However, you should pick a niche and blog about that. If you're launching a money related blog, maybe it'll be about how to make money in real estate or simply how to make money online. Pick the niche and stick to it. If it's a diet and fitness related blog, maybe the niche is the Ketogenic diet, the Atkins diet or some other form of diet or fitness.
If you have a specific and in-depth expertise, like programming, coaching, or consulting, then having a well written sales page on your own website can be rewarding. I do this with my web design, SEO, Social media, and coaching services. If you want to become a highly-paid freelancer, I highly recommend you first build your own online platform so you can share your professional expertise, knowledge, and life story with the world. Here's how to start your first website in less than 24 Hours.
2. Focus on income-producing assets. Internet growth stocks may be sexy, but they provide no income. To build a large enough passive-income stream to survive, you must invest in dividend-generating stocks, certificates of deposit, municipal bonds, government Treasury bonds, corporate bonds, and real estate. You're free to invest in non-income-producing assets for capital appreciation too. You just want to earn reliable income when the day comes to leave your job.
Remember, a successful business solves people’s problems. At first, you’re going to have to do the legwork and put in the time. But it’s about building something now so you can reap the benefits later, with the help of software, tools, automation, and people you hire. In this way, you can then turn this business that solves people’s problems into something that generates passive income for you!
I’ve built several businesses since 2008 using one or more of these models. I’ve been featured in magazines and articles across the globe, and since I started my journey I’ve generated over $5M in earnings from these businesses. All of my income and expenses for those businesses dating back to October 2008 have been tracked publicly on SPI.com. You can see 10 years of income reports here.

When I purchase an existing online business, I look for cash flow over the past year and where the money comes from. I want the sources to be more passive so that it does not take a lot of my time. Also, typically I will make an offer that is 18 – 24 months of profit so that I know that I will get my money back within the next two years. I hope that helps!
If there’s one thing I’ve realized, it’s that I’m not alone. There are so many physicians who are not at an optimal place with their jobs and are unhappy with medicine in general. Physician burnout is a hot topic these days. According to the experts, a good deal of that comes from the loss of physician autonomy and relationship with the patient, but I believe a good amount of it also comes from the increasing financial pressures heaped on physicians (decreasing reimbursements, rising student loan debt, increased standard of living, and more).
“I don’t believe the overnight success exists. There’s a lot of hard work and time involved beforehand,” say Flynn. Angry Birds may have seemed like an overnight success but it was the 52nd game that Rovio created. Flynn says it took him a year or year and a half to build audiences for his most successful sites. (Read these time management expert's tips on the work habits of successful people.)
After spending that time learning as much as I could, the next logical step, to me, was obtaining my real estate license. I thought having it might make me a more informed real estate investor, and perhaps I’d be able to benefit from buying an investment property as an agent and save on commissions. I also thought I would potentially have access to deals earlier than the general public.
Finally, I imagine the biggest debate with my ranking is Creating Your Own Product as the #1 passive income source. If most people have never created their own product, then it’s easy to give it a thumbs down. There won’t be much complaint about Private Equity Investing being in last place because most people are not accredited investors. But given I believe that plenty of people can create their own product if they try, pushback is inevitable because a lot of people simply don’t try!
Investing in real estate: Investing in real estate offers more passive income cash potential - but more risk - than investing in stocks or bonds. You'll need substantial amounts of cash to invest in buying a home -- it usually takes 20% down to land a good home mortgage loan. But history shows that home prices usually rise over time, so buying home a for $200,000 and selling it for $250,000 over a five-year time period, for example, is a reasonable expectation when investing in real estate. https://images-na.ssl-images-amazon.com/images/I/51TYvZ9%2BQwL.jpg
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.
​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!

