Passive Income: What It Is & What It Isn't

College was an excellent experience for me. I made great friends, went to killer parties, and pulled some all-nighters that turned into all-weekenders. When my final semester came I was excited and ready to face the world as the super confident, intelligent and responsible adult my parents had modeled my entire life. I walked across the stage to many cheers and applause ready to conquer the world! I was in for a very rude, and abrupt awakening.

Six months after graduation I found myself unemployed, living with my parents and dodging the various phone calls coming in numerous times a day from my creditors. Sure, I had a job all throughout college. I did work study programs and internships. Heck I even volunteered 5 hours a week the 4 years I attended the university. People seemed to really like me. I did impressive work, I was polite and always punctual. Despite my winning personality and great work ethic, the reality was: I couldn't find a job. It seemed no one was hiring. I was always a day late and a dollar short. It was very frustrating. I went on interview after interview with no success. After feelings of complete hopelessness had set in, I started searching for alternatives. My searching lead me to passive income.

So, What Is Passive Income?

Passive income is simply any type of income that you can make without actively working on something. With a standard income you exchange time and effort for money on a one to one basis. For example, if you work at a fast food chain, you will get paid based on the amount of hours you spend working there. You will not get paid for hours spent not working. If you work for 8 hours you are paid for 8 hours. With passive income you are not restricted to any specific time or place. You work for a few hours, and you continue to get paid even when you're not actively working on something. Does this sound way too good to be true? It's not! As a matter of fact, many people make a reasonable living from their passive incomes. There are a variety of ways to make money passively, but here are some of the most common:

  1. Publish a personal website or blog.
  2. Join an affiliate program.
  3. Sell digital content such as ebooks or resource files.
  4. Share media you've created on websites such as YouTube or Vimeo.
  5. Provide online training or tutorials.
  6. Become an online consultant.
  7. Develop a web or mobile application.

With just a bit of creativity and imagination, you can create a source of income that doesn't require you to work for hours, yet still provides you with the money you need.

What Passive Income Isn't

Passive income isn't a "get rich quick solution". It requires work, skills, and passion. You're offering your talents and skills to others in exchange for revenue. People must find value in your work; if they don't you won't get paid. Passive income works well because you create something once and get paid for it multiple times. For example, you can sell an infinite number of ebooks. The ebook only has to be written once though. You also increase you profits because you don't have to physically print or deliver the books. You must provide a high quality ebook in order for it to be a best seller.

Avoid scams by using a bit of common sense. If it sounds to good to be true, it probably is. Most legitimate business don't charge you to make money. There are a few exceptions to this, but as a rule of thumb, you will not be charged to make money. That would be the equivalent of a fast food chain charging you to work for them. It doesn't make much sense, does it?

Many people dream of being self-employed. I would encourage you to explore the many possibilities available. Collaborating with others is an excellent way to create opportunities for a passive income. Share this article with a few friends to get started on your journey of complete self sufficiency.