Be aware that before your passive income stream can start making money, you have to spend many hours creating it, including building the website itself. You must also monitor your sales to see if you must make changes, take steps to ensure that your website appears near the top of the results page of search engines, and periodically add new content to keep visitors coming back.
Because you’re publishing an eBook rather than a physical book, the costs are minimal. And you don’t have to print 1,000 copies of your book hoping someone will buy it. Instead, you can write your book, create a fancy cover for $5 using Fiverr and publish through services like Amazon Kindle Direct Publishing. Amazon will handle everything for you, then take a percentage of the revenue you generate.
The point I wish to communicate to you and the community members from the example of my thought process above is this: since deciding to become a Netpreneur, I’ve never been SO miserable in my entire life. I’m overwhelmed with all this data I have gathered and it paralyzes me to the point I’ve NOT set up a blog or website because I’m too confused to do so!!
From what he describes, creating passive income definitely does not sound easy. It requires a serious ramp-up -- often requires 80- to 100-hour workweeks in the beginning, says Flynn. But once up and running, and depending on the content, some sites take fairly minimal maintenance. Green Exam Academy, the LEED exam study site he launched in 2008, takes just him four to five hours a month to maintain but brings in $250,000 annually.
Passive income is an incredible tool that everyone should include in their retirement plans. With traditional investing you have to rely on the stock market to increase your investments over time. The longer you have your money invested, the more your money will grow. The stock market does not produce passive income, except in the form of dividends. Most dividends are extremely small and produce small returns on investment. The bulk of stock market returns come from an increase in stock market prices. The only way to realize those increase in value is to sell stock. Retirement calculators that use the stock market as an investment plan on you running out of money when you die because you have to sell all your investments to keep bringing money in.
Good ranking FS, I’d have to agree with the rankings. And it looks like your portfolio covers five of the six! Some people consider real estate passive will others classify it as active. But every scenario is different, whether you are doing all the maintenance and managing yourself, or you are contracting out a lot of the work. Obviously it takes a lot more time and effort than purchasing a 36 month CD and “setting it and forgetting it.”
Real estate crowdsourcing allows you to surgically invest as little as $5,000 into a residential or commercial real estate project for potentially 8 – 15% annual returns based off historical data. Such returns are much better than the average private equity, CD, bond market, P2P lending, and dividend investing returns. With P2P lending, borrowers can sometimes default and leave you with nothing. At least with real estate crowdsource investing, there’s a physical asset that’s backing your investment.
Venture debt ($12,240 a year): The first venture-debt fund has returned almost all my initial capital, so I decided to invest $200,000 in the second fund. I took a risk investing $150,000 in my friend's first fund, so I'm hoping there's less risk in the second fund, given he has four more years of experience on top of his 12-plus years of experience running a venture-debt portfolio for another company.
​Udemy is an online platform that lets its user take video courses on a wide array of subjects. Instead of being a consumer on Udemy you can instead be a producer, create your own video course, and allow users to purchase it. This is a fantastic option if you are highly knowledgeable in a specific subject matter. This can also be a great way to turn traditional tutoring into a passive income stream!
Awesome article…if this does not give somebody a clear roadmap, they probably were never going to get there in the first place! I’m kind of like you trying to figure out where to place “new” money and maturing CD’s in this low interest environment. Rates have to go up eventually…I dream of the days again where you can build a laddered bond portfolio paying 8%. I plan for a 5.5% blended rate of return, with big downside protection.
No argument here. It’s not for everybody. Just like you can’t imagine taking risks or finding the energy to be creative after you get home from work, I can’t imagine trading 40% of my waking life for money, leaving me with no time to actually spend the money I made. Even when building startups, I believe that I’m trading time for asset creation (which is why I still receive checks every month from my last startup). Nothing against you if 9–5 is how you choose to live, and in fact, I’m very happy for you if it makes you happy. Just know that you have a choice!
Dividend Income: Dividend income is wonderful because it is completely passive and is taxed at only 15% if you are in the 25%, 28%, 33%, and 35% income tax bracket. If you are in the 39.6% income tax bracket you will pay a 20% tax on your dividends. My dividend income portfolio mainly consist of dividend equity and bond ETFs such as DVY, VYM, MUB, TLT, and IEF. Total stock and bond income is a little over $100,000 a year due to a heavy accumulation of stocks and municipal bonds after selling my house.
For me, this has worked out brilliantly. Because I had passive income streams set up, I didn’t have to worry about generating sales immediately, raising funds from investors so that I can eat, etc. I could take my time, try out 100 different opportunities, and ultimately settle on a business that suited my needs (the one that I’m running now), which allows me to live and work wherever I want and whenever I want, and is, for the most part, fully autonomous. But I didn’t always have passive income — in fact, it took a lot of trial and error and a lot of learning (do yourself a favor and read Rich Dad Poor Dad — iBooks Link Here) before I had anything worth mentioning.
In January 2018, I missed my chance of raising the rent on my new incoming tenants because it didn't come to mind until very late in the interview process. I didn't write about my previous tenant's sudden decision to move out in December 2017 after 1.5 years, because they provided a relatively seamless transition by introducing their longtime friends to replace them. I didn't miss a month of rent and didn't have to do any marketing, so I felt I'd just keep the rent the same.

