a financial planner or mortgage broker. One way you might want to consider building a passive income though is through creating your own products.
Now if you have just thought “what product?” or “I could not do that” stay with me here. I believe we all have a product in us.
Products can be physical products like the example I used in my first post in this series being Robert Kiyosaki’s Cashflow Game. That is a board game and has been sold around the world. Robert created it once and has been paid over and over again for the creation.
A simpler model is a downloadable product which eliminates the need for manufacture, storage and shipping. I recently purchased Ray Higdon’s Pro Blog Academy. It is a series of webinars Ray recorded.
What do you know that you can teach others? If you answer “nothing” ask your friends or colleagues and I bet they will help you come up with something. Sometimes what is a “no brainer” for us and is something we do so easily is what other people struggle with. Usually though we take our own talents for granted.
Passive income – from work you do conclusion
I am sure there are other professions and ways people are making a passive income so please let me know if you have one.
Please leave me your comments below. I especially would love to hear what product you can create.
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P.S. If You Don’t Have a Step-By-Step Blueprint For Generating More Leads, Check This Out (Unless You Already Have Too Many)