Passive Income Basics

Passive Income Basics

Posted on 02. Jan, 2013 by in Archived Post

Making money comes in a variety of ways and means. Millions and millions of people know the traditional, old-fashioned route to getting paid, and that’s through getting a job – old, yet reliable. Most people have no issues with working 9 to 5, getting 40 hours a week and getting that weekly or biweekly paycheck. Many enjoy their weekend’s and the time that’s spent working through a variety of projects and tasks then slipping out on Friday evening for a couple of days rest before starting the routine all over again on Monday. Many have walked the routine for 20, 30, and even 40 years. This is what I call pure Active Income. That’s fine if it works for them…it’s even better if they feel that what they are doing is there purpose in life. Others find that working in an environment that keeps you in one place for a set number of hours weekly is simply not for them, and these iconoclasts are constantly devising plans to develop a passive income.

For those that aren’t familiar with the term “passive income” or how it is defined, it’s in regards to another route of making a living. Instead of making an hourly wage where you are sitting or working at one location or within the parameters of one job and skillset, it’s a way to make money when you’re not working. That’s right, making money in your sleep is the true definition of this secondary option in the career paths that you can choose. Now, to get on the road to earning a passive income, you will need to be active in the sense that some work will be required upfront. In other words, you will be an active income earner during the early stages, but will ultimately transition to a passive income earner.

Why Take The Passive Income Route?

The reason why this is a great option to explore is because it means that you’ll be able to stop working so many man-hours and instead relax and make your own schedule. Yeah, I know that the phrase “spending more time with the family, taking unscheduled vacations, working 4hrs per week” sounds so cliché, but I recommend that you customize those phrases to your liking, internalize them, and then start speaking them aloud – in private for now. There are many forms of this passive income process, and it becomes more of a business venture than anything else.

Passive Income Example

An example of how this work is affiliate marketing. Affiliates for large and small companies are like independent sales man that forward people to a larger site through a link that they are given. When they get someone to click a link, the end user goes to an online store and purchases goods. Those goods are sent to the end user, and the payment is processed with a commission given to the referrer, also known as an affiliate.

Marketers that are making a great deal of money with affiliate marketing are essentially making money in a passive manner. They are putting up links in forums, websites, blogs, and so many other places, which is far easier than many other roads to making money – hey, I do it with companies or products that I have used with much success – see my affiliate links on the right side of this page. Imagine only having to work a few hours a day, and then going off to do whatever it is you wanted to, without as much as a sweat. You would get to call the shots, and you would decide when you wanted to work. Then when you weren’t working, the world would visit your links, click through and purchase goods that they were already going to purchase, and each transaction earns you a certain percentage of the total sale. Then, at the end of the month, you receive a deposit into your bank account, Paypal account, or a check in the mail.

If that sounds too good to be true, that’s ok, skeptics are turned into believers on a regular basis. Plenty of large and successful companies have hundreds of thousands of affiliates that are pushing their products, services, sales and more. In many ways, with enough affiliate traffic; parent sites don’t have to even advertise, as they have that paid for by incentivizing a work force to promote their items on an individual or global landscape.

Well, I just wanted to take a moment or two to give a breakdown of my thoughts on “Passive Income”. Please feel free to share your thoughts on “Passive Income”. I look forward to reading them…..

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28 Responses to “Passive Income Basics”

  1. VahnCross

    06. Jun, 2013

    Being a blogger, it’s quite helpful to find this. In my experience, it’s quite difficult to get a hold of a sufficient amount of traffic in my website when I was still starting out. It’s has a nice ring to it when you hear that you can earn just by owning a site and letting the ads to their magic. Thanks for this. 🙂

    Reply to this comment
  2. BreatheOut

    14. Jun, 2013

    The thing about online earning is that most people don’t understand that it takes time, effort and patience before you get your first paycheck or commission online. They think that online earning is fast money because you can potentially earn hundreds of dollars in a month. But it isn’t.

    Reply to this comment
    • Big Dave

      Big Dave

      14. Jun, 2013

      You are correct…for a large majority of us, it will take time, patience, and perseverance. But when you see that first deposit or check (whether it’s $500 or $.50), the feeling you get is memorable. Like “Finally!!!!”…..point to take from the article is that it CAN be done. Hey, if I only make $30 a month from my online venture and it takes me 30 minutes to earn that $30…..I’ll take that and use it to pay my internet bill. No problem….that frees up $30 to be applied to something else. Maybe make another investment in Lending Club so that $30 will earn interest…..

      Reply to this comment
  3. Alissa

    14. Jun, 2013

    What affiliate companies do you recommend? Do you have to have a certain amount of visitors already established before getting affiliate ads on your site? Or can you sign up and have them on there as you gain followers?

    Reply to this comment
    • Big Dave

      Big Dave

      16. Jun, 2013

      Alissa, there are affiliate companies that will look closely at the number of your site’s visitors prior to allowing you to participate in their program. And there are other companies that have no minimum requirements. As to who I would recommend, well, I’m a big fan of Amazon. They’re established, brand recognition is off the charts, solid support, great marketing materials, multiple selling methods and entry points, and much more….

