Why A Passive Income Business Should Always Be The Additional Income Source

Everyone seems to be looking for an additional income source these days. Online passive income opportunities are certainly the most potential ventures for someone who’s willing to add some extra cash to his account regularly. However, these passive income sources should only be taken as an additional income source, not the primary one. Here’s why you should never consider a passive income generator as your primary source of income.

Why you shouldn’t consider a passive income business as your primary income source?

A passive revenue business is the best way to supple your bank account without hampering your regular job or day-to-day business. However, this should never be taken the primary source or the only source. Else, you might face financial problems and instability. The reasons are explained here:

#1 No Limit (Minimum Or Maximum) Of Income

These passive income generators usually come with no guarantee or limit of income. This means, you cannot set a minimum or maximum threshold of income. So it will not be a realistic idea to use this income source as the primary financial source to manage and maintain your regular expenses. You definitely need to maintain a budget to carry out all those day to day expenses and those should be managed with a regular, definite income source.

#2 Saving Money As Your Retirement Plan

Experts always recommend saving some amount as a part of your retirement plan. The money you will be earning from a passive income generator should be saved as retirement funds. This will ensure your financial security for the future. You should save these extra cash for entertainments, retirement or even investments in future. This can only protect you money-wise and stable your personal finances.

#3 Passive Income Businesses Should Give You Extra Cash

The goal or perspective of a passive revenue opportunity is to make extra cash. This is the basic concept of making passive revenue. If you start depending on this, you might fail to pay your bills, repay your mortgage or maintain your other regular expenses. You should always avoid these situations and concentrate on a passive income generator as an additional monetary resource, nothing else!

#4 Don’t Limit The Endless Potentials

The potentials of these passive income businesses are literally endless. You can make a huge cash with an effective, proven method. But taking this as your primary income source will ruin those potentials as you will be concentrating on a definite amount each month. As you will push hard to make certain amount of cash from the business, it will never uplift the resources to another level. That’s why experts recommend these passive revenue generators to be added as a second income source so that you can make your personal finances even stronger.

There are several other reasons why you should never take a passive revenue opportunity as your bread-earner. Rather, you should move on and establish a business that makes you a definite sum to help you manage the day to day expenses.

Three Reasons Why You Should Establish a Residual Income Business

Many entrepreneurial experts are encouraging people to start a residual income business. It is vital that you establish a business that revolves around your interests and talents. It is also important that you start a business that, when established and is running well, will generate revenue without continual effort on your part. This type of enterprise has the potential to put money in your pocket for many years, and hopefully for a lifetime. This type of business has the potential to be passed on to your children, as well as their children in the future.

Establishing a residual income business is the key to becoming a successful entrepreneur. Statistics show that this type of endeavor can provide outstanding results for people from all walks of life, no matter what your educational background, family scenario, or where you grew up. Let’s examine three reasons why you should pursue this type of business opportunity.

Comfortable Lifestyle

Some of the world’s wealthiest entrepreneurs are connected to opportunities that provide them with residual capital each month. They understand the importance of having a business that will help them have a comfortable lifestyle. You can afford a comfortable lifestyle once you know that you have an automatic stream of income flooding your bank account every week or month.

Free Time

A traditional business opportunity will only generate income if you are working. A residual income business will continue to generate income without your continual presence. This will give you a chance to have free time. You can use this time to spend with your family and friends, volunteer at the school of your children, help with charities you care about, and any number of activities which normally get put on the back burner because of the huge time commitment of a normal job. You can also use this free time to concentrate on other opportunities which will, in turn, bring in additional residual income.

Supplement Your Income

This business model is also great for anyone who is currently employed, enjoys their job, and is just looking for a little extra cash. You can use this business model to supplement your current full-time income. You will be in a position to have two sources of income, which is so critical in today’s economy, where jobs can end at the whim of any boss or company out there.

Many entrepreneurs are now encouraging individuals to start a business, and many of them will ask you to join the opportunity which they have found works well for them. They know how to train you, help you grow, and in turn help others come into a that business which can generate the residual income so many are looking for. A residual income business provides many benefits that are difficult to ignore. It will allow you to supplement your income, have more free time, and enjoy a comfortable lifestyle, as well as help others who are in need of extra income.

Residual Income Business Tips – What Top Earners Are NOT Doing

If you’ve been building a residual income business for a while, you’ve probably heard the names of some of the big industry legends, the big Top Earners with their 7- and some 8-figure incomes – people like Randy Gage, Marc Yarnell, Tom “Big Al” Schreiter, Dani Johnson, etc.

