Something I have been growing increasingly interested in is passive income.
I have been doing some research and listening to podcasts (Pat Flynn) and have learned a lot of good stuff, but honestly, achieving any form of feasible passive income still seems like an impossible feat.
Have any of you guys tried to gain a revenue stream from passive income? How did it work out?
I'm not sure what forms of passive income you are thinking of. They require large amounts of starting capital or time to build up said capital. Anything "passive" will require management, which requires paying attention to it, which means activity.
The whole idea of an retirement account is to generate a passive income.
Royalties—whether technical or artistic in nature—which would fail in the necessity of excessive capital.
To build up passive income I am building up an online store and its an ongoing daily process but it's going forward towards daily growth and long term stability.
Once you are at good incoming traffic/visitors and buyers it is pretty much take the order and customer service.
I do follow a guy from the UK Andrew Minalto who has done great courses on how to build a store and be a success with doing so.
I was lucky to find a product that has several options for me to sell it. I have online and offline to regular stores I can do. Again once I got a network build up its order taking and customer service.
How is owning a store passive? You are handling orders, etc. That sounds like a second job.
When it's an online store it works 24/7 365 days a year for you.
Depending on the product line you work very less due to the power of online marketing and the leverage you get.
M1: Work for a wage
M2: Invest money to make money
M3: Multiple income streams
M2 is the passive one but you need to find the successful way and strategy to go about it.
M3: Building a store online gives you that and done right a little goes along way and is almost passive in the process.
When taking orders depending on the products it can be a case of just order from a suppliers website. You get few hours pr week handling orders and service. The store do the job of being up online.
Etoro is what I can recommend for passive investment kind of opportunity as Andrew knows what he his talking about and doing so you can't go wrong there.
Easy auction course is for Ebay and includes where to find products along with building a business form scratch.
Ecommerce is the online store from scratch.
I still think you are confused on your definitions.
Yes your store is open 24/7 365.
That is not passive income.
That is a liability in terms of costs of operational costs (server costs, bandwidth costs, credit card processing costs), costs of marketing and reputational costs for filling orders on a basis outside normal online response times such as filling orders weekly.
You also have the liabilities in terms of costs of store stock (whole sale price and storage costs).
I assume you are also paying yourself a proper wage for every hour spent on this venture as part of your overhead costs.
Income is when someone buys something. There is also a fresh liability incurred here in terms of how long someone has to return the item. Once that period is over it is yours free and clear.
Profit is what you make after you have paid your liabilities using your income.
So while we can discuss the timing of transactions, assets, liabilities, cash flow analysis and profit, it is not passive. You are actively engaged in a business.
What is your understand of the term passive income then?
That income of a manner passive would be that which would exist in requirement of efforts minimal or non-existent about the investor.
That about covers it. Basically being the owner that provides capital to a business, but does not run it. Stocks provide this method of ownership. Private partnerships can provide more control then stock ownership because the CEO can choose if they wish to disburse profits to the owners or not.
One nice thing about LLCs and Stock ownership is that it shields your private assets (not invested) from liability if the company fails. This comes at the cost of extra taxes on the company.