What is passive income?

Let’s look an example:

Hourly Expert charges $150/hour and is booked about 50 hours/month. This expert makes $150 * 50 = $7,500/month before expenses.

Diverse Income Expert charges $150/hour and is booked about 35 hours/month. However, this expert also does monthly teleseminar with 30 people, where the expert charges $40 to attend, and this expert also sells about $1,000 worth of products(books, e-books, digital reports, CDs) from his web site every month. This expert makes $150 * 35 + $40 * 30 + $1,000 = 7,450/month before expenses.

The Diverse Income Expert spends 35 hours/month working with clients, while the Hourly Expert spends about 50 hours/month. However, Diverse Income Expert makes pretty much as much money as Hourly Expert. Why? Because Diverse Income Expert has created multiple streams of income. Moreover, if the Hourly Expert goes on vacation for a week, his income stops. If the Diverse Income Expert goes on vacation, he is still making money through sales and seminar sign-ups.

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This entry was posted on Tuesday, June 14th, 2005 at 12:57 am and is filed under Internet Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.