Wikipedia defines passive income as an income received on a regular basis, with little effort required to maintain it. It goes on to say that the Internal Revenue Service categorizes income into three types, active (earned) income, passive income, and portfolio income.
Passive income could include earnings from an owned business such as a website, product or service; rent from property; royalties; pensions or dividends and interest.
I'd like to add to the definition. A young friend of mine, recently laid off from his architectural design job due to the recession, has decided that passive income is the way of his future. In fact, in the six short months since he was laid off, he has created five different websites that provide him with passive income revenue streams. One allows him to represent and sell solar collectors to residential clients. Another lets him receive checks whenever someone orders a LEEDs certification manual that he wrote. And a third sends him money when would-be architects download another architectural certification manual series. In the last month, he has started to support himself through these combined efforts. I find his enthusiasm and creativity inspiring. And I wonder...how might other more 'traditional' businesses learn from this model...to sustain themselves during these difficult financial times? As an Indianapolis marketing firm, we have had to find smarter, newer ways to work. How about you?
Passive income could include earnings from an owned business such as a website, product or service; rent from property; royalties; pensions or dividends and interest.
I'd like to add to the definition. A young friend of mine, recently laid off from his architectural design job due to the recession, has decided that passive income is the way of his future. In fact, in the six short months since he was laid off, he has created five different websites that provide him with passive income revenue streams. One allows him to represent and sell solar collectors to residential clients. Another lets him receive checks whenever someone orders a LEEDs certification manual that he wrote. And a third sends him money when would-be architects download another architectural certification manual series. In the last month, he has started to support himself through these combined efforts. I find his enthusiasm and creativity inspiring. And I wonder...how might other more 'traditional' businesses learn from this model...to sustain themselves during these difficult financial times? As an Indianapolis marketing firm, we have had to find smarter, newer ways to work. How about you?
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