Passive Income

John Davison Rockefeller

J. D Rockefeller declared, "I would rather earn 1% off a 100 people's efforts than 100% of my own efforts."

This statement pretty much sums up passive income. Imagine if you can set up systems where you earn a small portion of other people's earnings. This reflects the highly popular affiliate marketing techniques in place across the internet today.

Leveraging

Leveraging is a powerful concept. Putting it into practice takes considerable effort and the ability to be resilient. What things are you putting in place to maximize your income from other's income?

Only 24 Hours in a day

There are only a limited amount of hours in a day. So how do some people make lots of money per day while others only make around $100? Obviously the ones making thousands of dollars are doing something very different and this is understanding how to leverage their time.

For example, what if you had created or bought a small business that took up your time of 30 hours a week and this earned you $40 000 dollars a year. If you then got another small business and then work 60 hours a week you would earn $80 000 dollars a year. You can't practically work anymore hours so what should you do?

Employ a Manager

Employ a Manager to run the first business and pay them a good wage to keep them interested. Then catch up with them once a week for a few hours to ensure everything is running well. You have essentially got back 28 hours of free time for the week and still are making money leveraging off your manager.

This is easier said than done. Firstly, you will need to ensure your Manager is capable. You will need to ensure you have systems in place to operate your company correctly, you will need to make sure your time spent with your manager is effective etc etc.

After you gain experience in these areas you will be able to produce passive income relatively easy. What a fantastic opportunity.

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