Categories Entrepreneur Tips and Discussions Who here generates passive income and how? Post author By Author Post date June 8, 2020 48 Comments on Who here generates passive income and how? Who here generates passive income and how? View Reddit by jazzyskush – View Source Tags generates, income, passive ← What can I do if I cant find CO-founder? → Does it really have to be so hard? 48 replies on “Who here generates passive income and how?” I get about $500 a month from stock dividends, thats the only real full passive income i have. My other ‘passive income’ would be making sales through ecommerce, but its not really ‘passive’ since i have to manually fulfill my orders myself. Waking up to a shit ton of sales notifcations on your phone is pretty satisfying though. I have an app on the windows marketplace that generates about $2-6k annually. It was some work to make the app (~3mo part time) but now I do nothing and the money keeps coming in. It’s not all that much but hey it’s basically free money at this point. You can earn passive income if you write a book on how to earn passive income My company uses a credit card processor and we have a high number of transactions. Because of this, I’m a member of some pilot program they have. If I refer companies to switch to this processor, I get $0.02 per transaction for life. As of right now I get about $300 a month. I’ve never had something more passive Only a couple people here understand what passive means lol Index funds are another great (and often low risk) ways of generating passive income. They are very tax efficient and require lower management Rental properties Peer to peer lending (crowdfunding) has few barriers to entry and can yield some generous returns. Amazon merch lol I earn £0.08 a month on my savings account, it’s truly passive, not like the work those rental property dummy’s put themselves through! (JK) I worked hard for 5-6 years on an average salary job to save enough to make investing worthwhile, on a basic 7-8% on the FTSE100 I make more than half my salary a year and increasing, all I do is continue to invest regularly. 5-6 years sounds long if you were only looking for quick money but, 5 years from now I bet you wish you started today! Selling circuit boards to companies too stupid to buy me out. How does freelancing generate passive income? You spend time to finish a project and you get paid for it. It’s not passive income. 1) I negotiated a sales contract where I make commission per order from the client I procured. Work is required for every order, but after the first order the work is substantially less 2) when the virus hit I identified a handful of restaurants that needed a website with easy online ordering. The hosting of the website I built for them, and their weekly blog, bring in recurring money. Each website took about 30 hours to make, but not takes less than a few hours a week to run 3) I sold my first business and I have a small lifetime royalty from the new owners 4) At my house I planted asparagus and berries a few years ago, and with very little maintence, I get a lot of each crop every year now Edit – I have about 10 hours a month that brings me in roughly $7,500 – it took me about 5 years to develop the remote work lifestyle. I am a lawyer and have taken small pieces of real estate deals and companies over 15 yrs of doing it in lieu of some fees. Some deals don’t work. Enough do that I had a retirement level monthly passive income @ 40. However, not done yet. Music streaming. But Im not sure if its truly passive because I promote a ton and have to keep on making new music Big assed authority websites. Not entirely passive but when you get enough cashflow you can hire folks to do the shit you can’t or don’t want to. Or hire it all out. I could take a couple of months off from my sites and shit would still run….cause I have the people and processes in place. Massive work and investment upfront though. Im into freelance 3d design, prototyping, lithophanes. Learnt a whole lot in the lock down period and got some huge prototyping and designing gigs. I say huge because i got more business from the lockdown then i ever got in my regular working days. Kinda lucky i guess. I am a 3d art student. I create 3d character models and upload them on some CG content marketplaces ( websites) and forget about them. I don’t know whether or not you can call it passive income but does that even matter? Have a niche SaaS that I spend a few hours per week on. Marketing is all inbound/organic. Over 90% ebitda. Took about a year of working on Weekends to get it to the point it is now. So remember when people say “passive”, the upfront world to get it to this point takes time. Also I have a bunch of connections and experience in this category because of my FT job which made it much easier to lock key partnerships and first 5k in MRR in sales was all within my network. Have two dev partners so startup costs were nothing as they built it with equity instead of comp upfront (offered both options). Pricing is variable so I get expansion Monthly Recurring Revenue each month as my customers grow too. So even if I don’t close new customers, grow on average 5% MoM just through expansion MRR since I also have net negative churn. Enough income from it where I can do what I want (over 6 figures annual income). Just quit my FT job so I can focus on building a second business now. Apartments mainly Passive income is overhyped and rare. Leveraged income is much more common. I have a niche app on all the app stores that brings in $1k a month and growing. I do nothing now that it’s built. I’m currently at around $20k a month from real Estate. Plan I’m being at $30k in six months. Edit: no it’s not truly passive. That’s a myth taught by the “buy my book” gurus. It is however a giant need that will last the test of time and it requires much less time and effort than running most other businesses. Edit, Edit: you can be an LP in real estate deals. While the returns won’t be as great if you ran them yourself they can still be very good and that is truly passive. I am a designer by trade and I consult on the side as a business strategist. I started by just going to meet ups and having conversations with people about problems they were having with their business. Over a drink or something we would kinda just spit