As an entrepreneur, your goal should be to have multiple streams of income. That means you have income coming in from various places (any combination of products, services, programs, workshops, etc…). Two categories of income are passive and active income. Active income is when you are trading your time for money to complete the transaction each time. Passive income is where there is only an initial investment of your time to set up the transaction, after which it can be purchased over and over without any more time from you. Passive income is often referred to as making money while you sleep. Great examples of passive income are rental property, some multi-level marketing, a book and an online self-paced program. This most desired type of income is meant to be automatic and on-going. Passive income is a great way to keep your revenue coming in when you don’t have time to perform services in your business, cannot perform services in your business or to infuse more money when performing services in your business. Over time, your passive income revenue could overtake the amount of money made through active income.
Sit down and figure out what passive income you can add to your business model: Book sales, online programs, ice machine, vending machines, etc… After you figure out what works for you: get ready, get set, and go down the financial free road to passive income.