Even before COVID there were discussions on the growth of the ‘gig economy’ and ‘side hustles’. More and more people have been looking for additional income and now this is even more relevant in the post COVID economy.
Most additional income streams involve leveraging money, risk or time or a combination of them all. One of the most popular avenues for passive income is property. If you have a deposit then money leverage is available through the mortgage market. However, there are risks from legislation, taxation, interest rates and the property market itself.
AirBnB can provide a less expensive entry into this market, if you are prepared to share your home with strangers. Another popular activity is Uber where the cost of entry is a lot less. However, this does not generate a passive income as it is an exchange of time for money, a linear income, and available time will cap earning potential.
Other ways to create residual income include trading in stocks and shares, but the risk is high – and needs a level of knowledge to make good investment decisions. Any good broker will advise you not to invest anything you can’t afford to lose.
Lots of people go into internet marketing to try and generate an additional income. There are plenty of stories of internet millionaires – but thousands who invest lots of time and effort and still don’t make much, if anything at all. There’s a lot more to it than meets the eye!
Then there are direct sales or network marketing businesses. There are many companies, notably in the wellness, cosmetics and weight loss sectors. There is usually a product mark-up or sales commission involved to provide an immediate income, but remember that this is a linear income. The real magic comes from using the system and the duplication of a simple process to help others generate an income. Over time this will lead to a growing passive income and as it doesn’t involve direct effort this is TIME LEVERAGE.
However, due diligence is required as there are still ‘pyramid schemes’ out there and these are normally centred on recruitment and not supplying goods and services to retail customers. Also beware of hype and promises of huge instant incomes as it takes time and effort to build a business that provides total financial independence.
Utility Warehouse (UW) is unique in the network marketing industry as it provides essential home services that every household already pays for so, from the customers viewpoint, there is no discretionary spend involved. There is a very low cost of entry and no financial risk whatsoever. An upfront income is available, up to £300 per qualifying customer introduced, which is very important in these times.
As with other multi-level marketing organisations, introducing others to the business, helping them to be successful and teaching duplication is what makes this such a powerful business model. In fact, billionaire Warren Buffet, after purchasing a network marketing company, called it the best investment he’d ever made.
Do you know anyone who needs income now and who has financial independence as their goal? I would be delighted to see if I can help them.
Philip Groom represents Utility Warehouse.