Does a fully passive income exist? -

Does a fully passive income exist? A few facts and various types of passive income

Each of us wants to make money with minimal effort. There’s nothing strange about that. In the age of the internet, we are bombarded with proposals for making money online through passive income. In this post, I will show you whether a fully passive income really exists and I will try to present the truth about it to you.

Passive income, making money online, and other great promises

First of all, anyone who has achieved success in the broad business world (not just in online business) will tell you that success requires tremendous effort. When we have little life experience, it seems to us that there are magical ways to make huge amounts of money easily. Unfortunately, life is not that simple, because if it were, everyone would be earning very well, but that’s not the case and it never will be. It’s also worth adding that the whole art lies in earning regularly over a longer period of time.

A hundred percent passive income online—what is it?

By passive income, I mean income without constantly engaging your time. A single effort can yield profits for an extended period. Using this mechanism you can create multiple streams of income and enjoy earnings that are bigger than the average paycheck from active income (like a regular job). Also, passive income gives you freedom, as you don’t have to work every day at set hours. But how to achieve such income and what is this all about?

Above all, passive income has various faces

My grandmother has passive income in the form of old-age pension. She has been receiving passive income for a very long time and does not put in any work to receive this income. Of course, this income results from years of previous work and from the pension system. It’s also worth noting that the money my grandmother receives does not necessarily result from her work, but from the social security contributions that I pay every month, for example, by running a business, and maybe you working as an employee.

As you can see, every income has its origins and our society operates according to certain assumptions. Every passive income online also has its principle of operation, and these are often very different mechanisms. I assume that you are not interested in waiting for a pension and want to actively increase your income.

Passive income can also take the form of your own business of any kind in which you won’t have to work much. If you own shares, but other people run the business, then it’s going to be passive income. It doesn’t have to be an online business at all. I know people who have created their own business and built a structure of people who manage this business.

Does a fully passive income exist?

I will now give you a few examples of passive income, and you will see that each of them has a different degree of ‘passivity’.

Publishing products on Amazon in the form of books through KDP

It is a model of earning and passive income that I have had since 2016. In 2016 and 2017, I worked very hard and created about 600 automatic products through Kindle Direct Publishing. Since 2018, I have practically stopped publishing, but my passive income from books has continued to increase and even reached a level of PLN 10,000 per month in months like December (when sales are very high in stores).

For over a year, I have not published any new products, but despite that, I have been receiving an increasing income from the sales of my books. Amazon handles the entire online store, payments, shipping, and even returns, and I don’t even know who is buying my books. It is virtually a fully passive income, as it does not require my intervention. The only activity that needs to be done is to pay tax once a year, but my accounting team takes care of that.

It is also worth mentioning that this type of income is based on real products sold on Amazon (mainly in the USA) in the form of books, eBooks, simple notebooks, etc. By no means it is an income based on multi-level marketing (MLM), where in the end there is a tacky product with an inflated market value.

Blogging and selling online courses

In this case, I also earn very well (I admit, even better than on Amazon), but this is a completely different type of income. My online courses sell automatically, and the blog and YouTube channel do not require my constant attention. However, I need to regularly create new content, take care of customer service, and deal with many minor issues. Running a blog and selling online courses also required me to establish a company, which in itself is quite engaging.

Passive income is only partially present here, as I have to regularly dedicate my time to work on my blog and technical issues. This is simply my business based on a scalable online business.

Blogging and affiliation

Here the situation looks similar, but it’s a bit simpler than when selling your own products on a blog. Passive income from affiliation also requires regular work on the blog from me. I create valuable content that helps others, and thanks to that, I’m able to earn from affiliation. However, in this case, I no longer have to deal with the actual sales and customer service, as is the case with selling online courses.

Affiliation is definitely a more passive form of earning income compared to selling your own products, but it still requires your engagement in the form of creating content. After the client finishes the transaction, you receive a commission and above all, you do not have to worry about creating products. This is a great option for people who are good at creating content and marketing.

You can create a good video on YouTube and promote a selected product through affiliate links. The video will not require your attention, and the sale of advertised products will also not require any involvement.

Fully passive income—conclusions

As you can see, the three methods of earning money online offer completely different types of passive income. In the case of Amazon (books and eBooks), you can have a virtually fully passive income based on real products.

It is completely different when it comes to blogging and online courses. Here, a lot of work should be devoted to creating your own business and running, for example, a blog. This game is definitely worth the candle, but passive income in this case, I would say, is only partial. Of course, I could leave this business to its own devices, but over time, the income would decrease because I have to deal with clients, and my products require regular updates.

In the case of affiliation, passive income is higher and it falls somewhere between online courses and selling on Amazon.

Other types of passive income and what to avoid?

Passive income, including fully passive income, can be obtained in many different ways. First of all, it may simply be your own company that operates independently over time. However, to accomplish this, it always takes many years of hard work.

Passive income can also come from real estate (a very popular topic lately), but it requires having a significant capital, and such investing is a result of previous good earnings. Buying a good property is also an art that requires a lot of work, knowledge, and commitment. Especially now, when real estate prices are high.

We also have MLMs, which stands for Multi Level Marketing. Here the situation is similar to affiliation, but the whole game is based on acquiring partners who sell products, and you receive a commission from their sales. Unfortunately, the whole scheme often relies on weak foundations and on poor and expensive products at the same time. I believe that the products I recommend should be valuable and thoroughly tested. Therefore, on the blog, I recommend only those products that I use and that can provide value to others.

I definitely avoid MLMs. I knew people who were fascinated by this type of business, and in this case, you can also earn a lot of money. However, I always think that business should provide value to the customer, and these types of businesses often do not provide such value.

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