Make Passive Income Online

Everyone wants to be rich. But not many are aware that their definition of "rich" maybe be a little out. According to Robert Kiyosaki, the Author of "Rich Dad Poor Dad" and "Cash Flow Quadrant", one needs to have "passive income" in order to be rich. What is passive income? Basically, passive income is income that you'll get even when you are not working. This means that you can still earn passive income on top of your job, or you could stop working and live off the passive income you earn. For example: A) if you were to invest in Blue Chips, you will be able to yield dividend base on your investments without much hard work or effort after the initial research stage on which Blue Chips to invest. B) You open up any franchise stall like McDonalds and let the franchise system run your McDonalds without you having to work at all. (You don't spot the franchise owner at the cashier or serving you your Big Breakfast do you? C) You're involved in some legitimate MLM (let's not even go into illegitimate ones) and you have to either try to convince enough people to convince other people or to buy your products or services. D) You're an insurance agent and your clients renew their policy every year. E) You have properties and you rent it out to receive payment every month. The list goes on, but you get a rough picture now right? So yes now you know what passive income is, what is the fuss about then? What I want to highlight is what is explained in his "Cash Flow Quadrant" CHARTS! I know some of us (yes that includes me)hate charts, but there is no simpler way to explain the importance of passive income. The broad idea is, if you belong to the left side of the quadrant (if you are an employee or self-employed), then you are earning what is known as an "active income". In other words, you are trading TIME with MONEY. You may have a job with a high income, but you must make the necessary trade with time and discount on your other priorities. The right side of the quadrant, on the other hand, gives you income EVEN when you are not working. For those who are confused between the difference of self employed an a business owner, the simplest test is to ask yourself are you trading time with money? If you own your own food stall selling burgers, then you are self employed. If you own a franchise which inherently has a proven system to help you run your business (like McDonalds, notice how they train all their employees with "Welcome to McDonalds, having here or take away?"), then you belong to the right side of the quadrant. To further illustrate my point on how highly valued passive income is, people buy residential properties just to rent it out for passive income! So don't underestimate passive income even if the value is not as high as what you can get with active effort. Why Make Passive Income Online? So yes, passive income is really important. But why the internet? Even the above examples can give me passive income. The answer is simple, if you want a "vehicle" to get passive income, you'll want one that gives you the most benefit, and the internet has the benefits of: 1. You don't need to have a large capital, unlike property investment or Blue Chips. 2. You can keep yourself anonymous. You don't need to make cold calls or harass your own friends and family for legitimate multilevel marketing, which more often than not make relationships sour. 3. You can work anywhere and anytime as long as you have a computer/ laptop (or even a high end phone) and an internet connection. 4. Your target audience is the whole wide world of internet, thus you can project your business idea to the whole world even if you're an introvert. 5. You can always check the search engine, forums, reviews, articles to see if what you're planning to put your effort in is a scam or not. If there's complains or there's no news about the programme you're considering to do, then most likely it is a scam. You can't shut the opinions of the whole wide world of internet. Hence, contrary to popular belief, there's less risk of getting scammed on the internet if you know how to do your research, as compared to the outside world where you might have limited avenues to do your research. (If someone approaches you and tell you about a legitimate multi level marketing scheme, there's limited resources to do your research on, and just because someone you ask don't know about it doesn't mean it's a scam, it just mean he or she doesn't know. As opposed to, if the whole world of internet is silent about the online programme you're about to invest in, then you know it is hideous and not trustworthy) 6. Some online businesses allow you to cash out whenever you want without limitations, i.e. you can't sell your blue chips whenever you want to without taking into account the price, which is dependent on the economy. Having said the above, one thing is that there's no such thing as effortless money. Do not confuse effortless with "passive income". In fact, most passive income streams require you to put in lots of effort at the initial stage. http://practical-philosophy.blogspot.com Practical Philosophy Article Source: http://EzineArticles.com/?expert=Jerry_C._W._M. Article Source: http://EzineArticles.com/3446430