Do you ever wish that you could just sit back without working, and let the money roll in? Well, that is the exact idea of passive, also known as residual, income. With passive income, you are not trading your time for money, as you would be with a standard 9-5 job. With these boring normal jobs, you only get paid when you are working. Wouldn’t it be great to also get paid when you are eating dinner, playing with your kids, or even when you are sleeping?
With passive income, you do a lot of work up front, and then let income from whatever you worked on continue to come to you for the next five or ten years to come. As defined by Pat Flynn, Passive income is, “building online businesses that take advantage of systems of automation that allow transactions, cash flow and growth to happen without requiring a real-time presence.” I believe that this definition perfectly sums up what passive income is, and what it means.
There are many different types of passive income, including;
Each of these will be explained in later articles, but you can already see how a lot of these would work as means of passive income.
There are two types of passive income, term, and true. True passive income is where you provide the product up front, then continue getting paid whenever someone purchases the product. Examples of this would be a book or eBook, or software. Term passive income is getting paid at certain intervals, most often at the end of the month. An example of this would be writing for sites like Info Barrel. You get paid at the end of the month, and based on how many page views and clicks your ads get, you get paid a certain amount.
Passive income is achievable, but it is not easy. It takes hard work, but most of all, persistence. Many people fail at creating passive income because they simply give up. I personally know many people who give up on their blog or passive income stream after 6 months. I also know people who, after about a year, have their blog take off, after not giving up, even when they really wanted to. They got through it with support, and their own reasoning, and boy did it pay off. The bottom line is that you can not give up. Passive income can work for almost anyone (even you!), you just have to try.
To conclude, passive income is an exciting, and very possible idea. There are many different ways to generate passive income. There are two types of passive income, true, and term, which each generate money in different ways. However, to actually generate income this way, it takes persistence, and hard work. I wish you all luck with your future passive income adventures! if you would like more information on the aspects of passive income, including many different types, please look out for follow up articles. On my infobarrel account page.