by Jordan Lewis (Author)
The world is changing in many ways, and we have to cope with these changes in order to lead a decent, stable, and even lavish lifestyle. The formulas for success are also changing as we speak. Earning money, spending it, investing, and climbing up the career ladder are all very different from what they were just a decade ago. The same goes for passive income; it’s an intriguing concept that interests most people, but there are now so many ways and means to go about it.
While it might seem a bit strange at first, we have to adapt to these new ways of earning and eventually gaining success. Passive income is an excellent example of this, since most of us would love to earn money just by setting a process in motion.
People are now taking up second and third jobs, freelancing, and doing a side hustle along with their regular job. It’s always nice (and even necessary at times) to have a little extra money on hand or piling up for a rainy day. This is the valuable topic that the eBook ‘Earning Passive Income’ covers.
Basically, the idea of generating passive income is making your money work for you instead of the other way round. A lot of successful people have stated that this is the secret to gaining real wealth. We might have heard about Bill Gates or Elon Musk earning thousands of dollars just in the time that it takes to wash their hands. This is because they already have money invested in several successful endeavors. The same could be true for us–usually on a much smaller scale, but still enough to turn our lives around.
Making Our Money Work For Us
Having that extra money generated on the side could mean a lot of benefits for a regular person. For some, it could mean putting food on the table and having a roof over their heads. For others, it could mean owning a home, buying a nice car, or giving their children a quality education.
Even with two active income streams in a home, most families have trouble making ends meet or investing for the future. With a couple of passive income streams along the way, a couple could make plans for retirement or just a safety net in case of emergencies. This eBook first highlights how passive income could be better for us in the long run:
…passive income is much better than active income in several aspects. Just think about it – if you have a passive income stream that generates money for you without your active involvement, you can go on a vacation and come home to a bigger bank account.
That being said, active income is the foundation for you to create a passive income stream, so don’t ignore it at all. Whether you want to make good money from your investments, rental property, blog, etc., you need to fund yourself first.
Traditionally, passive income usually meant investing in stocks or being a silent partner in a business. Real estate could be another conventional choice, what with the rapidly rising prices within that market. These options are still available, but they’re probably not accessible to most people. Only those who already have a large amount of excess wealth and experience are likely to succeed with these routes.
With this eBook, one can learn about the many ways in which one might start a passive income stream even with low monetary investment. It goes into great detail about every path we could choose, along with how to jumpstart the earning and the precautions to take.
Chapter 1: Introduction to Passive Income
This chapter doesn’t start telling us how to begin with passive income right away, but rather focuses on understanding the concept and how to make it work for us.
First of all, we learn that certain methods of passive income, like apps or blogs, do take some money and a lot of time to get off the ground. Having said that, they do start the earning process fairly quickly when the setup is complete.
Passion is an important factor in anything we do in life, and that’s no different when building a passive income strategy. Consider choosing what you love to do and find a passive income source closely related to those areas of interest. Your interests and knowledge can help energize and develop a successful strategy for building your passive income stream.
Next, the chapter talks about how passive income is a very attractive concept. Who wouldn’t like to earn money without working for it? However we also have to keep in mind that passive income is listed as a taxable income by the IRS. This means that we have to be aware and alert while filing taxes, as hiding this income stream could lead to big trouble in the future.
We also see what we can learn further on in the book:
- The real differences between passive and active income
- Examples of passive incomes
- Categories of passive income
- Who is eligible to earn passive income
The main idea established is that we have to find proper opportunities and develop strategies to get a decent stream of passive income. Interests, knowledge, education, and experience all come in handy here. Hard work at the beginning is also an important part of it, though the main goal is to eventually have money coming in without any effort for the most part.
Chapter 2: Benefits of Passive Income
The benefits of passive income are mostly obvious, but this chapter introduces some advantages that we might not have considered up until now. With many people wanting to change their lifestyle, provide well for their dependents, or pay off their debts, passive income seems to be the best way to work towards their goals.
Just a few of the additional benefits of passive income include personal growth, financial stability, getting out of the 9 to 5 grind, independence, early retirement, less stress, and so on. If nothing else, just the fact that it’s exciting to have some additional money should be enough for most to give it a try.
However, we also have to be aware of the potential disadvantages of passive income. This chapter also talks about this aspect so that readers can stay aware of both sides of the matter. The main downsides include the need to have diversity, investing at the initial stage (both time and money), and that these streams still require effort if we want to maintain the income.
One important part of this chapter shows how one can go about earning a passive income through investing their time or investing their money. This might seem opposite to the matter of passive income, but it is actually the most central part of it. You can’t have money appear out of thin air; the concept of passive income includes working at something for some time and then seeing how the money rolls in. One may also have to put in effort or some monetary investment from time to time, but the most popular options for investing time in passive income methods include:
- Creating mobile applications
- Writing a blog
- Create an online course,
- License photographs
With a blog, for instance, one can earn through advertising and affiliate links. In order to market your blog, app, course, or photographs, however, you might have to hire a professional or go through a long process of learning how to do it yourself.
