What Is A Passive Income Stream and How Can You Make Money With It?

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Passive IncomeThis is one of my favorite topics: Passive Income!  I’m going to tell you what is a passive income stream today and how you can make money with it!

If you’re looking for passive income, you are very smart to do so.  It is one of the best ways to make money online as far as I know.

I will show you how to create passive income and offer you ideas where you can get started.

Here are the topics will we go through:

Hopefully by the end of this article you will have a better idea on how to get started on the path to creating yourself one or more passive income streams!




What is a passive income?A passive income is money you earn with little to no real time involvement.  Passive income also means that you create it once and you keep reaping the benefits of it by continually earning for months and years to come without actively being involved.

However, that doesn’t mean it doesn’t require time and money to acquire this passive income.

To create a passive income stream, one of two things or both are required:  Time and money.

Most offline passive income streams require money, an investment.

Most online passive income streams require time and sometimes money, but mostly time.

With money and time invested, you are creating a stream of income to collect down the road with little to no real time involvement: the essence of passive income.

When I look up the meaning of passive income, most sites tell me about investments and such in the offline world but there is a whole gamut of things you can do online as well.  I’ll expand on both worlds in the sections below.




moneyLike I mentioned earlier, offline passive income is created mostly by having money invested.

You can invest in property like condos or houses and rent them out.  Rental income is one of the biggest way people like to create for passive income.

The other way is investments, like investing stocks and bonds, and playing the stock market.

Sure you can make a lot of money investing in property, stocks, and bonds, but you can also lose a lot as well if they are not good investments.

I find that the way you create passive income in the offline world takes a lot of risk as well as money.

Because of higher risk and money involved, your best bet is to create passive income is in the online world.




Creating passive income in the online world is mostly time involvement which in turn have lower risk of losing a huge amount of money.

I will say you will need minimal money investment, especially when compared to the offline world, for things like online tools you’ll need to create your online business.



I have collected a bunch of online ideas for you to try to create for yourself and start building your passive income:

  1. eBook – Writing an eBook is very popular these days.  You can write about a novel, share your story, or something instructional.  All you need is a word processor which is free if you use Google Docs, and then turn into a PDF file for download.  You can sell this on your own website, on social media, or even on Amazon as a PDF file or a Kindle edition.
  2. Information Marketing – This is very similar to an eBook but it doesn’t have to be formatted as formal like a “book”, you can be just providing a 10 page how-to guide, or something simple like that.  This is a great way to lure people to subscribe to your email list, or offer as a bonus gift.
  3. Videos – If you make videos, you could start collecting ad revenue from YouTube if you set your videos to monetize.  YouTube videos can literally earn you thousands in ad revenue if you have a popular channel.
  4. Sponsored Ads – If you have a website, you could start collecting ad revenue from places like Google Adsense or individual companies or persons want to advertise their business on your high traffic site. There are even plugins that will put the ad on your site automatically and process everything for you once you press an approve button.
  5. Online Course – Having your own online course to teach people what you know is highly lucrative if you can provide the platform for it.  Video courses seem to be most popular or step-by-step guides are very good training you can offer as well.
  6. Digital Templates – Have you ever wanted a template for something?  These could be birthday cards, announcements, organizers, time scheduler, crafting, plus so much more.  You create the templates once and you keep earning on them over and over again.
  7. Email Marketing – Having people subscribe to your email list with an autoresponder like Aweber would be great for your online business.  You’ll be able to email people directly about anything you want to provide and then promote to them as well and make money!
  8. Affiliate Marketing – One of the biggest industries out there and growing so much is the promotion of other people’s products.  This is really one of the best ways to earn a passive income as you don’t have to own anything or make anything.  You just need to talk about things and make recommendations.
  9. Design T-shirts, Mugs, Totes – You can design so many things nowadays and they make it so simple too sell as well.  Shopify makes it really easy for you to sell your designs as they have an app called Printful for their shops that allow for drop shipping your products to your customers.  All you do is design and sell, they take care of the rest.  Easy peasy.
  10. Stock Photography – Take a picture once and you can sell it over and over again, especially nowadays with digital photography, it makes it even easier to do.  You can sell it on photo stock websites like Shutterstock or iStock.
  11. Licensing Music – I don’t know too much about how to do this, but it’s again something you create once, a song, lyrics, or instrumental music, and you can sell it to many people over and over again.
  12. Create Apps – Apps for phones are the biggest boom lately and if you know how to make a useful app, man, you’re in the money!  I wish I knew how to program apps, because this sure is one great way to make passive income.


