Build Wealth With Passive Income

I was talking with a friend this morning about marketing ideas for his business.  He doesn’t do Internet marketing, in fact his business is not online at all.  However, I thought it would be a good idea to bring it up because his business is a passive income business.  Let’s talk about passive income.  After all, it’s one of the reasons I do Internet marketing. 

First, I’ll define passive income.  Passive income (as opposed to active income) is money you make without trading your time.  For instance, if you started a rock band and wrote a few songs and put out an album, you can sell your album for years to come and earn royalties from it.  This is passive income.  The same thing applies if your write a book.  Obviously, there is in important ingredient to make these forms of passive income work – people have to want to buy your music or books… you need to be known!  There are many, many ways we can generate passive income, and although there are many offline ways to do so, the Internet makes it much easier for regular folk like you and I to join in the game.  And if you want to write a book, you can self-publish and market an electronic version, called an ebook, on the Internet. 

You may not know much about passive income and you can do what you want, but I strive for passive income and most of my business endeavors involve building streams of passive income.  This is the path to wealth.  While the focus of this blog is Internet marketing and doing business online, it very well could be called the “passive income blog”.  This blog is very much about how to generate passive income.  So throw me your questions about passive income – even if it involves an offline business. 

If you are interested in learning about passive income and achieving wealth, I suggest you click here to check out Peak Potentials’ MMI training – it is an incredibly valuable tool for learning how to make passive money and focusing your mind to believe you can.  I did the MMI training in 2007 and it helped me tremendously, including helping to get into the Internet marketing business (click here for the story of how I got started).  The MMI training cost around 100 bucks, and it is the best investment you’ll ever make for yourself.  Yes, I am endorsing this – I took the training, and you should too.  By the way, MMI stands for “Millionaire Mind Intensive” – and that is exactly what it is.  I will talk more about the appropriate use of endorsements in an upcoming post.  For now I will tell you there is a proper way to endorse products – even affiliate products where you earn money.  As for me, I tell it like it is.  Like I said, I’ll address this in more detail in a future post. 

Getting back to the story of the conversation with my friend this morning… he generated a passive income of about $140 per week.  He was feeling down because it’s not a lot of money.  I think he should be proud of his accomplishment because that money will continue to come in week after week.  That’s about $600 per month that he doesn’t need to lift a finger for.  As it turns out, he invested about 20 hours of work to make that happen.  Now that he has completed the learning curve, he can likely repeat the same results in less time.  So our conversation was about duplicating his effort.  If he does what he already did 9 more times (for a total of 10), he would be making around $6,000 per month – passively.  See how this starts to grow?  What if he did it 100 times?  How does $60,000 per month sound?  This is attainable, and that is why we were having a conversation about ways to market his service. 

One more thing about passive income, and then I promise I will wrap up this post… 

Think about the power of the passive income model… let’s do that by comparing it to the active income model.  With active income, you work and then get paid for your efforts.  The next week, you do the same thing – you work and then get paid for your efforts.  If you stop working, you stop making money.  Now, let’s take a look at the passive income model.  With passive income, you work and then get paid, and then get paid again, and again, and so on.  This is pretty powerful stuff.  You work once and get paid forever – then you go and build another passive income stream… then another.  Get the idea?  Internet marketing is one of many ways to achieve passive income. 

Just remember that active income is when you work for your money, and passive income is when your money or your assets work for you.  Which do you strive for? 

On a side note, passive income is taxed at a lower rate than active income if it is set up properly.  Talk to your accountant or tax professional for more information. 

Post Resources
Peak Potentials MMI Training

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Written by Scott Gilbert on April 30th, 2010 with 3 comments.
Read more articles on Build Wealth and Ebooks and Internet Marketing and Make Money Online and Marketing Tools and motivation and Online Businesses and Online Marketing and Passive Income and Success.

3 comments

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Get your own gravatar by visiting gravatar.com Scott Gilbert
#1. May 3rd, 2010, at 2:26 PM.

Thanks Mark!

-SG

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#2. May 14th, 2010, at 5:32 AM.

this post is very usefull thx!

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#3. June 12th, 2010, at 11:05 PM.

I’ve recently started a blog, the information you provide on this site has helped me tremendously. Thank you for all of your time & work.

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