It's really depends Of person's perspective.

But for me, i just know that i definitely love passive income.

Do or set up one time, but earn for a long time. I really love the way it is.

Passive/schmassive. I once owned a chain of stores and employed staff to run them. By your definition, that was passive income, although it didn't feel that passive to me at the time.

Whatever we choose to call our business model, I believe the key distinction is between being paid for our time - which is limited and difficult to scale, and creating a business asset - which has potentially unlimited scope and scalability.

I favor the latter model, but different strokes...

I earn money from both passive and active income.. Sure, like you said, I had to work and put in lots of effort to start generating that passive income, but since I now can earn without spending time online, automatically, I'd call that passive income even if I had to work to get that in the first place..

From active to passive, which ended up in active & passive income.

To me, passive income is what comes from systems that you can leverage to maintain a level of income even after you stop actively working.

A good example of this would be YouTube videos where you promote an affiliate offer at the end; once the video is made, you can get organic traffic (and sales) from YouTube for months or even years without any extra work.

In the case of something that requires a more constant effort, if you can outsource the necessary parts of your business and hire a manager, you can still make income with very little labor on your part (successful brick and mortar business owners sometimes do this, I know a couple).

The catch with all of this though, is that building these systems are anything but passive.

Regards,
Daniel

There is no such thing as passive income, all income requires some effort at some stage.

The term passive income is misleading. I think those who use that term actually meant to say autopilot business - a business that is set up once and runs itself without your help or that of any human. Selling product, receiving payment without anyone's help while you sleep, happens because your business is operating on autopilot and this is what most people call passive income.

Thanks to the help of computer, a business can be set up and left on autopilot, products can be created, saved and never be exhausted, transactions can be processed without the work of any human. Of course the promotion of the business is still done by humans, but most of the business processes is left on autopilot, and this is what people call passive income.

Income: "Money received, especially on a regular basis, for work or through investments." In IM, a pure passive income model requires investment to setup, such as time and startup capital, and will then produce income without any further investment. You have a handful of pure passive income models, but the majority of passive models are defined by varying degress of inactivity. One example of a pure passive model would be writing an eBook and placing it for sale on KDP; no further activity is required, though of course you can if you wish. In contrast, an example of a semi-passive model would be growing a forum community, establishing a management team, and electing to oversee operations at regular or irregular intervals. To any newcomers reading this, your goal in IM should be to possess a portfolio of IM properties, where, by diversifying the types of models that define your different properties, you can reach a level of efficiency dictated by your involvement, whilst also, as a byproduct of diversification, promoting levels of financial security and growth. To learn more about passive income models, don't wait for someone on WF to spill the beans. Simply hop on Google. As Mulder would say, The truth is out there.

- Tom

This argument over semantics will forever be going on.

Some people scoff when they hear the word "passive", and they think "what I do is anything but passive!!!".

However, the point is that once the "system" is created (which does require a large initial time investment), the "do work" and "get paid" actions are independent from one another.

- You may get paid while you are asleep or on vacation
- You may spend 12 hours working on your site one day, but not get paid at all

This, in my opinion, defines what passive income is to me.

Another poster also mentioned scalability...that's another perk of the passive income model!

I can see how if someone is mega wealthy and has money making money from interest by sitting in a bank or property investments etc. Thats easy when one is wealthy and money makes money. For people with no money or very little how would a passive income come about without a lot of work and time invested for no pay to begin with?

I think you can have some forms of passive income that are low maintenance, but you still have to work to reach that point, and from time to time you will need to do more work. In my case I built software products that involve subscriptions paid monthly plus residuals from credit card sales by my customers (in many cases). Assuming the software is running smoothly for my customers I am getting passive income. However, some customer need my help and it is my job to make sure they get it. Again, I have plan for this too. I have employees who help the customers, and usually the customers pay for the that help with a little profit built in (so more passive income). But the employees need to do a good job, and it is my job to make sure they do, or else find other employees.

Even when it comes to investments, they are not completely passive. You have to rebalance your portfolio every so often or it will not perform as well (or worse). That being said, one of the leading economists of our day has pretty much proven that investment income grows at a faster rate than wages (read Capital by Thomas Pikkety). The hardest part is positioning yourself to be free of needing to work for wages.

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That's a great way to look at it.
Thanks for sharing.

As long as i dont have to work a job again.... i'm very happy with the passion income, income model. I'm sure most people hear would agree.

Until January this year I ran a side business which generated passive income. My plan when creating the business was to have a business that after the initial phase I could leave alone (possibly forever).

To do this there are certain requirements:

A profitable market with competition It's no use being the only dog in the fight. Part of passive income is leeching customers off competition.

A market which replaces itself at the end of a life cycle

Universal search terms (knowing that the market will search the same terms year after year is invaluable). With this its set and forget on the website/YouTube videos and social media.

Buyers who will buy buy than one product.

I researched like crazy before settling upon the niche I eventually went into. In this niche:

• There are three big competitors
• Every year there are 700,000 potential new customers
• On average each customer buys three products
*There are on average 2 customers a day. With two large spikes in the market

Amazon sells all the books through KDP, promotes my other books and handles all transactions.

All I did with the business was once a year put a book on free promotion and once a year file my accounts.

That's about as passive as I could get it. Probably 3 hours work a year and a 6 figure income.

If i can setup or do something once, then can earn for a long time

that's enough for me to call that is passive income

Just keep it simple!

blah blah blah blah blah, Who really cares. Income is income no matter what you name it

al

Passive income is all about generating lifetime residual income every month.

Do check out this article How to Make Money Blogging - Guide for 2015 to get going making passive income online.

Passive Income: Your Uncle Fred sends you a big check every month, like clockwork.

I don't think there's any such thing as passive income, except, as most people are saying (and it's true) that some things are "relatively" more passive than others.

Work 8 hours and 10/per and you get 80 bucks. Result is not directly linked to how passive or not you were during those 8 hours (unless you're on a trial basis, haha).

Work 8 hours building your own business (offline or online) and you can make zero, or you can make 180 bucks. If you're happy with the 180, you can find a way to do the same thing in 2 hours and make 10x the amount =1800. You'll never cut it down to zero hours, but the real key with "passive income" to my way of thinking is that you could take the 180/day to 1800/day and more even while you're doing LESS work.

That's a relatively passive model and it happens every day with online business especially, because digital product is so easily scaled up. ie., it takes no more work to sell 1000 ebooks at 7/per than it does to sell 1.

For me, Passive income is the income which gives me time freedom.
If a project gives me freedom to work at my own slot of timing then its a passive income for me.

In my opinion, Blogging is such an income where it is my choice when I want to work and how much i want to work.