ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

True meaning of passive income and how to generate passive income

Updated on September 16, 2013

Passive income may be defined as income that does not require direct physical or mental effort 100% per cent of the time. In a way interest on bank accounts can be included in the items regarded as passive income. Similarly income or dividends from shares can be also because all they require is the investment of your money which are then traded into shares or stock of the company. The company then uses the money to create a dividend for you and the company.

Probable the most fruitful of passive income comes from Royalties either from something you have invented, or written, designed or sung. For instance I think John Lennon's 'Imagine' song took two hours in total to produce yet the song still generates income for his estate 30 years on...Similarly the man that invented the first can opener the estate still derives royalties from the design patent & the royalties that come from it...

The bottom line is either you invest your time your money or both.

With most start up businesses say such as Omega-trend you have to come up with about $300 dollars for a starter pack and find a omega-trend member who is willing to sign you up. Usually they are and then the best thing is to be guided by them as to where to go next. Usually the first issue is to get a contact list of people who you can contact about the product and services that say omega-trend offer. You then ring these contacts and say something like. Ive got a product or service that can generate residual income for you that requires little of your time. Would you be interested in earning more money ?. So on and so forth until they become member and start doing the same toying. Eventually you can have a large network of affiliates who you get a percentage of the profit generated by all the sales. This can be quite lucrative. Some of the earlier superstars earn 10,000 dollars week. It must be remember though that they are the ones at the top of the pile and there fore they have already invested considerable time coaching their affiliates and ensuring they select the right ones to train...

Other forms of passive income might be working for Amway or Avon. With these you promote products and services to friends acquaintances ands other social networks in time you generate affiliates who are accountable to you and with that you earn some of the profit that the affiliate makes.

On the Internet income is generated by the number of people that visit and read your site and as well purchase products that are advertised on your site...

With this you need to ensure your properly registered with each advertiser and that the code is in the right place on your site ands active !


    0 of 8192 characters used
    Post Comment

    • profile image


      7 years ago

      Just earn and invest not spend more.It's as simple as that. Where? CDs, gold, rental properties, pension, businesses, devidends, royalties, trading, shadaqah (giving to less fortunate after paying your zakat 2.5%), blogging, bonds (sukuk),cashflowing...May ALLAH BLESS U (GBU), FOR ALLAH IS THE ULTIMATE OWNER...We only borrows. In the end...we give all back to Allah.

    • Springboard profile image


      8 years ago from Wisconsin

      I agree passive income is, hands down, the best form of income there is. I really wish more people understood the whole concept of money, how it works, and how it truly can be obtained. Everyone has a tendency to focus on college or career, and while those things are important, what's really important is to change the mindset that those things are what will earn you the most in your lifetime. If you work to earn to spend you will never attain wealth. If you work to earn to invest, you will eventually replace the earnings you work for with the earnings that continue to work for you.

    • barryrutherford profile imageAUTHOR

      Barry Rutherford 

      9 years ago from Queensland Australia

      Avon has been around a long time just like Tupperware my Mother used to do it when I was around five years old !

    • Maniadorendimento profile image


      9 years ago

      Hello, Barry

      I recently started a passive income with Avon and I have to say I like it.

      It is not a big amount but it allows my some cash flow wich I find almost as important as a passive income.

    • barryrutherford profile imageAUTHOR

      Barry Rutherford 

      10 years ago from Queensland Australia

      very passive at a dollar a (~)

    • glassvisage profile image


      10 years ago from Northern California

      I like to think of HubPages as passive income :)

    • barryrutherford profile imageAUTHOR

      Barry Rutherford 

      10 years ago from Queensland Australia

      me too i found it hard some people especially couple thrive on it !

    • Eileen Hughes profile image

      Eileen Hughes 

      10 years ago from Northam Western Australia

      I find that things like amway is very hard been there done that but you really have to be pushy to really sell sell sell, that just was not me so pulled out. I tried a few different things. If you have the knack to talk you would do well.

      Thanks for sharing this. from another ozzie

    • guidebaba profile image


      10 years ago from India

      Good. This was my request. You have tried well. I appreciate. Best Wishes.

    • barryrutherford profile imageAUTHOR

      Barry Rutherford 

      10 years ago from Queensland Australia

      okay ill add a bit more...

    • sukritha profile image


      10 years ago from Cochin

      Oh feel you could have wrtire a littile more. Good subject to write upon.



    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)