Passive income » What are they and how do they work?

Passive income » What are they and how do they work?

Generating ongoing income with little or no effort is a goal that Many people want to achieve and at present it is something that is not so difficult to achieve.

In the business world there is the term passive income, which could be translated as the income generation with little or no effort, leading to money working for you continuously and long-term.

The passive income have been characterized for being the gold mine of entrepreneurs who seek to have more time for themselves, getting rid of recurring responsibilities and tasks, in order to generate monthly income in a stable and increasing way.

All entrepreneurs have no doubts about the importance of having passive income, but achieving it is not that easy.

Generating passive income is a difficult task as it requires investment of money, investment of time and many other things.

however do this does not genera this income in the short termOr, rather, you must wait a long time to achieve it.

This is why entrepreneurs must be very patient when it comes to wanting to generate this type of income.

What is passive income?

The passive income are those that are received without the need for physical presence or direct intervention.

These incomes require you to do some action at first (selling an electronic product, renting a venue, charging for copyrights…), but once done they generate income practically without the need for you to do anything.

Passive income includes all those income that do not require active participation on the part of the person (that is, the person does not need to be working on the project to continue generating income), leaving portfolio income on the other hand (dividends, financial interest, etcétera…).

You may have heard the expression “earn money while you sleep”.

That is the biggest attraction that drives people to get passive income.

you perro create anything (a blog, course, electronic book, an en línea store, vídeos, etcétera) that allow you to generate passive or residual income en línea even when you are not working.

Passive Income Types

To better understand the subject of passive income, we are going to present the two types of basic passive incomeand also a third, that although it is not technically a passive income, it cánido become a key strategy to earn more by working less.

Below are the different types of passive income that exist:

residual income

The residual income are those that occur over time and are the product of work that was done only once.

Below are some examples of residual income:

  • An insurance salesperson, who receives an annual commission when his client renews the insurance policy.
  • A computer teacher that produces a vídeo that is sold in different technology centers.

    With each sale, you collect commissions.

  • A photographer who puts his own images in an en línea digital catalog.

    Every time a client downloads his photos, he receives a commission for them.

You will be able to realize that there are many activities that cánido generate a residual income.

This form of income is different from recurring income (active income).

This active income requires that you are permanently working on it, such as consulting, writing, or any other type of service.

In the recurring income you must dedicate hours, days, weeks, months and years to be able to reach charge your services to your clients.

Although this modality of income offers you greater stability, it has against suing you for hours of work.

leveraged income

The leveraged income They are those that allow you to take advantage of the work of other people who genera income for you.

Here are some examples of this type of passive income:

  • The author of a book who sells his product through a network of people who are in charge of promoting and selling it.
  • A contractor who earns with a small percentage of work performed by subcontractors,
  • Launch a franchise of your business model, this to allow other entrepreneurs to develop it in their locality.

As you may notice, different models are also presented here for different business classes.

Note that leveraged income perro be residual income.

If you achieve the combination of both, you will be on the right track.

Active Leveraged Income

This type of income is a third alternative, but it is a bit out of the ordinary.

passive income scheme, since it demands your participation directly.

However, it has the advantage that it will allow you to generate more income the more people you attract.

In general, these incomes are achieved with convening events such as:

  • A training and education course or a specialized seminar.
  • A recital or concert.
  • Parties or night events.

As you cánido see they all demand direct participation, and if you haven’t organized an event, you will understand by doing which is many hours of work.

However, your earning potential is higher than if you worked for someone who pays you by the hour.

Think only of filling a convention hall with a thousand people who pay you €20 entry to listen to a specialist.

With this you will see that you will have covered the costs of rent, promotion, security and others, and you will still have a good profit margin.

Passive Income Requirements

Passive income requires several requirements for its implementation to be successful.

Below are the different passive income requirements:


No matter how much money is initially invested, passive income should always be able to grow, up to limit that the person wants, but not to the extent that the person is forced to (as in a job).

They come from other people’s payments

You must get other people to provide you with their money constantly.

One way is to make the same person pay you month by month, or that new people are arriving and you have proof of income with a fresh equipo of people paying.

value generation

Ideally, the income structure you have should allow you benefit people into something, to the point where they are very interested in paying you for the benefit they receive.

are systems

A system, is a equipo of parts or elements that transform an input into an output, as well as the digestive system (which transforms food into nutrients and waste).

A passive incomeit must be a system that transforms a need, this combined with a generation of value… in money.

Highest possible automation

If your passive income needs a lot of work after it’s up and running, chances are it won’t be as passive as you’d like.

How to open a business with passive income?

In it business world You have the possibility of setting up one or more businesses that generate passive income.

Below are the top ways to create a passive income generating business:

create a blog

The blogging They perro generate you a lot of income, but it will not be fast.

