• You are currently viewing our forum as a guest, which gives you limited access to view most discussions and access our other features. By joining our free community, you will have access to additional post topics, communicate privately with other members (PM), view blogs, respond to polls, upload content, and access many other special features. Registration is fast, simple and absolutely free, so please join our community today! Just click here to register. You should turn your Ad Blocker off for this site or certain features may not work properly. If you have any problems with the registration process or your account login, please contact us by clicking here.

Passive income

Lark

Active member
Joined
Jun 21, 2009
Messages
29,569
How possible is it really to develop passive income streams?

I've read about this, often in little articles which I suspect are largely online or offline bait and switch, like the careers fares at which there wasnt anyone recruiting just lots of people selling their services in creating CVs etc.

Anyway, I do hear, and do not doubt, about cases in which people have derived passive income as a consequence of good luck or good fortune or chance, like the videos of babies which go viral or the video that guy produced raving about his mate's choice in clothes or white vans shoes.

Good luck to them and I like to hear about luck or good fortune which is entirely attributable to chance as much as the next person but I have read of a number of internet personalities who suggest its possible to engineer this, with a super blog or something along those lines.

What do you think? Is it a thing or is it just snake oil or is it something which has reached peak supply already so with a handful of new media providers, such as insider, unilad, people are awesome, its all more or less covered?
 

Qlip

Post Human Post
Joined
Jul 30, 2010
Messages
8,464
MBTI Type
ENFP
Enneagram
4w5
Instinctual Variant
sp/sx
I've been doing a lot of podcast listening about the subject of Financial Independence, usually passive income is a huge part of this. I'm a bit suspicious of the term, from what I understand it's misleading, any kind of income is work and benefits from some sort of ongoing management. I do think there are plenty of opportunities in small business ventures requiring minimal upkeep, and the right research and eye for it, in other words, for people willing to do a little work.
 

1487610420

Permabanned
Joined
Apr 13, 2009
Messages
6,431
a certain cartoon about an ebook that vasilisa posted somewhere on the forum comes to mind, no idea where though
 

ceecee

Coolatta® Enjoyer
Joined
Apr 22, 2008
Messages
15,908
MBTI Type
INTJ
Enneagram
8w9
I've been doing a lot of podcast listening about the subject of Financial Independence, usually passive income is a huge part of this. I'm a bit suspicious of the term, from what I understand it's misleading, any kind of income is work and benefits from some sort of ongoing management. I do think there are plenty of opportunities in small business ventures requiring minimal upkeep, and the right research and eye for it, in other words, for people willing to do a little work.

I agree, it is misleading. We own some commercial property and that is often considered passive income. Yes a management company handles it day to day but we have a good amount of involvement. We meet with them monthly, oversee the tenants, the taxes, pay for upkeep, improvements and insurance for all of the above. So there is work required. I've often thought about buying a self-storage place or auto-car washes but even those need regular attention.
 

Poki

New member
Joined
Dec 4, 2008
Messages
10,436
MBTI Type
STP
Instinctual Variant
sx/so
I know someone who jumped on that train. She is still recieving income from her downstream years later. She couldnt live off of it. Everything requires upkeep to maintain, nothing is ever truly passive. Its all based on effort and risk.
 

1487610420

Permabanned
Joined
Apr 13, 2009
Messages
6,431
I know someone who jumped on that train. She is still recieving income from her downstream years later. She couldnt live off of it. Everything requires upkeep to maintain, nothing is ever truly passive. Its all based on effort and risk.

write a book/song = sales/royalties :coffee:
 

Poki

New member
Joined
Dec 4, 2008
Messages
10,436
MBTI Type
STP
Instinctual Variant
sx/so
write a book/song = sales/royalties :coffee:

It bombs and you make almost nothing. How many singers make it rich enough to do that? How scalable is it really? The richest and biggest singers/book writers work their ass off.
 

1487610420

Permabanned
Joined
Apr 13, 2009
Messages
6,431
It bombs and you make almost nothing. How many singers make it rich enough to do that? How scalable is it really? The richest and biggest singers/book writers work their ass off.

None of what you wrote challenges the accuracy of my post.
 