In expensive cities like San Francisco and New York City, net rental yields can fall as low as 2%. This is a sign that there is a lot of liquidity buying property for property appreciation, and not so much for income generation. This is a riskier proposition than buying property based on rental income. In inexpensive cities, such as those in the Midwest, net rental yields can easily be in the range of 8% – 12%, although appreciation may be slower.
Returns on real estate investing vary and you don’t want to get into the business based on an estimated return but on your own calculation of what is possible for your local market and for specific properties. I have seen pretty common averages between 8% and 12% a year for single-family residential rentals with cash flow accounting for between 0% and 6% of the return.
In June, he put ads on his site with Google Adsense, and within the first hour, earned $1.08 with three clicks. He earned $5 the first day, $7 the second, and then eventually began pulling in $15-$30 a day. In October, he created an ebook exam study guide priced at $19.99. By month’s end, he earned $7,906.55 — more than he had ever previously earned in a month.
I prefer assets that make me a high return for the lowest amount of work possible (semi-passive involvement). And assets that pay me in several unique ways. Cash flow is only one way RE makes money for me. I also get principal reductions, appreciation, tax advantages (depreciation), and I control the rental increases on a yearly basis. Plus a majority of the capital is provided by the secondary market on 30 year fixed low interest rate debt.
Private money investing involves one investor with money, lending that money to another investor who needs the money. With real estate most private money is used to buy rental properties, fix and flips or even used by turn-key companies to fund their properties until they are sold to an investor. Private money usually is secured with a Deed of Trust against real estate, which provides more security than investing in the stock market. Returns on private money can be four percent or fifteen percent depending on the relationship between the investors and the risk involved.
A business factoring company that seamlessly integrates with a particular sales-tracking software and provides real-time distribution of commissions. You would need to find a factoring company or an investor who specializes in funding direct-response companies, a risk analyst to audit risk associated with each sale within a company, and a third-party payment verification service.
Some people take it automated well before the year is up. When it converts, it converts. If you target the right people and you're able to create the right message that appeals to your audience, you might just hit a home run. An automated webinar often involves the creation of a webinar funnel. That includes, not only the webinar, but also the email sequences, and possibly a self-liquidating offer, and maybe some done-for-your services and up-sells.

Do you have stuff in your basement, attic or garage that's collecting dust? If you do, pack up the SUV or car and kids and go to a flea market. You could make a couple of hundred, even thousands, of dollars, depending on what you're selling. You'll want to go to flea markets every weekend or at least every other weekend. Make an event out of it, and show your kids how easy it is to earn money selling their stuff.
Focus on your primary passive income stream first. It's difficult to grow your passive income into multiple streams if you don't already have one, solid stream. Focus all of your efforts on that one project first and help it grow as productive as possible. Then, you can take the money you've made and lessons you've learned from this passive income stream and put them into others.

That $200,000 a year might sound like a lot to you, but the median home price in San Francisco is roughly $1.6 million or almost eight times our annual passive income. For a family of three in 2018, the Department of Housing and Urban Development declared that income of $105,700 or below was "low income." Therefore, I consider us firmly in the middle class.


