All that being said, the residual income valuation approach is a viable and increasingly popular method of valuation and can be implemented rather easily by even novice investors. When used alongside the other popular valuation approaches, residual income valuation can give you a clearer estimate of what the true intrinsic value of a firm may be. (Don't be overwhelmed by the many valuation techniques out there - knowing a few characteristics about a company will help you pick the best one. See How To Choose The Best Stock Valuation Method.)

Do you know of a successful business that needs capital for expansion? If so, you can become something of a small-time angel investor and provide that needed capital. But rather than offering a loan to a business owner, you instead take an equity position in the business. In this way, the business owner will handle the day-to-day operations, while you will act as a silent partner who also participates in the profits of the business.


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I love how real this article is. I’m so exhausted at seeing headlines and articles that lead people to believe blogging is somehow passive income and that passive means your not working. It’s heartbreaking, but I’ve seen several friends dump their entire life savings (and lose it) to try and live off of a blog based on the reportedly easy and formula-like ways to earn six-figures overnight. One of my friends just lost his wife, child, and home because he tried to jump right into blogging for a living and didn’t front load the learning because so many misleading articles told him it would be easy. He worked off of infopreneur blogger to-do lists like “get a URL, “write lot’s of content,” and “promote on social media” to win millions of visitors in just three months. Thanks for keeping it real.
There are three primary types of income you might earn. Active income is your compensation from working at a job. You basically trade "hours for money." Your employer pays you an amount based on your hours worked or the sales you make while at the workplace. Portfolio income involves money you make from interest, dividends, royalties or capital gains, when you sell an asset — stock, real estate, etc. — after owning it for some period. Passive income includes monthly residuals, which represent regular income you earn, not for active participation now, but for your past achievements.
In the past, most people wouldn’t have considered selling software to be a source of passive income, but I believe that’s changing. Thanks to tools like Bubble, creating simple web or mobile apps is easier than ever before. You can do a lot without knowing how to code or hiring a developer, and in the future, I think that’s only going to become more and more true.
The Book on Rental Property Investing – Brandon Turner helps to run one of my favorite real estate investing sites, Biggerpockets. His book is written in the same easy style and with the same intent as the blog – to help everyone have an understanding of real estate investing. It contains lots of practical advice and it is completely honest in saying that real estate investing is not a get-rich-quick scheme… but anyone can do it.

Residual income is when you continue to get paid after the work is done. This includes royalties from books, movies, or songs and also income that comes from real estate or business investments where you don’t actually have to be present to earn it. For example, Bill Gates is still making a residual income from Microsoft even though he isn’t working there anymore.
I would not have read this post now if I could’ve slept. I’m glad I read it though because I have heard how easy and fast you can make “passive” income and not have to work many times. I am not one to spend on a lot of programs but I am finally realizing how much work is involved in getting to a point where you only work a few hours a week and make a good living.
There are so many great resources today at our fingertips to learn about the world of investing, business, and finance such as blogs, podcasts, and online courses. However, I feel the most tried and true method is still by reading good ol’ fashioned books. I’ve collectively spent a few hundred dollars to purchase these books, but I can tell you that they have resulted in countless dollars in savings and millions in current and future earnings. There really is no better return on investment.
Stock dividends: Some stocks, especially stocks from big corporate standouts, pay dividends to shareholders based on the number of shares they own, and the percentage of the stock price on the dividend date. For example, if a company pays out 3% on a stock that's trading at $100 per share, you'll earn $3 for every share of that stock you own. Add it up and that can be good take-home pay as a passive investment.
You can add products to an existing page or post or create new ones for each product. This is a good solution if you maintain a blog on a regular basis and want to earn a little extra money from the endeavor. A product can appear at the beginning of a post, at the end of a post, or even within the post content. Utilize the included shortcode for faster insertion. You will also need an Amazon Product Advertising API to make this plugin work.