But first, let’s about talk passive income! What is passive income? There are many different definitions out there, but mine goes something like this: Passive income is all about building online businesses that can work for you, that allow you to generate income, and grow and scale, without a real-time presence. In other words, you don’t trade time for money. You build something up front that can continue to work for you over time.
Passive income is a great tool for building retirement income faster, paying off debts, and, ultimately, retiring early and comfortably. If you have passive income during your retirement years, you potentially could live as well as you did during your peak earning years. Passive income is money you earn without doing actual labor. Often times, it comes from investments, such as in rental properties, stocks, bonds, annuities, and other investments.
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. https://www.awai.com/_img/content/2017/06/3-ways-to-generate-passive-income-from-a-website/001.jpg
I just found your site & so far I like what I see. I am 50 years old & will be retiring at the end of Jan 2019. I turn 51 the following month. I will have a pension income of $60,000 per year & an additional $5,400 from a survivors benefit. I was able to save $200,000 in a deferred comp program through my employer & wish to know what to do to generate a passive income? I can leave it in the plan which will generate about 3.5% or invest it. My concern is the tax liability of taking out a large sum from that fund & leaving me less to invest. I do have an opportunity to invest in a bar/restaurant with family (my main concern) that currently generates $120,000 annually for an absentee owner. It would be a 3 way partnership if I did that. I do like your idea of creating my own product such a blog with a goal of $12,000 to $18,000 passive income I feel that may be my best option. Any thoughts or advice would be greatly appreciated.
This is the basic mistake they've made: they've fallen prey to the belief that money and meaning are two totally separate things. They've chosen to make their money from something that feels completely meaningless to them (some business they care so little about, they just can't wait to get away from it and minimize their involvement as much as possible), which they hope will buy them the freedom to do something they actually care about.
Let’s say a company earns $1 a share and pays out 75 cents in the form of a dividend. That’s a 75% dividend payout ratio. Let’s say the next year the company earns $2 a share and pays out $1 in the form of dividends. Although the dividend payout ratio declines to 50%, due the company wanting to spend more CAPEX on expansion, at least the absolute dividend amount increases.
A good portion of my stock allocation is in growth stocks and structured notes that pay no dividends. The dividend income that comes from stocks is primarily from S&P 500 index exchange-traded funds. Although this is a passive-income report, as I'm still relatively young I'm more interested in building a large financial nut through principal appreciation rather than through dividend investing. As an entrepreneur, I can't help but have a growth mindset.
I rent out a 3 bedroom townhouse I bought back in 2009. My tenants have ranged from students, to the most lovely, most responsible couple who themselves own a home in another state. They take great care of the house, automatically send checks from their bank, and have only had 1 or 2 problems in the last 2 years (the neighbor’s house caught on fire). They’re awesome, and I’m so thankful to have them.
Affiliate marketing is a simple way to earn a bit of extra money from your personal website or blog. In a nutshell, affiliate marketing is simply including special links to some products or services on your website and in your content. When your readers click those links and make a purchase, you earn a fixed percentage commission from that sale. Most publishers sign up with affiliate networks that connect them with brands seeking for an affiliate. The same networks will also monitor your commissions and schedule your payouts.
Good suggestions. I have many of these. One word about the “app” idea. I had a great idea related to personal taxes that I tried to get off the ground with my accountant as a partner. I would say it’s difficult to do this unless you have a coder on your team. Hiring someone is not really viable financially unless the app is simple. When we finally got the quote for a coder to write what we wanted (and after doing lots of mock ups ourselves and getting a demo for investors) the estimate was about 750k just to really get started.
In Eric Reis’s The Lean Startup, a fantastic book about how today’s entrepreneurs and startup companies are approaching the way they create and innovate, Eric talks about how vital it is to use validated learning and scientific experimentation to be able to steer a company in the right direction. In other words, to use customer feedback and quantified data analysis (of real, non-vanity metrics) from a minimal viable product to make decisions and pivot a business one way or another. https://i.ytimg.com/vi/WYVJ_E2Wqa4/maxresdefault.jpg
In the real estate market, the one of best ways to generate passive income is by investing in turnkey rental properties that are ready to rent with and are managed by property management companies. In theory, the process is relatively simple. You either research properties or have people you trust do it, find ones that are in good condition and preferably in good areas, pay a reputable contractor to perform any repairs and ensure the property is in its best possible condition, and then hire a trusted property management company to handle the administrative tasks, including collecting rent, documenting and paying for maintenance and repairs, and sending money to you.

Revenue sharing sites give you the opportunity to earn money online without having a website or a product to sell. If writing is your hobby, for example, then you can earn extra income by writing high quality articles and submit them to different locations on revenue sharing sites. I must admit I’ve never tried it, but I wanted to get it out as it can be a viable option to get started with.
But first, let’s about talk passive income! What is passive income? There are many different definitions out there, but mine goes something like this: Passive income is all about building online businesses that can work for you, that allow you to generate income, and grow and scale, without a real-time presence. In other words, you don’t trade time for money. You build something up front that can continue to work for you over time.
Occupational therapist Sarah Stromsdorfer founded occupational therapy site MyOTSpot.com three years ago as an online educational resources for occupational therapy students and professionals. She worked on it every weekend, and her site now makes enough income for her to work as an occupational therapist part-time. She believes it will be another year before her site makes enough money for a full-time living of about $4,000 per month. In addition to the digital products she also makes money from ads and online book sales.

