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09-01 Passive Income Systems

14/4/2017

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​To generate passive income, you need a way to maintain your income without having to do so much grunt work to keep it going. If you have to keep working each day to avoid seeing your income drop, then you’re earning active income, not passive income. Passive income continues to flow even when you aren’t actively working.

Many forms of passive income still require daily or weekly maintenance activities, such as fulfilling orders or handling customer service, but this doesn’t mean that you have to perform those maintenance tasks yourself. You may delegate such tasks to other people, to businesses, or to technology. For your income to be passive (meaning that you don’t have to do much to maintain your cash flow), you need to remove items from your plate, but those items still need to get done.

A passive income system is a form of delegation.

What is being delegated, and to whom? How will the necessary active tasks being handled if you won’t be doing them yourself? Your passive income system must provide these answers.

I love delegating to technology because it’s fast, efficient, consistent, and inexpensive.

Technology also tends to scale well, meaning that you can add more computing resources, which generally requires little more than paying for those resources. This works well for an Internet business.

For example, I’m delegating the distribution of this information to a file format known as PDF.

Without this technology I would have to use some other distribution method, perhaps a traditionally printed book.

Technology is so ubiquitous these days that it’s easy to overlook what it does for us and take it for granted, but it can perform a vital role in any passive income system. Without this technology what would it take to distribute copies of every article I’ve written every month? It would be a massive effort if this had to be performed by human hands.

Notice then that when you rely on technology to communicate, you’re already taking advantage of passive systems. Your messages pass through equipment that’s designed, built, and maintained by others. You may not be paying those people directly, but they’re working for you every day. You’re already taking advantage of these systems now. So if you currently rely on such systems for your communication needs, then why not leverage them to handle your income as well?

​You can also delegate tasks to other people and to businesses to get them off your plate. In a typical affiliate deal, you may delegate the order processing, fulfilment, and customer service to another company. For example, if you use Amazon’s affiliate program to sell items, you’re effectively delegating a significant portion of the work to Amazon. From your perspective an affiliate sale may seem very passive, but that’s because Amazon provides the active labour to make your affiliate commissions possible.
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    CRAFTY

    Our goal is to find multiple income streams, and the more passive the better.

    ​                Paul Cardall

    Categories

    All
    00-00-Hello
    00-01-Content
    01-01 Craftys Passive Income Challenge
    01-02 Getting Your Mind Right
    02-01 What Is Passive Income?
    03-01 The End Game Of Passive Income
    03-02 Passive Vs. Active Income
    03-03 Where Does Passive Income Lead?
    03-04 Will Passive Income Make You A Bigger Success Or A Bigger Failure?
    03-05 Whats Your Motivation
    03-06 Beyond The Hype
    03-07 Money Is Fuel
    04-01 Set Your Passive Income Goal
    04-02 My First Passive Income Stream
    04-03 Taking The Long View
    04-04 My Passive Income Goal
    04-05 Your Passive Income Goal
    04-06 Do It Now
    05-01 Commit To Your Passive Income Goal
    05-02 Put Your Goal In Your Face
    05-03 Create Consequences For Failure
    05-04 Involve Others
    05-05 Create Positive Stress
    05-06 Are You In Or Out?
    06-01 Jobs Vs. Passive Income
    07-01 You Earn Passive Income By Being More Generous
    07-02 Passive Value Delivery
    07-03 Why Just One Customer?
    07-04 Scaling Up
    07-05 Stop Being So Selfish With Your Value
    08-01 Is It Fair To Earn Passive Income?
    09-01 Passive Income Systems
    09-02 Build Your Own System Or Borrow Someone Elses
    09-03 To Buy Or Not To Buy
    09-04 Get Rich With EBooks
    09-05 Your Passive Income System Preferences
    09-06 Loving Your System
    10-01 How To Earn Passive Income From Intellectual Property
    10-02 Intellectual Property
    10-03 Self-Publishing
    10-04 Licensing
    10-05 Licensing Agreements
    10-06 Re-Licensing
    10-07 Agents
    10-08 Be Cautious
    10-09 Dealmaking
    10-10 Creativity
    11-01 Self-Discipline And Social Pressure
    12-01 Passive Income Is Not An Escape
    13-01 Are You Still Broadcasting Doubt?
    14-01 Passive Value
    15-01 Passive Income From Real Estate
    16-01 Virtual Real Estate
    16-02 Monetising Virtual Real Estate
    16-03 Developing Virtual Property
    16-04 Jumping On Trends
    16-05 Overcoming Excuses
    17-01 Generating Ideas
    17-02 Keep It Simple
    17-03 Inspiration Vs. Market Research
    17-04 How To Do Market Research
    17-05 Taking Risks
    17-06 Inspiration First
    17-07 The Courage Advantage
    17-08 What Are The Odds Of Becoming A Black Belt?
    18-01 Fame
    18-02 Monetising Fame
    18-03 Public Vs. Private Life
    18-04 How To Become Famous
    19-01 Donations
    19-02 The Kindness Of Strangers
    19-03 Ask And It Is Given
    19-04 Effectiveness Of Donations
    20-01 Passive Income Walkthrough
    Benefits Of A Crafty Lifestyle
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  • CRAFTY LIFESTYLE PLANNER
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      • Best Letter To Santa Kit Ever
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