Hey, I found this great arti­cle that gives an intro­duc­tion to the types of pas­sive income, the taxes that cover it, and some resid­ual income opportunities.

It’s a great read espe­cially if you’re new to pas­sive income. I hope you find this arti­cle beneficial.

Intro­duc­tion to Passive Income

How to Make Money By Cre­at­ing Pas­sive Income

The eas­i­est way to gain finan­cial inde­pen­dence is to recon­fig­ure your life so that a sub­stan­tial por­tion of your income is not actively earned by your labor. Instead, it must come from what those in finance call pas­sive income. In fact, the idea of pas­sive income is closely related to the Berk­shire Hath­away model, which I explain in an ear­lier feature.

The basic idea of pas­sive income is that it is money received with lit­tle or no effort required to main­tain the flow of income once the ini­tial work has been done. Some com­mon exam­ples of pas­sive income are:

• Rent from real estate properties
• Patent roy­al­ties for an invention
• Trade­mark licens­ing fees for char­ac­ters or brands you’ve created
• Roy­al­ties from books, songs, pub­li­ca­tions, or other orig­i­nal works
• Prof­its from busi­nesses in which you have lit­tle or no day-to-day role or responsibility
• Earn­ings from Inter­net adver­tise­ments in a blog or on a web­site you own
• Div­i­dends from stocks, REITs, equity mutual funds, or other equity securities
• Inter­est from own­ing bonds, cer­tifi­cates of deposit, other other cash and cash equivalents
• Pen­sions
• Resid­ual income for a sales per­son on accounts that are typ­i­cally renewed auto­mat­i­cally such as a sport­ing goods rep­re­sen­ta­tive that earns a com­mis­sion on his accounts, bring­ing in a few thou­sand dol­lars per store per year for sim­ply ser­vic­ing the cus­tomers once they have been opened

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Gen­er­at­ing pas­sive income can be dif­fi­cult at first but of the 3 major types of income (earned, port­fo­lio, and pas­sive) it is the most steady.

With earned income you only get paid if you work. But what hap­pens when you’re laid off or fired? With port­fo­lio income, you would be invest­ing in future, bonds, or stocks. Sadly, the aver­age return on the stock mar­ket is 8%.  And there’s always a chance that the mar­ket will crash and head into a recession.

That’s why pas­sive income is becom­ing more and more pop­u­lar. It is robust and offers a very steady income stream.

Here are 10 ideas that can get the ball rolling for you. Let me know what you think about them.

(source)

Pas­sive Income Ideas

1. Rental Prop­erty
2. Write some soft­ware
3. Pub­lish some­thing
4. Become a part­ner with a busi­ness
5. Invent some­thing and patent it
6. Join a net­work mar­ket­ing busi­ness (one with a good train­ing pro­gram)
7. Write and sell an e-book online
8. Build a port­fo­lio of pho­tos to sell
9. Cre­ate a prod­uct and sell it through affil­i­ates
10. Develop a busi­ness idea and out­source every­thing possible

Click here to con­tinue reading »

I’ve men­tioned the use of roy­al­ties to cre­ate resid­ual income streams before, but I found this arti­cle that men­tions a few more ways to bring in the dough.

This list really helps if you tend to be on the cre­ative side. There is no rea­son for you to be a starv­ing artist at all. So have fun and make money at the same time.

How to Cre­ate Sources of Resid­ual Income

In this tough econ­omy it seems almost every­one is look­ing for ways to sup­ple­ment their income. With more and more peo­ple los­ing their jobs and the cost of liv­ing increas­ing, many folks are turn­ing to the inter­net to seek sources of resid­ual income. For those of you who aren’t famil­iar with resid­ual income — this is a source of pas­sive income that comes keeps rolling in long after you have put in the ini­tial effort. Pre­vi­ously, only actors and authors earned “resid­u­als” for their work, but the inter­net has changed all of that and there are now many ways to make money online and cre­ate resid­ual income.

Instruc­tions

1. Sell Your Pho­tographs Online: If you have some basic pho­tog­ra­phy skills and have a good eye for cre­ative and unique shots, then you should con­sider sell­ing your images on some of the var­i­ous micro­s­tock pho­tog­ra­phy web­sites. You can sell the same images over and over again and cre­ate a con­sis­tent flow of resid­ual income. The more images you have in your port­fo­lio, the more money you can make.
2. Sell Your Writ­ing Online: If you are a free­lance writer or even if you just dab­ble in cre­ative writ­ing, you can sign up for a mul­ti­tude of con­tent web­sites that allow you to sell your arti­cles online. Many of these con­tent web­sites allow you to sell your arti­cles for usage, which means they can sell over and over again to inter­ested par­ties. In some cases, once you have sold a good amount of arti­cles on these con­tent web­sites — you will begin to get pri­vate requests for your writ­ing and this will allow you to charge higher rates.