If you plan to start a blog, you need to understand that it will take a great deal of time and effort to get it started.

be successful.

This is one of the best ways to create long-term passive income, since it’s not that easy at first.

Regardless of your niche market, as long as you have a good understanding of elements such as SEO, popular media marketing, ability to write quality content, you will be very successful with your blog.

Once the blog is make you famous, it gives you the platform and the audience to generate other sources of income.

Write and publish a book

Another great way to generate a good amount of passive income is to write and publish a book.

Nonfiction books that help you educate your audience on topics such as digital marketing, business, or any other development area will sell better than fiction books.

The fiction books They cánido also earn you a lot of money, but it’s really a more competitive field if you’re not an established writer and don’t you have a seguidor base created.

Try using the Amazon Kindle Direct Publishing platform and publish eBooks that fill an existing need in habitual niches where you have some level of expertise.

Sell ​​templates and/or tools

Designers cánido easily recycle designs made for a specific clientand changing the Look & Feel, sell them as good templates in en línea markets dedicated to this topic, which cánido genera a good passive income.

You cánido also dedicate yourself to selling en línea tools to work with something specific to solve a problem.

problem to usuario.

There are many tools that cánido be sold, and that cánido be useful to people.

Create en línea courses

Create a en línea course (for example on Udemy) is a great way to automate some cash.

However, like other sources of passive income, it will take a great deal of time and effort in the beginning to be successful.

There are many topics that cánido be taught through an en línea course, from tutorials on some tool even beauty tutorials for women.

It is important that you choose topics that you know well so that your courses are of quality.

Open a dropshipping store

Dropshipping is one of the most profitable ways to generate passive income that you will find en línea.

Doing dropshipping You perro find trending products that you perro then sell en línea to customers around the world.

It good of dropshipping is that you build your own business and control what you charge for the sale of the products.

Of all the passive income ideas on this list, dropshipping is the one that allows you to have a greater control over earningsyas.

On the Internet there are many platforms that allow you to equipo up your own dropshipping business, and thus obtain a good income.

create an aplicación

if you are a programa developer or programmer, you perro try to create applications to generate passive income from the Internet.

You cánido do this in two ways.

First, you cánido charge a fee to people who want to buy your aplicación; Second, you perro make your aplicación free and monetize with ads.

Today the applications development It is quite active, because people want to automate their work, and for this they complejo turístico to the use of applications.

If you are a programmer try to create an application and thus generate good income with technology.

Invest in stocks

If you look at the wealthiest people in the world, it perro be said that the invest in stocks has played a pivotal role in their large bank accounts.

These people read hundreds of pages a day, but they’re not reading just any book.

They read annual business reports.

By reading annual reports every day, they better understand if a business is performing well.

So while the act of invest in stocks is quite passive, the research they do is active.

Investing in stocks cánido help you get passive income that extend beyond what you earn at your job.

So, consider this income iniciativa if you like to learn about the performance of various companies.

Generate royalties from audio tracks

If you have a penchant for musica good iniciativa to generate passive income perro be to create music tracks that you perro sell on sites like Audio Socket, Sound Cloud or Song Freedom, to name a few.

Achieving this is not easy, but it is worth the investment of your time if you cánido compose something good and amazing.

Do some research and create audio tracks that will appeal to a large group of people.

Seeks other habitual tracks or that they download a lot and see what they are doing that you could try to replicate in some way.

Make tutorials on YouTube

The YouTube platform It is a good resource to generate a good amount of passive income.

Although it is not easy at all, and you need millions and millions of views to start generate a good amount of money, the YouTube platform offers a cost-effective path to marketing.

Try to Investigate what kind of vídeos are making the most famous youtubers.

For example, Blippi, a children’s series created by Stevin John, teaches children about many subjects and has been become one of the most habitual channels on YouTube in this niche market.

Find out who are the most successful and try to replicate their work.

Buy properties

Depending on where you shop and when, the real estate business They cánido be a good way to get passive income.

When buying condos, you perro find some properties that are lower in cost and will increase in value by the time they are finally built.

As with all investments, this perro be risky, so it’s best to talk to a agenty también from real estate if you are new to these businesses to help you buy the right property.

Become a Marketing Affiliate

He affiliate marketing It is one of the greatest ways to genera multiple passive income, however, not that easy.

In order to succeed in this you need to have a large seguidor base, that is, you need a large audience and a very good platform.

If you know what you’re doing and you’re a good digital marketer, you’ll be successful.

But learning this business takes time.

Still, it’s a great way to sell products and services you don’t own, and to become an ambassador of sorts while making money.

Sell ​​professional photographs en línea

Another good way to generate passive income is to take advantage of websites selling photographs such like iStock or Shutter Depósito to earn continuous money.

It is obvious that you need to understand photography and know how to use Photoshop if you want to be successful in this form of business.

