Multiple Income Funnel
The year 2022 has become quite a tough one for us, given Russia’s unjustified and unfair invasion of Ukraine; the world is stuck in an inflationary conundrum with supplies of essentials and petroleum getting snagged on a global scale.
This has also caused inflation in most parts of the globe to rise to unprecedented levels and thus create economic problems for everyone. Any active income people have is being punctured and they are looking for another source of income.
Passive income is basically an additional source of income most individuals look forward to earn this year. In fact, it can help many earn more during the good times and can even help if a person is laid off. Those who can voluntarily give time to this from work, or if inflation doesn’t stop bashing the purchasing power, Passive income is to the rescue. It helps create a multiple income funnel.
Passive income helps people have the money flowing in despite their regular job. Even if they are able to create a solid stream of another source of income by any means, the earners need to unwind and relax a little bit. Either way, passive income is known to give people extra security.
And those who are worried about being able to save a considerable part of their earnings to meet their retirement objectives, creating wealth via passive income is a tactic that is helpful to them.
Understanding the meaning of passive income
Passive income basically includes regular earnings from a source which is other than what the employer or contractor provides i.e. not part of the active income.
The Internal Revenue Service (IRS) of the United States states that passive income can come from two or more sources which are a part of a multiple income funnel: rental property or a business where one doesn’t participate actively like being paid book royalties or stock dividends.
In practical terms, people might need to do some, or all of the work up front. But passive income usually involves additional work along the journey. People may need to keep their product updated or their rental property well-maintained so they can keep the money flowing through the multiple income funnel.
Yet, those who are committed to such a tactic must know that this is a great way to generate additional income. Hence, they will be able to make some extra financial security too.
What are the sources of income?
Those who are looking forwards towards making another source of income (leading to a multiple income funnel), they should check out the following strategies and learn what it takes to be successful with them, whilst at the same time understanding the risks associated with each idea.
Writing an eBook
It may sound as something redundant but writing an eBook is a good chance to utilize low publishing costs. It even helps in utilizing Amazon’s worldwide distribution to get the book across a wide array of potential buyers. eBooks can be relatively short (almost 30 to 50 pages) and are affordable to make as they rely on the author’s own expertise.
Those writing an eBook need to be an expert on a certain topic, and yet the topic can be niche and may use some special abilities that no one can offer, but what readers need. They can quickly create an eBook on an online platform. THen they can test-market various titles and price points to see which one is most suitable.
A lot of value comes in when authords add more eBooks to their portfolio and to the mix tool. This helps draw in more customers to the content.
Earning income from rental properties’ rent
Investment in rental properties is an effective way of creating a multiple income funnel. Yet it often needs a lot of work than what people usually expect.
Those who don’t take time to learn how to make a rental property a profitable venture, they could lose their investment and then some of their active income. Those who wish to earn a good passive income from rental properties, they should consider the following factors:
- How much return is desired from such an investment?
- The total cost and expenses of the property.
- Any financial risks of owning the property?
For instance, if any one has the objective to earn approximately USD$ 15,000 annually in rental cash flow and the property has a monthly mortgage of USD$ 2,000 and costs USD$ 400 per month for taxes and other expenses, then they need to charge approximately USD$ 3,900 to reach their objective.
Affiliate marketing works on source of income
Through affiliate marketing; website wonders, social media influencers, or bloggers, or all of them can promote the products/services offered by a third party.
Amazon is known to be one of the best affiliate marketing partners around. Yet, it faces competition from Awin, eBay and ShareASale as they are larger names grabbing a considerable share of the pie. Additionally, Instagram and TikTok are large platforms for people wishing to grow their following and promote products.
Growing an email list can help with affiliate marketing. It can draw significant attention to the blog or otherwise direct people to products and services they may desire.
When a visitor clicks on a link and buys something (product/service) from the third-party affiliate, the website owner earns a commission. This amount is a certain percentage, and will likely bring a good amount of traffic to the website which can generate a wholesome and active income.
But if companies can grow their following or have a more lucrative niche (like software, fitness, financial services) then they can earn a good amount of money.
Is Affiliate marketing considered a passive source of income? Yes it is because theoretically people can earn money by just adding a link to the website or social media account. But if readers cannot be attracted to the website to click upon the link for buying something, then website owners, social media influencers and bloggers won’t earn a thing.
Flipping retail products
People can take advantage of online sales platforms like Amazon, eBay and others, and sell products they can find at cut-rate prices elsewhere. People can speculate the difference in their purchase and sale prices, and also can be able to create a following of those tracking their deals.
This can work especially well if they have a contact who can help them access discounted merchandise that only a handful of others can find. Also, they can alternatively find valuable merchandise no other person could ever find.
How to make $500 a month in dividends?
Dividend investing is a wise way to create passive income and be on the path towards financial independence. Here are ways to make$ 500 monthly in dividends:
- Selecting a desired dividend target yield.
- Determining the amount of investment needed.
- Choosing dividend stocks to fill out the portfolio of dividend income.
- Investing in the dividend income portfolio regularly.
- Reinvesting all dividends once they are received.
The problem with today’s era is not just the inflation but also the unstable political situation in Eastern Europe leading to worldwide supply chain conundrums as well as shortages of certain supplies, commodities, goods and services.
Those who wish to make additional income are more than welcome to do so. Yet, they must make sure they are not compromising their lives if they are married and have children too.