The American Internal Revenue Service categorizes income into three broad types, active (earned) income, passive income, and portfolio income. It defines passive income as only coming from two sources: rental activity or “trade or business activities in which you do not materially participate.” In other words you are not physically doing anything to gain income through your own efforts. For example.. If I was a silent partner in a business in which I did not participate and derived an income, I would be enjoying a passive income. To obtain a passive income usually requires a large investment that has significant risk. Venture capitalist do it all the time. They have a consortium of investors, that put up capital for entrepreneurs to create businesses. Eventually, the businesses produce large returns for the investors and the entrepreneur. They may also lose the entire investment. Venture Capitalist are sophisticated businessmen and usually know what they are looking for in an investment. They have a very good chance at obtaining a profit. Most people do not fall in this category. Most people turn to real estate as an alternative. Real estate investors will purchase a property on credit with the hopes of either flipping the property for profit or deriving a rental income. The rental income they get from the properties would be considered passive income. The risks most often are substantial and the people that are successful are either skilled tradesmen that are able to take a property that is run down and build it back to a status of livability or they have a large enough bank account to employ skilled tradesmen. After the real estate bust of 2006 that lasted several years and caused many bankruptcies, many people are hesitant to go down that road again.
Passive Income Online
Today many people turn to the internet for answers to the question of “How can I Create A Passive Income?” The internet answers with thousands of online business opportunities that seem very plausible. Just how many of them are scams? Unfortunately, there are a lot. The truth is, you have to be really careful.
My Commitment To You
The information that I provide on this website will be scam free and will be content driven. I will endeavor to give you information that you will need to create a successful online blogging business. Each article will be written for the purpose of education and inspiration. Why would I want to include inspirational articles you ask? Most people come to the internet because they are wanting to get rich quick. That mentality will not make it on the internet. You will not get rich quick. It will take a long time. It will take a lot of thankless effort. So you’re going to need a pick me up now and then to keep you going. Is it worth it you ask? In a word yes!
Online Passive Income is the Best
Consider that most people will spend a lifetime trying to get to a certain level of success. If it took you 20 years to reach an income level of 100,000 with 4 weeks vacation and a 401k, would you think that it was worth it? If I told you that it will take you a year working online before you made enough to pay your car payment, would you think it was worth it? What if I told you that if you worked online for 2 years, that you could retire from your fulltime job, would that be worth it? People spend four years and many thousands of dollars trying to get a college degree that may or may not earn them a career. Why not spend the same amount of time and a whole lot less money investing in a real business that will help you create a passive income that will last your lifetime! So for me that is what makes this process worth it.
Suggestions For You
I will be teaching you how to use a blogging platform to create an income through affiliate marketing. You can begin making a passive income through thousands of affiliate relationships from baby clothes to solar panels. I would suggest, however, that you start by taking advantage of an outside resource like Wealthy Affiliate. You will see their banners on my website simply because I believe they are a worthwhile scam free affiliate business. They will provide free training, a free website and a community of like minded people who also are striving to create lasting passive income. It is also one of my core affiliate offerings that support this blog. If you would like to make contact with me please see my About Me page.