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I’m just fol­low­ing up on my post about blog­ging for resid­ual income.  Here’s a few more tips and tricks on how to get started.

Blog­ging is fun and prof­itable.  You don’t even have to be a great writer, just so long as you’re pas­sion­ate about a subject.

Writ­ing Your Way Into Resid­ual Income

Do you like to write? Do you know HTML? Can you upload files? That’s pretty much all it takes to earn resid­ual income on the inter­net. Any addi­tional skills learned along the way will only be a plus. The inter­net has a host of infor­ma­tion and will teach you every­thing you need to know to make money and become suc­cess­ful at it.

Let’s take this a step at a time:

THE WRITING PROCESS:

If you like to write, write a few arti­cles. What to write about? Well, here’s my the­ory. There are four areas to think about to help you begin writing:

1. Write about what you know: In my case, I have over 20 years of com­mer­cial insur­ance expe­ri­ence. I’ve writ­ten sev­eral arti­cles about insur­ance. No, it’s not my favorite topic, but it’s what I know and I have earned resid­ual income from that knowledge.

2. Write about what you want to know: I want to know more about health, fit­ness and healthy eat­ing so I write arti­cles about it. I research, learn and share my knowl­edge with any­one who is will­ing to read it.

3. Write about what you do: I’m an at-home mom and free­lance writer. I write about what I do. I write about the way I save money and share tips on fru­gal liv­ing and house­clean­ing and other such topics.

Click here to con­tinue reading »

Some of you may be think­ing, “how does one make any pas­sive income as a blogger?”

Well it’s pretty sim­ple. By writ­ing about what you love and engag­ing in a niche you enjoy being in, you can make huge adver­tis­ing deals and do affil­i­ate mar­ket­ing.  If you’re new to this idea, check out this arti­cle.  It gives you the basics on how blog­ging can serve as a pas­sive income stream for you.

Blog­ging for Income — A Pas­sive Income?

Last week two posts popped up in my RSS feeds with the words ‘pas­sive income‘ in their headings.

BJ asked — So Where’s the Pas­sive Income? and Dave writes about Grow­ing a blog or blogs as a source of pas­sive income.

The idea of pas­sive income is obvi­ously one that many peo­ple strive for — and it’s a term that I’ve heard used many times to describe online income streams — includ­ing blogging.

Unfor­tu­nately I wouldn’t use the term pas­sive income to describe blog­ging for income.

While there are a few aspects which could be described as pas­sive — the over­all expe­ri­ence that I’ve had is any­thing but passive.

Where is Blog­ging for Income ‘Passive’?

Archives — Per­haps the main area of where blog­ging has an ele­ment of ‘pas­siv­ity’ to it in how it can earn an income is when it comes to your archives.

I’ve been blog­ging now for close to 4 years and in that time would have pub­lished over 20,000 posts across my own blogs. While the writ­ing of these posts is any­thing but pas­sive (more on that later) the great thing about it is that even after those posts drop off the front page of a blog they con­tinue to have earn­ing potential.

Click here to con­tinue reading »

Here’s a quick list of over 40 income oppor­tu­ni­ties you might want to con­sider.  Some are set up per­fectly for auto­mated income and they often incor­po­rate things that you love to do.

This list also gives a great direc­tory of 20 alter­na­tive income resources you can check out.  I’ve found this list to be really help­ful and I hope you do too.

(source)

40+ Alter­na­tive Income Ideas and Resources

When I wrote Build­ing, Diver­si­fy­ing, and Shift­ing Your Income Streams, there was an impor­tant ele­ment that I left out. That ele­ment was some prac­ti­cal real life ideas about how you can start build­ing alter­na­tive income streams today. It is worth not­ing that not all of these are pas­sive income ideas, so you will actu­ally have to actively work for these income streams to grow.

In com­pil­ing this list, I did my best to avoid any sort of scams, and stay with prac­ti­cal ideas that work. I have not used all of these ideas, but I have used, or am using, many in this list.

Also, it’s impor­tant to note that some ideas may be worth­while for you, some may not, depend­ing on your finan­cial situation.

