What is passive income?
Any income that is sustained long after you have put in the necessary effort.
A passive income opportunity is any source of money that you get long after you’ve been the bulk of the work.
Sure it is difficult to put in effort into a project when you don’t see any immediate results. This is the major caveat about passive income. You are putting in work TODAY in hopes of seeing results tomorrow.
Before I get too off topic, let’s look at some popular passive income opportunities to see what’s out there:
Create & sell a product online
You can try some simple sources of passive income. Metcafe allows you to create videos and you will be paid if the videos are viewed by a major portion of the visitors. You can also create products with Cafepress and Zazzle. The products range from keychains to coffee mugs and other small items.
If you don’t want to sell an actual physical product online then you can turn to an ebook. Ebooks are gaining more traction as time goes on. Depending on your niche market and your topic, you can pump out a solid ebook that will earn you some decent money over time. Pat from SPI created an ebook and he highlights his journey in great detail on his blog.
Write a book
With a book you will receive about two separate paychecks for an advance payment. Once the book is available on book shelves or through an online distributor (depends on if you self-publish or go with a big company) you will start receiving royalty payments. These little payments will act as passive income for years to come. The more books you write the higher your royalties will be.
Over time the payments could potentially get smaller and smaller but it is an income coming from work that you put in a long time ago.
Purchase an investment that pays dividends/steady cash flows
Stocks pay dividends. Real estate holdings pay rent. Whichever option you decide to go with you will find yourself receiving a steady positive cash flow.
Aside from a little effort and the occasional maintenance, both are valid sources of long term passive income. The greatest benefit of both of these passive income sources is that when you decide to sell you will most likely be returned your principal amount in full.
Of course I could not discuss real estate and stocks without telling you that this is the most dangerous form of passive income. For one it requires a heavy investment of your hard earned money. You also run the risk of loosing the majority of your money.
Which passive income opportunity do you have on your mind?
Note: I will go into detail on all of these passive income/income generating opportunities as this blog continues to grow.