What Is Passive Income??

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  1. liljen23 profile image76
    liljen23posted 12 years ago

    I wrote 2 hubs on passive income but I want to know passive income in your own words and how much you are making on passive income??

    1. aka-dj profile image67
      aka-djposted 12 years agoin reply to this

      Passive Income?
      That's when income passes you by, NO?

      1. damajoyi profile image60
        damajoyiposted 12 years agoin reply to this

        Dude, that is freaking hilarious.  It may mean income eraned without breaking a sweat.

    2. waynet profile image67
      waynetposted 12 years agoin reply to this

      When I first started online nearly 8 years ago I thought passive income had something to do with smoking and income combined....maybe breathing in the passive secondary smoke from the smokers would somehow gave me an income....I can laugh about it now, because I'm still a donut!

    3. psycheskinner profile image83
      psycheskinnerposted 12 years agoin reply to this

      It is where you can earn more money without doing any more work.

    4. Marisa Wright profile image88
      Marisa Wrightposted 12 years agoin reply to this

      If you have to ask what passive income is, you shouldn't be writing Hubs on the subject.

      It might have been better to ask this question before you wrote them - now it just looks like you started this thread to plug your own Hubs..

      1. liljen23 profile image76
        liljen23posted 12 years agoin reply to this

        I posted this thread three weeks ago and since then I have did some research and that's why I am writing hubs on it.

      2. profile image50
        sabrinathomasposted 12 years agoin reply to this

        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.

        1. MouseWalker profile image60
          MouseWalkerposted 12 years agoin reply to this

          HA HA owning rental property is not passive it is a lot of work running rental property, fixing it up, getting the rent pad, getting the new renter, and more!

      3. Wesman Todd Shaw profile image85
        Wesman Todd Shawposted 12 years agoin reply to this

        That was half way rude. . .

    5. profile image0
      Contriceposted 12 years agoin reply to this

      Earning a passive income takes alot of work, especially in the beginning.  But the idea is once that work is done then your money keeps making you money with very little effort on your part.  I am in the beginning stages and am still "doing the work" but so far I've made 200 dollars in one month.  That's 200 extra dollars added to my monthly income.  To some people it's worth it, to others it's not.  You just have to find your niche.

      1. liljen23 profile image76
        liljen23posted 12 years agoin reply to this

        Thanks for the great answer Contrice..

    6. workwithnate profile image61
      workwithnateposted 12 years agoin reply to this

      Passive income is income that pays for your life even if you are not working.  I just took a 2 year sabbatical that passive income paid for.  Some people just want money...and those people typically spend it as they get it.  I want a life...on my terms.  So I created it!  Passive income gave me the money to BUY ME TIME!  Anyone can do it, but it takes effort, personal growth and the development of people skills.  Good luck in your pursuit!

    7. profile image54
      manatax2010posted 12 years agoin reply to this

      Except for fixed interest, I really don't believe in passive income, but at least with shares or property you don't have to worry about managing staff. There's still work involved. The main advantage of property is tax offsets.

      I don't know too much about real estate, but my grandmother was a real estate agent. What she told me is that it's not the property but rather the land that appreciates in value.

      I think you have to decide what you're priority is:
      1. Capital Growth - buy an asset and sell at a higher price
      2. Income - rental income, share dividends, bond yields

      If all goes well, an investment loan can be you're best friend with capital growth and worst enemy with income. A loan can leverage your return for when you sell for profit, but if it's interest and fees are too high, that can offset your income. That may not seem like a problem now, but if you don't fix your rate, it could be later.

      The land of house will go up over time if you pick a quality property in the right location. This is better for capital growth.

      An appartment in a high occupancy area might be better for income if it costs less than a house. You can pay the asset off sooner so you don't have loan interest offseting your rental income stream. This may not be a good idea for capital growth. I've heard of people in Melbourne and Ackland who have made a loss selling appartments. I would buy one if I wanted a no-fuss ongoing income stream, but not for capital growth.

      - Get a certified valuer to value properties you're interest in so you don't get ripped off and can set limits particularly at an auction.
      - A financial advisor is also important.
      - A property manager, you could claim their fees off tax on rental income.

      You want to check the property doesn't have problems like pests, electrical problems etc.

      Property is a big investment. Arm yourself with knowledge and advice so you don't get screwed.

      I think now is a reasonable time to invest if you're in the USA, but you may want to wait until mid-year to be certain. FIxing the current low interest rate for as long as possible would be very wise.

      Here's a couple books I found on Amazon:

      I think you might have worked out by now that property really isn't passive. It's hard work! It's good if you think you would enjoy it, but be prepared to make the effort.

      For the best passive income read this book:

      If you prefer stock market dividends income don't borrow to invest.
      Coca Cola is a good example of a dividend income stock.

  2. profile image0
    Website Examinerposted 12 years ago

    As far as I am concerned, the first things that come to mind are interest on capital and royalties on published works.