There are probably even more ideas out there but even from this one list of 12 things, you can already see there are many more options to acquire passive income than in the offline world.

That’s why being online is really the best way to go:

  • Less money invested
  • Less risk
  • More options




Girl With Laptop and MoneyOf course, my #1 recommendation has to be what I love to do, affiliate marketing, which in essence is blogging.

With affiliate marketing you don’t have to make or design anything.  You just have to type (or use a narration device to type for you) and talk about something you love.

Then while talking about the topic you love, you will recommend something to your readers and if they buy it by clicking your link, then you’ll make a commission.


How is this passive if you are always talking about something?

Because one post like this article you’re reading, can make me money far into the future without touching this one article again.

Therefore, why wouldn’t I write more and more articles to have more potential to earn even more in the future?

Same with all the other things listed in the previous section.  You’re not going to be rich just making one t-shirt design, you want to make many designs.

This is why the time and effort is upfront, passive income comes later.


What’s so great about having a blog?

With having a blog, you can incorporate the first 8 items on the list above into your online business with affiliate marketing being your main source of passive income.

Adding more ways to earn on your website is the best way to make even more money online!  This is why blogging is awesome, you can earn in so many different ways.

If you’re excited and want to start, I have a simple easy to follow guide that can get you started for FREE:

Affiliate Marketing Guide For Beginners On How To Get Started


It’s all up to YOU!

With any choice you make, the effort you put in is highly correlated to what you make online.  Remember also you are building a business, and businesses of all kinds take time to grow and earn.




If you can dedicate yourself into building something that can make you a full time income or more, blogging is the way to go as you can incorporate so many different avenues to earn passive income.

It all starts with one website and you expand by adding more and different passive income streams to it.  You can really build a passive income empire this way and sky’s the limit on how much you can earn.



If you have any questions on any of this, please leave me a comment below and I’ll reply to you within 48 hours!  I can’t wait to hear from you!


Let’s make money online!
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10 thoughts on “What Is A Passive Income Stream and How Can You Make Money With It?”

  1. Thanks for the excellent content about passive income. Wish to see even more shortly. Thanks again and keep up the great work!

  2. I really liked your article on passive income. It’s definitely something I want to pursue. Your recommendation is very interesting and I will have to check it out.

    • Hi Amy, Glad you liked my post and helped you out. I see that you have signed up with Wealthy Affiliate already and hope you are enjoying your free membership so far. You will have all the best training for affiliate marketing there as long as all the tools they provide you on the platform.

      Wish you much luck on your new business and hope you’ll ask me if you are ever stuck or have any questions.


  3. Very nice article and appreciate your explanation on passive income in further detail. I like the idea of promoting other people’s products as this will be a great way to start a business with minimal costs. I will check out your recommendation of getting training for it then.


    • Thank you for your kind words Gordon, and so happy to hear you like affiliate marketing. It’s a sure way to passive income and you’ll have the best training for it at Wealthy Affiliate. You will find that they will provide you with tools you’ll need as well and a community to help you with any questions.

      Can’t wait to help you myself and hope to see you on the inside!

    • Thanks Suresh, I’m glad you’re happy with what you learned here and appreciate you stopping by. I hope they will work for you too, so please let me know if you need any other help!

      Wishing you much success!


  4. Great post! I am glad that you mentioned offline passive income as well as online. Many of the articles I read these days are about online passive income, but I think property investment is a great way to earn passive income. Thanks for sharing!


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