Our links are spread far and wide across the web. We were musing over the fact that, if for some strange reason, we wanted to stop earning affiliate income overnight, it would be quite difficult to do. I was discussing this with an online colleague of mine recently. Once set up, however, it can be truly passive. Affiliate income is undoubtedly a form of passive income that has a very active set up phase. There’s a lot to learn, and a lot of FTC guidelines to abide by. And even more time to create digital products. It takes time to get your own blog, website, and other systems set up to bring in affiliate income. How Can It Go Wrong?Īffiliate marketing and digital product creation are not ‘get rich quick’ schemes. Every time someone buys a digital product from my online shop, or a product from one of my affiliate partners, through my link, I make truly passive income. I’ve been doing this for years, promoting affiliate products and my own digital products through my Savvy Solopreneur website, to my newsletter subscribers, and in my various published work around the web. This is one that only a small percentage of people consider, but there are various ways to set up passive income streams online, with the main ones being affiliate marketing or creating your own digital products. A company is considered to fit this profile if it raises dividends consistently for at least 25 years. These are companies that pay constantly increasing dividends to shareholders. To play it as safe as possible, consider stocks from dividend aristocrat companies. However, in the long-term, investing in the right dividend-paying stocks has proved a solid passive income strategy, for many investors. Public companies can lose money, or even go bankrupt, especially in a recession. There are risks with this strategy, as with almost any investing strategy. You invest the money, and sit back and wait for your dividend to be paid. Dividend stocks, however, are a common way for investors to create ongoing passive income. At its simplest, this involves putting money into public companies that pay regular dividends to shareholders. It certainly is for the day traders, forex and cryptocurrency enthusiasts, and other short-term speculative investors. Investing is often seen as a very active process. Vetting your management agency is a vital step, too. Equally important is buying in an area where there is a healthy rental market, so you’ll always have tenants lining up if the property becomes vacant. Buying in an area where home prices are reasonable, but rent is fairly high, is the ideal scenario. You need to crunch the numbers carefully to be sure you have a decent profit margin worked in. It’s possible to take steps to protect yourself, of course. A change in mortgage rates or a major repair bill can mean you’re no longer in profit for the year, although you can always put rent up (at the end of your current rental contract) to compensate. An unscrupulous management agency may charge you for repairs and services they didn’t actually carry out. Sometimes your property stands empty between tenancies, costing you money rather than making it. Tenants can refuse to pay, and be difficult to evict. There are many ways investing in rental properties can go wrong. Minus the percentage that management company will charge you, of course. If you hire a management company to oversee the day-to-day running of the property, deal with maintenance and repairs, and collect rent, your income will simply land in your bank account each month. The rent your tenants pay you covers the mortgage and other costs of owning the property, which will of course include maintenance and repairs. As long as the income from the property exceeds the costs associated with it, then the profit is indeed passive income. Investing in property that you then rent out to tenants is often seen as truly passive income. Here are a few passive income streams you might want to consider. Once set up, however, passive income can be invaluable. And that can be a very active (and time-consuming) phase indeed. As anyone who has tried to generate it knows, passive income often requires a setting up phase. You’ll often hear people discussing passive income, but honestly, income is rarely truly passive.
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