Passive Income Challenge Day 23.
Create Assets that You Can Pass on or Sell Down the Road
You may not realize that your passive income portion of your business will eventually become highly sellable. Having a business that you can sell is very lucrative. It gives you an out at some point so that you can retire or change niches if you prefer. Sometimes it’s just good to sell if someone approaches you. Alternatively, you may want to give it to your kids if they’re interested in running a business. Whatever you choose, you want to be ready for that option by setting up the right processes, systems, and hiring the right type of contractors.
Selling Your Website
If you have a profitable website earning passive income right now, you can always sell it for cash today rather than waiting for it to keep producing if you have no interest in working on it further. Plenty of people make a good living flipping sites. They build up the traffic, build a strong list, start making passive profits through sales of information products, affiliate products, and ads and then they put the site up for sale only to start a new idea.
Selling Rights to Your Books
If you publish a series of books that become popular on Kindle, don’t be surprised if publishers and movie makers come knocking. Often, they’ll offer a one-time payment in conjunction with residuals to you to own the rights to your books. This can become a very lucrative deal if you’re okay with being hands-off on the results and just collecting your money. That’s passive income for sure. You did the work upfront and now it’s paying off big time in this scenario.
Giving Children Your Business
Another way that people often retire is they turn their business over to their children. This isn’t only for the neighbourhood mom and pop shop. This also works for online businesses. If you are interested in doing this, it’s important to take the time to train your children in the business so that they can truly take it over and still be profitable. It’s not the same as selling it and being hands-off. Giving it to kids means that you want to do it soon enough that you can still help them while they need it.
An online business that earns passive income is a lucrative business that you can sell and profit from. It’s just as good as a brick and mortar store. Sometimes kids do want their parent’s business but sometimes they don’t. So, if you start getting to the point you want to retire, talk to your kids first, and if they have no interest – put it up for sale, cash out, and go relax on the beach somewhere.
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