Passive Income Comparision
Passive income is considered a favorite way to make money online.
What’s Passive Income?
Passive income is income where you are not directly involved with the process on a daily basis.
Some Examples:
- Rental Properties
- Absentee Business Owner
- Interest Earning Investmenets
- Pensions
- Royalties
- and Yes, the Internet
Traditional Passive Income Example:
Lets take a quick look at rental properties. What you are buying here is an established asset. This is a income generator, but it requires a lot of cash to purchase.
Many people don’t have the cash or means to borrow what’s needed.
Other factors are taxes, maintenance fees, vacancies, property price fluctuations. So basically a 4 unit rental for $500,000.00 returns $5,000.00 in rents. This is a 10% return per year before other expenses.
Online Passive Income
With online income you are looking at risking a lot less cash, but you don’t have an established asset, you have to build it.
So lets say your monthly expense to build this income is $100.00. Realistically in 6 months you are making $500.00, this is a 400% return.
Now, once you learn how to do this your income will increase, but the monthly expenses won’t increase much at all.
Of course, as you learn more you’ll probably want to purchase better tools and do some outsourcing.
The Result
The average person cannot play the same game as a person coming in with a lot of money.
The Internet somewhat levels the playing field.
Also consider the risk. In good times folks have made fortunes leveraging real estate, but the opposite is true in bad times.
It’s worth taking a closer look to see how the Internet can fulfill your financial dreams.
