Here’s the truth: a successful business is something that successfully solves a problem. And that business can make more money in two ways: solving more people’s problems, or solving bigger problems. The cool thing about the EP Model is that sometimes these products don’t even have to be yours. You can generate income by recommending other people’s or companies’ services or products. This is called affiliate marketing. It’s actually how I’ve made most of my money since I started in 2008.
Vanguard: Vanguard has a minimum of $50,000 and a fee of 0.3%. Rebalancing is done automatically once every quarter and tax loss harvesting is done on a client-by-client basis. We included Vanguard because clients who invest between $50,000-$500,000 have access to a team of financial advisors. Those with accounts over $500,000 will have a dedicated advisor.

Start an affiliate marketing website: This passive income model works for individuals who already own a bog or website. Here, your business goal is to contact companies and offer to tout their products and services, usually for a fee or a commission, based on the number of page views you get. Studies show that more people spend time online and less watching TV or reading the newspaper. Take advantage of that leverage and earn income from the tens of thousands of companies who want to reach an audience - maybe your audience. Either reach out to companies directly or go through a site like ClickBank, which offers affiliate marketing opportunities.

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There’s a second downside to this model. Although I’ve done advertising and sponsorships in the past, and have made hundreds of thousands of dollars doing so, the truth is it takes a lot of time for this business model to start to generate income for you, because you need to build that audience first. In addition, what happens when you build your audience on a platform that ends up changing its algorithm, affecting how often you actually get seen by the audience you’ve built?
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If you’re a YouTube personality, this is how you generate your income. An amazing example of this how Antonio Centeno got 1 million YouTube subscribers. If you’re a blogger who gets a lot of traffic to your site and uses advertising or sponsorships, then you’re also following the AA Model. Got a podcast with sponsorships? Same deal. I talk about successful podcast sponsorships and other ways to make money podcasting here:
Once your audience has grown and you have validation that you’re offering them value, there are many ways to create passive income. You could sell digital products like ebooks or courses, take up affiliate marketing in which you promote other company’s products and earn a commission when you sell that item to your audience, build a community and charge people to be a part of it, create software and sell that, among other avenues. Ask your audience directly what would serve them best, or look at what they’re saying on Twitter, Facebook or other websites, to find out what problems they have and how you could help solve them.
Investing is arguably the easiest way to make passive income.  The problem is most investments sound good in theory but don’t work out so well in practice.  And if you don’t have much experience or access to capital, let alone the time to work it all out, it can seem more or less impossible.  However, there is one smart way to invest that just might work.  Continue reading >
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.
I’m feeling inspired! I’ve been a PT for 19 years and I feel I have so much experience to offer but have been so intimated by starting a blog. I also subscribed to Michelle’s website but wasn’t sure it was for real. Is it for real? After reading this I feel like it’s time to take the plunge, I need to start a blog, I have so many ideas and even course ideas. I want to get away from the paperwork that plagues our healthcare system but not leave the field so the blog just might be the answer. I’ve been a landlord for 15 years now, great investment for sure, renters paid for the down payment of our house and should hopefully help pay for our kids college. I’d love to have one more! Thank you for the inspiration, wish me luck with my blogging!
You can find dividend stocks using Google Finance Stock Screener which is free to use. Set the search criteria for the P/E Ratio, and Dividend yield (shown as a percentage) criteria. You can set minimum and maximum values; in the dividend yield box, set it between 2 and 100. This will search for stocks that pay dividends worth between 2-100% of the current stock price.
This world is a dangerous place to live, not because of the good people that often act in irrational and/or criminally wrongdoing ways within the confines of their individual minds, core or enterprise groups, but because of the good people that don’t do anything about it (like reveal the truth through education like Financial Samauri is doing!). Albert Einstein and Art Kleiner’s “Who Really Matters.”
When I purchase an existing online business, I look for cash flow over the past year and where the money comes from. I want the sources to be more passive so that it does not take a lot of my time. Also, typically I will make an offer that is 18 – 24 months of profit so that I know that I will get my money back within the next two years. I hope that helps!
I just want to add that there are additional benefits to structuring your business this way. By creating packages around specific products, you begin to be known as an expert for that product. Instead of having to learn ALL of the options out there, you can focus on just the best ones. This can help grow your client base and help you become the “go-to person” for specific platforms or services. When clients and colleagues start sending referrals your way as a result, you’ve developed yet another source of income!
Vanguard: Vanguard has a minimum of $50,000 and a fee of 0.3%. Rebalancing is done automatically once every quarter and tax loss harvesting is done on a client-by-client basis. We included Vanguard because clients who invest between $50,000-$500,000 have access to a team of financial advisors. Those with accounts over $500,000 will have a dedicated advisor.

