Print a PDF of Page…

Print Friendly and PDF

Why Having Multiple Sources of Passive Income is Vital to Your Success

By The 1-Hour Workweek 4 years ago4 Comments

 

You’ve probably heard the old saying about not putting all of your eggs in one basket, but can the old way of doing business really translate over into the digital information age? Absolutely. No matter what sources of passive income you are focusing on, it’s always a great idea to find the perfect balance between your resources and your passive income streams, thus giving you the best shot at becoming financially independent while keeping you out of the daily 9 to 5 grind.

What are Multiple Sources of Passive Income?

multiple-sources-of-passive-income

Having multiple sources of passive income is no different from having multiple sources of income in real life—it’s like having two jobs. The only difference here is that multiple sources of passive income will typically require the same amount of work—no more, no less—as a single source of income. That means you are earning twice the profit for the same amount of work. If you have three passive income streams, you earn three times the profit—great, right?

Actually, yes! Passive income doesn’t become less passive when you add another stream, it stays the same. For example, if you have a review website and you are affiliate marketing, throwing up another page with an affiliate link creates another passive income stream. You don’t have to do any extra work aside from writing (or outsourcing) the review. In fact, adding content to your website will actually bring in more traffic, making your job less involved!

But that’s more of a passive income stream than a source of passive income. To truly get multiple sources of passive income, you’ll likely have to create a few stream generators. For instance, looking at your review website as one source of passive income with many streams is great. Then, if you start investing in real estate, that’s another source of passive income. Add some eBook sales and you now have three sources of passive income, each with the possibility for multiple passive income streams.

Why is it Important to Have Multiple Sources of Passive Income?

Aside from the obvious (making more money), it’s important to have multiple sources of passive income for one simple reason: if and/or when one passive income stream dries up, it won’t break your bank. You see, unlike active income, one of the major goals of passive income earning is to not live paycheck to paycheck. Why? Because it’s simple to never have to do that again: multiple sources of passive income.

Let’s say that as a business standards, you will always have at least 25% of your passive income coming in better than expected, 50% coming in as expected and 25% either under-performing or drying up. Now, if you have only one source of passive income and it’s in the 25% of amazing earnings, great! The only thing is, don’t expect it to stay there forever.

Even in the biggest trades and industries today, the market is volatile and ever-changing. A smart way of hedging your bets is to have all of your eggs spread out to a number of baskets so that one bad break or unlucky streak won’t break you. This way, even if your biggest passive income stream turns to the bottom 25% of performers, you’ll still be earning on the standard 50% and high-earning 25% in the meantime.

Then, as you tweak your under-performing passive income streams, you’ll be able to get them back on track, even if you have to dump a little time or money into them. This is just an inevitable part of any business—you’ll have hot streaks and cold streaks. The important part is to have enough streaks in play so that the hot covers the cold and the bulk of the income consistently rolls in. When this happens, you’re not just earning passive income, you’re earning smart passive income.

7

What are the Best Sources of Passive Income?

So, what are the best ways to go about generating multiple sources of passive income? Well, that depends on your skill level, willingness to invest and/or amount of time you’d like to put into creating passive income. Below are a few of the most successful sources of passive income along with a few facts that will help you decide whether it’s the right passive income source for you:

  • Affiliate Marketing. Affiliate marketing is not only an excellent source of passive income because it is not time consuming, but also because you can make a lot of money once you know what you are doing. To that end, there’s a ton of information out there on affiliate marketing, much of it in this blog. This makes it one of the most popular entry level sources of passive income while still remaining one of the most lucrative.
  • Writing an eBook. Another excellent source of passive income is the selling of information, most commonly in an eBook or report. This is pretty straightforward and long-lasting as far as passive income sources go: you write the eBook (or have it outsourced), then you sell it online. Since every sale comes after the fact, it is the ultimate passive income source in terms of doing work once and getting consistent income from it.
  • Investing in Real Estate. Another great source of passive income is investing in real estate. Whether you are just flipping properties at profits or renting the property out to renters, the only downside here is that this source of passive income will take some startup capital, unless you rent out things you already own (e.g. cars, apartments, houses, etc.).