Obviously, these are much higher than you’re going to get with most other investments. What’s more is that you can choose a plan that matches your investment strategy, whether your goal is Supplemental Income, Balanced Investing, or Long-term Growth. You can also look at different real estate projects and choose for yourself which ones to invest in.
1. The batting cage idea is very risky. I’ve seen many of them close over the years and it is not anything close to passive income if you want to keep the business going. You have to continually promote it and target youth leagues, coaches, schools etc to catch all of the new players who grow up and want to play. I’ve played at probably 8 batting cages over the years and 7 of them closed.

I think that rental real estate is not perfectly passive income. Landlords need to make a lot not only in order to list the property, but also to keep reliable tenants. So, I would say that it could a challenging job, for people, who have rental real estate but not a source of passive income. Maintenance and management costs that should to be also considered.

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.
I’m a disabled Veteran, although looking at me you couldn’t tell, who is a stay at home husband. I help other veterans with their applications for benefits to the VA when I can but some of these vets and myself struggle at times with maintaining steady employment. I would be especially grateful if I could trade emails to coresond with you in hopes to learn a bit more about passive income. I would like to utilize this for myself and be able to mentor other vets on this process. I do understand this is NOT a get rich quick thing, but a slow and steady build up. Thank you for your time.
When I buy rental properties I spend a lot of time finding properties, getting them repaired (I use a contractor), getting a LLC put in place and getting them rented. I have my real estate team manage the properties for me, which greatly cuts down on my involvement after the house is ready to rent. Using a property manager is a great way to reduce the amount of time spent on rental properties, but it will cost you from eight to twelve percent of the monthly rents.
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?
2. This article isn’t intended to be about making $50k per year from $0 to start with. This is intended to show different ways that it’s possible to generate $50k in passive income. As for your rental property comment, check out RealtyShares or other similar companies. You can be a rental property owner without having to run the business. You can be a limited partner and just invest in real estate, and leave the actual work to the general partner. Basically, there are options to make $50k without working, but like the first paragraph says – front load your life!
Blogging is still going to take work starting out. That path to $5,000 a month didn’t happen overnight but just like real estate development, it build up an asset that now creates constant cash flow whether I work or not. I get over 30,000 visitors a month from Google search rankings, rankings that will continue to send traffic even if I take a little time off.
The first time I did affiliate marketing was way back in the day on my architecture exam website. I connected with a company that sold practice exams, which gave me $22 for every person who bought one of their exams via my site. Since then, I’ve generated over $250,000 simply by recommending that product alone. Again, this is a product that was not mine, but one that has still been helpful to my audience. This was all done with thousands of visitors a month. Not millions, or even hundreds of thousands.

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.

In which socio-economic neighborhoods do you want to buy? I know real estate investors that have done very well buying and renting in lower-income neighborhoods. For me, it was a huge mistake. I fell into the trap of thinking, “I can buy a house for about half the cost as what I would pay in a better neighborhood.Even if I get slightly lower rent, say 70% as much, I’m still making a higher return.”Wrong!The money you lose on tenant turnover, unpaid rent and repairs far outweighs any benefit to buying property at a discount. Now, I always recommend to investors to never buy a house somewhere they wouldn’t want to live. If the business does poorly, you may end up living in one of your homes.
So, I sat down, wrote a few posts, and posted them on a simple website under the name Passive Income MD. I honestly didn’t expect anyone to read it. Well, that was two years ago and so much has happened since. Most notably, I’m now in a position where I am financially independent from medicine. In fact, I’ve started to cut back at work in order to find that happy work-family life balance. I don’t have any desire to quit medicine completely, but I do intend to retire gradually.
The books are pleasantly organized, customers served, teams managed, etc. The problem (in my mind) is that this is hugely time intensive and easily capped. Income = Time x Value, where Time is a finite resource limited to 24 hours a day (or, more realistically, 12).The way most people address this is to change the second variable. They get a law degree, MBA, or PhD, making their time worth more money. This works swell… but it’s still limited. At some point, you’re that lawyer making $550/hr, but your income potential is capped, as willingness to pay more is at it’s highest, and no new time can be created. What to do?
Everything passive first takes active energy. The time to put in the effort is when we are young and not ravaged by disease or burdened by family obligations. I remember being able to snowboard from 9am until 4pm every day for a year. Now, I’m lucky to last from 11am until 2pm without wanting to go to the hot tub and drink a bucket full of beer! If we can appreciate how lucky we are when we are young, we’ll be able to maximize our vitality and live financially freer when we are older.
The challenge I’m facing and, I know it’s a good problem, is that the SF real estate has shot up about 35% in the last couple years. I’m sure you’re experiencing the same thing! So as the net worth is rising, the yield on the total portfolio is going down. Right now, it seems the only way to increase the passive income will be to raise the rent in December and to invest some of that cash in stocks, which I’m nervous to do in this market. Current allocation:
Book sales ($36,000 a year): Sales of How to Engineer Your Layoff" continue to be steady. I expect book sales to rise once the economy starts to soften and people get more nervous about their jobs. It's always best to be ahead of the curve when it comes to a layoff by negotiating first. Further, if you are planning to quit your job, then there is no downside in trying to engineer your layoff so you can get WARN Act pay for several months, a severance check, deferred compensation, and healthcare.
Few real estate investors pay all cash for their properties. One of the biggest benefits to the real estate business model is the ability to buy on borrowed money and writing off the interest as a business expense for taxes. Without the leverage of financing, my experience is that the return from real estate investing is not worth the risks or headaches.
It is probably the biggest digital products marketplace online. Clickbank uses a very helpful measure called ‘gravity’ to represent how well a product sells, based on how many sales have been made and how recent these sales were. There’s one thing you want to be aware of though! ClickBank will withhold payment of any balance until an account shows a minimum of 5 sales using at least two types of payment methods. Not only that, if you made a sale but had no earnings for an extended period of time, your account will be subject to an ongoing penalty. This means that your affiliate earnings can potentially drop to zero. Nowadays, I rarely promote Clickbank products.

