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SpinDistribute.com Article Directory

The following article was published in our article directory on March 21, 2014.
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Earning More by Working Less: 3 Types of Online Passive Income

Article Category: Education

Author Name: James Hunt

Directly working for someone else, though productive, leaves you at the mercy of a limited income, which rarely increases. Passive income, on the other hand, gives you an unlimited earning potential while working at a time and setting you are most comfortable with. Adding more ways to earn these types of income can speed up your own process in achieving financial independence. To do this, it is important to take a look at the three types of passive income.

Residual Income

This type of passive income works by giving you revenue for work that was done for one time. In essence, one continues to get paid for services or transactions that were completed a considerable time ago. This is quite common in the insurance industry as agents get commission for every time their clients renew their policy. Another example of this is royalties for artists and authors whenever copies of their work are aired or purchased.

The internet also offers several strategies for earning residual passive income for individuals and businesses. Photographers, for instance, can get royalties when they sell their photos at a stock photography site and someone purchases it. Producing videos and writing e-books are also fairly profitable in the online world. Oftentimes, this type of income requires little to no personal involvement on your part and can even be delegated to a partner or assistant.

Leveraged Income

Earning from the work of other people is called a leveraged income. This type of passive income is usually seen in network marketing schemes, wherein a person builds a down line of other recruits and gets commissions for how much sales their down lines make. A more common example of this income model is a franchise, wherein one brand gets income with the help of other entrepreneurs who agreed to sell their products.

Online leveraged passive income, on the other hand, occurs when a person hires other companies, affiliates, and freelancing agents to promote a product like a website, e-book or video. Leveraged income is also present in online freelancing work like content creation and search engine optimization (SEO). Though leveraged income can come in many forms and models for all types of businesses, it is necessary to remember that it can only be effective if one actually earns money from other people's work aside from that of their own. When combined with residual types of income, the returns can be considerable on a regular basis.

Active Leveraged Income

Though not technically passive income, active leveraged income is one of the more effective strategies to earn more while working for less. This is because direct participation in your passive income strategies, along with the nature of the online world, can yield better results . One good example of this is a webinar, wherein you can explain your expertise on a certain topic while you invite people to pay attention. The more people you invite, the earnings you make will far exceed your initial costs.

Keywords: passive income, how to make money fast, work from home ideas

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