1487610420

Permabanned
Joined
Apr 13, 2009
Messages
6,431
Unless you view completeness of data as accuracy :coffee:

Not really, you tried to challenge a broad mix of financial success, scalability and effort ROI. The answer is analysis and implementation to a particular situation/desired goal. You just alluded some kind of unspoken doomed statistical outcome, which is like saying if you do it wrong it won't work, to which one can simply reply, that if you do it right it will work. :shrug:
 

violet_crown

Active member
Joined
Jun 18, 2009
Messages
4,959
MBTI Type
ENTJ
Enneagram
853
Instinctual Variant
sx/sp
It bombs and you make almost nothing. How many singers make it rich enough to do that? How scalable is it really? The richest and biggest singers/book writers work their ass off.

Collecting royalties, insofar as it is a business model, is technically infinitely scalable as you don't have to manage your own distribution. You own the IP and people pay you for the rights to use your content.
 

Poki

New member
Joined
Dec 4, 2008
Messages
10,436
MBTI Type
STP
Instinctual Variant
sx/so
Not really, you tried to challenge a broad mix of financial success, scalability and effort ROI. The answer is analysis and implementation to a particular situation/desired goal. You just alluded some kind of unspoken doomed statistical outcome, which is like saying if you do it wrong it won't work, to which one can simply reply, that if you do it right it will work. :shrug:

Its called probability or success rate. Its just like if i said investing in a company will make you rich. Its so far incomplete its misleading, not accurate.

Anyway, its a pointless argument. We have differing opinions of accurate.
 

1487610420

Permabanned
Joined
Apr 13, 2009
Messages
6,431
Its called probability or success rate. Its just like if i said investing in a company will make you rich. Its so far incomplete its misleading, not accurate.

Anyway, its a pointless argument. We have differing opinions of accurate.

Would you agree that specific know-how on either/any subject, can significantly change both the vision of the possibility of success, and probability of success?
 

violet_crown

Active member
Joined
Jun 18, 2009
Messages
4,959
MBTI Type
ENTJ
Enneagram
853
Instinctual Variant
sx/sp
What do you think? Is it a thing or is it just snake oil or is it something which has reached peak supply already so with a handful of new media providers, such as insider, unilad, people are awesome, its all more or less covered?

Couple of points:

1) Anything that sounds too good to be true--is. The only way that acquiring wealth doesn't require either a significant amount of time or hard work is to either be born hot (and marry well) or be born with a trust fund.

2) I think it's important to distinguish between something that's truly passive income and something that's more of a side hustle.

Passive income to me implies that you have some asset that you've set to work to accumulate further value. A lot of things can fall within that category such as:

I. Income that you've invested in a mutual fund (or other low to moderate risk vehicle of your choice).

II. A property that you've purchased that you're now leasing.

III. Or as [MENTION=14857]labyrinthine[/MENTION] and [MENTION=6723]phobik[/MENTION] are discussing, intellectual property that you've created that generates revenue with minimum upkeep on your part. That could be something along the lines of creative content or an app, for instance. As an example, the INFJ I was seeing had designed a pair of pants and was working with a website called betabrand to sell and distribute them. He would receive 10% of the annual sales gross in exchange for betabrands right to distribute the design.

Options two and three require more significant upfront investments than option one. You don't need a ton of money to start investing and mutual funds are low risk with a decent yield over time. Option two typically requires a major upfront capital investment if you don't inherit the property. Option three requires time (and possibly capital) to create the IP, to find the correct channel to distribute it and then to do any subsequent marketing that promoting what you're selling might require. I'm almost tempted to say that three straddles that line between true passive income (requires no work) and a side hustle, which is work that brings in income over and above your day job.

Side hustles are pretty rad, imo. It's a path a lot of people I've known have used to parlay their personal passions into a full-time vocation. If you're looking for a side hustle, I'd recommend you skip the bullshit MLM type scams, and think more about what you love. If money were no object and you could do anything, what would you do? If for you [MENTION=7280]Lark[/MENTION], it's pursuing your studies in philosophy/theology/etc, then maybe becoming a tutor in those subjects on the side could be a cool way to engage your passions in a way that also brings in additional income. Maybe you reach out to a publisher and see if you can get some contract work as an editor.

Those sorts of things are constructive in a very transparent way, and can create surplus income that you can invest towards becoming a source of true passive income. So within 3-5 years, you're moving from one to possibly three consistent and sustainable sources of personal revenue. As with all things money based, the earlier you start, the more time you give yourself to allow your wealth to accumulate.
 

