The concept of passive income can be explained in fairly simple terms: earn money while you sleep. While passive income doesn’t mean you won’t be working hard, it does mean that the amount of money, time, and energy put into a project is not paid back in a direct manner. Instead of being paid by the hour, you will be creating a valuable service or product and you earn your compensation down the road for hard work already completed.
Hopefully, this continues to produce for an extended period of time even as work has winded down on the projects.
The most obvious example of passive income is authoring a book. An author spends weeks, months, maybe years putting together a great novel, a great resource guide, or some other publication that will have intrinsic value to a market. They work with a publisher or even self-publish the book, put marketing efforts into place, and after all this time of working without any payment, they hope to reap the benefits in the form of royalties paid over an extended period of time based on sales. This is a classic passive income stream that can be repeated as many times as the author and/or publishers are willing to go through the process.
The reality of passive income is that it’s not as simple or luxurious as it sounds at first glance. However, most intelligent people should have no problem creating passive income streams. It requires the ability to self-motivate and be able to keep yourself afloat until your income streams allow you to leave your nine to five life, but in return, a successful passive income will pay hand over fist compared to the time invested. There is no foolproof guarantee that the work will become financially viable down the road, but there are ways to help ensure that a product is at least marketable.
Some risks are smaller than others, and that makes all the difference.
In this book, we’ll discuss several beginner-friendly methods of creating passive income streams that can be expanded upon and scaled quite easily.
This includes publishing eBooks (perfect for beginners), blogging, YouTube, online courses, and opening an online shop.