The Ultimate Guide to Creating Passive Income

Passive income seems like an alluring prospect to many people, but what is it and how do you create it? These are not easy questions to answer, but you need to be fully informed before you go any further ahead. Read on to find out all you’ll ever need to know about creating passive income.

What is Passive Income?

Passive income can encompass many different things, but it boils down to a pretty simple premise. Passive income is income that is received on a regular basis but requires little effort to keep on getting it. This can refer to many different things. For example, once a blog has a large following, it will generate income without much effort being put into it. That’s one example of how it can function.

It can also come from a form of investment too. It’s not about getting something for nothing though. You have to be clever and make the right moves at the right times. You need to be aware of the level of effort that is involved in setting up a passive income stream. It only really becomes passive later on when the revenue stream is in place and established.

The Time Involved

The time that you will have to put into this kind of project can be massive to begin with. As I mentioned above, all the effort is put into it at the start when you are establishing your revenue stream. You should be prepared for the time that this will take up. Some people claim that they had to put in more time than it takes to do a full-time job. So, you won’t be in for an easy ride.

Building an audience for a website is not something that will happen overnight either. You need to be prepared to be patient if you are going to eventually see returns. This is most definitely a long-term kind of investment. You can’t expect things to simply fall into your lap just because you want them to. It will be quite a long time before you can rely on passive income.

Passive Income is Rarely Completely Passive

Even once your passive income stream is up and running, you can’t expect to be able to sit back and relax. There are always things that you will have to take care of and keep your eye one. Yes, the money might come to you easier than with other kinds of income. But it is very rarely the case that a passive income stream is completely passive.

There is always a level of maintenance work that has to be kept up with if you want to succeed. People who just expect the money to come rolling in with taking care of important issues will soon fail. That’s not what you want to happen, so make sure that you have a realistic idea of how much work will be involved. If you put in a small amount of work, the returns can be huge.

Finding the Right Market

Whether you are starting a new website or investing in homes, you need to understand the market. You have to be able to target what you’re doing towards a particular demographic. And you can only do that if you’re willing to make the effort to find out which sector of the market is right for what you want to do. It’ll take some research, but it’ll be worth it.

Of course, getting the market right also means matching the market to the product. You need to make sure that what you’re doing has the potential to create a passive income stream for you. If it isn’t popular enough to appeal to a decent-sized audience, it will become pretty hard to make money from it. This is why market research is so vitally important when you are just starting out.

Serve the Audience

When you are starting a website, you have to do everything you can to build a large audience. This is not always easy, and you will make plenty of mistakes along the way. But you do need to take into account what people like. You can get an idea of this by monitoring your page views. If certain types of content get more views than others, then produce more of them.

It’s not about doing what you want or what you think is best or most interesting. It’s all about giving the audience exactly what they want. There is no other way to create a blog that brings in cash. So, make sure that you leave your own ego at the door and get on with giving people what they want. Even if it isn’t what you find most interesting, it is what brings in cash.

Choose Something That’ll Hold Your Interest

As I mentioned earlier, this is a long-term strategy for making money. And that means that you will need to choose something that is able to hold your interest. A website, for example, will only be useful if it is kept active for a long period of time. Once you lose interest, the whole thing will fall apart. So, don’t start on a path if you are not sure that it will be able to hold your interest.

One method that many people opt for is doing something that they already love. So, perhaps there is a niche interest that you have that could appeal to other people. If you can own and grow that niche, there will be great scope for building a loyal audience. When you’re interested in something, this comes across in everything you do, which is very important indeed.

Use the Platform that Works for You

For people who want to create content that can make money for them in the long-term, choosing the platform is an important decision. You don’t want to do something that will not represent what you have to say in the best possible light. Content can come in all kinds of different forms. Right now, video content is very popular, so starting a Youtube channel can be a great revenue stream.

But some people simply aren’t suited to creating videos. They may not have a very confident way of delivering a message to the camera and the audience at home. But those kinds of people might be much better at writing content that is read by the audience on a blog. You need to think about where your skills lie and what you’re good at before making this decision.

Offer Something for Free

Monetising your content is probably something that you’re very keen to do. But you shouldn’t rush this side of things. If you do that, you will risk going too fast and alienating the audience. They will not want to pay for content or be bombarded with adverts too soon. So, start out by focusing on creating an audience and think about the money later.

Once your audience is in place and you have them hooked, you can then start to monetise your content. People will be much more willing to see adverts or even pay for content if they already love what it is that you are offering to them. But this is something that you have to earn. This best done by offering people something for nothing at all.

Passive Income Away from the Internet

Creating passive income is dominated by internet-related ideas. But that is not the only way in which you can create a passive income. There are many things away from the internet that work in this way too. For example, any kind of money made from houses is passive income. Landlords who have a portfolio of properties make a lot of money in the form of passive income.

Some people choose to invest in businesses instead. When you invest in a business, there are numerous directions you can go in. You could become an active partner in the business. But you might want to become a silent partner. This means that you have no say in the running of the business; you simply accept the cash as it comes your way.

Staying Motivated

Staying motivated is one of the biggest challenges that you’ll face when it comes to creating a form of passive income. It’s very easy to get downbeat when it seems like things aren’t going your way. But if you stick at it and keep going, you could still make a success of it. Of course, if something clearly isn’t working for you, then it might be a good idea to change strategy.

It can also be very easy to get complacent when things are going well for you. You should never take your passive income for granted. If you do start taking things for granted, someone else will come along and take that income away from you. You should work as hard at it as you can, no matter how long you have been doing it for. It’s the only way to make sure the money keeps on rolling in.

Elizabeth Goldman is the editor of She has written for, and many others.