If you’re like most Americans, you only have one stream of income. But, again like most Americans, our current economy and situation is making it more and more difficult to make ends meet month after month. And, for example, what if you have a job that pays the bills but you suddenly lose it? What will you do as expenses come up and you don’t have the money to cover them? So maybe, like so many others, you have started to think about how great it would be to have emergency income coming in every month. In fact, isn’t this a great idea to explore if you can swing it?
Well, one way to protect yourself against such scenarios is to create additional home-based business opportunities that provide you with multiple income streams. In this short article we’ll explore the topic of adding more ways to bring in money and provide some tips on how to get started by becoming a factoring broker or sponsored agent. But first, let’s start with some quick explanations.
Recurring vs Recurring Passive Income Streams from Home
There are many of ways to build multiple income streams. You can, for example, just get a second job that would have “recurring” features. For example, you can start a dog walking service. This is usually a business with the same customers using your services over and over again. That is recurring. Unfortunately though, there are only just so many hours in a day. You are very limited. And what about those passive recurring income streams?
One of the most common businesses that pay passive recurring income are those that are associated with the life insurance industry. In this industry, you will earn a residual commission every year the insured pays the premium on life insurance. For the agent to earn this, it takes no additional time out of the day. It is truly passive recurring income. Additionally, if you are an insurance broker writing policies for multiple companies, you will find yourself earning checks paid to you from more than one insurance company. You will strive to get the best rates for your clients. You will then benefit by earning multiple passive income streams.
So does the profession of “factoring broker” provide you with those same delicious multiple passive income streams?
Factoring Broker / Agent and Multiple Passive Income Streams
The good news is that the factoring industry is near-famous for its residual, life of account commission payments made to brokers-of-record for their referrals. This is why factoring has always been referred to as “The Jewel of the Industry” by industry agents, broker, and consultants. But the question is, does this commission arrangement match the well known commission arrangements earned by those working in the insurance industry? The answer is “YES”! And here’s why.
As a factoring broker, you will build books of business over time. If you are like most, you will have all types of clients that you have referred to multiple factors and invoice funding sources. Your “book” of business may be made up of service providers, manufacturers, distributors, government contractors, construction sub-contractors, and many others. And because almost all factors have what are termed “preferences” regarding their financing services, you will end up using multiple factors to service your clients. Some factors specialize in trucking and transportation. Some factors focus on the oil and gas industry, there are specialty factors for staffing companies, very specialized factors that handle insurance receivables of doctors, and the list goes on and on. The point is, unless you are a factoring broker that ONLY focuses your marketing on one industry, you will end up being paid by multiple factors based on their specialty. You may even find that when you’re searching for just the right financing source for a particular client, you’ll find a factor running a promotion or contest with an attractive commission bonus you can earn for that specific client type or size. Over time, you will be earning commission income from dozens of sources. Since you have no tasks to perform to earn those commissions once referred, that is truly passive income. As a factoring broker, you will be earning lucrative passive commissions from multiple income streams.
Is Factoring the Perfect Passive Income Home-Based Business for You?
There are all types of “referrers” in the factoring and alternative commercial finance industry. In fact, this “under-the-radar” business opportunity is one that virtually any home -based entrepreneur can participate in. Find out more by subscribing to IACFB magazine and then explore if a career in factoring is right for you at the IACFB Academy.