Divapreneurs At Work - The Truth About Passive-Income

Divapreneurs At Work - The Truth About Passive-Income
by Leesa Barnes
Passive income is not a new concept. Otherwise known as residual income or royalties, this type of income stream has been a norm in Hollywood for years.

For example, many actors will make money off a television show they starred on years after the show aired live. While the show airs in syndication, the actor receives residual-checks in the mail for work they did so long ago.

This actor no longer trades time for money. Instead, she trades a product (the TV show) for a regular check and her time is now freed up so she can work on other things.

However, passive income gives a false view of how to build a business. The problem lies with the word passive. According to the dictionary, passive means "receiving or subjected to an action without responding or initiating an action in return."

In other words, passive-income gives the impression that you don’t have to do anything and you’ll get loads of moolah in return.

Like any business, there’s a lot of work up front. You have to promote, sell and get the word out about your product or service.

Instead, I encourage you to think about creating an active income-stream. According to the dictionary, active means "marked by or involving direct participation."

In order to make dinero while you sleep, you have to directly participate in creating that income-stream.

As with our actor, she spent years in the limelight working hard to give her fans what they wanted. After all that hard work, she can just sit back and enjoy her residual-income.

Creating an active income-stream enables you to:
1. Learn the shortcuts so you generate money faster. Selling a product as an affiliate or as distributor in a network marketing company can help you to learn from the mistakes of others, plus gives you a support system so you’re not alone.
2. Understand that marketing and selling are a key part of the process. You still have to promote the product in order to drive sales. You clearly understand that you need to use articles, blogs, pay-per-click advertising and other methods to drive traffic to your website and turn those visitors into customers.
3. Think realistically about how much moolah you will make. You understand that like with any business, you won’t make millions as soon as you launch. Instead, an active-income stream will generate a few dollars in the first few months, but will grow as you continue to promote your product.
4. Understand that you don’t need to spend thousands to create an active income stream. Some Internet marketing gurus will charge you a few thousand dollars for a five-day course. Others will say that you’ll need to spend tens of thousands to buy an ABM or vending machine. Instead, you can easily create a product from what you know. This strategy will cost you much less in time and money. This month’s teleclass will teach you more about this.
About the Author
Leesa Barnes, Chief Divapreneur, helps women start a business or launch an idea on a shoestring budget. Through her coaching programs, speaking engagements and interactive workshops, Leesa is on a mission to help 10,000 women become their own boss by 2010, even if they lack the confidence or start-up capital to do so. Sign up for the Divapreneurs At Work ezine by visiting http://www.savialane.com and receive a F R E E ebook called, The One Thing 85 Women (and One Man) Used to Build a Profitable Business (And It Ain't Money).