DiscoBiscuit

Meat Tornado
Joined
Apr 13, 2009
Messages
14,794
Enneagram
8w9
I agree, it is misleading. We own some commercial property and that is often considered passive income. Yes a management company handles it day to day but we have a good amount of involvement. We meet with them monthly, oversee the tenants, the taxes, pay for upkeep, improvements and insurance for all of the above. So there is work required. I've often thought about buying a self-storage place or auto-car washes but even those need regular attention.

I'm a part owner of our family LLC that owns and rents multifamily residential properties in my city. I've worked and my mom currently works in real estate, and the family has a background in running a small business. The income isn't truly passive insofar as there is still a lot of work that has to be done. Passive income takes up front capital. I've thought about buying a property for self storage, but what we are doing in the residential market is already working so why mess with it.
 

PeaceBaby

reborn
Joined
Jan 7, 2009
Messages
5,950
MBTI Type
N/A
Enneagram
N/A
How possible is it really to develop passive income streams?

I've read about this, often in little articles which I suspect are largely online or offline bait and switch, like the careers fares at which there wasnt anyone recruiting just lots of people selling their services in creating CVs etc.

Anyway, I do hear, and do not doubt, about cases in which people have derived passive income as a consequence of good luck or good fortune or chance, like the videos of babies which go viral or the video that guy produced raving about his mate's choice in clothes or white vans shoes.

Good luck to them and I like to hear about luck or good fortune which is entirely attributable to chance as much as the next person but I have read of a number of internet personalities who suggest its possible to engineer this, with a super blog or something along those lines.

What do you think? Is it a thing or is it just snake oil or is it something which has reached peak supply already so with a handful of new media providers, such as insider, unilad, people are awesome, its all more or less covered?

I've generated passive income streams for significant portions of time. All of this work has been online. I've run websites that generate revenue through advertising, I've sold ebooks, I've invested in websites and domain names and flipped those etc. So I know it's possible -- of course there's some work to do but it's a wonderful feeling to know that your websites are making you money while you're doing something else or feeling ill or helping a family member etc.

I am currently setting up an FBA (Fulfilled By Amazon) model to use some of my domains just sitting around doing nothing. That's a goal for me this year, actually, to get better passive income streams going on like I used to have (where I made between 1000 - 5000 a month for a few years ongoing) with very little touch factor on my part. I'm looking into subscription boxes which are wildly popular atm. I've also considered making a comprehensive udemy course on my specialty area in order to support all the other work as well.

Nothing of course is TOTALLY passive. But there are viable businesses that don't have to dominate your time after the intial setup. It's really putting in the effort to get them going and figure out how to set them up well where most folks fail.
 

Korvinagor

Cyber Strider
Joined
Jan 5, 2017
Messages
762
Enneagram
9w1
Instinctual Variant
sp/so
How possible is it really to develop passive income streams?

I've read about this, often in little articles which I suspect are largely online or offline bait and switch, like the careers fares at which there wasnt anyone recruiting just lots of people selling their services in creating CVs etc.

Anyway, I do hear, and do not doubt, about cases in which people have derived passive income as a consequence of good luck or good fortune or chance, like the videos of babies which go viral or the video that guy produced raving about his mate's choice in clothes or white vans shoes.

Good luck to them and I like to hear about luck or good fortune which is entirely attributable to chance as much as the next person but I have read of a number of internet personalities who suggest its possible to engineer this, with a super blog or something along those lines.

What do you think? Is it a thing or is it just snake oil or is it something which has reached peak supply already so with a handful of new media providers, such as insider, unilad, people are awesome, its all more or less covered?

Well by definition, passive income just means using money to earn more money in a fairly hands off way, right? In that case, there are a few things which fit the bill:
  • Sharemarket dividends
  • Rental house revenue
  • Bank savings interest
  • Business revenue
  • Website advertisement payment
  • And more
For most people, I suppose passive income would be derived via savings in the bank. Unfortunately, out of all the different so-called 'passive' incomes, it's one of the least lucrative as well. The 'how' of the methods I have no idea about, sadly.
 
Joined
Mar 20, 2014
Messages
2,240
MBTI Type
INFP
Enneagram
3w4
Instinctual Variant
sp/so
Youtube might be a way to make passive income. It'd be great if there were more small cute animal videos.
 
Top