      Reply to this comment
  4. Liberty

    19. Jun, 2013

    Interesting. I have always been advised that it is best to way before bringing in affiliate ads because it can discredit the worth of your content if it’s clear that you’re trying to make money from the get-go.

    I think it’s also important to only be affiliates with products you truly believe in – personally, if I find a blog or site that is an affiliate of every company under the sun with no personal connection to the companies, I leave.

    Reply to this comment
    • Big Dave

      Big Dave

      19. Jun, 2013

      Absolutely…..and that’s why I only have two because of my experience with them.

      Reply to this comment
  5. Alissa

    20. Jun, 2013

    I disagree about a relatively new blogs that have ads looking like they are just trying to make money. As long as there is good content available, I wouldn’t think twice about a new blog having ads.

    Reply to this comment
    • McKenna

      27. Jun, 2013

      Good content is definitely key to any blog, regardless of whether or not there are ads present.

      Reply to this comment
  6. Natalie Thom

    07. Jul, 2013

    It sounds like passive income is a labour of love before it starts to pay off. Do you think it is risky in the sense that some people try it but it doesn’t end up paying off? Or do you think it’s a relatively sure fire income earner?

    How long on average do you think it takes before a passive income started can expect a return?

    Reply to this comment
    • Big Dave

      Big Dave

      09. Jul, 2013

      Natalie,

      Yes, it’s risky but I think you have to at least try….terrible feeling to have knowing that you didn’t give it a shot. As for the return, well, it depends on what method you are using to try to pull in an income. With Ebay, it could be the next day….with Amazon, it could take a couple of weeks.

      Reply to this comment
  7. John

    08. Jul, 2013

    I quit recently after working for a IT major for 13 years and am seized by the entrepreneur bug currently. How does one get a fix on the right kind of business to getting started?

    Reply to this comment
  8. John

    09. Jul, 2013

    Thanks for pointing me in the right direction Dave.
    Online business seems to be the way ahead

    Reply to this comment
  9. Sarah

    13. Jul, 2013

    It seriously makes me think, why am I slogging at a 9-9 job! Any body out there who has had a go at it? Interested in knowing more

    Reply to this comment
  10. Rebecca

    14. Jul, 2013

    I know it’s such an exciting prospect that offers freedom to do what you want in life!

    Reply to this comment
  11. Mike

    14. Jul, 2013

    I’d be really interested in a post to hear how blogs actually make money and the intricacies involved with that.

    Reply to this comment
    • Big Dave

      Big Dave

      14. Jul, 2013

      Hold tight….I should have some info on that within the next few months.

      Reply to this comment
  12. nomansalehzada

    14. Jul, 2013

    I am a bit newer in this niche, i have a blog, mainly of health related stuff , main difficulty i am facing is to bring some traffic to the website, it takes much efforts to establish a good traffic source to website or blog

    Reply to this comment
  13. Ali Raza

    21. Jul, 2013

    I was searching on the internet form a long time to make passive income, i hope this blog will turn out good for me.

    Reply to this comment
  14. Hassnain

    21. Jul, 2013

    Will you still call it passive income if you work as a full time Freelancer or Ebay seller? like in an office from 9-5?

    Reply to this comment
  15. Zuri

    20. Aug, 2013

    I am going to look into some affiliate opportunities. In January, I decided to begin blogging full time. It has been difficult. After reading your post, I’m realizing that this is probably because I had no active income to lean on. I’m going back to work next week but I will still work hard to build up my means of passive income.

    Reply to this comment
  16. John

    23. Aug, 2013

    Passive income really is the ideal state, but is it truly possible? Even with affiliate links on a site, you would need to consistently make updates to the site’s SEO, wouldn’t you?

    Reply to this comment
    • Sky

      24. Aug, 2013

      You make a good point, John. To me, passive doesn’t mean never working on anything but rather spending much less time working actively on it. Like the idea of turning a 40 hour workweek into a 4 hour workweek.

      Reply to this comment
  17. Charlotte

    23. Aug, 2013

    I think the key is having enough lines of passive income for them to all make a difference.

    Reply to this comment

Trackbacks/Pingbacks

  1. Monthly Income Report – July 2013 – Wow! Nearly 200% Increase In Sales! | Make Passive Income Blog - From Evolution To Execution - 02. Aug, 2013

    […] Well, I hope you can envision doing something similar or greater than what I’m doing now. You can do this….but, if you can’t “see” yourself pulling in $100, $200, $300, $400, $500 or more, then your mind and body will react to that thought and not do it. If you can see yourself doing it, then get started by reading some of my earlier post on “Passive Income Basics”. […]

  2. Monthly Income Report – August 2013 – Unpredictable and Uncensored | Make Passive Income Blog - From Evolution To Execution - 02. Sep, 2013

    […] not do it. If you can see yourself doing it, then get started by reading some of my earlier post on “Passive Income Basics”. C’mon, get to […]

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