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!

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.
Investing in real estate: Investing in real estate offers more passive income cash potential - but more risk - than investing in stocks or bonds. You'll need substantial amounts of cash to invest in buying a home -- it usually takes 20% down to land a good home mortgage loan. But history shows that home prices usually rise over time, so buying home a for $200,000 and selling it for $250,000 over a five-year time period, for example, is a reasonable expectation when investing in real estate.
In all reality, any business that involves selling a product is passive in some way. I mean, once the product is developed and created, you’re not actively creating it anymore; rather, you stand back and watch as people buy it and your bank account grows. But when you hear people talk about online passive income, they’re referring to a specific kind of business and specific kinds of products.
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.
stREITwise offers a hybrid investment between traditional REIT fund investing and the new crowdfunding. The fund is like a real estate investment trust in that it holds a collection of properties but more like crowdfunding in its management. The fund has paid a 10% annualized return since inception and is a great way to diversify your real estate exposure.
Under throughput analysis, the only factor that matters is the impact of a proposed investment on the ability of a business to increase its total throughput (revenue minus totally variable costs). Under this concept, the main focus is on either enhancing throughput through the bottleneck operation or in reducing operating expenses. This analysis requires a consideration of bottleneck usage by the likely mix of products to be manufactured, and their margins. This is a much more detailed analysis than is contemplated under the more simplistic residual income approach.
The term “residual income” refers to the income that someone makes after their work has already been completed. An example of residual income is the earnings an author continues to make on a book after it has been published, when fans continue to purchase copies years later. Residual income is ideal because it is money that is being earned while doing nothing in the present moment to earn that money.

The Passive Income Portfolio takes you on an across-the-board journey, spanning multiple industries, toward generating and sustaining passive income. This cogently written piece of work takes you to the heart of creating Passive Income and does it brilliantly with its tiered approach that builds-up the process of generating residual income streams in a structured lucid style. The author dexterously juggles targeted income generating strategies with acute business and financial insights and real life illustrations in a compelling and easy to read format. The subject is covered with ample breadth and compelling profundity using a step-by-step approach. As you roll through the pages and bask in the insights, you will not only witness a change in your mindset but also come across direct go-to resources that you can use to begin implementing the theories mentioned herein. A complete reference book, this is a must read for all the passive income aficionados who want to bite into real substance. http://www.thepassiveincomeportfolio.com/

In my case, I tried leaving the site in “automatic” mode a few times, when I did not have the motivation to post anything new. I found that my traffic, then my revenue, quickly tanked to half of what it should be. So far this has been motivation enough for me to keep writing, when nothing else would keep me motivated. But I have no reason to believe the “passive” part of the revenue would last more than one year. I can imagine revenue progressively going down, until it does not even pay for the server costs anymore.
As you can see, I linked the word PDF with a tool that could help readers if they had the same problems, thus giving them a way for them to solve the same problem if they had it, while earning money from their downloads and in-app purchases. I haven’t actually placed my referral link as this is an educational article, but the principle is the same. That link doesn’t have to be an app, it can also be a page on Amazon, or a link towards some other online store that offers commission for affiliated sales.
What if the manager of the Idaho investment center wants to invest $100,000 in new equipment that will generate a return of $16,000 per year? This would provide residual income of $4,000, which is the amount by which it exceeds the minimum 12% rate of return threshold. This would be acceptable to management, since the focus is on generating an incremental amount of cash.
Many people talk about passive income and create the impression that you never have to do anything to keep that income going. The truth is that you will normally have to keep your eye on things if you want it to run smoothly. For example Richard Branson doesn’t run any of the 400+ companies he started but he goes over the numbers each day to make sure they’re performing well and calls the CEO if there are any problems.

About Blog Physician, Passive Income Enthusiast, Blogger dedicated to helping others achieve financial freedom through multiple income streams. This blog will serve as a personal documentation of my journey to find ways to achieve passive income, which will ultimately allow me to spend more time with loved ones. Follow this blog as I share my ideas on financial freedom through passive income.
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.

​Network marketing, or multi-level marketing, seems to be on the rise. Companies such as Young Living Oils, Avon, Pampered Chef, and AdvoCare are all multi-level marketing companies. You can earn passive income through network marketing by building a team underneath you (often referred to as a down line.) Once you have a large team you can earn commissions off of their sales without having to do much.
But, you don't need to go further than that. You can simply write it and publish it and collect the income. That's all. Send out a couple emails to your list (if you have one) or post it on social media, and there you have it. Passive income. Now, the amount of income you receive depends on the quality of the book you've written. How well did you craft the message? How targeted was the information to your audience? It counts.
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!
For some reason, many writers I talk to are afraid of starting their own niche blog. They're afraid it will take up too much of their time. They're afraid they won't see a decent return on the effort put in. They're afraid no one will want to read what they have to say. And sometimes they're just afraid to start something new because they're not sure where to start. To those writers, I have one thing to say -- Get over it.
Before answering this question, let’s quickly define income: Income is all the money that you earn through any means and streams. There are 2 basic ways to earn money: Passive and active income. Active income is where you sell your time for money - this is your regular everyday jobs. You come into office, sell your time for a certain amount of money per hour, and then at the end of the month you collect your paycheck. Pretty simple and almost everyone understands that concept. However, many don't accept that concept as valid, and see it as slaving off your time instead of putting it to good use and things you actually prefer doing.
Needless to say, you have to find a way to differentiate yourself from everyone else, but if you can, the income can be relatively passive. Chances are, you’ll still have to deal with some questions and complaints from customers about other people’s products, which I’m guessing can be quite a headache, but you don’t have to deal with manufacturing, warehousing, shipping, or any of the other headaches of creating the product yourself.
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.

