A person’s goal in life is to get more, have more, and be more. And one might also add: keep what you earn! The difference between passive and scalable income can be difficult to understand. This article will give you an overview of the two financial models and where each fits into your life. But first, let’s find out
what is passive income?
Passive Income is Income earned with little work or input from the individual receiving it.
From the persons perspective, passive income is a great source of additional income and is relatively easy to obtain. It may be much more difficult to obtain scalable income, which is a financial process that can generate increasing amounts of revenue or profits. Now that we know what passive and scalable income are, lets see how they can fit into your life.
What is the Difference Between Passive Income and Scalable Income?
Passive: passive income (or passive earnings) refers to money that is not earned through active work. For example: interest from a savings account or money from stocks… money that just sits there and accumulates passively.
Scalable: Scalable income (or scalable earnings) refers to money that is earned through active work. For example: interest from a savings account… or money generated by running a business.
Examples of Passive Income: Why would you want passive income? It is very easy to get!
Swap (Find out what one person’s definition of passive income was and why they made the change)
My observation, people always ask me, “How can I earn more money” Unless you’ve stuck with your career path for a long time, it’s likely that you will eventually be considered someone who does not have outsized success in one particular field. In order to get more money, you need to do something else.
What are passive income tactics?
Approach passive income a little like you would any other business endeavor. The idea is to start small, work hard, and be persistent. In time, it will grow into something that can generate revenue without much effort. If you’re thinking of starting a blog, spend the time to develop appropriate writing samples that show off your expertise or sense of humor. If you’re thinking of starting a business, build a website and start building relationships with potential clients. There are tons of examples out there that can help guide you, or consult an advisor. If you don’t have the time to start all of this crucial work, then you should at least consider outsourcing some work. Let’s take a look at several different passive income strategies…
How to Earn Passive Income
If you’re an internet guru, or can provide your services as a consultant, or if you can build websites, then there are several options available for generating passive income.
Scalable Income: How do I earn scalable income?
The thing that separates passive and scalable income is initial investment. Scalable income can be generated by scaling up and expanding a business, such as adding more staff or buying more equipment. The idea is for each additional investment to generate profits in the long run.
Initial Investment Required: none.
This is where the term scalable comes into play. As your income increases, so does your expenses. If you’re generating income from a business and not investing more money into it, then the profits will be either marginal or non-existent. If you’re able to invest more money (more staff, equipment, etc.), then your income should increase accordingly.
Scalable income can also be generated through passive income tactics such as blogging and affiliate marketing. While there is initial investment involved, if you’re able to generate enough traffic and followers, then it’s possible that your income will increase accordingly.
So how do you get scalable income? The good news is that some of the same tactics used to generate passive income can be used to generate scalable income too. Let’s take a look at some of the most popular passive income strategies…
Attracting traffic to your website:
As discussed above, you can attract traffic to your blog or website through a variety of methods. Some of them include getting links from other websites, writing reviews for products, asking people to link to you via social media platforms (so that you receive free advertising), and even buying advertising space on other websites. It all starts with attracting quality visitors and readers, but that’s just the beginning…
Blogging: where is the ROI?
Depending on the blog or website that you’re starting, there can be a wide variety of returns on investment. For example, if you’re writing an autobiography or fiction novel, then your ROI (return on investment) is likely to be low. However, if you’re writing technical articles related to computers or software development, then your return on investment may be quite high. The key is to begin building an audience and generating traffic.
If you’re able to generate traffic that then leads to increased sales, then your ROI will be affected positively. If, on the other hand, you’re generating traffic that doesn’t lead to any sales (or sales that don’t cover your expenses), then you may want to rethink your strategy.
Why would someone write a blog? There are several reasons why someone might decide to write a blog or website…
Set up shop as an expert in your niche.
Write about topics that are of interest to you and your users.
Sell ads to other companies so that they can reach your audience.
Generate income from affiliate marketing programs (getting paid for referring other people to a particular product or service).
The list goes on…
If you’re able to build an audience, then you should focus on providing value to them and selling things that they want or need. With the correct methods, it’s possible that your blog or website can generate a significant amount of income.
Affiliate marketing: is there any way to make money?