Most six-figure bloggers will tell you over 80% of their income comes from their email list. This process is that important! Through this means of communication, you can set up an autoresponder series that builds trust and promotes products – your own or affiliate – hands off. You can not only promote your latest blog posts, but also your most popular, most comprehensive and best monetized posts regardless of their age.
In expensive cities like San Francisco and New York City, net rental yields can fall as low as 2%. This is a sign that there is a lot of liquidity buying property for property appreciation, and not so much for income generation. This is a riskier proposition than buying property based on rental income. In inexpensive cities, such as those in the Midwest, net rental yields can easily be in the range of 8% – 12%, although appreciation may be slower.

I have had a LC account for almost 2 years. Invested 5k. A lot of very small loans. Unfortunately I had to invest though Folio FN. The fees reduce your return. Now, they are not even allowing that. My interest and return of principal are not being reinvested. I talked with LC and they are working on it for my state. Even if I can obtain access to the prime portfolio, I would only place 10 percent of my cash here and would reinvest for at least 3 years. I am still concerned about what would happen when a recession hits.
I think you should use Financial Samurai to raise your passive income. You’ve already proven that you writing 3 articles a week is enough to not only sustain the site but grow it. Why not have more guest writers post articles? Since you started with the extra post each week I’m guessing traffic is above your normal growth rate. Leverage that up with more posts and my bet traffic will continue to grow.
Recurring monthly income can be obtained online and once the work is put in, you can continue to reap the benefits for years to come. With a simple website, branding, some decent content marketing and solid SEO, just about anyone can begin down the path of a true entrepreneur and build a foundation they are proud of and willing to share with others.
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.
Being able to generate passive income largely depends on your audience, and if they detect that you care more about making money than serving them, you won’t succeed. “Whenever I’ve seen people do something just for the money, they’ve failed because their intentions aren’t driving them in the right direction. It should always be about helping people and about the passion of making others feel better. The byproduct of doing that is generating money,” says Flynn.
1. The batting cage idea is very risky. I’ve seen many of them close over the years and it is not anything close to passive income if you want to keep the business going. You have to continually promote it and target youth leagues, coaches, schools etc to catch all of the new players who grow up and want to play. I’ve played at probably 8 batting cages over the years and 7 of them closed.
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
I prefer assets that make me a high return for the lowest amount of work possible (semi-passive involvement). And assets that pay me in several unique ways. Cash flow is only one way RE makes money for me. I also get principal reductions, appreciation, tax advantages (depreciation), and I control the rental increases on a yearly basis. Plus a majority of the capital is provided by the secondary market on 30 year fixed low interest rate debt.
Unfortunately, I can’t answer that conclusively one way or the other. It all depends on you, what you like to do, your work ethic, personality, etc. If you are a good writer perhaps you could write a book and make money that way. Or, you could start your own website and do affiliate marketing. Just because you are young it doesn’t mean you can’t make money doing at least a few of these ideas. I wish you luck in your money making efforts!

