An advantage, which stock photos offer besides, is their timelessness. The same applies to the creation of photos, which are then used as so-called “stock photos”.Īlthough these are usually only pennies, there are solid amounts if there are enough pictures on offer. Even online seminars or systems for recommending and networking people with special skills are among them. By definition, this is passive income, but if it is not actively “managed”, the source of the money threatens to run out.ĭigitisation has significantly increased the opportunities for passive income through intellectual property. The same applies to advertising on websites or in weblogs, which have to be constantly updated. However, regular updates are recommended, as not even cent amounts are paid for outdated products.
PASSIVE INCOME MEANING SOFTWARE
This will still be possible years later, although the enthusiasm of the audience can of course fade away.Īnyone who programs software or an app can sell it or charge licence fees. Especially in the case of cultural products that have to do with recurring events, success is almost inevitable.Īdvice literature can be just as worthwhile and also, who successfully accommodates some videos on appropriate platforms such as YouTube, may be pleased about continuous incomes. Those who succeed in placing a book they have written themselves in the bestseller lists or who write the famous “Christmas hit” can look forward to everlasting bubbling funds. In some cases, an initial outlay is also necessary, through which money flows on a regular basis.Īccordingly, a distinction can be made between actual passive income (almost) without any work performance and passive income from previous one-off work.Įxamples would you like? Then royalties should be mentioned at this point. I beg your pardon? No work? As I said before, passive income can lead to this, but regular income needs to be well planned. However, there are also forms that are formally income from commercial enterprises, although there is only partnership and no work required. The term is not scientifically defined, and if it were, capital wealth would come closest to a passive income.
All that is needed is a little seed capital and the willingness to take risks and penetrate business models.įurthermore, of course, not all existing money should be put into generating passive income – at least not if there are risks.įrom a legal and tax point of view, passive income can take different forms. In general, passive income is characterised by an enormous diversity and there are many ways to secure a piece of the cake.
Ideally, passive income is paid at fixed times, but there is also the option of selling after value appreciation and the proceeds of the sale providing the income. Therefore, there must be some money available that increases year after year or pays dividends or other forms of regular payment. Money alone cannot be either passive or active, and if you look at the ways in which passive income is generated, you would have to assume that money is active.Īccording to the common definition, passive income is not generated by a person’s work but solely by an already existing fortune. First of all, the term “passive income” is a little misleading.