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The organizing principle behind this grouping, appropriate economic units, is relatively simple: if the activities are located in the same geographic area; if the activities have similarities in the types of business; or if the activities are somehow interdependent, for instance, if they have the same customers, employees or use a single set of books for accounting.
No one should turn down wind farming’s ultimate passive income for the next 30 or more years … even 60 years when there is a positive cash flow on the sum total of all base payments when computing inflation for the next 60 years based on the previous 60 years, as long as the next era’s energy resource is not perfected (at which time they would not renew the option for the second 30 years).

Buy a small business: A local small business, like a car wash or a laundromat, is a great way to put money down on a money-making venture. Automate it so you don't have to be on the premises unless you're collecting money. Go into a local business with your eyes wide open - study the books, especially on income and expenses, and examine water and utility bills if your venture will be open 24 hours.


Starting a blog is one of the most popular side hustles to earn online income. This is because whether you have 10 people or 10 million reading your content, the amount of your effort to write an article is the same. Websites have low start-up costs and you can literally buy your domain, launch your site and have a few pages created in less than an hour. You won’t start making money right away, but you will be building towards that first $1 of income.
Or you could do joint ventures/strategic alliances for your business or for other businesses and make residual cash flow for $0 investment.. that’s what I do lol. No money, no risk, little time, 20+ years working from home. Just connect companies and take a %, use the Internet to do it locally or globally, be the intermediary & connect companies…. ;-)
Our favorite platform for this is RealtyMogul because you get the flexibility to invest as little as $1,000, but can also participate in REITs and private placements – typically not offered to the public. Investors can fund real estate loans to gain passive income or buy an equity share in a property for potential appreciation. Their platform is open to both accredited and non-accredited investors.

One thing I’ve realized is this: It’s FAR easier to work for an employer than it is to develop durable passive income streams for the average person. Why? Because working for an employer in a place that “needs” you means that it’s possible to show up and give a 50% effort. You can show up, put in your time, go home, have a beer, watch TV, and rinse and repeat all without REALLY having to put in the effort.

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’m looking at accepting a professor job. It’ll be more than a 50% pay cut. But I’ll have the same life you describe – endless summers and an entire month every winter to ski. I’m thinking in the end, eventually, I might even end up wealthier in more ways than one. Happy people tend to be the most successful. I have no desire to diversify. Dividend stocks allude me. CDs seem like a good choice for older people, but I have time on my hands and real estate knowledge, so I’m sticking with what I know, despite the fact that most people will tell me it is foolish and I should diversify.
Of course, you can make honst money in Internet info-products, or affiliate marketing, or other such areas where people tend to get drawn to "passive income" fantasies. But, to make real money over the sustainable long-haul, you must treat these like any other business. In other words, you must provide real value to real customers with a real need.
A perfect example of the Active Problem Solving + Automation concept is in my online courses I’ve created over the years, or my free webinars I’ve created more recently Each of my online courses and webinars are targeted to help people with specific problems, whether that’s in the area of affiliate marketing, podcasting, building a brand, and so forth. I am always improving upon the courses, but they are also evergreen for my audience.
Do you think it’s possible to build a blog from scratch, outsourcing the work from day one (assuming I have some cash that can cover the initial expenses until the blog generates enough income to at least break even)? In other words, do you think you could you have spent your $500 max per month for the writer, social media expert, etc to build your blog to the point it’s earning the same amount of money it does now?
I do agree that a few of these ideas are not bad, but for me the problem with some of these platforms has been that I’m not from the USA. So, I can’t operate there. It’s a really interesting possibility to get some extra bucks from doing what you would do either way, like shopping. One of the best projects so far that I have seen is FluzFluz. It’s simple and really easy to use for everyone who uses Uber, Amazo, or other apps. The best part of all is that you can get some passive income – not just from your own purchases, but from other people’s as well. I hope one day it will make it here to your list. I think it’s worth it to check out.
I agree mostly with the real estate advice. I’m looking for ways to take advantage of the condo I own to get up the rent from ~$0.90/ft to the $1.2-1.5/ft that seems more like the range in the same area. I’d have to put in a bit of capital (probably 10k on the low end for just the basics up to 40k if I wanted to remodel the kitchen and 2 bathrooms up to par with the area), so the return is likely there if those upgrades warrant $1.30/ft (given the unit is larger than most 2br/2ba in the area).
One of the great parts about the online world is that a website and its domain name is like real estate - It can go up in value over time. In fact, sometimes just the domain name without the developed business can be worth quite a lot to some people. Of course, like almost anything mentioned here, the necessary know-how is required. If you’re willing to put some time into it, then you can earn a nice online income. So far I sold 4 domain names with an average price tag of a couple of thousand dollars. Nice income, considering I bought each domain for around $10….If this income stream interests you, check out flippa.com - It’s one of the best marketplaces I know for selling websites or domain names.
Invest in dividend securities. Some stocks provide shareholders with regular payouts called dividends. For very large, old companies, these dividend payouts are made for consistent amounts and can amount to a substantial income if you own a large number of shares. Look for companies that are very established and have been paying dividends for a long period of time (more than 10 years). You should be able to find this information with a quick online search.[5]
Absolutely Federico. I still invest in real estate but no longer carry the misconceptions that it’s passive income. Fortunately, I’ve held my real estate properties long enough that they cash flow even after paying for management but it was a lot of work in the beginning. Real estate is a great investment but passive income investors should look to REITs and other investments rather than direct investment.
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.
Using ad networks like adsense doesn’t prevent you from targeting advertisers directly. In fact, that’s how I started; I searched the net for potential advertisers who advertised products relevant to my content and offered them yearly packages. If you choose this option, bear in mind that you’ll need to provide traffic reports and other site statistics.