Start an affiliate marketing website: This passive income model works for individuals who already own a bog or website. Here, your business goal is to contact companies and offer to tout their products and services, usually for a fee or a commission, based on the number of page views you get. Studies show that more people spend time online and less watching TV or reading the newspaper. Take advantage of that leverage and earn income from the tens of thousands of companies who want to reach an audience - maybe your audience. Either reach out to companies directly or go through a site like ClickBank, which offers affiliate marketing opportunities.

I have already come up with 50 ways that a management company can screw you for profit without you ever knowing(or not finding out for awhile). Did you have an inspection before you made an offer on the property? Do you have a picture of the property you bought? How do you know if that picture shows the house you actually own? or if it even hows the ‘current’ state of the house you own?
While this does seem like sound logic on the surface, it is pretty obvious only a moron would put $50,000.00 into a business and not quantify the risks/rewards. If Ethan is worth 5 billion dollars and puts $50,000.00 into a losing business do you think he would just walk away? Obviously he would. If Ethan takes out a loan for $50,000.00 and his business is hemorrhaging money daily to the point he is losing more money trying to run the business than to simply pay back the loan, do you think he would just walk away? Again, obviously he would! These stupid analogies with less than a moment of critical thought being put in is what makes MLMers look incredibly stupid and proves they are not real “business owners”.
Opportunity cost is the basic concept at the heart of residual income. Opportunity cost refers to what you are giving up to use an asset for a particular project or investment. Let's say you start with $100,000 cash in your stock portfolio and grew that money to $104,000 by spending only a few hours per month trading stocks. Now $4,000 in profit may look just fine when you consider that you only worked, say, 20 hours for it in total. However, once you consider your opportunity cost, your little hobby will not look nearly as profitable. If banks are paying six percent for risk-free certificates of deposit, your $100,000 would have grown to $106,000 simply by depositing it in a bank. Your opportunity cost is $6,000
I have not. While I am intrigued with the possibility of making online income, it seems to be less passive then how I want to spend my time. Regarding your blog / site, you have done quite well for yourself. However, you have to keep pumping out content or your site would eventually go out of business. That sounds like more of a commitment then I would want. Regarding your book sales, it is probably relatively passive now, but certainly was not when you were writing the book. Now if you love it, great. Just not for me.
Charge a monthly or annual fee to offer members access to exclusive advice or products. Sell your expertise through exclusive podcasts, offering live FAQ sessions through Skype, or forums. You may want to try selling a monthly subscription to allow users to sample new products, similar to a book club. Frequent interaction increases interest and helps build membership through word-of-mouth.
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.

Investing in rental properties is an effective way to earn passive income. But it often requires more work than people expect. If you don’t take the time to learn how to make it a profitable venture, you could lose your investment and then some, says John H. Graves, an Accredited Investment Fiduciary (AIF) in the Los Angeles area and author of “The 7% Solution: You Can Afford a Comfortable Retirement.”
Ayman , MLM has to be one of the most evil and Satanic ventures ever to exist, I have seen so called loving Christians turn into cornered rats when they get called out on the way they deceive people.The real God of the MLM industry is the worship of money and greed and materialistic crap. No one golfs all day or lays around the beach all day in MLM, they can’t afford to, or they would loose their so called residual income as fast as you can drink a $5 protein shake.
I am 30 years old and am retired. Previously, I made a modest salary as an Army officer. I own three duplexes and a quadplex in central Texas (10 rental units in all), and each of the properties provide me with net rental yields in excess of 15%. The last deal is actually an infinite return as my partner paid the down payment in return for a 50/50 split on a property that would otherwise provide a net rental yield of 18%. The above net rental yields also factor in an excellent property management team who manages my properties while I pursue other investment opportunities. To date, I have never interacted with any of my tenants nor have I ever had to personally deal with any maintenance issues.
If you’re a YouTube personality, this is how you generate your income. An amazing example of this how Antonio Centeno got 1 million YouTube subscribers. If you’re a blogger who gets a lot of traffic to your site and uses advertising or sponsorships, then you’re also following the AA Model. Got a podcast with sponsorships? Same deal. I talk about successful podcast sponsorships and other ways to make money podcasting here:

