The Importance of Deployable Assets in Building Passive Income
See Dr. Boyce Watkins’ video revealing how all blacks can own a piece of a company today at the bottom of this page.
Passive income is considered to be one of the essential elements in the process of building personal wealth. When it comes to non-passive income, a person has to work, meaning be physically present, in order to produce income. Subsequently, the person is limited by the amount of time they can invest in any particular money-making endeavor. Anything for which you receive a fee-payment, salary, or wage would be considered non-passive income.
With passive income, a person receives an income that is not contingent upon them doing anything, but the income is dependent upon how a particular passive income lever performs. The income from a rental property is considered passive income. The ability to create multiple streams of passive income is the key to developing wealth, and it is the path traveled by those whom have created their wealth.
Some of the most common ways to create passive income include:
- Developing and distributing creative material for which you are paid royalties, such as books and music
- Owning real estate for which you receive regular payments
- Investing in stocks that pay dividends
- Royalties from patents
- Creating a product and having someone sell it and distribute it on your behalf
One of the primary reasons that passive income is so powerful is because it STACKS WELL. Non-passive income does not stack well. There is only 24 hours in a day, the fact that sleeping and eating are required only leaves you roughly 16 hours that can be used to produce income. Unless you are the CEO of a major corporation, an athlete or a celebrity, there is a significantly finite cap on what you can earn in an hour, a day and year — there is only so much that can be stacked on time-generated income. A person can only work on one passion at a time, meaning that they can only be paid for one passion at a time. With passive income, the person does not have to be present to receive earnings, meaning that they can stack passive income sources upon passive income sources on top of each other. Once the initial mechanism is put into place, the person generally does not have to do much other than monitor and make adjustments, and in some cases, they don’t have to do anything.
I would like to inform you about a specific type of passive income; the passive income that is produced by deployable assets.
Deployable assets are a key element in developing passive income, and passive income is a key element in building wealth.
Simply put, if you have to be present in order to make your money, you are limited by the one thing you cannot bend or stretch — time. However, deployable assets allow you to do something once or invest in something once, and then that asset generates revenue indefinitely.
Deployable Asset: Anything you can create, release or launch once and it has the capacity to continue to produce money, without your presence or participation is considered a deployable asset.
When I found myself needing to rebuild my wealth and redefine myself, I did not panic, I begin deploying assets. For example, I have written 16 books, with 15 in publication and the 16th being released in the coming weeks. A couple of weeks ago, I posted a screenshot of my book sales from 2014 through two major distribution channels, Barnes & Noble and Sony Books. That was more than 2,000 books sold through those two channels alone, and that does not consider the other channels through which my books are distributed. Now imagine that the average price for my books is $8.00. That would mean that these books produced a passive income of more than $16,000 last year.
Here is the kicker: Every time I release a new book, the book sales from my previous books go up for at the first 90 days.
Now, because I believe in multiple streams of income, I have multiple deployable assets out, including more than 10 websites that generate revenue, several YouTube channels, etc.
So, why am I sharing this? I am sharing this because the development of generational wealth is immensely important to the long-term success and empowerment of the black race. Currently, there is no generational wealth being transferred within the black collective — despite the fact that the earning medium among black women is on the rise.
While there are more blacks with six-figure incomes than at any time in our history in the U.S., the fact remains that the vast majority if this income is generated by working for someone else, which means this income cannot be passed on to our progeny.
By creating deployable assets, a person is creating a means through which they will be able to earn money without the investment of their time — there most valuable commodity.
The thing is that you have an exceptional amount of creativity embedded within you. If you work a nine to five job, it is likely that your employer has tapped into your creativity and they are raping you for pennies on the dollar of what you are worth. Think about it for a second. If your employer is paying you $200,000 per year, how much do you think that you are earning them? If you have never even considered this question, you have been cheating yourself and devaluing your competitive worth.