If you are a photographer looking to diversify your income stream, putting together styled stock photo packages can be lucrative. For example, a package of 15 wedding-themed stock photos for $10. You can then market this to any bloggers or businesses who are in the wedding business for their use (photos of different engagement rings styles are super popular). Through this method, it’s possible to make a continuous stream of income off of photos you’ve taken once (similar to a licensing deal).
However, affiliate marketing isn’t as simple as just placing some links in your texts and hoping to make a sale. To be successful, you’ll need to follow some best practices. First of all, always disclose that you use affiliate links or your readers may feel as if they have been misled. Choose to link out to products that are relevant to your niche and your content. Ideally, you will only link to products and services you can personally vouch for.
John has a daily (yes, daily) podcast where he features an interview with a successful entrepreneur. Now, John enjoys many hundreds of thousands of downloads per month, he’s written a book, has products and has opened up a ton of opportunities for sponsorships and partnerships that wouldn’t have come otherwise. He’s not the first person to have a show dedicated to interviewing rock star entrepreneurs—not even close—but he’s definitely the fastest to see these kinds of results.
Creating passive income is the key to retiring, especially retiring early. If you want to retire early with the stock market you will have to save a huge amount of money, because that money has to last so long and retirement calculators depend on you using your investment to fund your life. With passive income you will have income coming in as long as you own the investment, without every eating away at the principle invested. Creating passive income may take more work than investing in the stock market, but I think it is well worth the extra effort!
Launching a side business or figuring out how to invest your money when you’re strapped for time isn’t easy, but the payoff makes it all worthwhile. The money you earn from passive income will undoubtedly have you well on your way to achieving your financial goals and that much closer to true financial freedom. If you’re wondering how your finances currently stack up, find out where you stand financially. No matter the result, Turbo’s personalized advice will help get you where you want to be.
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.
I wanted to specifically call out one particular strategy within equity investing that bears mentioning – dividend growth investing is when you focus on stocks that not only pay a dividend but have a history of strong dividend growth. When I was first building my portfolio of individual stocks, I focused on buying companies with a history of dividends, a history of strong growth, and financials that supported a continuation of both.
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.
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. 

It’s a (mostly) short term, higher risk, higher reward place to invest cash that has a low correlation with the stock market, but is far more passive than buying and managing properties, has more opportunity for diversification than private placements (minimums of 5-10K, rather than 100K), and most of the equity offerings (and all of the debt offerings) provide monthly or quarterly incomes. Unlike a REIT, you can choose exactly which projects you wish to invest in.
Here’s the truth: a successful business is something that successfully solves a problem. And that business can make more money in two ways: solving more people’s problems, or solving bigger problems. The cool thing about the EP Model is that sometimes these products don’t even have to be yours. You can generate income by recommending other people’s or companies’ services or products. This is called affiliate marketing. It’s actually how I’ve made most of my money since I started in 2008.
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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.
And real estate does more than just track inflation – it throws off income (which is important to some people and useful to most). And while your underlying asset is appreciating, the income also grows as rents increase over time. And if you make smart and well-timed purchases, both rents and asset values can increase at well above the rate of inflation.

In real estate, your passive opportunities are in private lending and rental properties. Private lending commonly involves lending funds to a real estate investor or business in exchange for a set return and length of time. (Full disclosure: I am co-partner of a turnkey investment company.) Turnkey rental properties allow the investor to be as hands-off as they like. This means a turnkey company purchases, rehabs, tenants and manages the property. To truly make this a passive investment, turnkey companies do all the work for you.
The great part about creating truly passive income is the money comes in every month without you having to sell your investment or worry about running out of money when you retire. The returns are also better for me with rental properties, because my cash flow is producing about a 20 percent cash on cash return and that does not even include equity pay down on my loans or appreciation. The appreciation on my rental properties is a bonus for me, while stock market investors are depending on it.
It’s a (mostly) short term, higher risk, higher reward place to invest cash that has a low correlation with the stock market, but is far more passive than buying and managing properties, has more opportunity for diversification than private placements (minimums of 5-10K, rather than 100K), and most of the equity offerings (and all of the debt offerings) provide monthly or quarterly incomes. Unlike a REIT, you can choose exactly which projects you wish to invest in.
I’m looking at accepting a professor job. It’ll be more than a 50% pay cut. But I’ll have the same life you describe – endless summers and an entire month every winter to ski. I’m thinking in the end, eventually, I might even end up wealthier in more ways than one. Happy people tend to be the most successful. I have no desire to diversify. Dividend stocks allude me. CDs seem like a good choice for older people, but I have time on my hands and real estate knowledge, so I’m sticking with what I know, despite the fact that most people will tell me it is foolish and I should diversify.
Hi Logan, thanks for perfect article on passive income theme! I am a newbie in this passive income thing but everything I read here seems obvious to me. Why not create a passive income, right? So I started googling about making passive income via internet because I like things connected to the web and I think that this will be a huge thing (it already is) and I found this article which seems that is probably very new but in the ebook there are great informations about passive income, at least in my POV (newbie POV). Is this a legit website or can it actually work? I want to expand on that because my 9 – 5 s*cks… Here is the URL: https://cashwithoutjob.online
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