Working less and earning more is definitely a dream of every individual, who is slogging day and night in his work to get the regular income. The fact is that it is no longer a dream, but could become a reality if you create several passive income streams for yourself. Whether you are in a business, self-employed or employed, the need of second or multiple income stream is crucical if you plan to maintain your lifestyle post retirement. So, here we discuss about two common strategies to earn passive income by working less and earning more.
It is an income that is generated periodically or over time for work done once. This means that the income continues to flow in lieu of task done just once. Biggest examples of residual income are an insurance agent that gets commission each time when his customer renews policy or simply a firness trainer, who has created a video cd, which is sold across all the gymnasiums in town and is fetching money on every sale. Royalty payments are also examples of residual income. The proportion of such types of income are dependent on the quality and individual production capacity of a person.
This type of income derives revenue by leveraging from the work of others. Franchise or contracting are common examples of a leveraged income. This income is generated not from an individual's direct role in the work rather involvement of someone else. For example, a business owner could distribute franchisee and seek income. A network marketing scheme, where primary networker derives income from products sold by those placed under him in the chain.
It depends on person to person to choose an option that looks most suitable depending upon his/her current situation. Either you can create your own product or service that could become your unending source of revenue or if you have skills to manage people easily then you can directly take an income share from others work.