Passive income is attractive because it frees up your time so you can focus on the things you actually enjoy. If a doctor wants to earn the same amount of money and enjoy the same lifestyle year after year, they must continue to work the same number of hours at the same pay rate—or more, to keep up with inflation. Although such a career can provide a very comfortable lifestyle, it requires far too much sacrifice unless you truly enjoy the daily grind of your chosen profession. Additionally, once you decide to retire, or find yourself unable to work any longer, your income will cease to exist unless you have some form of passive income.
Software is one of the most lucrative passive income streams but most online entrepreneurs shy away from it, mainly because of the technical aspect that is involved. The truth is that you don't need programming skills to build a software; the whole process can be outsourced fairly easily. You do need to know how to pick a good developer and, of course, have a winning idea that customers are willing to pay for.
Thanks for asking. https://passiveincomemd.com/what-is-passive-income/ gives a good summary of the definition I use. But in brief, it’s income that isn’t proportional to the time you physically put into acquiring it. It doesn’t mean it’s not without work or effort. It’s just that most of the work is done up front and it continues to pay off long after that initial effort. Real estate fits into that box. There’s definitely a spectrum but compared to what we do as doctors, where our compensation is directly linked to our time, most of these things are quite passive.
However, this comes back to the old discussion of pain versus pleasure. We will always do more to avoid pain than we will to gain pleasure. When our backs are against the wall, we act. When they're not, we relax. The truth is that the pain-versus-pleasure paradigm only operates in the short term. We'll only avoid pain in the here and now. Often not in the long term.
He used "house-hacking" and "live-and-flips" to increase savings and maximize earnings, and by 2007 he and his business partner owned 50 rental properties. Save for a few setbacks during the financial crisis, Carson continued growing his portfolio over the past decade, and today he manages 90 rental properties, mostly in and around his hometown in Clemson, South Carolina.
This is an ideal strategy if you live in an area where real estate prices are too high to realistically invest in, or you don’t want the hassle and expense of traveling all over the country visiting potential properties. Plus, if you are new to single-family real estate investing, letting a place like Roofstock guide you through the process is a great way to get your feet wet.
Consider refinancing your mortgage if you haven’t done so in a while before interest rates go up further. Or consider leveraging cheap money responsibly to acquire hard assets. LendingTree Mortgage has one of the largest lending networks online, and they will contact you immediately with their offers. You want lenders competing for your business, and get hard quotes so you can pit them against each other.
Create a website or blog. With the foundation of a good website, you can build traffic (a flow of visitors to your site) that you can then convert into revenue sources later on. First, you have to get the traffic, so start by writing about what you know on your website or blog. If it is interesting, informative, and well written, you may gain consistent traffic to your site over time.[6]
One of the most appealing options, particularly for millennials, would be #12 on your list (create a Blog/Youtube channel). The videos can be about anything that interests you, from your daily makeup routine (with affiliate links to the products you use), recipes (what you eat each day) or as you mention, instructional videos (again with affiliate links to the products you use). Once you gain a large following and viewership, you can earn via Adsense on YouTube.
I just wanted to say how nice it is to see such a positive exchange between strangers on the Internet. Seriously, not only was this article (list) motivating and well-drafted, the tiny little community of readers truly were a pleasant crescendo I found to be the cause of an inward smile. Thank you, everyone, and good luck to you all with your passive income efforts!! 🙂
Remember, the skills you have are an asset, they are your “unfair advantage.” They are essential to your unique personal brand, and you can start making money online using those skills if you have the right strategy, tactics, and mindset in place. Another way to describe this is your “unfair advantage,” a term I was first introduced to by Lain Ehmann in SPI Podcast Session #37.
Now that you’ve chosen your market, find a way to start sharing your message, whether it’s a blog or podcast or Youtube channel, or whatever platform makes the most sense for your target market. Flynn says this is where you’ll start to build a fan base — and collect subscriber emails. You don’t need to get the whole world to follow you to make this work out financially. Wired cofounder Kevin Kelly wrote an article about 1,000 True Fans, which basically says that if you have 1,000 people paying you $100 a year, that’s a $100,000 a year. “You don’t need to serve everybody,”  says Flynn.
Non-fiction e-books that educate your potential audience on specific topics like finance, online marketing, and business are going to make you more money than fiction books. Of course, there are always exceptions and you could write the next Harry Potter book, but if you want to create some residual income opportunities quickly, I would suggest you go for what sells first!
There are a few advantages to taking this approach. First, you get close to 100% of your listed price (minus the transaction fee of your preferred payment gateway). Second, you are not competing with other authors and have the reader’s attention solely on your product. Third, selling your eBook on your own platform is a great opportunity to build a long term relationship with your readers via email. Fourth, you can bundle your eBook with other goodies in order to bump up the value and make it more unique. With so many advantages, it's worth putting up the time and start building your own platform.
I truly believe generating $10,000 a year online can be done by anybody who is willing to dedicate at least two years to their online endeavors. Here is a snapshot of what a real blogger makes through his website and because of his website. Roughly $150,000 a year is semi-passive income followed by another $186,000 a year in active income found through his site. Check out my guide on how to start your own blog here.

