Byline Raza

Mixing a brew of freelancing and writing in the pan of social media

If You Can Earn Passive Income


Passive Income? Is this some new-age business term that has been coined by some economist who has had a lot of caffeine?

You know about the term ‘income’ all right as many of you are earning it while working in different professions. But passive income? You may or may not have heard about it.

For your information, there are two kinds of income that any working person earns. Active income and Passive income.

Now you start wondering that there is something called ‘active’ income too. Yes there is this thing called ‘active income’ that you earn when you put in active effort and time towards giving some service or product and you get paid back in money. That’s ‘active income’.

God! What is ‘passive income’ then? That’s a good question you ask.

When you don’t put your active effort and time and you still earn money, that’s ‘passive income’. Never heard of it, you might say. But, I reply that you might not have heard of this term, but you definitely know about it.

You have heard of the term ‘rent’ isn’t it? Rent for a room, for a house, for a building, for office complex and other related things — that’s ‘passive income’. If you know anyone who is taking rent from anyone in any form, then that person is earning ‘passive income’. That person is not putting any active effort and time and yet he is getting money in the form of rent.

What About You

If you are working somewhere or have your own business and you are earning money, then have you ever given some thought towards earning this kind of income? I am not talking about just earning income from rent.

I will agree with you if you say that you hardly know anyone who is earning passive income, if you count out ‘rent income’. But, in this age of 21st century, there are quite a few among you who are earning passive income, that is unrelated to earning from real estate rent.

What if you could earn passive income? What if you did not have to put in so much effort and time, or in other words trade your time for earning money? Does such a thought interest you, maybe excite you? 🙂

That would be such a pleasure wouldn’t it, that you won’t have to keep a watch on your watch and even on your boss and still earn a decent living.

Lots of smart and intelligent people have decided to take this route of passive income. They have put an end to the tyranny of being tied to time and the whims and fancies of their boss and the constricting rules of the company they work for, or the fickleness and pressures of managing their own business.

Who Are They

Yes, I know, you would really like to know who are ‘they’ — those smart people who are earning ‘passive income’. 🙂

I am not saying that those who are earning money in the form of ‘active income’ are unintelligent, lazy or less smart than the other category. It’s just that people in both categories have made their choice. One category has decided that they are willing to give time to earn money; while, the other category has decided that they are unwilling to give time to earn money.

You know authors — yes, those ‘almost weird, non-normal’ people who simply do some writing in their time and write books and earn income. You know they get paid some money by their publishers when they create those books. You might also know that they get something called ‘royalty cheques’ regularly for their effort.

In other words, authors write a book, publishers publish it and they earn money from it regularly. This income comes in ‘passive income’ category.

Then you also know about insurance agents. They sell life policies and they get commissions from it life-long, or till the time the policies they sold are continued by the policy-holder. This commission comes in the category of ‘passive income’.

And of course, you know about network marketers too. They build chains or legs of people who are their sales teams who continue to sell some product or the other. These network marketers earn commissions from the products sold through them or any member of their team. They don’t have to personally sell those products and yet they earn good commission as a result of the effort of their motivated sales team. This income comes in the category of ‘passive income’.

Then you might know about revenue or income coming from online ‘google ads’ too that people put on some product page they might have created and put on their blog or website. Clicking on these Google ads earns you income, which comes in the category of ‘passive income’

There are quite a few other ways also in which people are earning ‘passive income’ nowadays.

Now, they might be doing that, but question is: Does earning passive income make sense to you and interest you at all? 


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This entry was posted on March 27, 2016 by in Business and tagged , , .

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