Residual income is really the best Way of Life. It's a steady, reliable stream of income not directly dependent on the hours you work. Successful investors enjoy such freedom. Successful book authors get paid even when they don't write. The checks just keep coming uninterrupted, even when you relax. This is much better than hourly work. Much better that salaried work. 
I agree mostly with the real estate advice. I’m looking for ways to take advantage of the condo I own to get up the rent from ~$0.90/ft to the $1.2-1.5/ft that seems more like the range in the same area. I’d have to put in a bit of capital (probably 10k on the low end for just the basics up to 40k if I wanted to remodel the kitchen and 2 bathrooms up to par with the area), so the return is likely there if those upgrades warrant $1.30/ft (given the unit is larger than most 2br/2ba in the area).
I had to get out. I actually had this random Facebook ad come up in my news feed (go figure) and it eventually led me to a webinar that taught on how to start an email marketing business (which is, by the way, the most profitable form of affiliate marketing – or ANY marketing for that matter). I listened through the whole 2 hours, completely mesmerized. By the end of it, I knew what I was going to be focusing on to help my family out of the pit of debt we were in and into a world free of financial stress. I didn’t know if it would actually work, but eventually it lead to EXCESS income!

Earn residual income through referring consumers to an established product or service. Use your site to advertise to the company or companies you are interested in providing referrals for. Referral efforts can be coupled with informative e-books, seminars, or articles about the product or service. Build your newsletter lists in the same manner, the difference being that you are directing consumers to a third-party business.


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.

If you're looking to get started in real estate, look at a crowd funding solution like RealtyMogul. It works similar to LendingClub - you commit as little as $5,000 towards a property. When the property is fully funded, you become an owner, and will receive your share of the earnings and appreciation in the property.  Check out RealtyMogul to learn more. 
The trial court ruled in Karen’s favor and signed a proposed divorce decree that had been drafted up by Brad’s attorney. Neither party appealed the decree. After the divorce, however, Karen’s monthly income began to progressively decline. As a result, she filed a petition in July of 2007 alleging that Brad had violated the terms of the divorce decree. She also proposed an alternative argument that perhaps the divorce decree was too vague and needed to be clarified. The trial court found that the decree was, in fact, too vague, and ordered it to be clarified.
Hi Logan, thanks for perfect article on passive income theme! I am a newbie in this passive income thing but everything I read here seems obvious to me. Why not create a passive income, right? So I started googling about making passive income via internet because I like things connected to the web and I think that this will be a huge thing (it already is) and I found this article which seems that is probably very new but in the ebook there are great informations about passive income, at least in my POV (newbie POV). Is this a legit website or can it actually work? I want to expand on that because my 9 – 5 s*cks… Here is the URL: https://cashwithoutjob.online

In many instances, a business project consumes far more resources than meets the eye. Assume you are running a dog grooming business from the first floor of your two-family house and that your daughter is helping you over the weekends. The business is making $50,000 per year and you want to know whether this represents a positive or negative residual value. In this case, you must deduct from $50,000 all opportunity costs which include the money you would make if you rented the first floor of your house to a business; how much you plus your daughter would earn if you invested the same amount of time and effort into a regular job; and how much the total assets owned by the business would return every year if they were sold off and the cash proceeds were held in a bank account.
P.S. I also fail to understand your fascination with real estate. Granted we’ve had some impressive spikes along the way, especially with once in a life time bubble we just went through. But over the long term (see Case Shiller real estate chart for last 100 years ) real estate tends to just track inflation. Why would you sacrifice stock market returns for a vehicle that historically hasn’t shown a real return?

Develop a website to purchase and then sell services, such as content articles or purchasing a product at a low price and then reselling it.  Another option is to sell the web design service. Sign a contract with an expert and sell the service to others. This type of business is low-risk and has virtually no start up costs. Sites such as eBay or Etsy.com offer products that can be purchased at a very low cost and then resold to gain a profit.

Ayman said, “Now lets apply the same rules to network marketing, you start with a very low cost and yes you may spend on education “which is something you should actually do if you are in the corporate world to increase your chances of having a decent job”, and if you really give it the importance and priority as your day job and be consistent you will achieve the targeted or desired results.”