When it comes to investing money to create an eventual passive income, the most likely options include:
- Opening a savings account (preferably the high-yield kind)
- Buying a company and becoming a silent partner in it
- Buying property to rent out (whether it is land or some sort of equipment)
- Buying stocks that pay dividends or index funds
Finally, this chapter talks in some details about the strategies and types of passive income to consider. Affiliate marketing, buying a company, providing a digital product, licensing photos, and a myriad of other ideas are briefly discussed. These lists are likely to provide inspiration for many who have been considering a passive income for themselves. This is especially so as they give ideas on how to utilize skills we may already have, such as using experience in any field to create an online course and then market it to relevant audiences. The following excerpt further clears up the idea:
Basically, any digital product you can market and sell to your audience will give you a lot of benefits in terms of passive income in the future. For example, you can write an eBook, instruction guides, create an online course, or whatever you think can sell. You don’t necessarily have to offer these digital products at a high price and still generate handsome passive income.
Chapter 3: A Brief History of Passive Income
If we are to understand and implement passive income properly, we first need to understand where it’s coming from. This chapter details how the concepts of passive income started out, and how they have now developed to the methods that are available to the masses today.
It starts off with when people lived in caves and could just dream of having passive income, if a concept even existed. However, once civilizations were developed enough for people to have a currency, own property, and have equipment, passive income became possible. People could earn a passive income stream by renting out their land or vehicles.
Further on, the talk turns to royalty payments. These are the payments one gets after publishing a piece of music they’ve composed, a book they’ve written, etc. in more modern times, these payments also include the share an actor gets when their movie or TV series is aired on a channel.
By the start of the 20th century, passive income was a more known concept. However, most people saw this as having oil wells making large profits for their owners.
Moving onwards, the discussion is more about passive income streams that don’t require such a heavy investment. This part of the eBook talks about the various periods of passion income to date. These include the automated sales process, affiliate and associates programs (mostly through Amazon), Google AdSense, auto responders, and many more. With the advent and common usage of the internet, it is evident that passive income methods have also seen a quick rise.
Chapter 4: Ways to Generate Passive Income
The final chapter of this eBook delves into the ways in which we can do about earning passive income. While these have been touched upon so far, this chapter gets into the details of each method it mentions here.
The idea of writing an eBook has several sub-headings, all pertinent to the matter of getting the work just right. A summary of the tips here include:
- Getting the book’s topic right
- What to look at when choosing a topic
- How one can determine what concept their audience actually wants to read about.
- Checking out the competition by reading some eBooks in your intended field
- Publishing is an essential step, which shouldn’t be hard with services like Amazon, Kobo, and Unbound available.
- Getting noticed is the final and ongoing step, as one needs to market their books as well. Social media accounts can help in this regard, as can several websites.
Starting a YouTube channel is another popular idea that many people consider. This eBook tells us the basics of getting started with this platform.
Before you are accepted into the YouTube Partner Program, Google reviews your channel in order to allow the connection of AdSense with your channel. Your channel can be monetized even if it doesn’t have millions of subscribers and views. YouTube income depends on many other things, such as user engagement, ads played on your video, the niche you are working in, etc.
Just a few of the tips gives for YouTube success include:
- Creating content that meets the guidelines of the platform
- Being 18 years or above or having a legal guardian who can receive payments on your behalf
- Keep on updating and posting new videos according to the target audience’s interests
- Partnering up with different names and brands to sponsor their offerings
- Use YouTube Premium Revenue
- Market your merchandise
The eBook mentions Amazon quite a bit, and with good reason. Amazon is now among the leading platforms for creating possible passive income streams. The Fulfilment by Amazon or (FBA) program is yet another great option that people can consider. You don’t have to worry about much once you set up an account and let Amazon manage your products. All you have to do is take picture of the products, upload them, set the prices, and market for all it’s worth. Any sales you make will then be managed by the giant company, who will deduct their fees and deposit your money twice a month. Of course, this method does require a bit of ongoing work, such as expanding the product range, keeping in touch with the account, offering deals, etc.
This might be the most useful chapter of the whole book. In addition to getting into detail about some of the most popular choices for passive income streams, it also gives a myriad of other, less common options. Along with YouTube, Amazon, and Google AdSense, some of the mentioned ideas include:
- Real Estate Investment Trusts or REITs
- Asset rentals
- Marketing and selling online courses
- Vending machines
The chapter ends with some ideas on how to build sources of passive income. These include the following:
- Learn through online courses
- Watching videos
- Look into cash dividends
- Rent a room in your house or apartment
- Offer your car for advertisements
Earning passive income is a very attractive and appealing concept, but it does require proper understanding and preparation. The most essential factor to keep in mind is that almost all methods of passive income require some sort of effort and investment from time to time. If you write a book, you have to market it to keep the sales going, think about selling the rights for a movie, and put in appearances at certain events. If you buy a company even as a silent partner, it is important to take a look at the operations every now and then to prevent any scams or other unethical dealings. Many such steps are inevitable if you want that passive income to last for the long term.
At the end of the day, passive income is a great opportunity for those who might not be satisfied with their current job or not earning enough through it. It’s also a feasible path for those who want to remain flexible, independent, and as stress-free as possible. Having a bit of money and time on hand always helps to get your passive income stream going. Books like this are a stepping stone towards achieving our passive income goals. With the useful tips and insightful details, many readers will get inspiration for starting passive incomes of their own.