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.
The appeal of these passive income sources is that you can diversify across many small investments, rather than in a handful of large ones. When you invest directly in real estate, you have to commit a lot of capital to individual projects. When you invest in these crowdfunded investments, you can spread your money across many uncorrelated real estate ventures so individual investments don't cause significant issues.
Not passive. I suppose blogs have a “long tail” like any copyrighted work of art (book or song or whatever), but I don’t think it’s as easy to keep it monetized. That would be an argument for condensing and reformatting your blog posts to an updated, organized print or e-book. I think your traffic estimate is too generous, if you stopped producing current content.
No two blogs are really the same. There are no rules about what you have to post. There are no rules about when you have to post. There are no rules about how often you have to post. But there are a few things that will give you a better shot at earning some real income in no more than a few months' time. Here are some of the keys to successfully earning through your own blog:
However, when you lack the money, you need time. You'll need to invest the upfront time now in order to reap the benefits of automatic income later. It just doesn't happen overnight. So don't expect it to. However, you can do this without quitting your day job. All it takes is some sincere effort over a consistent period, and voila! But, to get there, you'll need to consistently burn the midnight oil or get up at the crack of dawn. Your choice.

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This idea is the first one on the list, because I want to get it out of the way. It’s a good idea for earning passive income, but most people will not succeed at this. You should only attempt to do this if you’re very interested in writing, and you’re an aspiring writer. I only recommend this as residual income for people who are very talented or established writers, or who already have an audience that would buy their book.
But that’s more like a fairytale. You’ll have to put in some effort to continue receiving residual income on the business you started. Talking to your managers and representatives will help them be more productive and run your business better. Marketing your online sales through social media and your network will help earn you more money. But you just won’t have to work at it as your full time job. Think of it as a part time job that can potentially bring in full time pay.
Not passive. I suppose blogs have a “long tail” like any copyrighted work of art (book or song or whatever), but I don’t think it’s as easy to keep it monetized. That would be an argument for condensing and reformatting your blog posts to an updated, organized print or e-book. I think your traffic estimate is too generous, if you stopped producing current content.
5 months ago, I decided to create my own online business. I was really exacted because It was always my dream to earn cash by working from home to be able to unite my family and to retire my father that had been working as a security far away from home. My family and I only used to see him three times a year. I would like to change it, and online business gave me a possibility to make my dream to become real. I really was committed to giving all my self to succeed in building a successful online business. As a matter of fact, I failed to do it on my own. I was so disappointed because it seems that I was born to fail. It was 22nd June at night, I was hearing a motivational speech, so one of the guys said,” Copy what successful people’s strategy as your own, and you will get the same result that they have”. That opened my mind because that was the secret, I did not realize that there are a lot of people in this marketing a year. So, I took some online courses from gurus. Following their steps. right now where am I? I am now a successful online business of 22 years old trying to retire his father. I really thank people a lot that have the mindset to share this priceless information in this blog. Indeed, thank you.
Once again, that extra income was amazing because we were then hit with another blow. At six months pregnant, we were told that our second son would come out with health problems. I took the time to research and prepare and after he was born, our life completely changed for about two months. He was very sick, in the NICU, and almost lost his life twice. A blood transfusion was what finally saved him. During those months I did nothing in the way of working my business. Yet I still got paid. I was able to take the time to be with my son in the NICU, care for my then toddler with special needs, and still make a monthly income that could help with groceries and bills.

Truebill is an app that helps you save money by identifying recurring subscriptions and other bills and helping you cut costs by negotiating better rates and fees. One of their partnerships is with Acradia Power, which has the potential to save you up to 30% on your electric bill. It searches for better power rates in areas where competition is allowed, and it locks in the better prices for you.


Not exactly, even though that’s what passive income pushers would have you believe. No, once your site goes live, you need to perform various marketing tasks like promoting your posts and interacting with people on social media, commenting on other blogs, and seeking out new promotional opportunities. Oh and any good blog out there isn’t just preloaded with content and left to stagnate. No, you actually have to write new posts, too. And even if you hire someone to write the post for you, it’s you who has to edit them, schedule them, and oversea the whole operation. All of these things are not passive at all.
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).
Investing in a business: Another good way to generate passive income is to invest in a business --even a small one -- in return for a percentage of the profits - just like Shark Tank, only smaller. Lending $10,000 to a local business that, for example, is working on a mobile app for Apple phones could lead to a passive income-generated share of the profits when that mobile app starts selling like hot cakes.
Passive income is hard to generate for one reason – the world is dynamic. Human beings, some who work with you, some who you compete against, are dynamic, and because of that, if you are to do business, you must be dynamic. The only way to respond to dynamism and succeed, is to be dynamic yourself, and therein lies the work – and the end of any chance for passive income.
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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.
I say almost because in truth you still need to do something in order to keep sales coming through. That something is usually write new content to keep the blog active. Without activity, eventually the flow of traffic will cease. It might take a long long time, especially for blogs in a high authority position with firm rankings in the search engines, but eventually, a blog with no new content stream will die…at least I think it will (I often wonder whether a blog like Steve Pavlina’s would ever die given the eternal nature of his blog posts – I think the search engines and all those incoming links might continue to send him traffic for a long, long time).
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.

PPS oh you thought I was done did you?!  The other parts of the book, although not truly passive income generation focused, are amazing too.  I know things like the low information diet and killing interruptions have made a huge difference to my success – and if I can try and get a little more consistency in my adherence to them, then happy freaking days!
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