An In-Depth Guide on How to Work Less and Earn More
The integration of business activities goes a long way in earning positive cash flows in the long run
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 professionals 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 businessman to reap huge benefits in the 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 a few reflexive income ideas.
- Contract-based Agreement: In order to retain customers, Jio recently introduced a great deal by offering cheap mobile handsets. The other telecom companies also followed suit by introducing new deals in order to compete in the market. The sustainability of such companies is based on their average revenue model.
- Silent Business Partners: By being a silent investor in a business, which have enough competency of profitability, scalability, and transparency, an income can be generated e.g. Ratan Tata who has been investing his money in Paytm, Ola, Xiaomi as a silent business partner.
- Adding a subscription to business: Acquisition of a business requires huge money and efforts in operations like prospecting, presenting, follow-up, closure and objection handling. On the contrary, retention policy does not require that much effort and money. For example, India today has created a recurring revenue model by enhancing its reader base to 16 lakh with bulk subscriptions.
- Franchise Model: To get regular earnings, you can develop a business model which assists you in making an 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, Subway are few franchisee business.
- LIC Agent: Part-time jobs can be another good source of earning passive income. For example, one can become a part-time LIC agent and 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 the adoption of a 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 of 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 luring clients and retaining customer loyalty.
- Membership Based Business Model: In B2B services, giving 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 be considered to be a good source of income.
Just explore your potential with a willingness to do something in your life and move forward by considering the above-mentioned ideas. This will enable you to live your dreams in a more practical way.
Dr. Bindra is a renowned International motivational speaker and leadership trainer. He has around 1,500 clients spread across 25 countries. He is working towards empowering Indian businesses by sharing management solutions extracted from Shrimad Bhagwad Gita.
He is the winner of best leadership trainer award by Dr. Marshal Goldsmith at World HRD Congress 2016. He was conferred with the Honorary Ph.D. degree, Doctorate of Philosophy from OIUM University of Colombo.