Now that we've found how to compute residual income, we must now use this information to formulate a true value estimate for a firm. Like other absolute valuation approaches, the concept of discounting future earnings is put to use in residual income modeling as well. The intrinsic, or fair value, of a company's stock using the residual income approach, can be broken down into its book value and the present values of its expected future residual incomes, as illustrated in the formula below.
For example, say you watch the interview they did with The Minimalists a while back, you straight away start getting all these thoughts about whether minimalism is a good subject to create an info product around, or whether it could work as an affiliate site that links out to all the products on minimalism (and trust me there are literally 100+ minimalism ebooks out there that you could affiliate sell, oh the irony).
Buy side Control premium Demerger Divestment Drag-along right Management due diligence Managerial entrenchment Minority discount Pitch book Pre-emption right Proxy fight Post-merger integration Sell side Shareholder rights plan Special-purpose entity Special situation Squeeze-out Staggered board of directors Stock swap Super-majority amendment Tag-along right Takeover Reverse Tender offer

Residual disability policies pay benefits according to the amount of income you have lost because of your disability. These policies pay benefits even if you can work part-time and are not totally disabled. The benefit is based on the percentage of income you earn working part-time in relation to what you used to earn when working full-time. Most companies require a loss of income of at least 20 percent compared to your pre-disability income in order to qualify for residual disability benefits.
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If you have a spare bedroom, you can find a roommate or list the space on AirBnB for travelers. Having a roommate is the more passive of the two, as being an Airbnb host will require more work in the form of turning over the room between stays. This is a super painless way to earn $500 to $1,000 a month without much effort – you may even be able to cover your mortgage payment with this extra income!
Thanks for the great post. I have been working really hard at understanding Blogging in nature and I really hope to monetize as I go. I am also really excited about my wife starting out. Which reminds me. I could really use someone that can design WordPress Templates for her blog. Anyways… we are seriously going to have a close look at Blog Master Mind. Thanks again!
I no longer count traditional publishing as passive income because after you’ve spent half a dozen years pitching agents, arguing with publishers, and having your heart broken repeatedly only to make about a dollar per book, it’s not really passive income. More like overdue income. The responsibility that traditionally published authors shoulder is much too high and the cut far too little to make this even a profitable, let alone passive, income option for most writers.
Buy a small business: A local small business, like a car wash or a laundromat, is a great way to put money down on a money-making venture. Automate it so you don't have to be on the premises unless you're collecting money. Go into a local business with your eyes wide open - study the books, especially on income and expenses, and examine water and utility bills if your venture will be open 24 hours.
Getting rich is almost every man’s dream, and with this guide and the valuable information you now possess, you can now actually start working on it. So next time you check your checking account, try to refrain from crying out loudly and come back here to read this article again and give passive income businesses another good brainstorming session. You heard it here first - passive income businesses can be the best solution for a home business and working on your own!
I wanted to specifically call out one particular strategy within equity investing that bears mentioning – dividend growth investing is when you focus on stocks that not only pay a dividend but have a history of strong dividend growth. When I was first building my portfolio of individual stocks, I focused on buying companies with a history of dividends, a history of strong growth, and financials that supported a continuation of both.

Most websites say you should build up an email audience and give them early access and ask them to write reviews. I had no such audience. So when I launched, I emailed tons of my college friends, high school friends, and made posts on Facebook and LinkedIn announcing the book was out there. Some people posted reviews, which helped initially. I also gave out free copies to people if they expressed interest in being reviewers, but many of them never wrote a review :(
There is no short cut to success. There is however a difference to the efficiency and methods you use to develop your ideal personal economics. Take a moment to look around and you will see countless people all working in their own way. Who is successful depends on their financial goals and if they are achieving them. What works for them may not specifically work for you.
I have posted a few times about the idea of passive income. Real estate investing is a much applauded form of ‘passive income’ in the modern sense. If you own properties, and rent them out, you will get rent checks coming in month after month, right? Right, but you still have to go out and locate the tenants, take care of utility issues and upgrades, etc. The idea of passive income is not that you have to completely do NO work, but the idea that when you set up a certain system, most of the day-to-day tasks are on auto-pilot. If you post everyday for 3 years straight, you will still get traffic in from the search engines, Yaro. As long as the ads are still on your site you will receive the passive income. This is your ‘system’. The idea of passive income is that so which you have the freedom to do something when you want to do it and you don’t have to give up working hours to go do that thing AND the money will still keep coming in. This can only happen if you set up your system.
Most websites say you should build up an email audience and give them early access and ask them to write reviews. I had no such audience. So when I launched, I emailed tons of my college friends, high school friends, and made posts on Facebook and LinkedIn announcing the book was out there. Some people posted reviews, which helped initially. I also gave out free copies to people if they expressed interest in being reviewers, but many of them never wrote a review :(
​Affiliate marketing is the practice of partnering with a company (becoming their affiliate) to receive a commission on a product. This method of generating income works the best for those with blogs and websites. Even then, it takes a long time to build up before it becomes passive. If you want to get started with affiliate marketing check out this great list of affiliate marketing programs.
You are a perfect example of what education can co-create Jon; and you wouldn’t be the person you are or the writer you are if you hadn’t paid attention and learned from great thinkers, writers, poets, and rhetoricians. They have shaped your soul, and it shines through your writing. Lots of people manage business and income — active and passive — but few do it with your educated brilliance.
As always, I’m here to answer questions (within my ability) and I can always help you find that YouTube tutorial you need. When you are REALLY ready to start taking your blog seriously, I have many resources available on my learning site, Adventures in Blogging. The Income & Traffic Bundle is a great place to start if you’re dying to learn everything you can about traffic & income.