So, which passive income source suits your lifestyle the best? The only way to figure that out is to try out a few different passive income generators. For the most part, you can find simple plug-and-go turnkey passive income sources online. These will give you the best chance to make money as you test the field.

shutterstock_243855145

Download our FREE opportunity guide below. This guide will show you how to earn unlimited fast-start cash bonuses and build multiple streams of monthly passive income when you share our free wealth-building content!

You’ll earn $150 on everyone your refer who joins our network, earn $30 on everyone they refer who joins, and earn 15% of the retail sales on 100’s of wellness, health, and beauty products on the next 1.1 million people who follow you…while you work a minimum of 1-hour per week.

Click Here to Get Your FREE Opportunity Guide

 

 

Shares 0
Category:
  Sources of Passive Income
this post was shared 0 times
 000
About

 The 1-Hour Workweek

  (60 articles)

I’m Tarence Wade, M.D., the creator of The 1-Hour Workweek. For 24 years, I worked as an ER physician, experiencing the financial pains & frustrations as well as the disparity in access to adequate healthcare for many of the people I served. Many were faced with long-term unemployment and couldn’t afford a primary physician. Some became disabled from injuries where they could no longer work. Others had chronic and debilitating health conditions and couldn’t afford even a $5 prescription to treat their conditions. I saw 3 major social crisis that existed in the people I vowed to serve. 1) They were unhappy, depressed and filled with anxiety from dealing with long-term unemployment and the lack of opportunity. 2) They had poor and declining health issues from the lack of access to affordable healthcare and proper health education. 3) They didn’t have the financial infrastructure to take care of the basic needs (e.g. adequate nutrition, clothing, shelter, healthy living conditions, etc.) for themselves and their families. Out of sheer frustration and concern, I made a commitment I would spend the rest of my life helping as many people possible to achieve the 4 Pillars of Success. Our 4 Pillars of Success  More Happiness o To become happier and to live a more stress-free life o To have more control and improved self-esteem over your life  More Healthy ¬Living o To make healthy living a central part of your life o To consume necessary vitamins and other nutrients in order to live a longer, stronger and a more vibrant life  More Time Freedom o To enjoy total time freedom in order to do the things you love to do o To spend lots of quality time with family, friend and loved ones  More Financial Freedom o To earn enough income quickly and easily without hassle to supplement or replace your monthly income o To build long-term financial freedom in the form passive income for a lifetime So for the past 8 years or more than 7,000 hours later, I have created an online community that helps network and online marketers set-up, manage, grow and market their business by “simplifying the marketing process” in order to gain Health, Happiness, Time-Freedom and Financial-Freedom. It’s called The 1-Hour Workweek. 1) You perform no more traditional network & online marketing 2) It’s FREE for you to join. 3) The 1-Hour Workweek performs 99.7% of the work of building, managing and growing your business. 4) You earn personal commissions & overrides to replace your monthly income [Timefreedomfirst]. 5) We pay you to purchase affordable high-quality products and services. As a loyal customer…we build you a team up to 19,530 affiliate partners (e.g. US, Canada, Australia, UK, and Philippines) for long term financial freedom [FinancialFreedomQuickly].

4 Comments

  • Cisal says:

    I intended to draft you a ltlite note so as to give thanks the moment again for all the superb tactics you have shared above. This has been simply tremendously open-handed of you to allow unreservedly what exactly a few people could possibly have offered as an e book in making some cash for their own end, even more so since you might well have tried it in case you desired. These guidelines in addition served to be a great way to know that other people have a similar keenness really like my personal own to figure out a ltlite more in respect of this matter. I know there are numerous more enjoyable opportunities ahead for folks who go through your blog.

  • hi admin i love your blog excited with your article incredible points sound arguments thanks again much obliged

  • Thank you for your post.Really looking forward to read more. Keep writing.

Leave a Reply

Your email address will not be published.