Posted by For many entrepreneurs, having an income is a big goal. It’s also a good goal: having income without doing any work sounds better than wasting your time and attention from a top consumer.
My business journey is very focused on building a portfolio of as few income sources as possible. Today, I want to share with others what I have learned and how I did it.
Insecure income is a sacred source of income, and it often sounds equally unattainable. Many ideas look good on paper but turn into idle generators. It takes a lot of testing to find good things. The good thing about looking for income is that you can do it in stages. Real income with high yields and honestly distributed is not uncommon.
Thankfully, there is a spectrum between active and inactive income. We all start on the active side. Consider your first “job”. The first money you earned was for some kind of exercise: packing up at the grocery store, mowing the lawn, picking apples, cleaning cars. Many people start their income journey by providing some kind of service.
Some Ways Of Generating An Easy Passive Income With Entrepreneurship
Providing services
Providing services is the most effective way to earn as much money as possible. You trade your time and work for money. If you do not do the work yourself, you do not get paid. By using wealth-generating lenses, this is a very risky approach: if anything happens to you or your ability to do the job, your income will dry up. To make money, you need to support it diligently, day in and day out.
There’s another layer of risk at play here, too: your focus on this one lucrative activity makes it very difficult to differentiate. Diversity plays a major role in building an idle income portfolio. Independent ways to earn money you can create – no matter how they work or do nothing – is where you will most likely be able to stay afloat when one stream breaks. Industries are constantly changing, and your interest in serving your customers will also change.
If one donation, the manual, is for the spectrum transition, you will get a very diverse portfolio of hand-drawn revenue on the other side. This is where I head, and you will see this method is very popular with entrepreneurs. Daniel Vassallo calls it “a portfolio of small bets.”
Quality & Quantity
In order to go for income, you need to differentiate not only by quantity but also by quality. It is very similar to a well-known non-business source of idle income, the stock market: you can bet on each stock, but there are many variables that can cause you terrible losses. But if you invest in Index Funds – which comprise large parts of the entire market by having small shares of all the players in that market – you will see a more reliable long-term return.
Take the same approach in your efforts to make a living. See the many different and independent ways to make money. And when you get there, they don’t have to do anything anymore.
Here is where I am on this trip: I wrote two letters, consulted periodically, ran a SaaS business, and gave conference presentations. One information product, one software product, and two service products. It is a solid mix of active and dynamic distribution, which focuses on creating idle revenue segments that will eventually produce the active ones.
Let’s take this opportunity to look at our revenue spectrum again. We started with revenue that works in the form of the services we provide.
The next step in earning an income is to produce your own resources. That means turning your existing service into a system that can lead to “personalized” solutions for many customers without having to offer the whole service from scratch. By creating a package with customization options, you reduce your risk while increasing the amount you offer. Manufactured service also means less work, as the system you have built will do more for you.
In general, creating automated systems and solutions is an excellent strategy to get closer to the portfolio of revenue generators. Anything that allows you to avoid wasting your time and attention is to go the right way.
Product-driven service delivery often takes us one step further: that has the potential to be a business-enabled software. Software-as-a-Service businesses excel in providing hundreds if not thousands of customers at once, offering exactly the same service to each one. The service itself is very automatic and does not require your direct involvement.
However, building a business is not an income. First of all, while you can own that business and you can own all the shares, you still need to run it. So unless you can build a business that can work perfectly without you, you have no income. Usually, when you build a business, you focus all your time and attention on that business, making it difficult to separate. While serving multiple customers with one highly generated solution is a cost-effective measure, it is still a work in progress. Business is an ongoing concern, and customer service needs to be done; any payment problems or product development needs will all take your time and effort.
The good thing about running such a business is that you become an expert at solving problems in your particular field. You learn a lot, and when you reads, you may also want to teach. That brings us to one of the most important forms of income generation: information products. It could be books, video tutorials, group-based workshops, or any other type of teaching product: information products often have very high pre-construction requirements but also provide equally high potential to make you money by doing nothing.
Teach what you have learned to your liking. The more information you use, the more likely you are to make a product that people can buy, use, and talk about. Write helpful books that people recommend to their peers. Create content loaded with clear and useful information that is accessible to all interested parties.
Personalized products
Personalized products are often a good idea: build SaaS businesses with built-in network results where users invite new users. If you run an eCommerce business, create complementary chains that can work without your involvement. Provide customizable options for your customers to enter their communities, exposing your business to additional prospects.
Another practical way to speed up your journey on the way to income is the combined effect of promotion. When you share your expertise with a consultation, create an informative product with answers to frequently asked questions and use it to find more clients. Over time, this can grow from a leading magnet into a product of profit information. The letter is about your consulting mobile app development company in Dallas, and while you are consulting, you are mentioning your letter. Barriers like these make your revenue collection a supportive and growing portfolio.
So that’s a revenue stream: a continuous act of moving from a working career to a wide variety of income.
It’s a real journey, I can tell you that, and it may sound like an insurmountable challenge at times. But it is absolutely worth it. It is like caring for a garden: you take care of it and prune it, but the plants, fruits, vegetables, and herbs grow for you.
And they will grow at night while you sleep.
Because that’s what income does.