The Benefits of Passive Income

| November 25, 2018

graphic of shopping cart websitePassive income is money that you make from selling items (usually digital content, although not always) that sell themselves on autopilot. The topics are usually evergreen meaning they are always in demand, so those items sell and sell and sell, over and over. Through various systems, processes and automation, this business model requires very little of your time to maintain it once the model is set up.

Benefits of Passive Income

Four of

    the biggest benefits is this business model are:

  • It is self-sustaining, meaning you make money whether you are there to manage it or not.
  • Because you do not have to babysit it all the time, it frees up time for you to do other things like set up more passive income products, add in an active income revenue stream or two, or just spend time with family, travel and do things you like to do.
  • It is scalable meaning you can add as many of these passive income streams as time allows. Once you have the process in place, rinse and repeat with another evergreen products and you are set up with an additional stream of income.
  • It provides a fairly stable and dependable income month and after month.

Usually an entrepreneur does not limit him or herself to just one passive income-producing product. Although you might have one product bringing in a substantial amount of income each month, the more likely scenario is you will have many products each bringing in smaller amounts of money. The latter is better in the long run, because it further diversifies your income so if one product fails, you don’t lose your whole passive income. And just like any other revenue stream, don’t make passive income your only revenue stream. In business, it is never good to have all of your eggs in one basket.

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