07-01 You Earn Passive Income By Being More Generous
Now that we’ve covered setting your passive income goal and a bit about the mindset of passive income. let’s explore the details of how to actually create passive income streams. We’ll start out fairly high-level here and then drill down into the specifics in future posts.
Here are the 3 basic parts of an income generating method:
1. Value creation
2. Value delivery
Notice that these same 3 aspects can be applied to any basic income generation method. When you work at a regular job, for instance, you’re probably going to create and deliver something of value to your employer, and then you receive payment for it.
So what’s different about passive income? The difference stems mainly from the second aspect: how value is delivered.
When you generate active income such as with a regular job, your value delivery is usually done just once. Whatever work output you’ve created gets handed over to your employer.
The same goes for contract work. You do some work for a client (value creation), hand over that work (value delivery), and get paid.
With a passive income strategy, however, the idea is to deliver this value multiple times. Then you get paid multiple times, once for each delivery.
So the heart of a passive income strategy is found mainly in the approach to delivering value.
Our goal is to find multiple income streams, and the more passive the better.