In a survey that I conducted recently, it was brought to my attention that a good segment of my followers want to know more about passive income.
When I use the term “passive income” what am I talking about? I like the way Pat Flynn describes it over at his website smartpassiveincome.com:
Passive Income: The SPI Definition
Definitions vary. In my experience, what most internet entrepreneurs crave—and what I focus on here at SPI—is:
Building online businesses that take advantage of systems of automation that allow transactions, cash flow, and growth to happen without requiring a real-time presence.
In other words, we don’t trade time for money. Instead, we internet entrepreneurs invest our time upfront creating valuable products and experiences. We work hard now to continually reap the benefits later.
I agree with Pat, but I would like to expand his definition. I don’t think that anyone should limit themselves to online businesses. Although advances in technology have certainly created more opportunities for those who want to set up a website and a virtual business, I think that there are plenty of real-world tangible ideas to make you money without constantly demanding your time.
But you will have to work hard in the beginning to set up some sort of an “automated system”. That system may be as simple as someone paying you for an eBook on amazon.com or as complicated as owning a small business.
I also think that you should diversify and set up more than one passive income stream.
In future posts, I will review some of the ideas that I have mentioned before and give you concrete examples and tips to set up your own passive income stream.
Click here to learn more about Pat Flynn and Smart Passive Income.