When you have several rental income properties, you make your money two ways. The most obvious is the revenue stream created by rental income. So long as the amount collected in rents surpasses the amount paid for mortgages, taxes, insurance, maintenance, repairs, and property management services, you will reap a well-sown harvest of rental income each month. The other way you can profit is by increasing the value of a turnkey rental property and mining the equity that you build. You either can take low interest loans against the equity or sell a property outright if you have others that will continue producing a good stream of passive income.

The comparable sales approach values a property against those of similar properties that have sold recently. Write down characteristics of the investment property including age, square feet living space, number of bedrooms and baths, neighborhood, as well as features like a garage and central air. You then need a list of all the homes that have sold within the last year in the same neighborhood and with the same features.
Bryan added: "If you make your choices based on, not 'how can I get money for free?' but on, 'What challenge can I put in front of my face that's going to have me step up to be the kind of person I'd rather be?' you're going to start to forget about wanting passive income, and you're going to start to focus on what purpose you truly want to create the world."
Betterment – Betterment was the first robo-advisor to launch, almost ten years ago. They’ve automated the entire investing process, so all you have to do is watch your portfolio of assets grow (over the long run, of course). They do charge a .25% annual fee of your account total, so if you’ve got $100,000 that’s being managed by Betterment, you’ll pay just over $20 per month.
I have been a open minded driven dreamer since i was 18. Mix that all in with a complete screw up and you got my identity pretty much grasped…. There have been many different jobs that I have held since graduating High School. A side from my dads asphalt company and one landscaping gig I’ve been in sales my whole professional life. I am 33 years old and I know about the Insurance, Banking, Industrial/Electrical Manufacturing distribution, Telecommunications and Finally “online distribution” AKA: EBAY.
It’s been almost 10 years since I started Financial Samurai and I’m actually earning a good income stream online now. Financial Samurai has given me a purpose in early retirement. And, I’m having a ton of fun running this site as well! Here’s a real snapshot of a personal finance blogger who makes $150,000+ a year from his site and another $180,000 from various consulting opportunities due to his site.
Let’s continue the vintage BMW idea. Old cars obviously require quite a lot of maintenance. Many people will buy a “fixer upper” with the intention of spending their spare time repairing and restoring it. There’s a very obvious market here: a guide to restoring different BMW models. Depending on your knowledge, you could produce detailed guides for the three or four most popular models and sell them. Not everyone restoring a car will buy them, but some probably will.
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.
This world is a dangerous place to live, not because of the good people that often act in irrational and/or criminally wrongdoing ways within the confines of their individual minds, core or enterprise groups, but because of the good people that don’t do anything about it (like reveal the truth through education like Financial Samauri is doing!). Albert Einstein and Art Kleiner’s “Who Really Matters.”
How to Monetize: Affiliate marketing works well when you discuss products on your blog. For our fish tank blog, we would link to all the things you need to buy for an aquarium and then when people click on that link and buy that item (and other items they purchase with it with some exceptions) you get a percentage of the purchase. Amazon Associates is the best-known affiliate marketing program, but there are others like Impact Radius, ShareASale, Commission Junction, ClickBank and Rakuten too.
However, you should pick a niche and blog about that. If you're launching a money related blog, maybe it'll be about how to make money in real estate or simply how to make money online. Pick the niche and stick to it. If it's a diet and fitness related blog, maybe the niche is the Ketogenic diet, the Atkins diet or some other form of diet or fitness.
One of the most important assets you have is your credit score. By taking care of it and pursuing the steps to improve your credit score, a world of opportunity can open up for you. If you need a loan to buy that rental property or some quick funding through a business credit card, a good credit score will help you get approved so you can build passive income.
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!! 🙂