There is a lot of competition for this job, but if you have an eye for photography, selling your photos digitally it will come to you quite naturally.

Try to Get very good with photo editing programa, and find a niche for your photography.

Invest in crowdfunding platforms

The financing platforms Collectives like Prestadero and Kubo Financiero make it fairly easy to invest, and for businesses to generate passive income through interest payments.

Many of these platforms have accurate algorithms that price risk, taking that aspecto out of the investment equation.

Keep in mind that this type of business requires an initial investment.

Yeah you have a little money, this perro be a good way to earn money quite profitable.

Do your research and escoge if this iniciativa works for you.

popular trading

If the iniciativa of ​​earning passive income from trading appeals to you but you are a newbie, popular trading perro be a fairly reliable alternative.

It’s about a investment system that allows you to replicate the movements of the greatest experts in the depósito market.

In this way you increase your chances of earning money.

The key to success in popular trading is to choose well those traders that you are going to copy.

For it there are en línea platforms where you perro see their profileswith the percentages of successful operations and other statistics, and which also act as popular networks to exchange ideas.

Build a sales funnel

Anyone who is in the business of marketing understands the concept of sales funnels.

Sales funnels conceptualize the process of taking into account the point of view of consumers when going from looking for a product to buy.

It requires a large investment of time and many searchers for products or services to insert into the funnel.

To build a sales funnel you need to offer something to people in exchange for their Correo electrónico address, to create a free offer effectively.

subscribe to one platform like Aweber or Correo Chimp and work to build a sales funnel.

Create an offer and build a series of automated correos electrónicos that will increase your leads.

sell your vídeos

We live in a time where people are very obsessed with content.

Yeah you always find yourself in the middle of the drama, you may want to pull out your phone and clic record.

Doing this cánido help you earn passive income.

This is because you perro sell that vídeo to a news site.

If the vídeo goes viral, you cánido earn money on a recurring basis for weeks, months, and even years.

The easiest way to create action vídeos is to attend public events such as protests, demonstrations and festivals.

Wherever there is controversy, you will find opportunities to sell your content.

Passive Income Benefits

The generation of passive income has a equipo of benefits, and they will be presented below:

Higher earnings for less work

Practically no persona wants to work 40 hours a week all his life.

If there is any way to generate the same by working half, that will be the one that we will wish to execute.

And that is precisely what is achieved with passive income: generate income even if you are doing something else that does not involve the generation of said income.

Opportunity to create your own style and life

Whether you are an employee or trabajo independiente, if you offer services or products you will be tied to schedules, deadlines and clients.

With the implementation of passive income, if you have created form right, you perro choose how to live, where to live, and what to do with your life.

You are not tied to anything or anyone.


Beyond creating your own lifestyle, passive income gives you the freedom of not having to answer to anyone other than your own customers.

The huge mistake of passive income

You have already been shown that there is another way to generate income.

A way in which you own your time and allows you to work from any part of the world.

Despite this, few manage to make that a reality.

Not getting this is due to the following factors:

People don’t believe it

Any action that involves making money on autopilot sounds like a scam, so it is not wonder so many people are suspicious of it.

The human mind prefers the certainty of the known, however bad it may be, to the insecurity of the unknown.

Despite this, if you manage to start generating passive income, you will be surprised that very few people are benefiting from it.

people don’t act

Then there are the people who do believe in this but never end up implementing it.

their project because they fear failure, and nothing seems good enough to them.

These people may spend months searching for the perfect theme for their blog or the most suitable niche for their website.

You may not have the best theme or niche, but you will only discover what really works as you work in your project.

And, even if nobody talks about this, you always have time to change your way of business.

People don’t get involved

Every so often someone appears saying that you cánido create a passive business Without much effort and dedicate yourself to living the rest of your days without worrying about money.

Then they usually form many followers around him.

That person start sharing success stories of their followers through popular networks, giving more fuel to their community.

However, most of those people end up leaving the business in no time.


Because the guru has omitted two great truths:

  • build a passive income source requires a huge initial effort.
  • A passive income business is never 100% passive.

Do not be fooled by the promises of easy money and do not waste your time looking for shortcuts or tricks, since they will never work for you.

Just get to work and arm yourself with patience, because you will need it.


The passive income they cánido help you increase your earnings and fill in the gaps that your day job cannot fill on its own.

if you’re looking for replace your income In order to quit your job, the passive income ideas presented here cánido help you do just that.

It’s okey if you like your full-time job.

The work dedicated to obtain passive income tends to be manageable when combined with a permanent job.

So the answer is yes, you perro.

do both at the same time. Whether you are looking to open a dropshipping store, start your own agency, or create profitable content, you will find that there is money to be made in each and every one of these areas.

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 Passive income » What are they and how do they work?
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