Bryan said, "People who have become very wealthy through business have gotten very good at leveraging their time in their pursuit of creating value. They've done that by first creating value, and then automating the process of creating value, so they can scale and provide even more value to more and more people. But it starts with the fact that they already understand how to create value. They understand it so well, that they're able to create that value and then automate and scale the process of creating more of it.
2. This article isn’t intended to be about making $50k per year from $0 to start with. This is intended to show different ways that it’s possible to generate $50k in passive income. As for your rental property comment, check out RealtyShares or other similar companies. You can be a rental property owner without having to run the business. You can be a limited partner and just invest in real estate, and leave the actual work to the general partner. Basically, there are options to make $50k without working, but like the first paragraph says – front load your life!
2 You are talking podcasts and a lady who commented above made the point people love to LISTEN to information. The data I have contains some videos, but they’re not podcasts as such. (Hmmm, maybe I’d better find out exactly what a podcast IS.) Do you think it would be worth my time to conduct this exercise as the vast majority of data I have is written information. If I’m too bloody exhausted after reading info to enact it, maybe my target audience – Net marketing and SME absolute beginners – would be too exhausted also? I’d hate to waste any more time and money than I already have.
To start your affiliate marketing journey, make sure you sign up for my Affiliate Marketing Masterclass, which will walk you through five steps to finally begin generating an additional passive income stream using authentic affiliate marketing strategies I’ve used myself. Click the link below to sign up for the next Affiliate Marketing Masterclass:

What are your thoughts on an Immediate Annuity as a passive income vehicle? I suppose it’s not a great investment since you never get your principal back, but the risk is zero and the cash flow is fairly good, approaching 6% currently. And, since you are guaranteed payments for life, you may not care that you never see your principal again anyway since you’ll be dead!
You can find dividend stocks using Google Finance Stock Screener which is free to use. Set the search criteria for the P/E Ratio, and Dividend yield (shown as a percentage) criteria. You can set minimum and maximum values; in the dividend yield box, set it between 2 and 100. This will search for stocks that pay dividends worth between 2-100% of the current stock price. 