Alter­na­tive Income Ideas:

In addi­tion to basic ideas such as start­ing a busi­ness, get­ting a sec­ond job, and learn­ing how to invest here are money mak­ing ideas you can try:

1. Build a CD Lad­der using high yield cer­tifi­cates of deposit.
2. Switch to higher inter­est sav­ings account.
3. Peer to peer lend­ing on var­i­ous social lend­ing networks.

Click here to con­tinue reading »

I know a lot of entre­pre­neurs out there have a hard time set­ting up their busi­ness and mak­ing money but this is where pas­sive income comes into play.

Pas­sive income can give you enough cash flow so that you will have time and the mon­e­tary means to focus on what you want to do, in other words, set­ting up your dream business.

Have a look at this arti­cle and I hope you find it beneficial.

Bet­ter Boot­strap­ping — The Impor­tance of Income Automation

I’m going to share a rare lit­tle bit of my per­sonal his­tory here in the hopes that I can help save you from some of the dif­fi­culty I went through. I’m going to talk about boot­strap­ping, and how you can do it bet­ter, right from the start.

When I left my last com­pany about five years ago and was fig­ur­ing out what I wanted to do next, I did what most boot­strap entre­pre­neurs do… I started the busi­ness and started try­ing to fig­ure out how I was going to most imme­di­ately start gen­er­at­ing income from the busi­ness. At the same time, I was try­ing to do some easier-to-obtain con­sult­ing in other areas to keep the cash flow going so that I could work on the main business.

Of course, the prob­lem with that is that I was try­ing to mar­ket and build sev­eral dif­fer­ent busi­nesses, and the sup­ple­men­tal busi­nesses weren’t really set­ting up any­thing that was going to increase my abil­ity to focus on the pri­mary busi­ness. Thank good­ness I had the fore­sight to sign up as an About.com Guide, but I kick myself for not doing more with it at the outset.

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Pas­sive income is the best way to make money. The rea­sons are end­less. No answer­ing to angry bosses or slav­ing away at an office.

I came across this arti­cle that sum­ma­rizes some of the top rea­sons to start a pas­sive income. If I haven’t con­vinced you already, then give this a read.

3 Rea­sons To Start A Resid­ual Pas­sive Income

Hav­ing a pas­sive resid­ual income flow can bring a lot of free­dom and oppor­tu­ni­ties into your

life. Fol­low­ing are 3 of the many rea­sons you should start build­ing a pas­sive resid­ual income now.

1. Once you have built a resid­ual cash flow, the money con­tin­ues to come in after the ini­tial
work is done. You are mak­ing money even when you are not work­ing. It comes in whether you are eat­ing, sleep­ing, or tak­ing a vacation.

This really comes in handy if you become sick. Imag­ine you are stuck in the hos­pi­tal for a few days or longer and your med­ical bills are pil­ing up. At least you would still have cash com­ing in to help cover the expenses.

2. Pas­sive income brings about per­sonal free­dom. If you build a large enough stream of resid­ual income, you will not have to work for another employer or com­pany. You can work when you want, take a day off when you want, spend time with your spouse and kids when you want, and take a cruise or trip when you want.

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… Yes, numer­ous streams.

The only rea­son I’m able to finance the lifestyle I enjoy today with­out too much effort is because of the resid­i­ual income streams I’ve worked hard to build. I found a great arti­cle that dis­cusses this and I hope you find it beneficial.

(Source)

Pas­sive Income

How to Earn More and Work Less

Do you want to con­tinue work­ing 50, 70, 100 hours a week the rest of your life?

Good! Nei­ther do I.

Do you want to be able to take time off when­ever you want to, with­out wor­ry­ing about what’s going to hap­pen to your business?

So do I!

There’s a say­ing in the cor­po­rate world: “Don’t make your­self irre­place­able. If you can’t be replaced, you can’t be pro­moted.” As an entre­pre­neur, this is still true in its own way. Let’s think of “being pro­moted” as earn­ing more and work­ing less. You can raise your prices, but until you can remove your­self from being directly involved in doing the work that gen­er­ates the income, there’s always going to be a limit to how much you can earn, and it can only increase very slowly.

Pas­sive income, on the other hand, is income that does not require your direct involve­ment. Some kinds of pas­sive income you may be famil­iar with include own­ing rental prop­erty, roy­al­ties on an inven­tion or cre­ative work, and net­work mar­ket­ing. If you want to earn more, work less, and have a decent retire­ment, you’re going to have to start cre­at­ing income streams that do not require your direct involve­ment. Whether you’re just start­ing your busi­ness, or you’ve been run­ning it a while, the sooner you start think­ing about how you are going to shift your busi­ness model to cre­ate more pas­sive income, the sooner you can achieve per­sonal and finan­cial freedom.

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