I am an English major and a herbalist with so many ideas and no extra income to fulfill them. I recently started renting my extra apartment in the attic with Airbnb. It’s amazing how fast I accumulated some money for few hours of work between guests. Now I want to persue all my dreams of opening an online herbal store, publishing my ebook of treating Ulcerative Colitis with herbs, blogs, and videos, and pretty much all of the ideas mentioned here. I will save this article as its really helpful for whomever needs some ideas…
Passive income differs from active income which is defined as any earned income including all the taxable income and wages the earner get from working. Linear active income refers to one constantly needed to stay active to maintain the stream of income, and once an individual chooses to stop working the income will also stop, examples of active income include wages, self-employment income, martial participation in s corp, partnership.[4] portfolio income is derived from investments and includes capital gains, interest, dividends, and royalties.[5]
I’ve owned several traditional brick and mortar stores in a few locations around the world and have always been a small business owner at heart. But with www.missmamiescupcakes.com, I am on track to generate $1,000 per month in passive revenue through my reviews. It does take a fair amount of work up front, but once you get traffic, it converts to passive revenue pretty quickly.
If you’re worried about launching a new product, and think you might need some feedback to make it really good, Flynn recommends “pre-selling” an idea — for instance, offering a limited number of spots or seats into, say, a course you create and giving the test group specialized attention so you can see how to improve the content. Once it’s revised (or, if it’s software, once all the bugs are removed), you could open it up to your whole audience.
If you need cash flow, and the dividend doesn’t meet your needs, sell a little appreciated stock. (or keep a CD ladder rolling and leave your stock alone). At the risk of repeating myself, whether you take cash out of your portfolio in the form of “rent”, dividend, interest, cap gain, laddered CD…., etc. The arithmetic doesn’t change. You are still taking cash out of your portfolio. I’m just pointing out that we shouldn’t let the tail wag the dog. IOW, the primary goal is to grow the long term value of your portfolio, after tax. Period. All other goals are secondary.

What are your thoughts on an Immediate Annuity as a passive income vehicle? I suppose it’s not a great investment since you never get your principal back, but the risk is zero and the cash flow is fairly good, approaching 6% currently. And, since you are guaranteed payments for life, you may not care that you never see your principal again anyway since you’ll be dead!

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!
P2P lending started in San Francisco with Lending Club in mid-2000. The idea of peer-to-peer lending is to disintermediate banks and help denied borrowers get loans at potentially lower rates compared to the rates of larger financial institutions. What was once a very nascent industry has now grown into a multi-billion dollar business with full regulation.
The first time I did affiliate marketing was way back in the day on my architecture exam website. I connected with a company that sold practice exams, which gave me $22 for every person who bought one of their exams via my site. Since then, I’ve generated over $250,000 simply by recommending that product alone. Again, this is a product that was not mine, but one that has still been helpful to my audience. This was all done with thousands of visitors a month. Not millions, or even hundreds of thousands.
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.
6. Thank you pages: When you sign up for most blogging newsletters these days you may have noticed you are often immediately directed to a thank you page that tells you to check your inbox for a confirmation link. This person has already committed to you and considers you somewhat trustworthy, so it is a great time to offer them something special to take things to the next step – a sale. Maybe you can offer a special discount on one of your paid products or secure a special discount from your favorite affiliate product related to whatever it was they just opted in for. This is often called a “tripwire.” For it to work, the offer should be inexpensive and painless. Whatever you are offering here it should be value-driven instead of a hard sell. You don’t want to run people off before you even get started. With the right tripwire, you can easily justify and offset advertising as well should you choose to run ads to your opt-in freebie at some point.
Ayman said, “Now lets apply the same rules to network marketing, you start with a very low cost and yes you may spend on education “which is something you should actually do if you are in the corporate world to increase your chances of having a decent job”, and if you really give it the importance and priority as your day job and be consistent you will achieve the targeted or desired results.”
Residual income is calculated as net income less a charge for the cost of capital. The charge is known as the equity charge and is calculated as the value of equity capital multiplied by the cost of equity or the required rate of return on equity. Given the opportunity cost of equity, a company can have positive net income but negative residual income.
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