Although affiliate marketing can be an effective way to make money, it’s important to realize that most people won’t get rich from this particular strategy. If you’re looking for the quick-and-easy millionaire, then affiliate marketing probably isn’t for you.
However, if you’re willing to put in the time and effort, then it’s possible to earn a sizeable income from affiliate marketing. So how does it work? Basically, you will be paid by companies for referring (or recommending) products or services to your audience. In most cases, the company will pay a percentage of the sale price depending on what you’re recommending.
You can begin with very little investment…
There are literally hundreds of affiliate programs available where you can advertise various products or services for a small fee. Before you begin promoting these programs, you need to build an email list of people who are interested in what you’re providing. Once you have an email list, it’s time to start promoting affiliate programs. The best way to get your hands on an email list is by signing up for a few free trials of various affiliate programs.
Start by promoting the free trial and then offer a product for sale at a discount as well as a free bonus gift. Then promote the offer on your blog…
A great way to begin promoting affiliate programs is through your blog. Most affiliate programs offer promotional materials such as banners, links, etc. which you can use on your blog. The next step is to begin promoting these offers on your blog and then email the list of people who have subscribed to your blog over the past six months.
Repeat this process until you’ve converted enough people into customers and then begin selling products that pay very well…
Now that you’ve established a customer base, it’s time to promote high-ticket item products that pay a much higher commission. For example, you can promote a $500 training program and earn a 50% commission. Therefore, you only need to sell ten of these programs in order to earn $5,000 per month.
The trick is to start small and then work your way up the ladder…
As your list grows, so will your income. You’ll soon be making more money than you’ve ever dreamed possible in one day. You’ll be able to retire from work and do what you really want with your life…
Step 3: Use the money you made from affiliate marketing to help others make money online.
Once you’ve earned a nice chunk of change, the next step is to give something back…
The goal is to successfully educate others on the power of affiliate marketing.
Have a look at my website, my email, and my facebook. I have a lot of great free advice and training and will be adding more as I go along.
Thanks for reading… If you would like some helpful free tips or advice please feel free to shoot me an email. I am always looking for ways to help those who need it most.
I hope this motivational story helps you in your journey in the world of affiliate marketing…
You have the ability to change people’s lives… Now go out there and do it!
KEY TO SUCCESS
First, the key to success in creating scalable income is to develop a product or service that can be replicated. Whether you are starting a business online or offline, it needs to be able to run on auto-pilot once it’s up and running. That might sound easy enough, but for most of us, this is one of the hardest things we’ll ever do. The reason for this is that, as human beings, we are lazy and don’t like to put in the hard work.
To create scalable income begins with the creation of a product or service that can be replicated. What does this mean? It means that once you have developed a product or service and branded it appropriately, anyone else can then use the same exact process to replicate it and sell it as their own.
Let’s say you’re a writer… Maybe you want to start a business out of your home. You could develop a short story that is based on something you’ve read. The story might be about a firefighter who is saving people from house fires, or maybe it’s about trying to save several people from being trapped in an elevator. Once you have branded the story to make it sound as though it was written by someone else, then anyone can buy the same exact product with the same exact branding and sell it on Amazon and various other online marketplaces as their own.
There is a process to this, but it’s certainly doable, and many people have done it before. The key is to create something that can be replicated over and over again, and you can sell on various online platforms as your own product (just like the book examples mentioned above). The great thing about scalable income is that if you can stimulate one interest or desire among lots of people, then you could generate several streams of income from the same product.
The key to successfully creating scalable income is to develop something that can be replicated.
Once you have generated interest in your product, then you can replicate it and sell it at a slightly lower price. This way, you don’t have to worry about lowering your prices because you’re selling a commodity that everyone else is selling too. However, the more money you invest in developing each iteration of the service or product, the less profit potential there is for everyone else.
Think about it this way… When you decide to have a child, you have to spend more than just money in order to raise each child. You have to spend more time and energy in order to create a healthy environment for that particular child. The same is true with a scalable income business; the more time and money you invest up front, the less potential there is if your end product or service isn’t able to generate enough demand.
The key to creating scalable income is to be able to develop something that is valuable enough so people are willing pay for it, but not too valuable so that they won’t want to pay for it.
That’s a lot of fun in one sentence, isn’t it?
Here’s the formula…
Formula = Valuable + Affordable + Fun = Scalable Income