If you have specialized knowledge in a certain topic, you can put together an online course to teach others. For example, if you have experience in real estate investing, you can create an online course “Real Estate Investing 101”. The benefit of an online course is that once you create the course material, you can sell it to as many people as you want.
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.

One great way to generate a passive income is through affiliate marketing. Now, this does depend on the size of your list. Yes, size matters when it comes to your list. Especially if you're looking to make some serious money and do it on autopilot. But, list-building takes time. It doesn't happen overnight. And you need to add value to your list or you become obsolete.
But I hate the very idea of how the “kick back and do nothing” business opportunity is sold. *Residual* income and *Passive* income are not the same, so I agree with you there. I’d love to see a series that goes more in-depth into what kind of work each type of digital business needs, a kind of fantasy vs reality thing. (Mostly so I could have something to send to people when they ask me, as I’m not in business.)

This was by far my biggest return on investment. It took about two weeks to figure out how to format my book for paperback and get setup for Createspace, but this is nearly 70% of my revenue. It’s ironic because my e-book is $4.99 and my paperback is $14.99. I priced the paperback higher because I wanted to drive readers to the ebook, where I could update it more easily. What I learned, however, is that many of the people buying my book are parents, not students, and they are more familiar with paperbacks. There is also an incorrect perception that you need a Kindle to read Kindle ebooks.


Thank you! This is really helpful. I have Amazon Affiliates, but I want to get more intentional with how I use it. The only negative thing I have about the program is that since I live outside of US the only way I can get paid is by amazon gift card, or expensive checks mailed to me. I mean, I can use the money I earn now on Amazon on things I actually need, but I don’t know if it’s worth putting a lot of effort into earning more when I can only use the money on Amazon 😛

They've delegated, automated, streamlined, systematized, etc. Not with the intention of sitting on some beach somewhere for the rest of their lives and watching the checks roll in, but with the intention of freeing up their time to create even more value that they're inspired to create, either by leading that business to the next level of greatness and service to greater audiences, or by starting a new business.


Another benefit of investing in rental properties is the loan pay down. If you obtain a loan to buy the property, each month your tenants are paying off part of the loan. Once the mortgage on the property has been paid off, your cash flow will increase dramatically, allowing your mediocre investment to skyrocket into a full-fledged retirement program.
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.
​Affiliate marketing is the practice of partnering with a company (becoming their affiliate) to receive a commission on a product. This method of generating income works the best for those with blogs and websites. Even then, it takes a long time to build up before it becomes passive. If you want to get started with affiliate marketing check out this great list of affiliate marketing programs.
While I don’t have any direct experience with it, I know it can be quite profitable, especially in niches where you have high profit margins and low shipping costs. Vitamins and cosmetics, for example, are two popular drop shipping industries. Anyone can theoretically start a “store” and have dozens or even hundreds of products to offer within a matter of days.
Affiliate marketing spins around having readers click on the links in your articles and then subsequently purchasing the products you were writing about. Once they click the link in your article and then buy the product, you get a piece of the pie through commission. Commission varies among companies, but usually it is anywhere between 2% up to 10%.
As always, I’m here to answer questions (within my ability) and I can always help you find that YouTube tutorial you need. When you are REALLY ready to start taking your blog seriously, I have many resources available on my learning site, Adventures in Blogging. The Income & Traffic Bundle is a great place to start if you’re dying to learn everything you can about traffic & income.
My advice for beginners – especially beginner bloggers with new sites – focus on your site content and traffic for a while, then add your Amazon links once you have a little traffic. So many beginners focus on making money from their links and sacrifice their content building in the process. Without good content and traffic you won’t make much anyways.
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.
You are a perfect example of what education can co-create Jon; and you wouldn’t be the person you are or the writer you are if you hadn’t paid attention and learned from great thinkers, writers, poets, and rhetoricians. They have shaped your soul, and it shines through your writing. Lots of people manage business and income — active and passive — but few do it with your educated brilliance.
Residual income will continue beyond a specified earnings horizon depending on the fortunes of the industry, as well as on the sustainability of a specific firm's competitive prospects over the longer term. The projected rate at which residual income is expected to fade over the life cycle of the firm is captured by a persistence factor, w, which is between zero and one.

