What is Passive Income ? However Will it Truly Work ? Or How Does it Actually Work ?

What is Passive  Income ?  

What is Passive  Income

A quick Google search will turn up websites (some good, some decidedly scammy) that claim to teach you how to use passive income to “earn money while you sleep”.

What is Passive  Income ? =  “earn money while you sleep”

If you’re just starting out or have a small business, you might be tempted to try and get some of this Holy Grail action. Before you do, let’s step back and look at what passive income really is, what’s involved in getting it, and how it works.

Passive Income vs Active Income

There are two kinds of income: active and passive. 

1. What Is Passive Income?

Let's now define passive income because it's different. Rather than being paid once for the work you’re doing, you create something (or create value) so that you continue to get paid indefinitely.

The simplest example of passive income is someone like the author Stephen King; he spent a few months writing The Shining almost 40/45 years ago but he’s still now being paid for every copy that gets sold. He created one thing of import that folks still need nowadays.

2. What Is Active Income?

Active financial gain is wherever you get acquired work you are doing. I’m obtaining acquired sitting down and scripting this article. I’ll get paid once and that’s the tip of it.

If you’re in a regular job earning a salary, or do freelance work for clients, then you’re earning active income. It’s what keeps the world ticking over. whether or not you’re a barista or lawyer, you’re commercialism time, expertise and energy for money right away. the number your paid changes, however the principle remains identical.

Many Ways to Earn Passive Income

The internet has opened up many more opportunities for people who aren’t famous authors to earn passive income.

If I wrote this article on my own website instead of Envato Tuts+,udemy.

There are hundreds of ways to earn money with passive income.

You can sell your own product, use affiliate schemes, collect ad revenue and far a lot of. Even ancient investment may be a reasonably passive financial gain

Let’s have a look at some hypothetical examples of passive income earners based on people I know. These should give you some idea of the range of possibilities.

• The WordPress Theme Developer
• The Travel Blogger
• The Manufacturers

The Dream of Passive Income

It’s easy to see why people like the idea of passive income. It sounds great on paper.

You’re, at least in theory, able to do the work once and get paid forever. Stephen King’s family is still going to be earning money from The Shining when he dies. This is an incredibly tempting proposition.

Passive income has a few other things going for it too. All the work is front loaded. Once the book is written, it’s written. You don’t have to open up a word processor every day for the rest of your life and change a few words to keep it fresh, you did everything at the start.You don’t have to open up a word processor every day for the rest of your life and change a few words to keep it fresh, you did everything at the start.

The Dream of Passive Income

Since you’re not being paid for the work you do but rather what comes out of the work you do, with passive income projects, you’re normally free to work from wherever you want.

Stephen King writes in his attic. You can write on a beach. There are people all over the world making money from Envato Market. You don’t have to go into an office between 9am and 5pm just because someone said you do.

Even better, once the work is done, you’re able to earn money wherever you are. If you decide to take a scuba diving trip to Bali or enter the Mongol Rally, money will keep trickling into your bank account. Even when you’re having a nap, you’re still earning money. That's not the entire story of passive income .

The Truth About Passive Income

On the other side of things, it is definitely possible to earn money with passive income; it just takes a lot of time and effort. Often, from a financial point of view, that time and effort would be better spent working actively; but not always. Dismissing passive income just because it’s not completely hands off, is as silly as diving in head first because you hear you can earn money while you sleep.

One thing that a lot of people miss is that there isn’t a binary choice between active and passive income; you can do both, and they can compliment each other: 

If you design websites for clients (active income), you can also get set up with a reseller hosting account and offer to host their sites for a monthly fee (passive income).

If you’re a wedding photographer (active income), you can sell your favourite presets on the Canva/Amazon/theme forest  Markets (passive income).

I’ve had people approach me about paid freelance gigs (active income) after they read something I wrote on my site (passive income).

How to Get Started With Passive Income

You might find it doesn’t work for what you do, but you also might find that there is a relatively simple way to bring in an extra few hundred dollars a month with a passive income side project. You might even find a way to make passive income your main source of income.

To start earning passive financial gain, you wish a business plan

Next, you need to identify how you can turn that idea into passive income. Are you going to use ads and affiliate programs? Create something to sell on the Online Market? Make an actual product?

There square measure various edges to passive financial gain however it’s not while not trade offs. you'll work from anyplace, however it’s laborious to come up with important amounts of financial gain. you'll take the maximum amount time without work as you prefer and you’ll still earn cash, however the client support emails can build up.