ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Income & Making Money

Passive Income - Is There Such a Thing?

Updated on February 17, 2012

There are a lot of questions that people ask about passive income. Some of them are, what is passive income? How to I generate passive income? Is it even really passive? What kinds of things generate passive income?

Well, for starters what is passive income?

Passive income in short that revolves around income that you play either play a minor or no role in. It is an idea, business or investment that allow you to earn money while your attention is focused on other things.

How to generate passive income?

For example, many websites are generating passive income as we speak. They are helping someone find information about a specific topic or niche. They then place ads or affiliate links on their site, and when people come to visit they click on these ads or affiliate links and the website owner earns money.

Is it even really passive?

I often get asked, if, passive income is truly passive. Well that is a yes, and a no. Every idea, investment, or business that you take on is going to need to be started. To start you need to work at it and get the momentum going for it. Then when it is setup it needs sales, sales require clients or traffic. Once word gets out what you are providing something that people need or want then your involvement in that business becomes less and less. To a point where you need to only look at it just to make sure it is still running the way you designed it to.

What kinds of things generate passive income?

There are many things that can generate a passive income

- Websites

- Affiliate product selling

- E commerce store

- Real Estate

- Investments (dividends, Stocks, Options)

- Outsourcing a Job

The reality is that passive income is all about effectively using your time, your money, and other people’s money.

Everything is going to take some time and money to grow, even passive income. But, how you do it is the key to being successful in your endeavor. For example, some people decide on a product or business idea and then are able to outsource the work to a variety of individuals. You will still need to check on the outsourcer to make sure they are providing the services that you request correctly. But, after all fees, taxes, and other income has been paid what is left over is the amount of your passive income that you earned from the outsourcing and leveraging other, people.

Passive income does come with a learning curve some of the skill sets you may want to acquire are

1. Delegation and Outsourcing

2. Coming up with Process

3. Joint venture or partner with other likeminded people

The more you do not have to manage a site or venture the more “passive” it certainly is. Because, if, you factor in extra time or money you are actually lowering your returns and we want the opposite with as little interaction as possible. Here, are four more was to develop more passive income streams.

1. Investing (stocks, bond, options)

2. Investing in assets (real-estate, business)

3. Websites

4. Affiliate Marketing (online Affiliates, MLM)

These are just a small sample of what type of passive income there is available. The idea is to get as many streams of passive income going as you can. The term Passive is thrown around a lot as well and hopefully you now have a better understanding of what it is and the possible ways it can work for you.

Comments

Submit a Comment

  • Tricia Ward profile image

    Tricia Ward 6 years ago from Scotland

    Thanks for the info....I think everything needs work at some point and to make enough to live of it does....I joined here ages ago but I havenot done anything for ages but I still had more - not much - when I got back into it after a 2 year absence. I would love it to be more...but time has to be put in to do that so it is no longer passive.

working

This website uses cookies

As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com 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: "https://hubpages.com/privacy-policy#gdpr"

Show Details
Necessary
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 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. (Privacy Policy)
CloudflareThis is used to quickly and efficiently deliver files 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 googleapis.com or gstatic.com domains, for performance and efficiency reasons. (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)
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)
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)
Features
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 YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
MavenThis supports the Maven widget and search functionality. (Privacy Policy)
Marketing
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 advertisements has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
Statistics
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)