Passive income is money that you generate from an investment without the need to be at it on a daily basis. To understand how to start passive income business in Kenya, this article will give you a good start. But though passive income is extremely attractive, it is not as easy to come by as it sounds.
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Most methods – most and not all methods – to gain passive income require a hefty capital and time to get the system to work seamlessly for the investor.
Access to Passive Income Opportunities
Inadequate information on how to start passive income for youth is the greatest hindrance to making passive income. When people hear it sometimes requires huge amounts of capital to start, then they immediately cease the search of a method that will fit their capital capacity.Below we discuss the various sources of passive income in Kenya and you will see from the list and some of the examples that some of the sources are extremely affordable. They are in fact business opportunities within your immediate reach.
Passive income comes from the work you do once or over a short period of time, say six months to a year, but that work thereafter continues to pay you a regular income even though you no longer work on the specific assignment.
Passive income is money that you make without direct and active input of time daily. Another way of looking at passive income is income that comes in when your money works for you. To build passive income, one must often hold the word automation in mind. Automation of business functions is the key to passive income.
On the article here on the Entrepreneur online magazine, Hal Elrod explains why it is absolutely important for one to create additional cash streams. If you have a job or a business and that endeavor takes up a significant part of your productive hours daily, then it is time to think about creating something to draw an extra income.
Reasons to Create Passive Income
If for no other reason one should consider creating a passive source of income to buffer the current state of economic affairs. An extra income is a wise choice. Diversifying your income is crucial to protect yourself and your family against the unavoidable ups and downs of economic and industry cycles. Because of the financial risks that come from relying on one source of income, such as a job or a business, consider creating at least one or more additional streams to generate cash flow.1. Real Estate
Real estate investment is the activity of buying land either alone or through a SACCO or any other self-help group, you put up buildings, and then establish a SYSTEM to collect the revenue. Once you are done with buying and building, you never have to go back to buy the same land and re-do the heavy work of building again.
Your work of building an active income source is complete and now all that remains is for the revenue collection system to take over. The revenue collection system could be that clients take the money to the bank or send it directly to you, or an agent collects the money on your behalf. Whatever your system, whatever checks and balances you have in place, that work is done. Other than ensuring regular maintenance, you do not need to build the buildings again.
2. Intellectual property
To develop a passive income stream in intellectual property you take time, sometimes years, to practice your music, build software, make art, write your book, etc. Thereafter, you set up a sales and marketing system to promote your work and place it before your clients. The revenue collected from the intellectual property is passive income.
You have already completed the work of making the intellectual property, all that you are doing is collecting the revenue. You never have to re-draw the same piece again, or rewrite the book, or build the same software.
One of the better offerings of the digital era is that you can generate passive income through your own channels on sites that support the upload of literary content for sale.
The Kindle Direct Publishing (KDP) platform, that is the publishing arm of Amazon.com is a very good place to start to start generating income from your written works. Besides having self-publishing tools on the Kindle Publishing platform, and for free, the Amazon platform offers a way to link back to your website so that you can easily drive traffic to the reviews on your own responsive website and create eventual sales for your book. If you are a literary artist, do get yourself a website. Talk to me, let me get you online.
Scribd is another platform that hosts both free and paid books. If you are going to host books on Scribd for free, then you need to make sure you have your links on the material that you host on the site. Make sure that if the work will be downloaded, then it will give you some revenue. For paid ebooks, the rules are the same as those for Amazon. Host the reviews on your own website and drive traffic to the Scrib sales page.
Free ebooks [dot] net are another platform that offers excellent terms for writers. If you are in the novel genre, this is a great place to host your eBook for the first time. It also helps to have a free eBook on these sites that links back to your website and provides access to the rest of your works for sale.
oBooko [dot] com is interesting for hosting free ebooks because they have books in more than just the fiction genre. Interestingly, there are not as may writers using the non-fiction platform as much as there are people in the novel genre. Well that could also be because most people prefer writing fiction.
Use the provisions of your generation to get your work out there. But remember, have your own website. If you are a writer, you surely should have a responsive website because that is the first place readers interact with your work.
3. Automated Business
Automated business requires that you set up an automated platform or a machine operated platform that generates you an income. For instance you can develop a blog, build a website, plan and commission the banking software, etc, and then set up the point of sale processes, and automation takes over.
To understand this type of income think of Amazon, Facebook, Google, software-run businesses like Safaricom’s Mpesa, franchise businesses like KFC, front office or (POS) systems like those used in SACCOs and parking lots, ATMs hired by banks, and you can see the power of automation in business. Online membership sites and MLM and Network Marketing (NM) are also run on software. In this type of investment, your biggest cost will be the software to run the system.
4. Paper Investment
Millions and in fact billions are generated daily through the buying and selling of stocks and currency. However, to succeed the investor MUST have an understanding of the way paper “real-estate” works. If one has a great grasp of the industry, they can go ahead and build their system and start to record profits. The system may be a method of watching trends and making a few calls to effect purchases or sales, it may be to engage the services of a fund manager. The system they will use is up to the trader to decide.
Paper investments is a trade for those who enjoy thrill and high adrenaline deals around money. The potential to make a killing in a heartbeat are just as many as those to lose bog in a heartbeat. Right information and practice are the life-blood of paper investments.
Although some people would want to differ, I personally think that it is a trade that requires a lot of time keeping track of trends and current affairs. If you are not into that kind of information, then it is easy to rely on a third hand in the business. The challenge of keeping a third hand, is that then you have little or no control over what really happens.
Even at the higher ends of investment in the paper investment trade, it always helps to have a personal touch with the affairs of the day. At the higher ends of investment, that is when you are investing in millions, then you can gain a tidy passive income source.
5. Network Marketing
to make decent money in MLM or Network Marketing or in all network-based trade, you must first have put in some significant amount of work. Networks, business networks will only start to pay passive income after mid-way into the pay structure where the Law of compounding starts to take effect.
Building of business networks can be done from many sides. For instance, a blog entrepreneur who has an affiliate program that pays on more than one tier is running a business network. In other words, the entrepreneur anticipates that the individual coming into the business will want to reach for the added revenue that comes through referring someone else into the business.
A wholesaler can run a business network. They only require to have a team of resellers who distribute their products to a team of another tier of resellers and each tier being paid some amount out of the overall profit. The impact is that the product produced at a fairly affordable price is likely to load the additional amounts for the resellers on the consumer.
Network building is always a win-win business model for both the entrepreneur and for the network builder. This is true except for MLM companies that are a camouflage of sales platforms that exploit their members without having to incur the cost of paying retainer fees. That is mostly evident in companies that ask members to pay or buy products worth some amount monthly failure to which they lose their earning.
The simple mathematics of that stipulation is that the member makes sales, but the company does not pay them at all. So the company gains all. That is exploitation at its best. A worker should not have to pay in to earn. Neither should work done be rewarded only if it is at a set level. If a person has worked, they should be paid for whatever effort they have put in.
One of the largest scams of the network-building world is network marketing sales pitches that present the business as a way to getting rich quickly. Anyone telling you that MLM or Network Marketing is quick money is – in one word – lying. MLM is NOT get rich quick, no matter how over-zealous sales people promote it because there are no networks that pay in their millions at the lower end.
Networks depend on numbers and numbers come after significant effort. There are now, as we continue getting better solutions offered by the digital age sites that dedicate their service to the requirement to give network builder a platform that they can build their business without undue restrictions. Such a site as MLM Gateway in fact offer an affiliate arm over and above enabling you to build your network on their site.
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