Passive Income - Finding that Gazillion dollar product
Sitting back and enjoying the fruits of your labour is a concept most of us dream about yet very few achieve. We plough hours and hours of effort into a business, whether a boss employs us or we run it ourselves, yet if we had to stop tomorrow, the bills would not longer be paid and the pantry would run out of edible objects.
So there is a crossroad - a paradigm, if you will - that we find ourselves at. Do we continue to invest a day that we can never recoup into a business that can't afford to sustain us if we don't?
Hopefully the answer is 'NO'.
If it wasn't then skip the next section and answer the details addressing the surgery you underwent for the removal of your frontal lobotomy.
Otherwise, continue reading as we address the possibilities for generating a passive income that survives your lifetime and may even be part of your estate when you leave for greener pastures.
A passive income is exactly what the phrase suggests. After creating a product or service, sales are ongoing and generate an income that far outweighs the time and effort necessary to start its serviceable life. It could be writing a book, producing a music album, starting a franchise, developing software or inventing a patented product or registrable trademark.
Whatever it is, the income that flows into your bank account comes with no strings attached and no further effort is needed. So how do you get to that point where a $Gazillion is within your reach?
- Find a need that you can meet - Consumers are always asking WIFM ("What's-In-It-For-Me"). If a product or service can make their life easier, more enjoyable or more sustainable then they are more likely to want it. Products and services that offer no real benefit to the consumer will never last the distance.
- Make it original - Were the McDonald brothers the first to create a hamburger? No. They were just the first to produce it the way they did and the passive income that the Kroc family now enjoys is bigger than some third world countries.
Originality doesn't always have to be about being the first one with an idea. In many cases it becomes the one who can tailor the idea to attract a larger audience and therefore make it profitable.
- Allow the concept to mature before taking an income - Passive incomes never start on Day One of the business plan. To receive a residual income you need to plan for longevity with long-term thinking. Very few people make a good income in the short term when devising a passive income plan.
Even recording artists and Number 1 bookselling authors take years to see their royalties produce a viable lifestyle.
- A Passive Income takes Active Effort - To think that an idea can be born and matured overnight is like viewing a newborn become an independent adult in the same amount of time. It just isn't going to happen that way. Any idea that hopefully produces a passive income will take a tremendous amount of energy and effort to bring to fruition.
In a nutshell, deriving a passive income from anything you decide to do cannot be viewed as a 'Get-Rich-Quick-Scheme'. It can be a "Get-Rich-Scheme" but it will take a lot of hard work to be in a place where you can sit back and enjoy the fruit.
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Comments
How about Blogs? Once their content is sucked up into the 'Net it will certainly outlive us.
The very cool thing is nobody knows this.... because that chapter hasn't been written yet.
Solid concepts.
- Bryan
http://www.BryanCFleming.com
Posted by: Bryan C. Fleming | December 6, 2006 2:37 AM
Interesting that you brought that up Brian. I'm not sure that blog posts are going to create the passive income that many are hoping for.
From what I have seen, not only with other bloggers but definitely with my own blogs, is that unless they are updated regularly their SE rankings (thus their income) is downgraded.
Search engines are always promoting fresh content which is why blogs are a great way to rise in the rankings. However, they will soon fall the moment you stop working on them.
I'm interested to hear others views on this if they're willing to contribute.
Posted by: Stuart | December 6, 2006 4:57 AM