Passive Income is a type of cashflow maintained through little to no active effort.
In short, it is money you no longer have to work for.
Development of passive income requires work (active effort) on the front-end. However, once you have established a solid stream of passive income, it can continue to pay you for several months or years — even decades.
3 Examples of Passive Income
1. Subscription Services
For example, say that you find 100 customers who are willing to pay you $47 per month for a consumable product or service. Provided you do not have to manufacture or ship the products each month — or, the work required is minimal — you have generated $4,700 in passive income.
2. Creative Works
Authors and designers often attain a level of passive income, because once a book is written or a game is produced, consumers can purchase the items for years to come. Each time a new customer buys, you will get paid for the work you have already done.
3. Leveraging Physical Properties
Real estate has created countless millionaires, because once you own a property, you can rent it out to others and turn a profit each month with little to no active effort required. Although physical properties will need to be maintained over time, you can hire a properties manager to assist you with this.
How to Generate Passive Income
The internet is sometimes called ‘The Great Equalizer,” because it allows anyone to connect with a global community. To generate passive income, all you need is a solid product or service to market.
For example, I created nearly a dozen online eCourses for Udemy.com. Every month, as new students enroll in these courses, I earn revenue ($1,500 per month on average).