Hey, What Is Passive Income?

What is passive income, you ask? Simply put, it’s making money while you’re asleep or busy giving someone orgasm in far away Vanuatu. Another name for it might be residual income…

…well, the other names depend on how you earn it. So, what is passive income...?

1. Real Estate = Rental Income

2. Portfolio Assets = Dividends

3. Systemized Business. If you own Starbucks or Nandos, for example = Directors Bonus

4. Intellectual Properties, like books, recorded songs or music album, artworks and the likes = Royalties

5. Affiliate and Direct Marketing = Residual Income…

Now, for different countries this may work in different ways but this is the general idea of what passive income can be said to be. For example the US has some unique considerations. The IRS has a different explanation for your "what is passive income?" question... they think pensions is one. So they charge your passions too!

So get some country or region specific advice from your lawyer or financial advisor before proceeding with passive income strategies. Generally, earning passive income from the internet is more flexible than earning it offline – considering the taxation and legal systems of most countries.

If you haven’t read any of Robert Kiyosaki’s books (or other personal finance authors’) you may find the definition I gave you above rather weird, but there’s nothing crazy about it – plain truth.

When I started getting into financial books, learning money making and management – as a teen – my friends thought I was taking life too seriously… they would ask me OK, tell us, what is passive income, and how is that different from the money I get from my dad every Sunday night – I really don’t work for that money too…

…yes, similarities exist in money that comes to you without you working for them (examples are pocket money from home, pensions and inheritance), but those are NOT passive income.

Here’s the difference


  • You really want to stick smiles on people’s faces by adding value to them, through eCommerce, using one or more internet business models – if you’re using the internet as your style.

  • You either invent or use someone else’s outlet to deliver your value (and spark the smiles) in ways that free you up… to enjoy other beauties of life.

  • Your outlet (or system) generates you money from the value you’re offering, commanding respect for that “do not disturb” tag on your Hawaiian Hotel room door… and she loves it too.

  • Abundance minded… you come from a place of sharing and loving. Yes boss, because Passive income systems actually make it possible for you to offer more value to more people.

  • Long term and sustainable income… yes, while passive income is not necessarily going to be a forever thingy, it sure creates some stability for you – so long you’re adding value that people want, and are willing to pay for.


  • You either worked for someone else or you’re in their care (so you have no unique sellable value you’re offering)

  • You’re not thinking systems… “Ugh, that’s stressful – just gimme the money. And my one room apartment in downtown Lagos is just OK.”

  • Instant-gratification minded…

I really don’t want to spend time writing about this sort of mindset. The thought of it alone churns my tummy… it’s such B.S to live in that reality…

…where your boss determines your sexual preferences… your lifestyle… your interests (at least s/he limits your choices a great deal)… your everything! I’m sick! HELP!

Oh, another one, your health is in the company’s command too… the whole idea of work-for-money or earn-free-money kind of sucks.

Honestly if this what you have in mind, don;t ask "what is passive income?", ask "what is moocher income?"

…In a Nut’s Shell


1. Not inheritance.

2. Not deals (one-time contracts that earn you money),

3. Not “invest $2 get $2Million dollars in two months” pitch, (please take to your heels whenever you see this sort of thing… it’s at best Get-Rich-Quick, and of course, that sort of thing doesn’t exist).

4. Not trading the futures market, for example Forex

5. Not stolen money… you MUST offer value that advances other people in the ways they seek to advance.

6. Not income you earn forever. Some passive income last for years, others months, and some for generation, but hey, don’t mistake it... everything with a beginning has an end, one way or another.

7. Note lottery or lucky money… Nope! Luck-stars almost always shine for a brief spell, and then off to oblivion thereafter. Superstars shine forever – they come to stardom fully prepared for it.

8. Not always totally passive, at times… for example, doing real estate that is not outsourced, in which case you manage it yourself, so it’s not total passive income… you still have to fix the plumbing if it goes bad, and you have to collect the rents too… eject rent defaulters, if need be.

9. Not always passive for everybody. Some people will have to work for your passive income to remain passive (or you leverage technology)… this is not bad.


Creating value that keeps giving win-win-win for...

1. you

2. Those who use it

3. those who support the system

By creating passive income you create active income for others… they may leverage your creation of passive income for them to create their own passive income too. For example, if you get an SBI! I get to earn, but some other persons manage the accounts and operations for SiteSell.

Got it?

So now you should confidently answer for yourself – what is passive income…?

Now, What’s Next?

Passive income is making money from an effort you had made in the past, that’s leveraged on a system (“a system” here is just an equivalent of what an outlet is, a way of distributing your valued effort to more and more people, with little or no involvement on your part).

Get it started by generating an original idea for your own passive income stream… but first find your love.

With love now and always… see you on the success side of the cliff!

From Hey, What Is Passive Income?

to Passive Income Ideas for Virgins and Beginners

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