The Passive Income Truth Revealed – How to Build a Passive Income Business to Wealth

A Passive income business appears to be many peoples road map to wealth. In our big dot com world, many are turning to passive income opportunities to create their wealth story. While this is a legitimate opportunity to generate a strong and stable income using theses business models, many misunderstand exactly the methodology of how this online business structure works. If you are serious about using this model to create your online wealth then you have to first understand exactly what it means, and then the steps needed to become successful with these Internet Business opportunities.

Passive Income Shocking Headlines

Passive Income businesses often focus on no work and all play and generate a strong income online. While the terminology of passive income may suggest this work ethic, the fact is it does not mean that these opportunities will create your success following the totally hands free work ethic. I know I have seen the headlines, I know what the websites are suggesting. But the fact is no business opportunity truly offers this hands free automated business. If you are serious about obtaining your wealth online, then you will have to get realistic about its expectations.

What does passive income really mean, because as time has gone by many who use it in there headlines do not even know what it is. Before you can earn money online with this business model you must first understand exactly what it means. The actual definition is as follows Repeated regular income, earned by a sales person, generated from the payment of a product or service that must be renewed on a regular basis, in order to continue receiving its benefits – also called residual income.

Yes the fact remains that these business models will give you the avenue to create a solid and profound income with the least amount of work possible, however there is work involved. So where did the suggestion of no work come from? When this possibility was presented to the Internet it was while people made money vacationing, golfing, and playing with there kids. No they were not actively working there business at that time, but there were strategies that were implemented in order to profit. Before you can truly cash in on this new era of Internet Business, you have to be clear as to what strategies need to be in place before you can truly benefit using these models.

Create Your Passive Income – The Most Profit Pulling Strategies Exposed

1.) Power House Website – It all starts with the website, will it work for you. Will people see the value of your product and service just from visiting your website? Can they easily order your products, and get there questions answered properly so that you can enjoy the automated sales that is generated. Many times people will spend so much time building a website but they don’t structure it properly. It needs to be a complete guide for your customer base, not only selling the product or service but making it easy for your customers to buy your product.

2.) Mentoring And Training – Getting the right mentoring and training is going to put you on the fast start to implementing the necessary strategies to giving you the strategies necessary to create your income. Make sure the training and mentoring you choose has the passive income training to set you up the right way.

3.) Free Marketing Strategies – If you are serious about setting up your Internet Business using this method then you have to have free marketing strategies in place. Free marketing strategies is not an advertising method where after thirty days it is gone. If you are looking for automated payments coming to your bank account then you will want to learn the most effective marketing strategies. Make sure that the mentoring and training that you chose will show you how to use free marketing strategies to build your business.

4.) Sales Closers – Find an Internet business that offers personal business assistance or closers to help you build your business. With today’s modern business models you know longer have to be a sales man to profit. There are businesses that have trained professionals that will help you get the sales. If you are looking for the most passive income business then make sure they have professional closers available.

5,) Presentation – Your website may not be enough, most businesses will offer a powerful sales presentation. Designed to sell your product or service. This can be an important factor to creating your wealth while not playing an active part. Look for a business model that has a powerful presentation attached.

People are looking for a passive income business, the idea of creating there wealth with no work is appealing to any age, sex, or race. The no work and all play idea sells, and sells big, however most of the time this is somewhat misleading. While you can create a business model and continue to make money online while vacationing, golfing, or any of the other appealing headlines scattered on the Internet, the truth of the matter is you have to learn how to set your Internet Business up to enjoy that lifestyle. You will continue to have to work towards your income, however as time goes on you do have the capability to relax and enjoy the benefits of a passive income business opportunity, as long as first you implement the above five steps to create your wealth story.

Developing a Passive Income Business


This article will define a passive income business model and present four popular, online passive business structures to the reader.

Developing a passive income business [part I] – What is a residual income model?

A residual or passive income asset is defined as a financial stream of income, that upon successful, initial set-up, is able to support its owner with a long term influx of money. This model of operation does not require an active approach from the business owner thus producing non-active income.

