Blogging income is no more passive income than a writer who writes books for a living. You might get money rolling in during times that you’re not working, from income generated from the work that you already did… but you have to work to make the money. Nobody pays you during the 20-30 hours per week spent writing/researching. The money comes after the work is published. It’s definitely not passive.

I don’t make all my blogging income through them. In fact, the residual income sites make up approximately 10% of my whole writing income but that doesn’t mean they’re not worthwhile. I don’t promote a lot of my content and I don’t use the sites as much as I used to do. I also have my private writing clients who make up a good 60% of my writing and blogging income.
Residual income is different from a salary, or linear income, which is paid out strictly based on the number of hours a person works. Someone who works on a salary is often said to work “paycheck to paycheck.” This is because he pays all of his bills with his first paycheck and then must wait until he gets paid again to have more money. Ideally, someone will work hard building up a business so that he can enjoy the residual income once his goals have been met. Then he can work on additional projects while still earning money from his business.
The whole concept of passive income is kind of a load of hooey. Low maintenance income? Sure. I can get on board with that. But truly passive? Not so much. And I think promoting these kinds of online marketing businesses as anything different than your standard Internet-based companies is being a little bit dishonest to those who are hungry to make a better life for themselves.
It’s not about not working. It’s all about automation. I’m still working. I’m just spending the majority of my time on the things I do best and I enjoy most. I’m out there blogging and networking and bringing people to my site and getting them into my subscriber base where I can encourage them little by little to buy through my affiliate links and purchase the products I have to sell. I’m scaling my business by creating more products and more authoritative posts that contain affiliate links to great resources. My income isn’t limited by time.
Blogging has a very steep learning curve, but if you jump in head first and take it one step at a time (I recommend tackling only one confusing thing per day) and do one new thing each day to work on your blog, you will eventually get to a place where none of it seems confusing! (If you try to tackle too many new things at once, you WILL get discouraged! I urge you not to do this.)
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This is another way to earn passive money from a website: sell affiliate products. Affiliate marketing is convenient and effective, because you don’t have to create or retail any products; you just need to get people to buy a product through your link, and you automatically earn a (small) share of the revenue. The most popular affiliate programs are Amazon Associates and Clickbank.
An interesting story going back to my LEED book — when I sold that book the first month, about 20%-25% of the customers were people who had already passed the exam. They emailed me and said Pat, I wanted to buy this book from you because I needed a way to pay you back for all the information you shared for free with me to help me pass the exam before.
P2P lending is the practice of loaning money to borrowers who typically don’t qualify for traditional loans. As the lender you have the ability to choose the borrowers and are able to spread your investment amount out to mitigate your risk. The most popular peer to peer lending platform is Lending Club. You can read our full lending club review here: Lending Club Review.

There is also an idea that we should work to build a passive income asset and then sit on the beach relaxing for the rest of our lives. The truth is that most people would get extremely bored with this scenario and will be eager to find something to do. That’s why the world’s billionaires continue to work… they love what they do and it stopped being about the money a long time ago.
There are many different methods to valuing a company or its stock. One could opt to use a relative valuation approach, comparing multiples and metrics of a firm in relation to other companies within its industry or sector. Another alternative would be value a firm based upon an absolute estimate, such as implementing discounted cash flow modeling or the dividend discount method, in an attempt to place an intrinsic value to said firm.
Usually when someone needs additional income, they get the stereotypical suggestion to “get a part-time job.” Let’s say you don’t have time and energy to work on that. With passive income, you would keep getting paid whether or not you do any meaningful work. You may do a lot of work up front during the initial days, but eventually you reach a point where the passive income stream gets activated.
According to Uncle Sam, you need to be "materially involved" in an enterprise to earn active income. With passive income, it's just the opposite, as the IRS deems you to be earning passive income if you're not materially involved with a profit-making enterprise. By and large, expect income to be taxable if you are engaged in a passive income enterprise. You will need to report earnings to the IRS.
If you’re signed up for an Amazon affiliate account, you can easily add links to products in your posts, pages, and sidebar widgets using the Amazon Link plugin. You can manually insert product links or you can use an Amazon search widget to dynamically create links for you. Each link that’s created will include your Amazon affiliate ID, insuring you receive the appropriate commissions.
People consider me an expert now, but I still have to get up and keep going in order to succeed and to provide value. You don’t actually have to be an expert, you just have to know more than the people who are looking for that information.  That was the case with Green Exam Academy. I wasn’t a person who got a perfect score on the exam, yet I was seen as an expert because I was the one talking about it online and I had done the test myself and passed it.

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All the hard work that I put in over the past 10 years online, and over the past 5 years on this blog in particular, is all worth it in hindsight. My blog can now easily earn a full-time income on its own without any further help from me except for monitoring the technical side of things (for which I have a tech person anyway). Of course, I don’t like leaving it alone and love setting new income goals for myself, but this is a really nice thing to have in case anything major happens in my life that takes me away from work.
Similar to what Chris Guthrie did with his Amazon niche sites back in 2008-09, you should take every dollar you earn and reinvest it into your passive income business…pay for more content to be created, for better (and quality) backlinks to be built, to buy new niche sites etc.  At least for the first few years.  Chris did this, and it allowed him to go from $0 to $100,000 in just over 12 months.
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