There are two sources of income generation: Active income and passive income. What really works here is how to generate passive income without working actively? Here there is a need to make a difference between a professional and entrepreneur in terms of generating income. For professional people like Doctor, Lawyer, and Charted Accountant the earning is limited to the ratio of services they deliver to their customers, the day the service is not being delivered it may have an adverse impact on income. On the other hand it takes a creative strategy which allows a business man to reap huge benefits in long run without actively participating. This kind of income is considered as passive income which is generated through employing recurring revenue model in the business. Here’s a list of quite a few reflexive income ideas, which makes you capable of selecting at least two or three that cater to your situation and skills:
- Contract based Agreement: In order to retain customers Jio have recently introduced a great deal by offering cheap mobile handsets likewise other telecom companies also introduced new deals in order to compete in the market. The sustainability of such companies is based upon their average revenue model.
- Silent Business Partners: By laying out as a silent investor in a business, which have enough competency of profitability, scalability, and transparency, an income can be generated e.g. Ratan Tata has been investing his money in PayTM, OLA, XIAOMI as a silent business partner.
- Adding subscription to business: Acquisition of a business requires huge money and efforts in operations like prospecting, presenting, follow-up, closure and objection handling contrarily retention policy does not require that much effort and money while operating a business. For example, India today has created a recurring revenue model by enhancing 16 lakh reader base with bulk subscription base.
- Franchise Model: To get regular earnings, you can develop any business models which assist you in making association with franchisee firms in order to increase business revenues which may vary in nature of royalty, commission or profits. For example: Baskin Robbins, McDonald, Pizza hut, Sub way are few franchisee business.
- LIC Agent: Part time jobs can be another good source of getting passive income. For example, a part time LIC agent earns commission by selling policies to the customers.
- Multi-level Marketing: In multi-level marketing, recurring revenue model can be generated by down lining the high performance team through adopting hybrid form of organization. The integration of business activities helps in earning positive cash flows in long run.
- Reward Points: In recent times you must have heard various companies like Air India, Citibank and Star alliance group offering reward points to its regular customers while doing shopping. This strategy is influential in grabbing the clientele and retaining the cutomer loyalty.
- Membership Based Business Model: In B2B services, creating memberships in different business sectors like in gyms, Spa, salons, clubs by giving exciting offers to customers like offering low annual subscription fees instead of expensive monthly fees can also considered to be a good source of income.
- Software as a Service: If you have a competency to develop a software then you can earn profits by selling it on annual basis at minimal price instead of sell off at one time huge cost. Today’s market have an adaptive nature towards new technology. For example, Adobe co. initially offered high-priced services but could not retained their clientele for longer period and had to take a shift towards creative suite to cloud based service and turned up with huge profitability in business.
Just give a thought to explore your potential with an understanding of willingness to do something in your life. And move forward by considering the above mentioned ideas to live your dreams into more practical way!