The pros/cons of this business plan include:

  • Able to generate a consistent stream of funds
  • Does not require an active approach after initial set-up (leaving the entrepreneur with more time on his hands)
  • In comparison to an active stream of income, a passive one does not require heavy maintenance, diminishing the expenses of the business owner
  • Initial, successful set-up is often times hard to execute, heavy research is an absolute must

Developing a passive income business [part II] – Online residual income models in use now

The residual income model has gained a solid online foundation, with the Internet presenting ever more opportunities to its user-base. An online residual income stream holds many advantages, such as the simplification of the original set-up process, overall inexpensiveness and the speediness of the set-up, over non-active income streams of the past.

Four of the most popular online passive income business models are:

  • Affiliate marketing
  • Information trade
  • Selling information products
  • Selling advertising space

The first of the four is the most popular choice of many entrepreneurs. Affiliate marketing is closely associated with multi level marketing, yet it is quite different in many regards. Both of them amount to referring new clients and finding new sales leads for the service or product that is being promoted, however affiliate marketing programs offer real services and products that solve needs and can benefit the consumer. MLM networks, on the other hand, are not stable passive income business models, as the product or service promoted within them is not the primary vehicle behind a sale, thus no new wealth is generated.

Affiliate marketing consists of associating oneself with a product or service provider and then setting up a promotional campaign to push this product out into the masses. The affiliate marketer gets paid on a commission basis. A successfully executed promotional campaign is then able to generate residual income for the affiliate.

Another popular passive income business model lies in the trade of information. Here several instruction-type resources are set up by the entrepreneur, these receive an ongoing royalty-based commission or can be of promotional manner, thus binding in the previously mentioned business model. This type of passive income business model is attractive because of its simple initiation. It is however not the most efficient way to generate residual income, despite its non-complicated nature. Article marketing (as it falls under this type of business model), for example, can be very “slow-moving” and it might take up to 4 months to see some profits.

The next passive income business model is the most effective of the four but is also characterized by the most difficult initial set-up. The typical Internet user is a very “information-hungry” entity. Selling information products can be very lucrative, if an entrepreneur is able to provide a unique, sought after solution or upgrade an already existing one. This business model requires an immense knowledge base, as well as a good grasp of Internet marketing and product creation. Not to be attended by beginners.

The last passive income business model becomes feasible in combination with an already established, popular Internet resource. This a source of non-active income if a blog or website generates a healthy amount of traffic. A popular niche blog, for example, can successfully sell advertisement space for about 1k-2k a month.


There are several ways to develop a money making non-active income source. It is crucial to start out with the simplest option available, get your feet we and then proceed to more advanced passive income business models. Try to gain as much information as possible, either through Google or an educational resource of your choice, in order to avoid the possibility of costly mistakes.

Are You Wasting Time Building Your Residual Income Business?

Success with a residual income business in the home based income industry comes from continually getting your business in front of lots of people on a consistent, regular basis.

The problem is most people spend all their time trying to find people to talk to (spending all their time marketing, whether online or wandering around in shopping malls offline, etc) which then leaves them with little, or often NO time to actually talk with people about their business (presenting the business).

Even for those online marketers focused on creating leads for their residual income business: what good is it to spend all your time learning and actually generating leads if at the end of the day, you have no time left to actually call and talk to them?

As we all know and have heard hundreds of times, this is a relationship business and you need to communicate and connect with people directly in order to grow a thriving and profitable home based income that you will eventually be able to walk-away from (residual income!). That’s the ultimate goal, right? Or is it to see who can create the most leads??

So with that realization, what do you do?

How to Best Spend Time Building Your Residual Income Business

If you’re involved in some online marketing right now in an effort to generate leads, continue to do that but cut back on the amount of time you spend doing it each day so that you have ample time available to actually progress forward with your residual income business each day, ie, time for prospecting and presenting the business.

A good rule of thumb – maybe something to shoot for if you haven’t been setting aside ANY time to talk with people – is the old 80/20 rule – spend 20% of your time finding prospects (marketing online or offline, etc) and the other 80% of your time actually on the phone talking to people, leading and directing them through your presentation so that you can actually have people sign up and join you.

So if you’re marketing for one hour a day, you need to be spending nearly 4 hours talking with prospects if you want to make serious money with your residual income business.

Not spending enough time on the phone talking with new prospects is what separates the 99% from the top 1% – where do you want to be? Adjust your priorities, adjust your activities and you’ll therefore adjust your results and income!