You want to begin generating passive income, but you don't know where to start. That is a common dilemma in today's internet world. The first thing to know is beware of scams. You will find the internet is home to many legitimate ways to make money but just as many ways to lose your money to scam artists. How do you detect a scam? The first thing is the smell test. If it sounds, looks, smells, or tastes too good to be true, it likely is. Anyone that claims you will become a millionaire overnight is likely a scam artist. Anyone that demands a large amount of cash up front before they tell you their secret is selling a dream only.
The next thing to look for is what will generate a good passive income. By its definition, you are looking for something that will give you money with little effort on your part. Now, that wasn't "no effort." That was "little effort." Everything needs some attention occasionally. You will need to monitor sales, do some marketing, process deposits, etc. The passive part comes from automating much of the work in some way. Internet pay-per-view advertising is a good example. Each click generates a small payment. The person receiving the payment needs to make sure their ads are effective, make sure they receive payments on time, etc. The generation of income is passive, but the whole process needs maintenance.
So what is a good passive income opportunity? You want something to
generate income well into the future. Many people do this with intellectual
property. Everyone has the ability to publish e-books. If you have knowledge in
a special area, you can create a book on the subject and sell it. If you are an
artist, you can sell your art online as graphics. Photographs generate income
through stock photo sites. Anything that will pay you when someone downloads or
sees it generates the income you are looking for.
One of the best ways to increase your income is to take your passive income and invest it in other income producing assets like dividend paying stocks. Stocks that have a high dividend yield can produce a new stream of passive income from your profits.
What are some other things to think about as far as passive income goes? Most streams are not enough to support yourself full time. Many people want to have several streams going at one time. This helps keep the income level steady as products come into maturity or grow too old to generate money. Overall, passive income requires as much work as active income. The biggest plus about it is the freedom it gives people. You can work your own hours and your own way.