Guest Author - Sharon Michaels
Today, women have so many demands on time, energy and money:
~ Motherís are looking for ways to have quality time with their family
~ Baby boomers are facing the physical and financial responsibilities of caring for elderly relatives
~ Grandmothers are suddenly finding themselves the primary caregivers for grandchildren.
With all of todayís responsibilities, women are motivated more than ever to create financial security.
Letís talk about multiple streams of income.
Think about income as falling into three categories Ė earned, investment and passive. These are known as income streams. An income stream pays you money on a regular basis.
Earned income usually comes from a job. Itís the hours for dollars concept.
Investment income comes from interest on bank accounts, dividends or profits from stocks and bonds.
Passive income is money earned without the minute-to-minute, hour-to-hour and day-to-day time and effort. It can come from such things as royalties, a network marketing override check or income from rental property.
It almost sounds too good to be true. But, passive income can be a viable source of ongoing income. Like anything, it takes knowledge, commitment and a learning curve to make passive income one of your multiple streams of income.
When considering possible passive income, be weary of promises about doing nothing and still making thousands of dollars. Do your homework!
Letís take a look at four ways (of many) to generate passive income.
Network Marketing Ė A business opportunity where you distribute a product or service and recruit a team to duplicate what youíre doing. As your team grows, the network marketing company pays you a percentage and bonuses based on your teamís revenue.
Example of network marketing companies: Arbonne International, Melaleuca, Nikken, Shaklee and many, many more.
It takes time to build a team and develop passive income. Choose your company wisely; network marketing is not get rich quick. It takes time to build a business but once youíve built your business, youíll begin enjoying the rewards of passive income.
Internet Affiliate Marketing Programs Ė In a nutshell, itís about using one Internet site to drive traffic to another Internet site. You are rewarded with a commission when your referred customer makes a purchase.
Example of an affiliate program: ValueClick.com
It takes a large number of referrals to generate substantial passive income, but if you have the Internet traffic it can truly become passive income.
Creative and Intellectual Property Ė Royalties are paid to you each time someone reads, listens or uses your authored books, music/songs, software, inventions or patents. It takes work to write, develop and/or invent but the benefit of this work can potentially generate passive income for generations.
Example of creative and intellectual property: In the early 1960ís songwriter Paul Anka wrote the theme music for Johnny Carsonís Tonight Show. Every time that song played, he was paid a royalty.
It is important to do your research. Find an attorney and other professionals who are trained to protect your creative works. There are many legal issues involved with intellectual property but itís certainly worth the time and effort.
Rental Real Estate - Being a landlord can produce passive income. Once youíve purchase the property, the rental money is paid to you as the landlord. Real estate generally appreciates in value.
Example of rental property: Homes, a condominium, a duplex, apartment and office buildings.
Again, learn about the industry and consult professionals. Donít just jump in without doing your due diligence.
Can you see how multiple streams of income, especially passive income, could produce a financially rewarding future? Financial freedom is having your money work for you.
Passive income allows you to leverage your time and money Ė you can do what you want to do, not what you have to do to bring in an income or additional income.
As with any business or investment venture, consult professionals and do your homework.
If you're a woman in network marketing/direct sales you'll want to check out my 4 week Home Study ECourse "How To Overcome 3 Major Obstacles That Stop Women From Making Six-Figures+ In Network Marketing." Click here for details and registration information: How To Overcome 3 Major Obstacles That Stop Women From Making Six-Figures+ In Network Marketing Home Study ECourse
Listen to Sharon's Radio Show - Women Enjoying Success - on BlogTalk Radio for more personal and professional success strategies - available for your listening 24/7