Number One Objective
If you are someone who earns an online income, chances are, you are heavily geared towards creating passive, or residual income. I have incorporated residual income, as many opportunities, especially within the Crypto space can also be residual in nature. Either way, both require initial work and effort, in order to begin enjoying an ongoing flow of income. This is why I am somewhat opposed to “freelance” work, as it simply moves a 9 to 5 dynamic from the “real world” to the “online world”. Nothing really changes, because the model is the same. No work means no pay and vice versa. Creating a passive or residual flow of income should be at the top of the list, in my opinion. Freelance work should be utilized to fill the gaps. If you are not building a hybrid income, you are still part of the rat race. I will use the term “hybrid” as a way to describe both passive and residual income.
Some may argue that creating content, or blogging is a form of freelance work. True, it can be, and it can also not be. For instance, creating content for a project, company, or individual is very much freelance. However, creating content on Hive is a hybrid model. Firstly, your HP is earning an additional 2.87%. Furthermore, curation rewards are heavily dependent on the work you have previously accomplished. Earning HIVE that is subsequently powered up continues to earn income for you with minimal effort. In other words, I don’t necessarily have to go and create content, I can simply leverage my past efforts as a way to generate income via curation. I am only really interested in opportunities that fall into the hybrid classification. The opportunities that exist within the new Crypto economy are in many cases, quite unique. Simply applying the rat race understanding is counterintuitive, in my opinion. This is obviously my own opinion, and everyone needs to establish their own viewpoint.
There are also other ways to leverage content creation so as to generate an ongoing source of income long after the “initial reward” or payment has been given. I guess the entrepreneurs amongst us will immediately identify with what I am saying, while others will perhaps be more attracted to a larger once-off payment. As I see it, the hybrid model creates a level of insurance. As a freelancer, viable opportunities are not always necessarily available. Remember, if you opt for the freelancer approach, you have no income coming in from other hybrid models. This then forces you to take on projects that are viable in relation to your time because they are only going to pay you once, and you only have so much time.
Hybrid Income Is Disruption Resistant
I am sure there were many lives that were turned upside down during lockdown and the subsequent measures that followed. However, those reliant on hybrid income models were protected to some extent. There was at least a guaranteed level of income coming in on a continuous basis. Building and working within this framework and mindset creates a form of “work insurance”. Your past work continues to work for you, and if you are unable to work for whatever reason, is able to provide some level of support. That support can even be greater than your immediate needs, it all depends on how far you are willing to run with this idea. Immediate gratification can often be the worst decision. However, it is for each person to decide how they are going to approach income generation.
The hybrid idea can also work against you if you choose not to incorporate a healthy “reliance ratio”. Look at how many people piled their life savings into Celsius with the idea of creating a decent passive income that could ultimately replace their monthly wage or salary. So, how did that work out? Yep, not so good! Ideally, my reliance upon any one mechanism is in the vicinity of 10%. This is what I like to aim at, though it’s not necessarily always the case. In this scenario, a leg of the model can get shot down, and yet continue almost unaffected. An income model that generates $5K is now reduced to $4.5K. Not really a big deal! However, a Celsius user went from $5K to zero. Income is lost, as well as the working capital. Once again, we are presented with the beauty of diversification.
Most people sacrifice diversification for higher gains. This is extremely foolish, as there is no risk management in such an approach. Violate sound financial principles at your own risk. They have stood the test of time because they work! Once again, choosing immediate gratification!
Incorporate A Growth Dynamic
This is also very important. You want to see diversification in your model, as well as the potential to experience growth. Once again Hive makes for a very good example. Utilizing the 50/50 setting enables Hivers to earn 50% in HBD, and the other 50% in HIVE. This very conveniently makes for a perfect growth model. Simply power up the HIVE, so as to increase your holdings and subsequently, your curation rewards. You can then utilize the HBD as a form of income. This enables users to secure a level of income, while simultaneously increasing future income. Compound that with price appreciation over the years, and you have a great income mechanism.
Opportunities abound, they simply need to be seen from the correct perspective. Crypto is extremely well suited as a sector to generate hybrid income. A little creativity mixed with a little enthusiasm and commitment, and things begin to happen.
So, when building such a model, you need to ensure that you address and incorporate these two very important dynamics. Firstly, establish a healthy “reliance ratio”, and secondly, the potential for future growth. If these two ingredients are missing, chances are, it won’t be such a good long-term plan. This is not financial advice, but rather, how I have personally managed to create a model that works and continues to work. Thanks for the visit! See you next time!