2. You clearly have plenty of money already. Just more padding in your already cushy nest. This is not the story for a lot of people. Your title should be “How to become richer than you already are without working.” But, actually the investment one is the only one that would make money without actual WORK. Running rental properties is a lot of work, and so is running a business, or even a blog. Sooooo…..while there might be some truth to this, I think it’s mostly grass that looks greener because it’s on the other side of the fence.
​Udemy is an online platform that lets its user take video courses on a wide array of subjects. Instead of being a consumer on Udemy you can instead be a producer, create your own video course, and allow users to purchase it. This is a fantastic option if you are highly knowledgeable in a specific subject matter. This can also be a great way to turn traditional tutoring into a passive income stream!
This encompasses everything from eBooks to stock images and even Udemy courses. The idea here is to create a digital good that has value. Why digital? Well, if you’re creating really unique hand-made socks, you can’t just duplicate them and resell them. Furthermore, you have to pack and ship each pair. Both of these things mean that there’s a fixed ratio of labor to income, and we’ve already discussed why that’s not ideal. Digital goods can be duplicated, and we can engineer systems (or use online marketplaces) to deliver them automatically. Awesome.
Leveraging the internet to create, connect, and sell is something every creative person should attempt to do. The only risk is lost time and a wounded ego. You can start a site like mine for as little as $2.95 a month with Bluehost and go from there. They give you a free domain name for a year. Forget all the add-ons. Not a day goes by that I’m not grateful for my site.
Greg Johnson is a personal finance and frugal travel expert who leveraged his online business to quit his 9-5 job, spend more time with his family, and travel the world. With his wife Holly, Greg co-owns two websites – Club Thrifty and Travel Blue Book. The couple has also co-authored a book, Zero Down Your Debt: Reclaim Your Income and Build a Life You'll Love. Find him on Instagram, Facebook, and Twitter @ClubThrifty. https://businesspartnermagazine.com/wp-content/uploads/2018/04/Passive-Income-Generation-Ideas.jpg
Remember, the skills you have are an asset, they are your “unfair advantage.” They are essential to your unique personal brand, and you can start making money online using those skills if you have the right strategy, tactics, and mindset in place. Another way to describe this is your “unfair advantage,” a term I was first introduced to by Lain Ehmann in SPI Podcast Session #37.
If you’re worried about launching a new product, and think you might need some feedback to make it really good, Flynn recommends “pre-selling” an idea — for instance, offering a limited number of spots or seats into, say, a course you create and giving the test group specialized attention so you can see how to improve the content. Once it’s revised (or, if it’s software, once all the bugs are removed), you could open it up to your whole audience.
Bullshit. If you have a job, you have marketable value. Maybe it’s low value, if you’re flipping burgers, but you can create value somehow. I don’t care if you have to start out by re-renting the parking spot in front of your apartment, you can find, create, or buy something valuable worth repeatedly selling or renting, or you’re not thinking hard enough. Here’s a free idea: A lot of people want to play with 3D printers. Get 5 of your friends together and buy one. Put up a website and a listing in the local paper. Charge $50/h for printing. Set up a system that verifies if payment has been submitted and then automatically prints out the files that have been emailed to you. Split the earnings with your friends. Boom. You have passive income.
I enjoy how you lay out real numbers. A lot of people wouldn’t do that. While you admit that you are somewhat conservative, I think the $1M in CD’s is just too conservative. Assuming you don’t need the cash flow now (which you say you just save anyways) then all that could be invested for potentially higher returns. For example, what if you bought San Francisco real estate along the way instead of CD’s. Or, an SP500 Index fund. I bet your average return would have been higher than 3.75%. Sure you could lose it, but the point is if you don’t need the cash flow now, you should try to increase that nut as high as possible until the day you actually need it. Your nut could be $5M right now if you had invested in asset classes other than CD’s for the last 14 years. Don’t get me wrong, you have done far better than me, but I guess I would take a little more risk if you don’t rely on that cash flow.

You are valuable. Your time, your work, knowledge, experience, and output are all valuable. In fact, your employer (or your customers, if you’re an entrepreneur), probably pay a lot of money to rent these things from you. The problem is, whether you’re a doctor, a lawyer, an artist, an engineer, or even a baker, the value you create is consumed once — then it’s gone. You can only sell a loaf of bread once. You can only sell each open heart surgery to one client. The value trades hands, and now it belongs to the customer — you get paid once.
What I’m doing: I view passive income as funny money to keep myself sane during this long journey. I estimate 2-10 years to get to my goal depending on how active I am. The dollars created are just points one can accumulate. I’ve made passive income goals for each passive income type and check in at least once a year like I am now to make sure I’m on track. Passive income is also carefully managed to minimize tax liability. When you can build a buffer for a buffer, you are then free to take more risks.
The idea behind cashback is simple: you get rewarded for purchasing or using products you plan to buy anyway. Cashback sites pay you when you click through them, go to retailers, and spend. For example, check out eBates.com - There are over 2,000 stores to choose from including Walmart, Target, Sears, Calvin Klien, and others. You also get a $10 gift card after your first $25 purchase. Sign up is free. (If you encounter a cashback site where it’s not, avoid it.