ball until the event was over. I’d get their number and text them the next day asking if they wanted to meet for coffee. At coffee I would bring up that I do consulting for special projects at a rate of $500-1000 a month. (to a 1-50 million dollar company this is nothing). I would then dedicate a few hours of my time per week weighing in on projects and decisions. Adding to the conversation and helping them fix things. I did this last year and go three clients to pay me. It brought in about $27k on top of my normal income. I’ll bite and share my own story, as well as a screenshot of 2019 balance sheet. Not meant as a humblebrag, just an example of “you can do it too!” To summarize: – $107,465.XX – 2019 Income. – $2,898.XX – 2019 Expenses. – $104,567.XX – Mostly passive, 2019 net profit. – 15 Hours – Time spent per month on business. Dets…. – I’ve been in the web-dev biz for many years. – I have 3 websites that were built in 2007 on aged domains I got from TDNAM, and used as an anchor to form a related LLC in my state. (Authority) – These sites are not pure affiliate, but lead generation where I own the leads and disperse them to specific buyers through a plugin I wrote. I will not disclose the market, and the leads are sent automatically with no interaction from me. – These 3 websites are all in the same general market, though provide extremely knowledgeable information on very different products. – Each website is only about 10-15 pages in size. Each page is thousands of words on the topic of the page. A few of the pages are no-indexed. – I was able to write 99% of the content myself, based on vast industry knowledge about the products, pricing, features, etc. I also ran an ecom site for another company for 3 years on this topic. I am an expert on the topic. (in my own mind?) – In 13 years, these 3 websites have generated well over $1million in net profit. – I spend roughly 2-4 hours per month, on each of the websites. At most, it’s 12 hours per month on this specific business. They are all WordPress backend sites, using a homegrown custom theme that loads in -1 second. – I’ve been hit with G updates, and lost, recovered, lost, and recovered again. I stayed the course and kept on improving. While this group are the 3 most successful I own. I have 3 additional LLC’s, and a total of about 30 purely informational websites on various topics I spend time growing each month. I spend most of my time on those due to different requirements, and the cumulative results are better than these 3 alone. While it’s not passive, the three sites mentioned above are as close as I have come to finding it in my 55 years of life. [2019 Screenshot of these 3 sites](https://imgur.com/a/Kln9ays) Android Apps I’m a musician and get small royalty cheques from some recordings I’ve done. Hardly much to speak of individually, but if you were to do a lot (especially high-profile stuff) it could really add up. Do the work once, get paid forever. Stock market I build apps with no server dependencies. Once done, they’re perpetual profit machines. Passive income is earnings derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved. Portfolio income is considered passive income by some analysts, so dividends and interest would therefore be considered passive. Ads on a website. Not enough to live on but a nice little addition every month and I have basically not touched the site in 18 months. Dividend Aristocrats ETFs I have a Wix app that allows users to display their Eventbrite events – https://www.wix.com/app-market/event-viewer/overview Built it a few years ago and doesnt require much support anymore. Brings in a cool grand or so a month Run a a semi-popular Minecraft sever. Do some occasional maintenance, or an occasional feature but those can be outsourced. $2000.00 per year so far. Doing it the old fashioned way of investing in blue chip dividend stocks. My passive income should grow at $750-1000 per year as I continue to invest every pay day & from my side hustle income. The concept of passive income is a bit of a misnomer. “Time-delayed payouts” may be a better term. Even if you write a book or build an e-commerce site, it is a lot of work at the outset, without the guarantee of success, in the hopes that you will receive money for less pro active work at that given time. We rent out two bedrooms in our home and make $1000 a month. We also enjoy all the tax benefits by doing this as well. Get to deduct 2/3 the cost of utilities, home improvements, upkeep, maintenance, yard guy, etc. We also converted our swimming pool into a fish hatchery and make about $400-$500 a month from that. And we get all the business and real estate tax write offs as well and usually lose money in the process, which helps with write-offs on our regular income. I make $92k and my wife makes $32k and our tax burden is too high. I am 16 and dropshipping to 2 retail stores. Teknikmagasinet.se and clasohlson.se Whenever they order more, it goes directly to the people I am working with in china and they ship it to the store. I could sleep if I want, I guess thats passive income for you. I mean, I get dividends and growth on my nest egg. I wouldn’t call it income though since it’s invested right back into the nest egg. Monthly dividend stocks. I just investing in my stock portfolio every month. Easy and automated Selling covered calls on bitcoin while hodling Dividend paying companies “How to instantly build 4 new streams of passive income.” by Mayank Choudhary https://link.medium.com/bLRsSdsH46 Check this out for all relevant info. Investments at the moment, hopefully it will be my online apparel shop soon. My small company makes me a salary of 30k per year but isn’t fully passive. Maybe a couple hours a week, and lots of emails. It also took 4 years with no pay to get here. creating something….writting a book, software, or such…there are other means like youtube also, or royalties based ventures…. So I have a small software as a service business that at this point could be fully passive. I have a manager and some employees underneath him to handle the day to day. I still work though, just finding ways to decrease risk and increase revenue at this point. Software as a service type businesses can easily be set up this way if they generate enough revenue. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.