I always knew it would take hard graft and a lot of time. I started writing three years ago, at that time, for no other reason than I wanted to put pen to paper. However, over the years my blog has developed into something I would like to focus more on and would like to monetise it. So can I ask, are there any good books or other websites etc I should be reading to help with SEO etc – I understand the basics but I now want to know more.
Bryan said, "People who have become very wealthy through business have gotten very good at leveraging their time in their pursuit of creating value. They've done that by first creating value, and then automating the process of creating value, so they can scale and provide even more value to more and more people. But it starts with the fact that they already understand how to create value. They understand it so well, that they're able to create that value and then automate and scale the process of creating more of it.
Sorry I don’t think blogging is passive income. Truly passive income comes in rain or shine – pensions, annuities, dividends, SS. In some cases, even when you are 6 feet under (for your beneficiaries). I would even venture to call it “permanent income” (as long as someone is around to collect). As someone else stated, even rental income is not truly passive since there is a fair amount of work going into keeping renters, maintenance, administrative/financial accounting, etc.
I thought I was done, but my sales went up actually, because I think people saw there were guides there and looked to see what else was there, and I was able to price lower because I’m just Pat and they’re a company with overhead. So my guide, which was $29.99 at that time, was outselling their other guide because their guide was in the $100 range, and I think people resonated with me and my story: Hey, I’m Pat, I’m just like you. I created the guide that I wished was available when I took the exam.
Now I’ve been using Swagbucks for a while and have found the money works out to just under $2 an hour so this isn’t something that’s going to make you rich. You’d have to work 2,500 hours to make $5,000 so that’s about three and a half months, non-stop. The thing with Swagbucks though is you can do it when you’re doing something else so I flip through surveys and other stuff while I’m cooking dinner or flipping channels.

I would not have read this post now if I could’ve slept. I’m glad I read it though because I have heard how easy and fast you can make “passive” income and not have to work many times. I am not one to spend on a lot of programs but I am finally realizing how much work is involved in getting to a point where you only work a few hours a week and make a good living.


Great post and comments. All your points in the article are spot on. My vote is Definitely NOT passive income. Launched my blog about 1 year ago without a lot of clear direction. After working with a productivity coach, we narrowed the focus (somewhat) and got rolling with more regular posts in March/April 2017. Small budget outsourcing on Graphics and SEO moved the needle a bit further. Google Adwords campaign a bit further. I just spent about 5 hours re-working a guest blog post for a food site, after already putting in at least 5 hours on the original version. Especially in the early years, there is NOTHING passive about sweat equity. Reducing the learning curve really does add real skills though, so you can hit the ground running and efficiently manage your time. Was interesting to see the vote tallies, thanks for the post.
Do you want to learn about how to find legitimate ways to earn in online? This book will just show you how to do that! You will read about online businesses opportunities and how to take the first steps towards building up your online income. This book’s goal is to help you reach a clear and complete understanding of the many issues surrounding blockchain and its applications. To serve that goal, information is presented clearly, with simple explanations and plenty of examples.
If you’re interested in putting some of your content behind a paywall, our very own Protected Content is where it’s at. This plugin makes it easy to create a membership site that sells access to just about anything. You can protect your content in a number of ways based on certain posts, pages, categories, links, keywords, files, and more. This is a quick way to earn some income from your site.

I have posts that are heavily linked to Amazon and some that aren’t to keep things balanced out. My heavily linked posts are product guides or stuff I was searching for my kids. Some examples are: Non-toxic high chair, 20 non-toxic teething toys, and Gift for 2-3 year olds. My blog is “green” so a lot of my posts are about non-toxic products since this is what I personally look for.
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Being a successful blogger is a lot harder than it looks. Being able to consistently generate enough quality content to earn a loyal and enthusiastic audience separates the men from the boys and Jitendra is clearly one of the up and coming young men in the global blogosphere. He has the passion and tireless drive it takes to cover all of the bases and continually deliver fresh, valuable information that helps his readers make money and keep coming back for more
Peerstreet – This residual income option is slightly different, helping you earn money using real estate backed loans instead of the property itself. By helping fund the loan, you’ll earn a percentage of the interest rate charged to the borrower. Most loans are short-term, generally lasting between 6 and 24 months. You can build your own portfolio by choosing the exact loans you’d like to fund, or Peerstreet will choose the loans for you. Again, you need to be an accredited investor, although the minimum investment here is just $1,000.
Being a successful blogger is a lot harder than it looks. Being able to consistently generate enough quality content to earn a loyal and enthusiastic audience separates the men from the boys and Jitendra is clearly one of the up and coming young men in the global blogosphere. He has the passion and tireless drive it takes to cover all of the bases and continually deliver fresh, valuable information that helps his readers make money and keep coming back for more

Understanding the DTI ratio and residual income balance can be difficult. That’s why it’s so very important to work with a mortgage lender who is experienced in dealing with VA loans. One of our Home Loan Experts would be happy to explain the details that reflect your unique financial situation, and help you make any necessary adjustments in your budget so that you may qualify for a VA loan.

As I was writing the lesson I realized just how complex the structure of the system I use to make money with my blog is, yet also how effective it can be once it is set up. I won’t explain everything here – it took me more than four thousand words to explain all the parts to my students in Blog Mastermind – but thanks to writing it out in detail I came to a realization. If done right, affiliate marketing on a blog can almost be passive income.