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.

#4. Offer free download: Before you even sell, ask yourself, “What is the purpose of my book?”. If you are using your book as a way to establish authority in your niche then giving away your book as a free download. If you don’t want to give away your whole eBook for free, then give a few chapters to them  Again, make sure you are collecting those email addresses in exchange, so that you can follow up with a friendly email to close the sale.
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.
Most websites say you should build up an email audience and give them early access and ask them to write reviews. I had no such audience. So when I launched, I emailed tons of my college friends, high school friends, and made posts on Facebook and LinkedIn announcing the book was out there. Some people posted reviews, which helped initially. I also gave out free copies to people if they expressed interest in being reviewers, but many of them never wrote a review :(

Index funds provide you with a way to invest in the stock market that is completely passive. For example, if you invest money in an index fund that is based on the S&P 500 Index, you will be invested in the general market, without having to concern yourself with choosing investments, rebalancing your portfolio, or knowing when to sell or buy individual companies. All that will be handled by the fund which will base the fund portfolio on the makeup of the underlying index.


Policies may restrict the amount of part-time earnings relative to full-time, pre-disability earnings. This restriction may be a maximum benefit per month or a maximum percentage of pre-disability earnings. For example, an employee may have purchased a policy with a monthly maximum benefit of $5,000, but may have a pre-disability income of $80,000. The difference between pre-disability income and annual benefits is $20,000 ($80,000 - $60,000), or a cap of 75%.
On a more technical note — reviews do not get duplicated — when a review for a current product already exists, it gets opened for editing (i.e. the bookmarklet informs you of that situation). Then you can proceed to remotely edit the title for that post, you can change its status from Draft to Published, and you can Trash the post (only if it is not published yet). So, shooting yourself in the foot is actively prevented. But you can try all this yourself — the plugin is free and readily available on the official WordPress Plugin Directory. I invite you to continue this talk in the Support forum. Any and all feedback would be highly appreciated. ;)
In addition to the obvious — increasing your monthly income — many people develop specific investment plans for their monthly residuals. Popular strategies include allocating monthly residuals to a retirement account, a down payment on a home, education expenses and an emergency fund. Your strategy should include establishing a reserve for income taxes if you receive residuals in full, without withheld taxes. This prevents unwelcome surprises at tax time.
There are many skills that an entrepreneur must develop and continually improve. Being in business for yourself is extremely rewarding, yet one must be prepared. There will be challenges to overcome, otherwise your business and dreams will die. Do not let that happen to you. Learn the skills that every entrepreneur needs to be successful in today's global economy. Start getting your information here.
The downside is the content may not be on your niche. If you’re lucky like I was with the history niche, there will be others who write on similar, complimentary topics. There was one history writer who covered mostly the Wars of the Roses, while I covered the Tudors and the Stuarts. We worked together quite well to help grow each other’s audiences.