These top earners today have huge organizations and massive followings which only continue to grow along with their income.

So what is it these Top Earners do? Where is their focus for building and supporting their ever-expanding residual income businesses?

Before I get to that, let’s look at it logically. Let’s look at it from their point of view (after all, if you want to grow a huge organization you must first visualize what that would be like and organize/structure your activities accordingly. In other words, if you think small you’re only ever going to be able to build a small organization – if you don’t change your thinking you’ll sabotage your growth unknowingly to ensure you meet your expectations. So think big, expect to build a large, thriving organization so that you can!).

So, if you had an organization of tens of thousands if not hundreds of thousands or millions of people, with new people signing up on a daily – even hourly basis – with or without your knowledge or help, maybe hundreds of levels down. Obviously, with an organization that big, you can’t personally help each one get started to begin doing the right activities to make money. So you must have a system in place to disseminate that information.

Most of these leaders do have a strong online presence, with a powerful website or blog with business building and training content posted on a regular basis to help keep their teams and organizations plugged in, motivated and up to date. Technology has a come a long way helping to get the leader as close to each person in his team as possible, albeit on a generalized, team-specific level, like with auto-responders, conference calls, voice broadcasts, presentation and training webinars, etc.

But it’s still a whole lot better than handing down a photo-copied, hand-written training documents that you can barely read the writing on, or worse that others have changed, trying to interpret what they thought the leader was trying to say (kind of like trying to play that old game of “telephone” where the meaning completely changes from start to finish).

So from the leader’s perspective of such a massive organization, it is imperative that some kind of training system be in place to keep people engaged, working towards their dreams and making money. And it’s never been easier to develop such a system for one’s followers to plug into.

In addition though, a leader must think about strategies and tactics that his people can all implement, regardless of who they are, what they’ve done, where they’ve come from, what country they live in, what level of success they’ve had and regardless of whatever amount of money they have – and quickly (urgency is crucial for fast growth)!

And obviously you want your organization to produce and move product because that’s what creates the residual income. If no one is moving product – just signing up and recruiting new distributors who don’t buy anything – then no one gets paid.

So you must be able to teach and instruct simple methods that anyone can do from day one to get them making money quickly, if they get to work and apply themselves – without a lot of training or time consuming or distracting activities… (It’s a lot easier to make money fast than slow!)

Can you see where I’m going here?

Here’s the biggest distinction I see between what the most successful leaders this industry do and what the majority of distributors trying to build a residual income business are doing – the focus of their business.

Why is it that these industry legends continue to focus on building their businesses belly to belly, person to person, home meeting to home meeting, etc?

Do you think they’re out of touch with the times?

Obviously not, just look at their powerful lead-capturing, results-producing websites.

Are they just trying to keep their internet marketing strategies to themselves?

That makes even less sense – remember, these web properties they develop are specifically there for their people, their organizations from which they make their money. They wouldn’t purposely sabotage or limit the success of their own people, that would directly impact their income and level of success.

So why aren’t these industry Top Earners promoting the latest and greatest online marketing strategies for building a residual income business?

If you’ve been marketing online for any length of time you probably know the answer!

Simply put, the majority of people out there are not marketing geniuses nor are they computer software engineers or technicians. The internet and online marketing requires a certain skill set that the majority of the population is only beginning to become familiar with, let alone proficient with (the internet and online marketing has really only been around for a decade or so, and is only beginning to go somewhat mainstream thanks to Google and Facebook, etc. In comparison, people have been building network marketing or residual income businesses for over a hundred years successfully before there ever was internet…).

This familiarity or proficiency with computers and the internet, etc will change over time, but the industry Top Earners understand that in order to build a large team, you need people to be making money as soon as possible – methods and approaches that can be implemented today, not tomorrow. You dramatically increase the ratio of people making money when you get them started fast so that the income starts coming in while they’re still excited about it before the world around them crushes their dreams and takes away their hope, allowing disbelief and fear to take its place, making it incredibly more difficult than to make money.

This is why the industry Top Earners still encourage prospecting your warm market or resource list first, for example, prior to learning online marketing – if at all. As you probably know – or should have been made aware of – learning to market your business online takes time. There is a steep, steep learning curve in learning how to setup your blog properly, how to advertise online, or create content like articles or videos, setup and strategically use other web 2.0 properties for lead generation, etc. Contrary to a lot of the hype out there, lasting success with a residual income business doesn’t happen overnight – with or without the internet!