It’s like if you met someone for the first time and the first thing they ask you is if you’re interested in buying something from them. I’d much rather get to know somebody first, trust them, and then have them tell me what they might have to offer. Or better yet, be genuinely interested in what they’re doing, and ask them about it myself. This is the kind of philosophy that I use when promoting other people’s products.
"Rental properties are wonderful for building wealth ... [but] they're not going to produce a lot of income on the front-end — at least not consistently — because you might make $200 a month on a rental property, but then what happens if a year and a half from now, the heating and the air system goes out on that rental property? That's a $4,000 to $5,000 hit," Carson said. "And so really, the rental property game, as opposed to flipping properties, is all about generating big chunks of cash that you can use to pay your bills, and hopefully, to save money."
The age old argument of total return versus income has been, incorrectly imo, categorized as an either or proposition. We are going to do both. Right now I have a lot cash in an on line money market. I also have investments in 2 passive Index funds in a taxable account. We then have substantial 401ks/IRA’s which we won’t touch for at least 10 years. My wife will continue to max out her sep and we will continue to invest in the index funds although with a smaller amount. We have already factored that in. I looked at how to cut into the monthly deficit. Here is what I observed.
That’s why I sometimes hesitate to even say I participate in affiliate marketing. But that’s not how I, or you, should approach it. I’m here to lead the change and show people there is so much opportunity out there in affiliate marketing the right way (and the smart way). It’s insane to me that more people aren’t really realizing their full potential with this.
I don’t really know much about those…I should take a look from a diversification standpoint. If you don’t mind me asking, what do you target for your net effective tax rate on your passive income? Also, I’m sure you’ve probably covered this somewhere, but how do you deal with healthcare? One more dumb question…have you found that you spend more or less money than you anticipated once you retired?
Thank you for sharing your article! You did a great job saving and putting your money to work for you. Like you, I share the same financial dream of having 150-200k in passive income and traveling the world stress-free! :) Right now I’m saving about 80-90% of my active income and put it toward ETF funds and value growth stocks because I’m seeking capital appreciation. And I can tolerate a lot of risks because I’m still in my early 20’s. By the time I reach 30 something I’ll start looking into blue chips stocks that pay dividends and REIT. So I want to be where you are by that time lol. Anyways, that the plan and I’m sticking to it. Good luck on achieving your financial dream!
Your articles are so in-depth and helpful, I’ve never seen anything quite like it. I am a 22-yr old finishing my last semester of college, studying Computer Science and Psychology. I’m in a really good place with my finances (2k savings, no student debt, only expenses essentially rent, groceries, and utilities) and I want to get ahead financially so I can pay my parents back and save up a lot.
Let’s continue the vintage BMW idea. Old cars obviously require quite a lot of maintenance. Many people will buy a “fixer upper” with the intention of spending their spare time repairing and restoring it. There’s a very obvious market here: a guide to restoring different BMW models. Depending on your knowledge, you could produce detailed guides for the three or four most popular models and sell them. Not everyone restoring a car will buy them, but some probably will.
Dividend stocks tend to be more mature companies that are past their high growth stage. Utilities, telecoms, and financial sectors tend to make up the majority of dividend paying companies. Tech, Internet, and biotech, on the other hand, tend not to pay any dividends because they are reinvesting most of their retained earnings back into their company for growth.
So, armed with my real estate license and this desire to help physicians (and create a business at the same time), I started a real estate company called Curbside Real Estate. My goal was to help physicians buy and sell homes by connecting them to trusted realtors and lenders. It started organically, largely through word of mouth. Next thing you know, I was helping doctors from coast to coast. The business was great and I felt I was making an impact helping physicians, but I still wanted to own my own real estate investment properties.
The much loved model for bloggers and content creators everywhere and for a good reason…it’s pretty easy to write a 60-80 page ebook, not hard to sell say $500 worth a month through online networking, guest posting and your own SEO optimized blog, and well you get to keep a large whack of the pie after paying affiliates.  Hells yeah!  Continue reading >
One of the most important assets you have is your credit score. By taking care of it and pursuing the steps to improve your credit score, a world of opportunity can open up for you. If you need a loan to buy that rental property or some quick funding through a business credit card, a good credit score will help you get approved so you can build passive income.
I decided to develop some passive income streams late in 2009 and started with writing an ebook… It took me 10 days to setup, writing the book, creating the pdf, wrote the sales page, created the website, registration on Clickbank, etc. It sold so well, on complete autopilot, that I used the ebook content to create a membership site and over 1,100 people have been through the membership site.
Add Leverage (Mortgage) and you greatly increase the ROI especially from the perspective of using Rents (other peoples money) to pay down the mortgage and increase your equity in the property over time. At this point then yes price appreciation is secondary bonus and we have an arguement of how and why Real Estate can be better than Growth Stocks in some scenarios and for some investors.

