​Self Publishing is mainstream today. When you purchase an eBook off of Amazon there’s a pretty good chance you’re buying a self-published book. Self-publishing is also ridiculously easy. I tried this a few years ago and couldn’t believe how simple the process was. To self-publish a book you’ll first need to write and edit it, create a cover, and then upload to a program such as Amazon’s Kindle Direct Publishing. Don’t expect instant success though. There will need to be a lot of upfront marketing before you can turn this into a passive income stream.
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.
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After some long chats, I learned I need a schedule. So now I know when to work, and everyone else knows when it’s my time to work: It’s after the kids go to bed. Things will change everyone once in a while — if I have a big project coming up, for example, like during the recent launch of my podcast player, I was asking my wife, can you watch the kids longer?

Tied into this point, I like how Scott discourages big dreaming from the point of view that when you try to solve too big a problem, you’ll normally fail since you don’t have the resources to tackle it – eg don’t reinvent say ecommerce platforms with complex software, instead create an online video-driven course on how to build online stores using WordPress (as an example!).
I launched that in October of 2008, and that very first month I sold that book for $19.99. I sold it in a way where people could come to the site, purchase it and, immediately after, the book, which was simply a pdf file I had written, was directly digitally delivered through an email to them. And as a result of that payment, it was just money into my Paypal account. That first month, I made $7,008.55. That was just life-changing for me.
Just because the whole notion of passive income isn’t all that passive, doesn’t mean you can’t build monetization into your WordPress site with minimal effort. You’ll still need to participate in all of the general site upkeep tasks like writing new posts, marketing, and site maintenance, but the money-making approach you take can be quite simple and require little work on your part once set up.
But I will temper that opinion, by saying getting your name in print can be great for achieving expert status for use in later ebooks/membership site promotions (your really money spinner), and for gaining new fans that your own distribution efforts can’t get.  For example, Ferriss pulled this off pretty well, using a book to drastically grow his online following / blog readership.

Once again, though, it’s like starting any company. While you might not necessarily need to know how to code, you do need an entrepreneurial mindset, work ethic, and personality type, and you’ll probably struggle for years, going through a string of failures before you finally get it right. If you’re successful, though, the passive income potential is enormous.


I was so excited I wanted to share how it all happened and what I had learned, so I created SmartPassiveIncome.com that same month. Then, as sales grew on the LEED stuff, I had more and more to talk about and I kept sharing how much I was earning and what I was leaning — things that went right, and stuff that didn’t go right. A year and a half later, I started to accumulate a large following and be known as a transparent leader in the space of online business education. I then started a YouTube Channel and my podcast. Then I wanted to experiment. I created new businesses outside of anything I was already doing, and sharing that along the way — that’s how SecurityGuardTrainingHQ.com, CreateaClickableMap.com, FoodTruckr.com and other sites came about. Recently, I started getting involved with public speaking. All the sites have kept growing and people have shared their success stories based off of my own experiments with me, and here I am today.
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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.
A very thoughtful list here. Another relevant book published this year is “Retirement Planning for Young Physicians” by Dr. Ralph Crew. It covers many of the topics discussed here from the perspective of a physician who has successfully saved and retired. The book adds a lot to these discussions with a focus on the importance of lifestyle choices, as well as a realistic (though sobering) view of likely future physician income trends and how to plan accordingly for retirement.

One of the disadvantages of residual income is that income received for initial efforts or investments is not immediately received. For example, if you spend a month creating a new website to generate advertisement revenue, you might only generate $100 a month in passive income. Had you spent that month creating a website for a company that was paying you, you might have hundreds or thousands of dollars upfront that you could use to pay for immediate expenses and purchases. If you don't have an immediate financial need, delayed income could be an advantage.

But I will temper that opinion, by saying getting your name in print can be great for achieving expert status for use in later ebooks/membership site promotions (your really money spinner), and for gaining new fans that your own distribution efforts can’t get.  For example, Ferriss pulled this off pretty well, using a book to drastically grow his online following / blog readership.
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