Like many, I was first really turned on to the idea of passive income by Tim Ferriss. In The Four Hour Work Week, he describes the system he developed with BrainQuicken, where the marketing, shipping, reordering, banking, and even customer service of the company was on complete auto-pilot. I found this idea intoxicating. The idea that Tim could travel the world learning to tango and staying on private islands while money just accumulated in his bank account seemed like some strange fiction — surely, this isn’t how people actually live, is it?
Nah you misunderstood me. I’m working 50 hours a week now to get residency and only taking a couple of classes. I’ll be working 10-20 hours a week when I go back to schoool full time a year from now. I tried working 35 hours and school full time but got burned out last year so no more of that. My grades are so-so. I got a 3.7gpa in all my GE’s and really on a conservative basis planning to remain around there which would mean 1 B for every 2 A’s. To get residency realistically I got to earn 300 dollars in taxable income a week for a year, and in the meantime am allowed to go to school part time given the fact that I can pay for school with the money I have earned within the period I began to establish residency, so no outside cash because my bank accounts will be audited at the end of the year.

There’s a second downside to this model. Although I’ve done advertising and sponsorships in the past, and have made hundreds of thousands of dollars doing so, the truth is it takes a lot of time for this business model to start to generate income for you, because you need to build that audience first. In addition, what happens when you build your audience on a platform that ends up changing its algorithm, affecting how often you actually get seen by the audience you’ve built?
In order not to succumb to that, Flynn says it’s important to know your motivation. “Passive income is important to me not just for the financial security but so I can spend time with my family,” he says. “I’ve been able to work from home and witness all my kids’ firsts. I have a one-year-old and a four-year-old, and that's what drives me and gets me pushing through those hard times and why I keep creating new products and why I want to help other people do the same thing.”
Hey Alison! thanks for taking the time to check out the post! I specifically outlined the post so it would follow a specific structure. This is so readers know what to expect and it helps with the flow of the piece. I’ve actually just finished up a (shortened) PDF version of the post that includes a bonus idea not mentioned here. I’ll be adding this to the post shortly! You’re right on the ebook suggestion — could easily have been made into one. I noticed that you linked to it from the millionaire blog post, thank you so much. Kimberly and I really appreciate the mention.
What are your thoughts on an Immediate Annuity as a passive income vehicle? I suppose it’s not a great investment since you never get your principal back, but the risk is zero and the cash flow is fairly good, approaching 6% currently. And, since you are guaranteed payments for life, you may not care that you never see your principal again anyway since you’ll be dead!
We pitched to an angel investor group. They were very excited about the idea but wanted to know who amongst us (doctor, accountant, salesman) was doing the coding. When they heard we were outsourcing it, the wind went out of their sails immediately. They did want to meet with us again once we brought a coder on board but that person proved elusive to find. Coders in our area are looking for the steady paycheck, not willing to gamble on a startup.

You are also free to choose a fund that is based on any index that you want. For example, there are index funds set up for just about every market sector there is — energy, precious metals, banking, emerging markets — you name it. All you have to do is decide that you want to participate, then contribute money and sit back and relax. Your stock portfolio will then be on automatic pilot.

So many people are seeking lucrative ways to earn income passively, and default to investment properties to do so. Unfortunately, there is a lot of effort that goes into starting a rental property business, especially if you choose to manage your property on your own rather than employ a property management company. That is, however, not to take away from the positive cash flow that is possible from real estate investment if done properly. Thanks again for sharing the realities behind earning “passive” income through your rental properties.
Do you have stuff in your basement, attic or garage that's collecting dust? If you do, pack up the SUV or car and kids and go to a flea market. You could make a couple of hundred, even thousands, of dollars, depending on what you're selling. You'll want to go to flea markets every weekend or at least every other weekend. Make an event out of it, and show your kids how easy it is to earn money selling their stuff.
One of the most appealing options, particularly for millennials, would be #12 on your list (create a Blog/Youtube channel). The videos can be about anything that interests you, from your daily makeup routine (with affiliate links to the products you use), recipes (what you eat each day) or as you mention, instructional videos (again with affiliate links to the products you use). Once you gain a large following and viewership, you can earn via Adsense on YouTube.
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