Another great way to get started is to identify an area of interest you have. For instance, Robert Duff has been successful in building passive income by selling books on Amazon. Then, go out and start talking to people. Ask them, “What are you struggling with right now? What are your biggest pains? What’s something you wish existed that doesn’t?” That’ll give you some ideas about where to get started.
You also get to see specific details about each loan, including what the borrower is using it for, the state they live in, how long the pay-off period is, what the monthly payments are, and what rate the borrower will pay. It helps you get a better picture of what type of risk you’re exposing yourself to, and you get to take more control over your investment.
When describing whatever it is your promoting, share your experience! If you can throw in some data or graphs to go along with it, even better. Back when I was more actively writing about eHow, I promoted an ebook that I read which helped quadruple my earnings per article. I created a graph that showed how much I earned before I read the book versus how much I earned after. To this date, that ebook has been one of the most successful affiliate promotions I’ve done on this blog.
Amazon affiliate program is a great way to promote physical products through a reliable, trustworthy, and well-known online store. The fact that everyone knows Amazon is probably their biggest advantage. On the downside, commissions are fairly small - they start at 4% for most products and can go as high as 8% depending upon how many sales you make. However, when you send someone to Amazon, you earn a commission on whatever they buy within 24 hours of clicking your link, whether they end up buying the product you promoted or not. So, for example, if you promoted a book but the person you sent to Amazon ended up buying an expensive camera as well, you’ll get the commission for both the book and the camera. This can add up. https://insidesmallbusiness.com.au/wp-content/uploads/2017/06/bigstock-181398349.jpg

However, if I sorted through the data, grouped it into specific subjects, created a simple website, did the Internet marketing necessary to bring the website to the attention of other newbies and sold the re-packaged data (which would now be my own product because I’ve applied process to it), I could save other people from such overwhelm AND make some income for my impoverished self.

Investing in a business: Another good way to generate passive income is to invest in a business --even a small one -- in return for a percentage of the profits - just like Shark Tank, only smaller. Lending $10,000 to a local business that, for example, is working on a mobile app for Apple phones could lead to a passive income-generated share of the profits when that mobile app starts selling like hot cakes.
3. Start as soon as possible. Building a livable passive-income stream takes a tremendously long time, largely because of declining interest rates since the late 1980s. Gone are the days of making a 5%-plus return on a short-term CD or savings account. Today, the best 12-month CD is at 2.5%, and the best money-market rate is about 1.85%, which is not bad, considering such rates were below 0.5% just a couple of years ago. Know that every $100 you save can generate at least $2.5 in passive income.
This may all seem like a lot of work but it’s how professional real estate investors do it. If you are buying rental properties on a hunch and just paying what you feel like the property is worth, you’re going to end up over-paying. Understanding exactly how much a property is worth will put you ahead in the negotiations and get you the best price possible.
Personally, my experience with Amazon thus far has been good - a few of my short eBooks generate steady passive income on weekly basis with zero additional effort from my side. One thing to note though - Amazon pays 70% royalty on each eBook sold only if your eBook is priced between $2.99 to $9.99. Less than or higher than that pricing structure, the royalty decreases to 35%.of your book’s listed price. 

​If you pay your bills with a credit card make sure it offers cash back rewards. You can let your rewards accrue for a while and possibly put the easy money you earned toward another passive income venture! (Be sure that the card you select doesn’t have an annual fee or you might be cancelling out your rewards). Check out this list of the best Cashback Rewards Cards.


