Passive income is a form of income that you can earn without having to work and work for it. Well, I should say, work Over and Over. Rather than continuously working in order to keep the income stream consistent, you can set up your passive income stream and sit back while the money rolls in. However, some people are a little dubious when it comes to passive income, and question whether it really exists.
In this article, we are going to take a look at some of the facts about passive income that you should know before you get started and certainly before you start counting your chickens before they hatch! For some people, this is not the way to go! For most people, if you are willing to put in the time and effort, passive income will pay for months and even years to come.
There are real ways to generate passive income
It’s easy not to have much trust in passive income when you don’t know of the ways it can be generated. It doesn’t take long to look at some of the ways you can make passive income quite easily, such as developing an online training course which can be downloaded unlimited amounts of times or blogging about your favorite products to earn commission through reader sales.
You need to invest time and money
One of the reasons why people don’t have a lot of confidence in passive income is because they often have to spend money or invest time in order to be successful. Whether it’s paying the upfront costs of hosting and buying a domain name or paying a consultant to help you understand the more complex aspects of online sales, there are investments which you should make if you want to build a solid stream of passive income. In the next few days, additional articles will be posted about this. In the meantime, you can ready about how to Earn Monty From Your Blog.
Give it time
Passive income is real, but you have to give it time and be patient. You can’t expect to start earning money overnight, or everybody would be doing it. Aside from learning the tricks of the trade or taking more time to develop and improve your existing skills, you will also need to spend time building good networks, investing money in increasing your audience numbers and connecting with freelancers and other experienced webmasters who may be able to help.
Don’t fall for anything that sounds too good to be true
If something sounds too good to be true, there’s a high chance that it might not be the best idea. If you have to pay large amounts of money just to learn simple online skills that you can find in a book or website, check it out thoroughly before you invest your hard-earned cash.
Passive Income is NOT a Get Rich Quick Scheme
Developing a recurring income takes time to build up. You cannot create something, put it in place, go to bed and expect to wake up in the morning with an overflowing PayPal account! Yes, it *can* happen and the chances of that happening are slim to none. If that is what you want, try buying a lottery ticket instead.
Do you have any passive income streams set up already? If so, leave a comment and share with the group. Thanks!
I have a couple of passive income streams, and they make up around half of my monthly earnings. I think they can be so good when they work, but I do agree that they’re definitely not a way to get rich quick 🙂
Louise
Great point, Louise! There is work behind the passive in many cases! Especially in the startup. It usually requires some maintenance to keep it going.
I considet my network marketing biz to be passive income since it pays me weekly, even when I don’t work.
Yes!
I would like to create passive income someday, like with an online course or ebooks, but it’s not happening yet. I have learned the hard way that what you said is true about things that too good or demand a lot of money. Lesson learned.
Checking in, Jeanine… How is it going?
See, I consider passive income to be income that is taxed at a different rate. After all, we bill our clients at rate A; our direct costs are B, our indirect costs are C, and our profit sharing is D. The difference between B,C, and D from A is what is left over. Since I only account for a portion of that amount, is that active or passive?
To be honest, I could care less. 🙂
And, I think that’s the best way to consider the income you may or may not receive from book royalties or annoying the heck out of me (and others) with silly ads on your blog.
Thanks for the thoughts, Roy! However, I too do not like ADS on my site and I don’t usually do that either! In most cases for me (personally), i am annoyed by small ads all over the place! And,that is why I did not talk about ads. Passive Income can be so much more than just ads. Thanks again.
I haven’t looked into passive income but you have great pointers. Maybe someday.
Someday… when you want it! No one says you have to!
Passive income is something I hope to create someday soon.. and I know I need to get to working on it harder – part of the better me plan for the year 🙂
You can do it, Vidya!