How to Create Multiple Streams of Income

In his book "Multiple Streams of Income: How to Generate a Lifetime of Unlimited Wealth", Robert Allen, discussed the importance of generating residual income.  Residual income (also know as passive or recurring income) is defined as income that you continually receive or generate even after the initial efforts have been expended.  In order not to confuse this with the other definition that states that residual income is the income an individual has after all expenses and debts have been settled, I'd like to use the terms "passive income" or "recurring income" instead. 

Passive income definitely qualifies as smart money.  It is income that you generate without requiring much of your time or presence.  In the book, Robert Allen discussed three major markets where in you can get this kind of income.  And he said that all these can be achieved on a part-time basis, working right from your own home, using little or none of your own money, or with few or no employees.

In the next section, I will enumerate these streams of income sources which anyone can use to earn passive income.



According to Robert Allen, the 3 Great Money Mountains are: The Stock Market Mountain, The Real Estate Mountain, and The Marketing Mountain.


To be a successful investor in the stock market, Robert Allen suggests that you learn how to filter out which stocks to buy (FILTERING), know when to buy (TIMING IN), and know when to sell (TIMING OUT).  With the multitude of data present in dealing with the market, this may sound overwhelming, but the author also simplified it more for all of us.  He said that the easiest way to invest in the stock market would be to start investing right away (TIMING IN), invest in Index Funds which are the safest and simplest way to invest (FILTERING), and to invest for the long-term (TIMING OUT).  He suggests that you invest for at least 10 to 25 years in the process quoting billionaire investor Warren Buffett in saying "My favorite holding period is ... forever."

A little more advanced strategies that he introduces are:
- Following the strategies or letting your funds be managed by time-tested brilliant investors like Warren Buffett.
- Choosing mutual funds with the best long-term track records.
- Choosing financial advisors with the best long-term track records.
- Considering high-powered sector funds (Financials, Property, Mining, etc.)
- And lastly, he recommended but with great caution, to try doubling your money by investing in stock options.


In order to make money in the real estate business, one must learn to do the 3 F's - FINDING, FUNDING, and FARMING.  Finding involves finding highly motivated sellers and making sure that the property for sale is a good deal.  Next you'll have to know how to finance bargain deals by looking for funds.  And once you've funded it, it's time to sell it and harvest your profits (Farming).

Robert Allen suggested 2 simple ways to be successful in the real estate market.

1. Buy and Hold with the intention of becoming a Landlord.  (He doesn't recommend buying empty lots.  He prefers lots with infrastructures that you can rent out.)

2. Flipping properties with the intention of buying them below market price and reselling them in the short-term for a quick profit. (Foreclosures and Flipping strategy)

The author recommends buying one property per year to hold into your long-term portfolio and flipping at least one property per year for short-term income.


Robert Allen referred to the Marketing mountain as the Business mountain.  Here we are required to sell something in order to earn an income.  He mentioned four businesses where this can be effectively applied - Internet business, Network Marketing, Licensing, and Infopreneurship.

Infopreneurship is about selling information.  There's a lot of information available for everyone to use but not every information is packaged properly.  Your goal should be to sell information that everyone want to know about and package it properly so you can sell it.  This has become a tremendous hit in recent years because more people value their TIME.  We want information we can use and we want it fast.  Most common practices are to publish books and e-books and sell them in the market.

Network marketing is also referred to as Relationship marketing.  Most common these days is probably what people refer to as Affiliate marketing.  In affiliate marketing, the company selling the actual product pays you for customers that you bring or introduce to them.

Harnessing the internet as a tool to generate residual income is also one of the Robert Allen's advocacies.   The internet has revolutionized marketing and selling by lowering cost.  It is also available 24 hours a day without needing much care and maintenance.  It is a powerful technology that one must harness.  To be successful in it, he recommends automating everything and marketing or advertising to generate traffic.


Robert Allen highlights the importance of investing in each money mountain and generating several income streams from each mountain.  Although this sounds simple enough, he also forewarns that while there are hundreds of separate moneymaking techniques and formulas for each money mountain, it can possibly take years to learn and master them.  In short, this is not quick money.  You still will have to put in your time and effort to make this work.  But the good thing about these income sources is the fact that after you've put in the initial effort, money can start coming in even when you are sleeping.