Hey, readers. I need your help today. Please vote on the poll at the end of this post. My question is this – should I consider blogging income as passive income? In 2017, we are very close to being able to cover 100% of our expenses with our passive income, but we’re not quite there yet. I don’t count blogging income as passive income at the moment. If I count blogging income, then we’re there. I’d like your opinion on how I should count blogging income. Blogging isn’t really passive, but the income is. It’s somewhat difficult to categorize.
Try to write one good post about an expensive product or a list of expensive products that you recommend and actually use. Make sure it has good SEO and wait about 6 months for it to start making money. This is what started making me money at first. My Non-toxic play mats posts got on the first page of Google results and it started making me affiliate income.

The last plugin I’m going to talk about here today is Sensei from WooThemes. This plugin offers another way to create courses, take on new students, and offer assessments within the WordPress dashboard. Though you can use it as a full LMS, it’s also useful for setting up a course and then walking away. Automatic assessments make it totally possible to accomplish this.


It takes a special kind of person to wear that many hats, and in my opinion, the current positioning in the information marketing industry of “anyone can do this” is just nonsense. Everyone I know who has been successful creating information products is a driven, uber smart entrepreneur. If you’re one of those people, you might consider it. If not, I would look elsewhere.
Ebooks are one of my favorite sources of passive income. Now, you can do this the simple way and just publish it on Amazon's KDP. Or, you can go all out and build yourself a book funnel. Book funnels are powerful, but they won't be fully passive. For example, if you do a free-plus-shipping offer for your ebook (converting it into a physical book), you'll need to create some one-time offers (i.e. extra training) and up-sells (i.e. an audiobook). But, a book funnel can be very powerful.

Private equity funds: This is a collective investment fund that pools the money of many investors to invest in real estate, and real estate experts who have very stringent underwriting standards often run them. Keep in mind that these funds traditionally carry high investment minimums but can generate up to 20 percent of any profits earned (depending on the fund).
Jon, you always keep it real and I LOVE that about you and your writing! You are so right! There’s always an amount of work that goes into creating “passive income” or becoming a blogger who monetizing with services and courses. Thanks for being honest about how long it can take to truly master the required skills. Frankly, I’ve done my 4+ years of undergrad and grad school and what I’ve been learning in the last 2-3 years as I’ve dug deeper into improving my copywriting and blogging skills by taking classes with yourself and other trustworthy mentors is giving me the best foundation to help me build my freelancing business and ultimately step away from my 9-5. For me, it’s all about who I work for, under what conditions, when, and for how much, rather than a “no-work-at-all” lifestyle. That’s totally unrealistic. And I appreciate you, as a well respected “Guru” yourself, for saying so!
If Uber was a thing in my country I would do this every day as you can earn enormous amounts of money just by driving other people to work and back home, while doing the same thing for yourself. This can turn out to be a fun experiment as it will bring you money, and you will have people in your car keeping you accompanied on your way to work and back home. It’s like a school bus, but better!
The right niche -- If no one is searching for information in a niche, you won't get traffic, and you won't be able to convert that traffic into blogging income. That said, you could take a traditionally low-income or low-interest niche and twist it into something more attractive to readers, such as by combining two niches, broadening it, or even narrowing it.
Accretion/dilution analysis Adjusted present value Associate company Business valuation Conglomerate discount Cost of capital Weighted average Discounted cash flow Economic value added Enterprise value Fairness opinion Financial modeling Free cash flow Free cash flow to equity Market value added Minority interest Modigliani–Miller theorem Net present value Pure play Real options Residual income Stock valuation Sum-of-the-parts analysis Tax shield Terminal value Valuation using multiples
These photos don’t have to be really impressive at first sight, or mind blowing at all. Regular everyday photos of chickens, or iPads, or desks with some drawings on it get sold as well as others as you never know what someone might be looking for. Places like Shutterstock and iStock are among the best in their league as they also have the most buyers which is what you really want.
That opportunity was always there, but I didn’t realize it until after four or five people said, “Pat, your stuff is so good, I would pay you for it.” That’s when I finally took action. I began reading as much as I could about doing business online and listening to podcasts and reaching out to people doing it already. I connected with them and created an ebook study guide, a digital book that could help my visitors pass the LEED exam.
Passive income is an income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it. Passive income is a powerful tool that people should include in their financial plans. It means to provide cash flow that is not dependent on your direct work input. Creating passive income is a great way to obtain solid financial streams, and to achieve financial freedom. Real estate is a good example of passive income investing. You can put a minimum amount of money into a property investment that enables you to leverage your money. If you're looking for some books that will help you to understand the basic and advanced concepts of passive income, you've come to the right place. Here you'll get some best books on passive income.
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