10 entrepreneurs share their top ideas for creating passive income
Flickr/danielcenoz
Passive income is all about creating systems that run on autopilot and deposit recurring income into your bank account with relatively low effort once established. It sounds like a dream, but there are more viable ideas for building passive income than ever.
Many high-performing entrepreneurs have more ideas than they have time to pursue, so we asked them what they would be doing to generate more passive income if they had more time.
If you aren't as busy, you can make one (or more) of these your own.
Kevin Harrington1. Upsell opportunities
In nearly every line of work, there are opportunities to create a passive (continuity) income stream. If you’re a dentist, you may only see patients once or twice a year but you can set up a teeth-whitening package to be paid and delivered monthly.
A personal trainer's income normally would come from meeting personally with clients, but they could create a passive income stream by selling a line of vitamin supplements that clients would purchase monthly. Assess your industry, and look for opportunities to create a continuous income flow.
— Kevin Harrington, inventor of the infomercial, pioneer of the "As Seen On TV" industry, and original Shark on "Shark Tank"
Com Mirza
2. Build a capital pool and invest in real estate
Someone once approached me and said he had 10 friends who had mortgages. If he got his friends to sell the mortgages, downgrade to rentals, take the equity out of the homes, and pool the capital together to purchase cash-flowing real estate, the cash flow could pay the combined rents indefinitely.
That means living for free, and they would save a fortune on interest payments. Anyone anywhere can put together a capital pool and invest into cash-flowing real estate and help people get out of mortgages.
— Com Mirza, CEO of Mirza Holdings and "The $500 Million Man"
John Crestani
3. Internet marketing software
A business factoring company that seamlessly integrates with a particular sales-tracking software and provides real-time distribution of commissions. You would need to find a factoring company or an investor who specializes in funding direct-response companies, a risk analyst to audit risk associated with each sale within a company, and a third-party payment verification service.
Clients would be cash-flow poor, growth-oriented sales/marketing organizations. The benefits of this service would be: 1. Decreased cash-flow issues, 2. Less bookkeeping problems between clients/vendors 3. Unlimited tiers of sales/marketing distributors.
— John Crestani, founder and CEO of Nutryst
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