I apologize to my readers for there not being any posts recently, that thing called work and life gets in the way at times. This week we will cover the second stream of income I wanted to discuss...
Today we are going over passive and active incomes. When you begin exploring the 7 income streams, you’ll find that these are divided into two types, active and passive. Both are valuable ways to make money, but each is a bit different.
Active income is where you work for someone or provide specific services and you are paid for that work. This could be your job, if you are consulting for a company, or own a business where customers pay you. My position as owner of Tillson Financial, is a example of this type of income. I provide consulting services and prepare reports and business documents for small and medium businesses. Starting your own business as a active income source can either be from a hobby and require little start up capital, or it can be something where you branch out from your parent company and go solo or form your own practice or firm.
Passive income is where you are generating income without necessarily always doing work. This income stream still requires some upfront work to generate revenue, but over time it will require less effort on your part to get paid. Affiliate marketing and commission-paid jobs fall into this category. Some examples of passive income include a e-commerce store, investing in real estate, a digital book, or some other online product. Over time, you start to make money even when you are not really working on the product. It is technically making money while you sleep.
Social media influencing is the newest thing in making passive income, as we make money from impressions, clicks, ad revenue, and so on. Passive income requires some work in the beginning, you are not going to make millions on th first week or even the first month, that is unless you have a large following, or have a wildly popular product or presentation. Youtube for example requires a set amount of followers and views before you can monetize your content, as does Instagram and TikTok. Many entrepreneurial minded people like to go on Fiverr to showcase their services and products. While Fiverr is more of a active income stream, it is still considered somewhat passive in nature as is it not your conventional 9-5 type of employment.
I personally have always had a passion for writing, and platforms such as Vocal Media and Medium are two of my favorite places to write. They have a monetization feature, on both sites you have to be a paid member to recieve monetization options, and while the pay is not in the thousands when you first start out, in time, and given enough views of your work, you will make a sizeable chunk of money. Content writers are also considered a passive source of income, as you ae working on your schedule and setting your own fees for your work. Unless you are writitng for clients on a schedule or on a long term project, most content writerd are paid by the singular project or by the piece submitted and approved.
Stay tuned for next week, when we go over part 3 of our income stream series, I will see you all next week!
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