| IMD |
| Page: Definition Passive Income |
Passive Income:
Passive Income means you
start an money-making activity and by that open an income
stream. Once set-up this provides you a with a steady,
sometimes even steadily increasing income over the months and
years to come without you having to continuously work for this
activity like in a normal day job where you earn your money
only when you come to work every day and perform your job
duties.
Examples:
You set up a AdSense website and do all the necessary SEO actions including building a network of incoming and outgoing link s to ensure a top position in the search engine results pages (SERPs). Once you can rely on a constant high volume of traffic from search engines and from your link-network you are rewarded by constant passive income from this site, without having to do anything for it in the future (of course, the site content would need to be updated now and then to avoid a drop in the SERPs because of a stale site).
You build a membership site with a service which provides good value for it’s members. The monthly membership fees make a solid passive income for you which will be stable as long as the members are satisfied with the service and do not leave. Providing the delivered service is automated all your activities can be directed to expanding your membership base which would increase your income.
You recruit a new distributor (seller) into your downline of your MLM -business and train him until he is successful as a seller of the MLM-company product s and as a recruiter of other distributors. Once he is actively selling and recruiting his own downline (which would of course become your downline, too) you can expect a constant, ideally increasing passive income as long as he is active, even if you should retire at this point.
There are many other examples how especially Internet marketing activities can provide a passive income. The advantages of passive income compared to having to work 40 hours and more in a corporate job are obvious. Best part of it is that as soon as one channel of passive income is running you will have time to start new activities which will open additional income channels. You don’t work to maintain your fixed monthly income but your work to constantly add to what you already earn.
[Passive comes from Latin passivus = capable of feeling or suffering; sense later extended to mean “not active”;
Income goes back to Old English incuman = come in]
