Passive income from eBooks is an excellent way to earn a living online. Let’s take a closer look at this strategy.
There are three main categories of income that you can receive: active income, passive income and portfolio income. Active income is what you do on a day to day basis to earn money, and you have to be physically there in order to do it. For example, if you have a job, work as a freelancer or an independent contractor, or exchange your time for money in any way, the money you receive is all active income.
Portfolio income is money you receive as a result of investments, royalties, dividends, and capital gains, so we will not discuss that here.
Passive income is income you generate long after you have done the initial work. This is sometimes referred to as residual income, but the online community tends to not use that term. Instead of trading your time for an hourly wage, passive income allows you to create products that will sell for years to come. This process of working once and being paid over and over again is one that will make a huge difference in your life.
Passive income is a business that brings in money when you are on vacation, sleeping or in the hospital with your sick loved one. There are all kinds of passive income streams – but for this post I am going to be talking about how you can harness the power of the Internet and use it to make a good living, or a great living, depending on how much time you want to spend laying your foundation and setting up your businesses.
There are many different definitions for the term passive income, but here it is:
Building multiple online businesses that take advantage of automated systems that allow transactions, cash flow and growth to happen without requiring a real time presence.
Passive income does require quite a bit of work initially, but once you have everything set up it is more a matter of maintenance to keep the income flowing. Here are some of the passive income streams I have been involved with since coming online in 2006:
- Affiliate marketing – my favorite!
- Writing and marketing eBooks
- Online courses
- Writing reviews
- Niche sites (also known as mini-sites)
- Joint Ventures (JVs)
- Squidoo lenses
I recommend starting out with only two or three of those to see which ones work best for you. Writing and selling your own eBooks on topic you are familiar with is one of the best ways to get started. Everything you do online will require some writing on your part, so spend the time learning how to properly write an eBook and then you will have lots of content to repurpose for the other methods I have shared with you. This means that you will write once, and then be paid for it over and over and over again. That is pure passive online income at its best.
I continue to do this as I build my business on the Internet and love the idea of writing for a living. You can do the same thing if you are willing to spend the time learning and implementing on a regular basis. The best eBook writing and marketing training is from Jim Edwards, and you can get started today for only $29 at 7 Day eBooks.