Remember, the skills you have are an asset, they are your “unfair advantage.” They are essential to your unique personal brand, and you can start making money online using those skills if you have the right strategy, tactics, and mindset in place. Another way to describe this is your “unfair advantage,” a term I was first introduced to by Lain Ehmann in SPI Podcast Session #37.


A perfect example of the Active Problem Solving + Automation concept is in my online courses I’ve created over the years, or my free webinars I’ve created more recently Each of my online courses and webinars are targeted to help people with specific problems, whether that’s in the area of affiliate marketing, podcasting, building a brand, and so forth. I am always improving upon the courses, but they are also evergreen for my audience.
“The biggest surprise is real estate being second to last on my Passive Income Ranking List because I’ve written that real estate is my favorite investment class to build wealth. Real estate doesn’t stack up well against the other passive income sources due to the lack of liquidity and constant maintenance of tenants and property. The returns can be huge due to rising rental income AND principal over time, much like dividend investing. If you are a “proactive passive income earner” like myself, then real estate is great.”
* Freelance writing: Quality freelance writing takes tremendous effort. Ironically, the better the quality of your writing, the more you don’t want to freelance and just keep the articles for your own site. Freelancing is a great way to earn side income, however, it’s not really for me. I’ll probably take on one or two freelance jobs maximum per year and write no more than four articles a month elsewhere.

Bravo! Dr. Kim on your courage and innovation and honesty! Medicine has changed from what we knew or thought as kids and continues to change. It requires a constant reassessment to align with our values and dreams. I have seen Robert Kiyosaki speak and tell me I am in the worst tax quadrant which motivated me to join a mastermind group and stretch my mindset on who I am and what is possible. Your blog keeps me heading toward a direction that excites me and balances the intensity of medicine and improves my life. Thank you.
Great job, note the home upsizing works only in appreciating housing markets (I’ve done a similar this in CA but it was 7 years same home to gain almost 500k profit which is around the govt cap for tax-free home profits. What a gift! Thanks booming economy and generous govt taxation on home profits). Those proceeds bought our next house cash and invested the remainder in domestic stock (which has been equally profitable).
First: I understand why you would say that such investments are restricted to only accredited investors, because generally, that’s true. There are means, under federal securities regulations and Blue Sky laws in each state, to sell interests to non-accredited investors – but usually those means are so heavily regulated and involve disclosures so similar to cumbersome registration requirements that it is not worth it for the seller to offer to non-accredited investors.
What I like about p2p investing on Lending Club is the website’s automated investing tool. You pick the criteria for loans in which you want to invest and the program does the rest. It will look for loans every day that meet those factors and automatically invest your money. It’s important because you’re collecting money on your loan investments every day so you want that money reinvested as soon as possible.
We are going to start with 1.5 years of all spending needs in cash. We will draw 1800 to 1900 per month. We will add to this from the index funds by taking a portion of the gains in good years to supplement. This is the total return portion of the equation. Obviously, if stocks decrease drastically over a 5 year period, then I would have to reload by selling some of the ETF holdings.
So many people are seeking lucrative ways to earn income passively, and default to investment properties to do so. Unfortunately, there is a lot of effort that goes into starting a rental property business, especially if you choose to manage your property on your own rather than employ a property management company. That is, however, not to take away from the positive cash flow that is possible from real estate investment if done properly. Thanks again for sharing the realities behind earning “passive” income through your rental properties.
Build an investment portfolio that pays out dividends (Stocks / Bonds / Mutual Funds). Dividends are payouts that companies give to their investors as a portion of their earnings. They’re often paid out quarterly. If you’ve already got an investment portfolio, it’s time to take a good look at which stocks, bonds, or mutual funds you own. You’ll see consistent returns from the ones that pay dividends. This is a fantastic way to earn passive income. Invest once and watch the returns pile up.
The organizing principle behind this grouping, appropriate economic units, is relatively simple: if the activities are located in the same geographic area; if the activities have similarities in the types of business; or if the activities are somehow interdependent, for instance, if they have the same customers, employees or use a single set of books for accounting.
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