Personality -- Personality's great if your intention is to build a community around your blog. But newsflash: that's not the "right" way to blog (nothing is), nor is it the only option. My small business blog went from $0 - $2000 per month in just a few months, and it was pretty much devoid of personality. There aren't many comments there. I've never made an effort to change that. The posts are simple new and how-to posts. They're not opinions in most cases. There aren't many reviews. I never blogged there to build conversations. I blogged there to earn from my writing. And I have. On the other hand, my PR blog also monetizes rather well. That blog completely revolves around my no-bullshit personality when confronting PR and social media issues. On the other hand, AFW has personality injected, but is also more instructional than NakedPR is -- it falls somewhere in the middle. No method has really proved better than the others overall. It's all about knowing what the niche audience really wants (community vs news vs instructional content or some mix). Sometimes you'll guess wrong.
Finally, a straight forward, honest blog post about earning a “passive income” online. Your time frame is dead-on, Jon, as I have been working online for about 7 to 8 years and just now feel like I am getting a handle on most of the skills required. The real truth is that most online bloggers or marketers have to master many, many skills before he or she can claim true success. Of course, that all depends upon how to you rank your success. If you’re a person who enjoys tackling new challenges, learning new skills, and has a knack for writing, then the online world is definitely the place for you. Just remember it takes a personality who is willing to persevere and who isn’t discouraged easily. That being said, it’s a heck of a lot of fun!
Another variation of this model is to pay for advertising and then earn affiliate commissions from people who click on the ads. Years ago, when advertising on Google and Facebook was cheap, lots of people made a lot of money this way. Nowadays, it’s still possible, but it’s much more difficult, and you have to be much more sophisticated. Nevertheless, I thought I would mention it, because it’s still a viable approach, especially in certain niches.
You not only have to create a fantastic little e-book with a kick ass cover or a DVD, etc. But, simultaneously, you have to be thinking of ways of marketing it and reaching your target market. In this case - just because you built it - doesn't mean that they will come! For example, Paul is able to talk about the Rocket Mass Heater DVD through these forums. He has an active audience already that he can market to. Do you currently have an active audience that you can market to or do you have to develop one for your information product? And what are some ways to develop one?
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.
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.
Most coupon websites start from bedrooms, and later turn into offices with employees.. I can tell that about Indian coupon websites at least… After initial 12-18 months of SEO and other branding activities, the affiliate commissions can easily be in thousands of dollars.. And if Google loves you and gives you 1-3 spots for a popular merchants, then even $10,000 easily..
The underlying idea is that investors require a rate of return from their resources – i.e. equity – under the control of the firm's management, compensating them for their opportunity cost and accounting for the level of risk resulting. This rate of return is the cost of equity, and a formal equity cost must be subtracted from net income. Consequently, to create shareholder value, management must generate returns at least as great as this cost. Thus, although a company may report a profit on its income statement, it may actually be economically unprofitable; see Economic profit. It is thus possible that a value deemed positive using a traditional discounted cash flow (DCF) approach may be negative here. RI-based valuation is therefore a valuable complement to more traditional techniques.
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.
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.

I generate all of my online income through advertising and that’s passive. As long as the traffic is stable, the blog should continue to generate income. The real test will come in a few years when we take a year off from retirement to travel around the world. (It’s going to be hard work to “road school” our kid.) I plan to post twice per week, one post about travel and one refresh/rework of an older article. One year is a long time and I’m not sure how traffic will be affected by this change. I guess we’ll see what happens.


Investing in rental properties: Another form of real estate investment, rental investments (i.e. becoming a landlord) could steer you down the passive income path of steady monthly rent checks that you can use to pay off a mortgage loan on the rental property. After the mortgage is paid off, those monthly checks go right into your bank account -- potentially for years to come. 

Becoming an affiliate for a company can be a great way to start earning commission by writing about their products. Mind you, this isn’t the same as getting paid to write a review, as affiliate marketing is paid by commission. However, most serious affiliate marketing programs require you to have a website, which as you’ll see will become a requirement progressively more as we go down the line.
As for Mr. Tako’s idea of hiring writers above, it’s not bad. However, in my experience it isn’t great either. Managing writers can be as much work as managing the other aspects of the blog. They come and go and I found myself spending more of my time on tasks that I didn’t enjoy (hiring and interviewing). I also felt like I didn’t have the same connection with my readers.

Making legitimate passive income isn’t as difficult as you might think. Some of the best passive income ideas might take a little time to set up but can start cash flowing within a couple of months and will provide a consistent monthly income for years or more. The most important point is just to get started. You make exactly $0 on the passive income sources you never start.


Use affiliate links every time you can and not just for the obvious stuff but for everything you mention that can be found on Amazon. Have a recipe that uses salt? Link to that (see this example). You can link to the actual name of the product or use type: “I like to use this salt” so people actually click on the link to see what it is. I wouldn’t use this method on all links but I do use it especially when I’m listing several items.

Most credit card companies offer sign-up bonuses to entice you to open a credit account with them. As long as you don’t spend money just to hit the minimum balance and always pay your balance on time, this can have a minimal impact on your credit score while earning you hundreds – or even thousands – of dollars a year. Some of the best travel credit cards offer 100,000 points to new accounts when you meet reasonable spending requirements.
 One of the great things about selling on Amazon, as opposed to eBay is that your listing on Amazon is easier to find. If you’re listing a product that’s already being sold by another seller, your entry is organized by condition and price. If you’re offering the lowest-priced listing (and you have a decent seller rating), your listing will automatically appear in the Buy Box.

Sally is a mom on a mission. She is passionate about answering the question, “Can modern moms have it all?” In a previous life, Sally worked for nineteen years as a project manager and business analyst in London and Silicon Valley. She has a Bachelor’s Degree in Computer Science and a Master’s Degree in Business Administration. Since leaving her nine-to-five, Sally has published five bestselling books on Amazon (and counting). You can connect with Sally at sallyannmiller.com.


At some point, you have problems with scale: you need to dive into advanced sysadmin skills to maintain your server up and running, or pay to have it done. Wordpress updates, OS updates, all of this is work, sometimes heavy works when your plugins start to misbehave. Let alone the occasional drill when your site is under a DDoS attack, or just stops responding for no effing reason.
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.
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