Multiple Streams of Income - Part 2

Last week we discussed creating multiple streams of income/revenue for you and your business. And, ultimately we want to create passive streams of income. The first stage of wealth building is to create a passive income stream that will cover all your expenses. Think about this for a minute. So often I have read books on buying property, shares, assets, or paying down debt, or increasing my income; but the first step to wealth creation is creating a passive income that will cover all your expenses. When you have done this, then you are in a position to accelerate your wealth creation. Whether you work or not, all your expenses are covered.

So, how can we create passive income streams, and really what is a passive income stream. The crux of passive income stream is that you make something once that you can sell once and get paid over and over again for the one effort. Most people have a product or service that you are required to continually resale to get paid so if they don't work they don't get paid. Are you in that situation? Here are a few ideas that lead to passive income:

• Write a book, audio recording, or video recording. (Create it once, find a vehicle to sell it and get paid for the one effort over and over again.)
• Build your business around a system, and then franchise it. (The initial franchise fees and the ongoing fees are an incredible source of passive income.)
• Direct sales or network marketing. (I know this may have a bad rap, but with the right research this is a legitimate way of creating an incredible passive income for the right person.)
• Products that are consumable and need to be purchased over and over again.
• Internet businesses that resale information. (Discover a niche that is underserviced, set up a website correctly, and you can create a cash cow.)
• Membership based services.
• Build a large sales team that you override a small percentage on the production. (Key point here is that they should not be salary based because this can kill your cashflow. Let the team get the lion's share of commission, and you take a overriding percentage for the training and support you provide.)

There are so many other ways to achieve a passive income. These are just a few to spark your creative juices. I have learned over the years that this is the most crucial step in creating a stable business. I am more than happy to sit down with you, look at your business, and make some suggestions on ways you can create a passive income stream over the next 6 - 18 months. Think about it - if you do not already have this in your business, how would it feel if you knew that every expense was covered before you even started working? 

Do you think you would be more excited, productive and effective?