There are basically two categories of leveraged income: Passive Leveraged Income and Active Leveraged Income.
- Passive Leveraged Income (or simply Leveraged Income) leverages other peoples work while you make the profit.
- Active Leveraged Income requires an continuos effort from your part, however it makes it possible to make more money by having more people involved at once.
- Leverage in Forex is something completely different, but still a good way to make money. Using services such as easyMarkets you can make tons of money by using their leverage options!
Let's take a closer look at these two business models:
Passive Leveraged Income
This is a great way to make money because others will make your money for you.
Now, what kind of business model leverages other peoples work? Here's a few examples:
- Selling through affiliates
- As an affiliate that makes money from sub-affiliates
- Franchising your business
- As a "super-seller" that has sellers beneath him
In our e-commerce guide I showewd you how to create an e-commerce business step-by-step. To make passive leverage income from this business, you could make your affiliates drive traffic to your website, and fully rely on their effort when it comes to marketing your website and its products (Note to osCommerce users: This could be implemented by using modules like osC Affiliate).
Another way to recieve passsive leveraged income is to outsource your services for profit. To make it profitable you must charge more for the services you offer than what you pay to get the services done. For example, you could sell webdesign services to companies in your country, and outsource the actual webdesign process to a third party company or induvidual.
Active Leveraged Income
The principle here is that you do the work once while serving many customers at the same time. While this requires your direct participation, it's leveraged because you provide a service to many customers.
Consider the following examples of active leveraged income:
- A seminar where each participant will pay you. You provide the seminar to several people at once, while at the same time you make money from everyone attending your seminar.
- Teleseminars and videoseminars are a great alternative to "real seminars" as the participants do not have to be physiaclly present to a certain destination. Participants will save travel expences and time, and they could participate from all over the world. Example: You could offer a free teleseminar as an Introducing Broker and make money for each new client you refer.
- Paid newsletters: With all the free newsletters on the web today it's a challange to make people pay to recieve a newsletter. There's a lot of people that do charge for newletters though, you just need to provide some really good information that's worth paying for. Example: You're a successful stock broker willing to share your tips on which stocks to buy, and you're offering a newsletter each morning with this information for $5 each. If you'd offer this newsletter every day, monday through friday, that would add up to $1,825 (which is $5 x 260 days) for just one single reader of your newsletter. If you had 200 readers that would add up to $365,000 per year!
- Speed dating event: Similar to the previous examples, you'll make money from each participant. Furthermore, if you happen to own a dating site (see the step-by-step guid on how to create a profitable online dating service) you could make it obligatory for the participants to sign up for your site.
Residual Income and Leveraged Income are two very important terms when you want to make a sustainable income online. Think about how YOU could apply the ideas from residual income and leveraged income in your business, be creative, and we'd bet you experience a major financial success within just months from now. Just be smart about it.