How to Create a Passive Income

create a passive income


I’ve been learning how to create passive income for quite some time. It just appeals to my independent nature. I want my efforts to benefit me directly instead of a business where I have no control. Doesn’t it sound better to set your own goals and make your dreams come true instead of helping someone else (a boss or a corporation) fulfill their vision?

Our society structure supports the latter. Our public education leads students to “group think” instead of becoming independent thinkers. It isn’t teaching them about investing, leveraging, and being the head of their own business. It teaches them skills needed to work for other people. Consequently, we are really on our own if we want to be in control of our future. We need to seek out independent education and opportunities to create passive income. Fortunately, the internet has helped tremendously. Many opportunities are available for people who have ideas that can help other people. Our ideas can reach millions of people throughout the world. However, the Internet can also cause some problems. SCAMS come to mind. It seems like everyone has a “shiny new object” that can make you millions of dollars if you just eat this, buy this, or follow this plan.

Active vs. Passive (or Residual) Income

First, let’s clarify the difference between the two.

Active income is a direct result of our efforts. We work for one hour and get paid a certain amount for the hours worked.

Active income earners are working for someone else usually making enough money to pay bills, take a yearly vacation, and save a little for future…but surviving paycheck to paycheck. However, there are people who make a huge amount of money this way. The CEO of a company, professional athletes, and movie stars are examples. However, earning a high active income requires a lot of hard work and many dedicated hours. It can often be unrewarding. Unfortunately, it can also be limiting because no matter how much money you get paid you still need to show up to work to earn your money. Someone else determines your schedule and responsibilities. Your success is at the mercy of others and that is stressful. If they determine your contributions are not needed, you can be fired. There really is no job security.

Passive (or residual) income is quite different.

Create a passive incomePassive income is when you continue to be paid after the work is done. This includes royalties from books, movies, or songs. After their initial efforts, book authors earn royalties for years to come. Real estate and other business investments are other examples. You do not actually have to be present to profit. Bill Gates still makes a residual income from Microsoft and he doesn’t even work there anymore. .

The Myth about Passive Income

Honestly, when I realized I wanted to pursue earning passive income, I thought it would be easy. I had a vision of traveling throughout the country and seeing the world …all the while having checks deposited into my bank accounts.

There are two aspects to this myth….both of which I initially fell for.

  • Minimal effort is needed to get started
  • Minimal effort is needed to keep it going

There’s this idea that we create some kind of a passive income asset and then sit on the beach relaxing for the rest of our lives. Also, there is the impression that you never have to do anything to keep that income going.

That just isn’t the case. Action ..or work…is needed all the time. I think the big difference is that the work can be done in an environment of your choosing. Plus, it can be done during the hours of your choosing. If you want to work from midnight until morning…and sleep all day…you can choose to do this.

Investment-Time or Money

Create a passsive incomeThe other roadblock I faced was that many income ideas require an investment of money, which I didn’t have. Obviously, if you are buying real estate, you are going to need money to purchase the property. However, if, for example, you choose to create a website and blog for a living, time is the required investment. Something I have plenty of is time. Very minimal money is needed to begin earning a passive income by blogging. However, initially I still didn’t know how to create a website that I could monetize.

Ways to Make Passive Income

Network Marketing

I have always been aware of Network Marketing. Network marketing, also known as Multi-Level Marketing (MLM), is a business model where independent contractors buy into a company and earn a commission on the products they sell. This appeals to me because I don’t have a product of my own to sell. I am always looking for better and natural products to improve my health. I have found so many great products available through network marketing. However, I was never comfortable selling them to other people, especially family members.

Affiliate Marketing and Wealthy Affiliate

Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for customers brought by the Affiliate’s own marketing efforts. As an Affiliate, I direct readers from my website to other companies’ products. In this way, I don’t have to create my own products or purchase inventory of products. I was excited when I first became aware of this. It fit me perfectly….create a website…share my ideas…and direct followers to products that supported by ideas. But how do I do this? Read my review of Wealthy Affiliate and you’ll find the answer. This platform has taught me

  • How to create a website
  • How to create content to get ranked (SEO)
  • How to create a following (traffic)
  • How to monetize a website

These are the keys to being successful in Affiliate Marketing. In addition to being a great teaching and support tool, Wealthy Affiliate also has its own Affiliate program. I favor this business model because I never have to sell products directly to anyone. I’m just making suggestions and you decide if it right for you. Everything you see on this website resulted from my training at Wealthy Affiliate.


The point is that both of these methods can produce passive income for us.

Network marketing is a direct sales situation whereas; in Affiliate Marketing, your readers are being led to companies.

However, neither is a “get rich quick” scheme. Initially, both require a lot of time and effort ….mainly to develop trust with the people that follow you. In my blogging, I share thoughts that people in similar situations relate. If you are retired, or disabled, and need or want to earn passive income, I am sharing my journey with you. I am not a millionaire….yet….but it sure is rewarding and fun to be on that pathway.

These are my thoughts for the day. What are yours? Please leave a comment and let me know about your retirement.

Thank you for taking the time to visit.


2 thoughts on “How to Create a Passive Income

  1. Hi Debbie,

    Very good article and I really liked how you talk about the work involved in getting some residual income started.

    Most people; that fall for the get rich quick sales pitch in the MLM industry, they are basically doing the same thing as someone buying a lottery ticket and dreaming about hitting the jackpot!

    The reality is that even “IF” someone hits the jackpot; there is a 95% failure rate among lottery winners.

    It is good to read articles like this because for people who are wanting to make a serious difference in their lives must face the fact that it is going to involve work, either they will have to do it or share the load with others who are joined together by a common cause or goal.

    The other thing that stood out to me in this article is passive income. This is a concept that has fueled many people over the years to continue learning even in the face of many scams and shady business practices, that cause then to lose money and time!

    This article in a source of encouragement to those who are working and learning how to build an online business and learning how to write blogs. Look forward to your next article.

    Have a great day!

    1. Hi Chad,
      I’m so glad you were able to relate to this post. It’s important for people to know that we have a choice to make. Creating something that we are in control of is important to me…and to people such as yourself. Network marketing is definitely a challenge, which led me to WA. Affiliate marketing is much more personal because we can create our unique websites. However, there are some good products available through network marketing. Check out my review of CTFO on my website and let me know what you think. It isn’t so much the business model I like but the products.

      Thanks so much for visiting my site and commenting!

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