Earn rental income. One of the more common ways that people earn passive income is by buying and then renting out property. These can be homes, apartments, land, or even individual rooms within your home. To do so, you'll have to find a property to rent out, determine a fair rental price by looking at comparable properties in your area, and then act as a landlord for your renters. You can convert this income source into truly passive income by hiring a manager to act as a landlord for you. However, this may not be economically feasible until you have several rental properties.[1]
I will share what we did, because it’s an incredible success story. We used an existing tax loophole where if you sell your primary residence (after having lived there at least two years) you get to keep your profit tax-free. So, we stair-stepped. We bought house after house, at least two years apart, used the profit money to pay down on the next house (so on and so forth, yadda yadda) building up equity as we went along… and now, we own a $600,000 house debt-free. And now we are using our paid-off home as leverage to borrow money to buy commercial buildings to rent out. I like commercial because it’s a BUSINESS transaction… kids, pets, other wear and tear that you see with residential rentals is nonexistent. People take care of their business space much better than residential. You have to be in a good area for renting out commercial – a thriving business community – to make this work. But that’s how we “made it”, and though it took 15 years, we will have residual income to take care of us when we’re old enough to retire. People made fun of us for moving so much, but who’s laughing now? 😉 Oh, and our child only had to change schools once (and we wanted to anyway) because we stayed in the same general area as we moved around. We were careful not to disrupt his life too much.
* Freelance writing: Quality freelance writing takes tremendous effort. Ironically, the better the quality of your writing, the more you don’t want to freelance and just keep the articles for your own site. Freelancing is a great way to earn side income, however, it’s not really for me. I’ll probably take on one or two freelance jobs maximum per year and write no more than four articles a month elsewhere.

I have six rental units which are a good source of passive income. I don’t use a property manager because you are right…they take about 10% of your rent. There are really only 2 things that tenants call about: 1. A plumbing issue 2. Heat/Air problems. Just find a plumber and heat/air guy you can trust. I travel a lot for my primary job. When a call comes in from a tenant, I can call the repair guy in just as easy as a property manager.
But, you don't need to go further than that. You can simply write it and publish it and collect the income. That's all. Send out a couple emails to your list (if you have one) or post it on social media, and there you have it. Passive income. Now, the amount of income you receive depends on the quality of the book you've written. How well did you craft the message? How targeted was the information to your audience? It counts.
Hello, I have just started my own blog this week. I too have read a lot of Rich Dad Poor Dad’s books and the 4 Hour Work Week and am hoping to be on the same path as you. I love your blog! Everything looks great. I am still learning— so much to figure out! My blog is bettybordeauxdoesitall.com. I have to be anonymous because of my job. Thanks for the inspiration and best you!
So, armed with my real estate license and this desire to help physicians (and create a business at the same time), I started a real estate company called Curbside Real Estate. My goal was to help physicians buy and sell homes by connecting them to trusted realtors and lenders. It started organically, largely through word of mouth. Next thing you know, I was helping doctors from coast to coast. The business was great and I felt I was making an impact helping physicians, but I still wanted to own my own real estate investment properties.
Brian had found a huge need for web design in the restaurant and food truck space. After getting tired of working with client after client, he decided to turn his service-based business into a product-based one. He made his services more standardized and productized. He eliminated all his client work and created templates and products to serve that market instead. And it’s been going great for him.

I actually spent a year and a half working as an affiliate marketer (mostly selling drumming related products – lessons, kits ect). 5 years on and one of my one page sites (which I’ve not touched) still nets me about $150 a month. I won’t be retiring off that but only really now appreciate the reverse pyramid approach to entrepreneurship (working for nothing initially but later being paid without effort!)

×