    1. profile image0
      Home Girlposted 12 years agoin reply to this

      Usually, when you are passive , you do not have any income!
      And sometimes you are SO not passive and still - no income!

      1. skyfire profile image81
        skyfireposted 12 years agoin reply to this


  3. tjhooper profile image60
    tjhooperposted 12 years ago

    passive income is sometimes used synonymously with residual income....I don't think this is a fair synonym, but none the less people use the terms interchangeably.

    It is used to describe an income that you initially work for, but eventually keeps paying out even after the effort has stopped. Examples would be collecting royalties for products that you referred that is purchased over and over again by the same people...or a monthly service someone signed up for under you.

    examples would be maybe companies like amway, mary kay, etc. There are other affiliate programs like that, but you can also earn residual income from things like posting pictures to be downloaded, google adsense from your traffic, or articles/posts that get paid on view amount.

    1. profile image0
      Contriceposted 12 years agoin reply to this

      Great Answer!!

  4. javed2805 profile image60
    javed2805posted 12 years ago

    Passive income is a type of income which requires no physical involvement by a person to earn. Royalties, rental income, books and movies are just few examples of passive income.

  5. LeanMan profile image82
    LeanManposted 12 years ago

    Passive income is income that refuses to budge or bite back no matter how much you shout and encourage it...

  6. TommyLimas profile image61
    TommyLimasposted 12 years ago

    I write about passive income too, but differently from others.

    Passive Income : Money working for YOU

  7. deweyduck profile image61
    deweyduckposted 12 years ago

    Making money with little effort. Passive Income. Of course, setting that up in itself requires a ton of effort.. as I am trying to do myself big_smile

    1. Ricky Covit profile image58
      Ricky Covitposted 12 years agoin reply to this

      I think about three things

      one is good keyword research
      writing a good hub about the keyword
      then getting the hub backlinked to make sure it reaches no 1 for the keyword

      Rinse and repeat . Voila you have a formula

  8. Jasejames profile image71
    Jasejamesposted 12 years ago

    Absolutely it is some kind of income that comes with almost no effort after putting he initial effort.

  9. livelonger profile image91
    livelongerposted 12 years ago

    I make a good $300-350 a month now from my 135 Hubs, even during the months I don't publish. Continuing to publish just pushes that monthly passive earning income up a bit.

    1. seedling profile image57
      seedlingposted 12 years agoin reply to this

      What is it about your articles that provides such a high earning per hub?  Are you linking them a lot in external sites?  It doesn't look like the keywords are that valuable.

  10. Wayne Orvisburg profile image63
    Wayne Orvisburgposted 12 years ago

    I consider it an income that takes some form of initial investment, either money or time, that continues to earn you money over a long period with little effort after the initial investment has been made.

  11. liljen23 profile image76
    liljen23posted 12 years ago

    great comments everyone.. How much money have everyone invested to make passive income??

  12. Research Analyst profile image77
    Research Analystposted 12 years ago

    To me passive income will be if you set up a membership website, and members pay a monthly fee to use the site. But because of attrition it really is not passive because you have to work to get more members.

    1. imperial_han profile image61
      imperial_hanposted 12 years agoin reply to this

      Passive income is when you have ideas or inventions, pattern it earn royalty, buy property earn rental and appreciation value throughout the time, stock provide dividends and capital gain and so on.

      1. WryLilt profile image90
        WryLiltposted 12 years agoin reply to this

        Passive income is sitting on your butt doing nothing while money comes rolling in.

        1. Research Analyst profile image77
          Research Analystposted 12 years agoin reply to this

          LOL big_smile

    2. Masata profile image60
      Masataposted 12 years agoin reply to this

      This is not true because I have a social network which in turn is a membership site and I don't have to gain members for it anymore because the effort I put forth to get it started with the members I already had such as family and friends who support my site,also aided in the whole gaining more members once you create a membership site that has something people like and you get a few people to notice it and or use it your work is done because these members will find you new members and the chain goes on and on and on without any extra effort from you. See word of mouth is the best way to advertise and my members do that often so I don't have to. Their friends and family trust their word and from that my site grows and grows and I make no effort to advertise unless I really have too. Since I don't have to I just site back and watch the money roll in.

  13. Jackson Riddle profile image48
    Jackson Riddleposted 12 years ago

    My Site Is Passive Income

  14. starme77 profile image79
    starme77posted 12 years ago

    passive income is money smile

  15. Cagsil profile image75
    Cagsilposted 12 years ago

    A Passive Income is earnings that which are automatically generated on a specific basis, for which is measured and constantly regenerating. wink

  16. profile image0
    NS22posted 12 years ago

    The internet is choke full of people touting methods of earning passive income. Affiliate marketing, PPC campaigns, and websites made for AdSense are all popular ways to earn passive income. One method is to find a product to sell by searching clickbank or commission junction, create a website around that product, use keyword research, search engine optimization, and article marketing to drive traffic to the site, earn a commission on every sale. If you do all the above parts properly you will have passive income.