Fundrise – With a minimum investment of just $500, investors of all types can make crowd-funded real estate investments through Fundrise. This means you get the benefits of being a landlord without actually having to deal with owning or managing the properties yourself. Even though we own 2 rental properties, we recently began investing in Fundrise ourselves. We love it because there is no “accredited investor” requirement, making it far more accessible for the average person than the other two options below. Follow the link above to learn more, or read our full review here.
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.
Of course, there are large fast-food, pet store, and other enterprises that cost a great deal. However, consider a DVD rental machine, soda, or gum ball machines as more passive avenues to income. These require little maintenance, coins, bills, or revenue collected via credit cards, as well as periodic refilling of machines.  These machines are, perhaps, one of the more lucrative paths to a passive income with little input from you.
However, until we get another reset in valuations (I’m calculating a 40% to 50% correction is justified ), I’ve moved largely to the sidelines. Beginning in July 2013, I began slowly reducing equity exposure and am now sitting firm at 40% with the balance in various forms of 5 yr cd’s and short duration bonds. This is down from over 60% when I ramped up to take advantage of the March 2009 lows.
Hey Mike! Love this article. Recently, I paid off my student loans and am crazy focused on creating multiple passive income streams. Currently, all my passive income comes from real estate and because of your great articles on the subject I called to check out refinance options! I had no clue about CD laddering, dividend investing or P2P lending until two weeks ago when I started doing my research on where to put my hard earned money. I had been just saving it but when I looked at the terrible 0.01% return I said forget it! 2 % for me is a great way to start. It is better than what I have been getting outside of my real estate. Also, creating products is a must! I’m working on this type of royalty too. I find it so exciting to learn how to use your money to make money. Thanks and I will be sure to link to you when I start my blog!
The easiest way to make truly passive income is to invest your money into a stock, ETF, mutual funds, etc. The richest people tend to get even richer because they consistently invest and reinvest their money. Keep it up, and you might even be able to never have to work again. I know one guy whose investments now earn roughly $50,000 a year in dividends, and so he is free to live without working if he so chooses.
Greg Johnson is a personal finance and frugal travel expert who leveraged his online business to quit his 9-5 job, spend more time with his family, and travel the world. With his wife Holly, Greg co-owns two websites – Club Thrifty and Travel Blue Book. The couple has also co-authored a book, Zero Down Your Debt: Reclaim Your Income and Build a Life You'll Love. Find him on Instagram, Facebook, and Twitter @ClubThrifty.
When I purchase an existing online business, I look for cash flow over the past year and where the money comes from. I want the sources to be more passive so that it does not take a lot of my time. Also, typically I will make an offer that is 18 – 24 months of profit so that I know that I will get my money back within the next two years. I hope that helps!
Hello from the UK! Fundrise and Wealthfront are only available to US residents it seems :(. Any other readers from the UK here? The only thing I have managed to do from Sam’s list is getting a fixed rate bond (CBS is having a 5-year fixed rate at 2.01% – not great but the best I could find ). Don’t know if the FIRE movement will ever take off here but would love to trade tips/ideas on how to reach FI and have the freedom to consider alternative rythms to living.
Our favorite platform for this is RealtyMogul because you get the flexibility to invest as little as $1,000, but can also participate in REITs and private placements – typically not offered to the public. Investors can fund real estate loans to gain passive income or buy an equity share in a property for potential appreciation. Their platform is open to both accredited and non-accredited investors.

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Many people in the investment world also define residual income as revenue stemming from a passive source. This revenue is created without a direct input of effort or time. The investment itself creates addition revenues without having to be managed. Some examples include royalties, dividends, interest, and rent. Take a dividend stock for example. Once the money is invested once, it will keep producing a dividend every year without having to input additional time or resources. This concept is the Holy Grail for most investors.
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