Allow me to elucidate what I am saying here. I am not devaluing hard work, and neither am I belittling those who have traditional jobs. It is better to be earning some type of a living than not earning one at all. What I am attempting to confer here is the development of an attitude to always maximize your earning potential, and to always consider your wellbeing and the wellbeing of those who you are responsible. A significant part of our filial responsibility is to ensure that we leave our progeny in better condition than our parents left us; however, we have had generation after generation in which we have had to start from square one, because although money was made, no wealth was built.
I am currently working on programs to introduce systems in which my people can begin to build wealth. With the mindset that we should never despise meager beginnings, I focus on teaching people how to create passive income as quickly as possible. Below are five of the most effective ways to generate passive income.
- Dividend investing is one of the most effective ways to generate passive income through investing in high yielding dividend-paying stocks. You can buy high yielding stock from companies like Verizon, ATT, etc. — each of which is paying approximately seven percent in dividends. In other words, if a person purchases $10,000 in stocks at a seven percent yield that would equate to approximately $700 dollars each month or $2,100 quarterly.
- Rental Properties are also common passive income mechanisms, and there are a number of ways to finance entry into the real estate market in order to minimize debt acquisition.
- Royalties can be earned for life when you create and develop work for which you own the copyright. Whether you write a book or a screenplay, or record an informational video, you have a legal right to any revenue that is earned from that creative work. Also, for those who are thinking that you don’t know how to create something on your own, or you don’t have the time. There are plenty of people selling the rights to their own work. Though the selling of Master Resell Rights, Private Label Rights and General Resell Rights, you can acquire creative and informational material that can be repurposed and redistributed with you as the holder of the copyrights. The truth is that the vast majority of the MRR and PLR works that are available need work, but with a little proofing and a few additions, you can produce something that may earn you money for years. To learn more about how to take advantage of this approach check out Maximum Profit PLR with MRR! Because PLR content is so inexpensive, it should be explored; however, my advice is never to republish something without upgrading the content.
- Websites are another way that a person can deploy assets that will generate passive income. In fact, this has become an art. There are sites online that generate $20,000 per day. Now, these sites have been invested in heavily, either over time or by someone with deep pockets that can afford a hefty advertising budget. Nevertheless, there is money to be made by creating content and publishing it on a website. And there are free ways to generate the traffic necessary to see a significant return. To learn how to drive organic traffic to your site, check out Supercharged SEO. Additionally, building a solid email list is an essential part of generating income through your website, you can learn more about email list building by checking out Kick-Ass List Building. One quick warning: There is no such thing as get rich quick realities, one-click revenue or automated wealth building. Making money on websites takes a committed and disciplined approach, but it can be done.
- Limited partnerships are another form of passive income. A Limited partnership is a partnership in which at least one of the partners is a limited partner, meaning that they have limited liability and no input in the day-to-day operations of the partnership. The reason that the income from these types of partnerships is considered passive is because the limited partner does not actively participate in the day to day operations. This is a great opportunity for a person who has some investment capital to pour into an enterprise that has proven to be profitable but lacks the capital to facilitate growth. I have also used this method to bolster my net worth in the past.
It is immensely important to understand just how powerful the creation of passive income is. We are behind the curve when it comes to creating wealth that can be passed on. I was told early in my life that if I am not working hard to fulfill my own dreams, I would spend my life working hard to fulfill the dreams of someone else. Even if someone offered me a $1 million dollar salary, it would be selfish of me to accept it if I did not have a plan of how I would parlay it into personal and generational wealth that I could pass on to my progeny. To simply take the position and live the lifestyle that it provides is immensely selfish and it adds no value to the black collective.
It is time for us to reevaluate our approach to money. What is important here is to discover that anyone reading this can improve their current financial position using their own creativity and skills. The idea that I am attempting to convey here is that the most important thing is getting started. There is no right time. The best time is now. I will be working to create programs that will help to facilitate the entry of blacks into the world of deployable assets and passive income. So, get out there and make it happen. ~ Rick Wallace, Ph.D.
Remember, if you are not investing in yourself, you are not dreaming, you are wishing, and there is a difference.