    1. liljen23 profile image76
      liljen23posted 12 years agoin reply to this

      Great answer NS, you've really did your homework!! smile

  17. lorlie6 profile image76
    lorlie6posted 12 years ago

    When I'm EXTREMELY passive, I get income...smile
    Sorry, my mind's in the gutter this eve.

    1. Disturbia profile image59
      Disturbiaposted 12 years agoin reply to this

      We are all in the gutter, but some of us are looking at the stars. --
      Oscar Wilde, Lady Windermere's Fan, 1892, Act III

  18. J. McCoy profile image59
    J. McCoyposted 12 years ago

    When my initial investment of time or money is making money without me working for it any more. WOOOHOOO!!

  19. profile image0
    Amie Warrenposted 12 years ago

    I don't think rev share income in necessarily passive income. I think of it as cumulative income, until you get to the point where you feel like you've earned what you wanted to on a piece, then it's passive.

    For example, I write for one site where I'm paid $20 per article plus rev share, but I have to have $20 in rev share to get paid. Since I've already been paid for the article, the income is passive...I don't have to do anything else to earn it.

    But on Suite101, my earnings aren't that great, and I've only gotten up to $3 average per article. That's not enough to cover the time it took me to write the articles, so it's not passive, it's cumulative. When it gets past an average of $20 per article, then it will be passive. Right now, I don't feel like I've been paid enough for each article on average to justify my time.  That's one reason I don't write there much anymore.  I don't think writing a lot there will justify the income.

    1. WryLilt profile image90
      WryLiltposted 12 years agoin reply to this

      Interesting way to look at it.

      Have never thought of it like this....

      I think that puts me right at the bottom of earning passive income from hubpages then. I think I've just earnt enough to get about $1 per article lol

  20. solarcaptain profile image60
    solarcaptainposted 12 years ago

    Passive income is simply income received with little active management on your part. Limited partnerships, real estate income, interest, or trust money that is drawing interest are all passive income.

    1. Druid Dude profile image59
      Druid Dudeposted 12 years agoin reply to this

      Mine's pretty interactive. Passive income. That cash which you earn which gets passed to those you owe money to. Passive income.

  21. Zubair Ahmed profile image75
    Zubair Ahmedposted 12 years ago

    In my view Passive income is any income that you get by sitting back and chilling. 

    So how does that happen?

    (1) Setup a website that brings in viewers (customers/users/surfers/arm chair experts)
    (2) Signup to affiliate networks like (Adsense, Kontera etc)
    (3) Write interesting topics on your blog/website/hubpage.
    (4) Market your article from 3 above.
    (5) Sit back and relax while your money (Passive Income) accumulates over time (REMEMBER I said OVER-TIME) it's not get rich quick scheme.
    (6) If you want to increase your Passive (Lazy) Income then do more research on key words and write more interesting editorials, then more marketing should do it.

    For more info follow my journey to Passive income nirvana at my hub: http://hubpages.com/hub/AdsenseGoogleMoney

    Regards and best of luck.

  22. CYBERSUPE profile image60
    CYBERSUPEposted 12 years ago

    Good Job Zubair. Excellent explaination of passive income.

  23. magicman31 profile image56
    magicman31posted 12 years ago

    An example of true passive income vs. semi-passive would be buying a rental property vs. investing in a real estate investment trust (a REIT).

      We tend to think of rental income as passive but if you have to collect rent, hound your renter for a check, find new renters when one leaves, call the plumber to repair the leaking sink, etc. it's not exactly passive. Now a REIT would buy up a lot of properties, hire out the necessary tasks without you being involved and then deposit your share of the profit directly into your bank account each month.

    Applying that here: a Hub with a good long tail that earns you money without your intervention vs. a Hub that you have to update to keep revenue from declining.

    But tweaking a site or collecting a rent check is far less of a time investment than a 9-5 job and surely has a greater return per minute so that's not a horrible thing. 


  24. ddsurfsca profile image72
    ddsurfscaposted 12 years ago

    non violent cash?

  25. The Loan Arranger profile image60
    The Loan Arrangerposted 12 years ago

    Nirvana?  And I don't mean the band!

  26. profile image49
    yixiposted 12 years ago

    I had created a simple guide on how to create a website for FREE to generate streams of passive income online.
    It consists of FREE resources available, and discussion on topics including find a niche, build a website for free, affiliate marketing network, generate web traffic, streams of passive income.
    Do check it out if you guys are interested.

  27. profitsbase profile image60
    profitsbaseposted 12 years ago

    Passive Income Is The Income Earned On A Continuous Basis With Little Effort On The Onset. Example Of This Is The Royalty Received For Creating Pages In Web2.0 Sites.


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