Let us all learn from this and apply it in our lives to generate multiple streams of income. I truly believe that this is one way where we can become successful entrepreneurs not only in regards to generating income and wealth but also allowing us more free time to spend it where it matters more.(^o^)/

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  1. rafiel dilo Says:

    Hope i can start even just a small business first,

  2. Pinoy Entrepreneur Says:

    good luck rafiel!

  3. hitokirihoshi Jr Says:

    i already start investing in the stock market last year, then apart from my day job i also have small sideline business.

    i have so many plans not only for my personal business but also for my family. and i hope i can do my goals this year with God's guide and grace.

    Though I'm still in my 20s, i wish i started early ( before or after I finished my college).

    thank you for giving us information and inspiration. mabuhay!

  4. Pinoy Entrepreneur Says:

    You can do it hitokirihoshi,
    I wish you all the best.

    It's good that you're starting early.
    Just remember to keep on going even when the times are rough.

  5. Dez Says:

    Thanks for the informative post, this will really be helpful for those who want to venture into business.

  6. Lainy Says:

    In this tough time where financial crisis is the plight of most Filipinos, we need to do every type of job on the side. Your post is very helpful for those who'd like to venture their money on something useful. I just love the idea of having money while you sleep ;-)

  7. Dhemz Says:

    this is very informative...thanks for sharing...good luck!

  8. betchai Says:

    i love the idea of passive income, there are indeed many choices to build on this, and you provided the many options. i am not a high risk taker, so the only passive income i could identify i have are the income i generate from medium risk investments or stocks. though they don't go drastically high, but they don't go drastically low either, but definitely a lot better than putting it in the bank because bank gives very small interest, but i still put some money in the bank for emergency needs and rainy days because it is more liquid.

  9. Gee Says:

    In times like these, it is important that we should take an extra mile to find an additional income, it will be a great fallback...your post is really worth reading...thanks for sharing....

  10. mhie @ Travelentz Says:

    This is a big help to all us of who's looking something to start some investments. Great tips.

  11. jennyL Says:

    the books looks like an interesting read esp. those that want to invest more and how to get the most our of it lalo ngayon that we need to have multiple work or generating business to earn more

  12. papaleng Says:

    If only I have just the right amount then i'll invest in the Stock Market. At least makakaalis na ako sa wet market field.

  13. Cher Says:

    the three mountains are worth pondering about. the hubby has been considering about the stock market.

  14. cheerful Says:

    interesting and very informative post, thanks for sharing! :) investing into something these days are really good, whether big or small...:) all the best to you.

  15. NovaS Says:

    never knew about this, however thank you for this very informative blog...

  16. ems vercide Says:

    This is really an interesting post. I'm still looking for the right investment. I hope this will help me.

  17. Pinoy Entrepreneur Says:

    Happy investing everyone.

    Papaleng, you dont need that much to be able to start investing in the stock market.

    Thanks for all the comments.

  18. Blog diva Says:

    Great info. I'm sure it will help those who want another source of income.

  19. Little World of Fun Says:

    I always want to start a business but I just don't know how, this one is very informative thanks for sharing

  20. Lisa Says:

    I'm not a business minded person and I don't have the guts to venture in a business beside not having the capital, lol! But to those who are, this post would be a great help for them.

  21. The Chef Says:

    wow.. looks interesting. i will also take a look into this. mukhang matrabaho.. pero i will check more on your topic.. thanks for the share

  22. Pretty Schulz Says:

    this is very useful.. thanks for sharing, maybe i could use it in the future.

  23. Maria Merchediz Says:

    Wow! This is one hell of an information here. Everyone should read this. I've learned a lot..

    Thanks for sharing this one! ♥

  24. riz Says:

    great tips.
    i have this sister-in-law who works in manila water and she's very much into stock buying. i am not really sure how this works but we have a small amount shared into this investment. we get our share of dividends from her.

  25. Personal Finance Apprentice Says:

    Great tips!

    This is my dream - and I'm sure a lot of others' dream too! :D

    The stock market is the easiest to get into, but it's the others that will really get you over the hump.

  26. Hero Latonio | Pinoy Billionaire Says:

    The Best thing about online incomes is the scalability you can do once you set one that is already making money. I had started my quest online since 2007 and made lucrative incomes rising from small end projects to controlling firms.. I would always choose online ventures over traditional business as i did do both.. Great blog btw..!!!

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