What is Passive Income?

Ways to earn passive income

What is Passive Income? You may be wondering what kind of income is called active and inactive income and what is the difference between them? Have you ever considered making money even when you are asleep? Passive income is what can make your dream of making money come true.

In the definition of passive income, it is generally said that it is opposite to Active income and it is a way through which more income can be achieved but without activity! This definition may seem a little strange, because earning money has always been associated with activity and doing work, now how can we earn money even when we are asleep or not doing activity?

The lives of rich people show that they are not content with their normal job and have chosen passive income as a way to get rich. So if you are looking for more money, success and financial independence, join us to learn more about passive income generation, its types and advantages and disadvantages.

What is Active Income?

Active income

Before we answer the question, what is passive income? It may be better to define active income. Active income is the income that probably everyone earns in their life, that is, they receive a salary for a certain activity, and when that activity ends, their income will be cut off.

Active income as opposed to passive income is a definite income model defined for people who have a steady job, but there is another type of income that we should not necessarily have a steady job, but the possibility of more and richer income Provides us with becoming.

What is Passive Income?

We come to the part where we talk about the middle ground: what is passive income?

This income is called regular income that comes from sources other than working with the employer or contractor. This means that we can earn money by creating services and creating value without doing a specific activity for a particular person or department. This type of income is also called passive income, and it means that people, without having a daily economic activity, adopt methods through which they can earn money. That is, they seem to be inactive and passive. However, in order to have a passive income, some grounding must be done and it is necessary to have skills.

Suppose you own and rent a property, or buy or sell stocks, or earn a portion of a business by investing in a business, or sell products and services in cyberspace in line with digital space; The income you earn this way is all considered a kind of passive income.

The idea of ​​passive income sounds very appealing, everyone likes to make money without working certain hours from morning to evening; But we should not make the mistake that we should not do anything special to earn passive income and we should just wait to get rich!

“A lot of people think that passive income requires nothing, but it’s an attraction to get rich quick, and inwardly, to make that kind of income and make a living,” says Todd Tresider, a financial instructor. “It’s not easy either.”

In fact, in order to have passive income, we have to work, suppose if you make money by renting your property, you have to take good care of your property, or if you sell online, you have to update your products or services. Keep.

Accordingly, passive income as a second way to make money can have a significant impact on increasing the financial security of individuals and their enrichment; However, in addition to its advantages, it may also have disadvantages.

Advantages and disadvantages of inactive income

Since we do not need to be present at the place of business to achieve passive income, it will naturally bring significant benefits in terms of time and space savings, although we must accept the risk and at least 3 to 5 years to reach Let’s wait for this revenue generation.

Passive income benefits

Here are three major benefits of passive income:

passive income

Achieve wealth and financial independence

If we are content with our steady and active income throughout our lives, we may have a normal to average life, but if we are looking for other sources of income, we can make more money by investing, buying or selling, or even starting an online business. ; That is, while we have our active income, we also acquire newer ways of generating income.

Unlimited time

Suppose you receive a certain salary for 8 hours of work per day, this time is limited; But there is no time limit on passive income generation, which means that if you start a garment factory, a large number of people can work 8 hours without you.

Suppose you set up a police market online store, from now on even when you are asleep you may be buying and selling on your site and earning money.

Unlimited places

Unlike active income generation, where we have to be present in a specific place, we do not need a physical presence to earn passive income. For example, an author whose books are sold in different parts of the world, a factory owner who has branches in different cities, or someone who works in the field of online sales, are not limited to a specific place.

Disadvantages of inactive income

Passive income types, in addition to the significant benefits they have, may also have disadvantages in the beginning:

passive income

Requires initial capital

When we choose active income, we do not need any special initial capital and we will earn income by being hired by an employer; But passive income generation requires initial capital. If you are planning to buy and sell stocks, or you want to start a production workshop or have a virtual sales site, you must have a certain amount of capital.

Lack of immediate result

We have to be patient to generate passive income. Choosing a steady job will earn you money from day one, but if you want to make more money and get rich, you have to accept the hardships. Passive revenue generation method will not be effective at the moment, suppose you are involved in buying and selling real estate or you are planning to start a factory or sales website, for all this you need to take time, brand and be patient until after a few months or a few Year to come.

High risk

Passive income is more risky than active income because you have to invest and be patient to be successful in the end. It is true that active income creates a safe margin for you, but if you can make money in another way, you will have financial security in the coming years and you will have a better chance of getting rich.

How to have passive income

If you are looking for a passive income source and how you can access such resources, join us to learn about the steps to passive income.

Specify your value or service

The first step is to see what your initial capital is. Do you have cash or a skill that you can use to make money?

If you have the initial capital, you can create your value in the form of a product, for example, think of a production workshop or factory to expand over time and hire many people. You can also use your initial capital to buy or sell real estate or stocks.

Your skills can also be a source of income for you. For example, if you are a writer or have skills such as producing video content and educational content, you can easily earn a passive income by writing a book or cooking and content production training.

Evaluate your possibilities

In the next step, see what facilities you have, do you have other facilities besides cash or skills, such as manpower, advertising resources, etc.? By making a list of the facilities available to you, you can draw a more detailed roadmap for your business and determine how much you will need to spend and facilities.

Specify your needs

There are limits and requirements for doing anything, so after choosing your field of work for passive income, it is best to list the limitations you have and identify your needs. In this case, you can think of getting help from other sources and even partnering with others to meet the needs and limitations.

Specify when to reach inactive income

Everything must be done purposefully. It is true that passive income generation requires patience, but you have to make a specific plan for it based on the resources you have and determine the approximate time to reach this income.

A variety of ways to achieve inactive income

Each of us, as Iranians, can think of earning other incomes in addition to our fixed income. Here are some of the most important types of passive income:

Education Courses

Education is known as one of the best methods of passive income. These days, thanks to the digital space, many educational opportunities have been created, if you have special skills, such as cooking, sewing, programming, and. You can produce educational content.

All you have to do is set up an educational site or put your content on YouTube or social media, you will see that even when you are asleep, people may buy your education and earn money.

Writing books, especially e-books

It is true that printing and publishing a book costs a lot, but publishing an e-book does not cost much, you can earn it by selling it on book selling sites. Your book may sell for years, and you and even your children can use the proceeds.

Investing in real estate

One of the most popular ways to generate inactive income from the past is to invest in buying and selling or renting real estate. If you have capital, you can turn it into a rental property so that you can earn more money for years by renting or selling that property and buying another property.

Sales cooperation

One of the almost new sources of passive revenue is the affiliate marketing system. In this way, you can create an internet platform so that influencers, bloggers and even ordinary people can sell the products and services of other brands and pay you a commission.

In this way, even while you are asleep, you may make a sale through your sales affiliation system and earn money. If the passive income is to be mentioned, sales cooperation can be considered as one of the best, which leads people to financial independence quickly. Because at the moment, sales marketing is one of the most popular marketing methods and many brands and stores want to work with publishers and marketers to sell their products and services. So it’s a good opportunity to make a lot of money this way.

Application production

Application production

These days, if you can design and produce applications that fit the needs of the people, you will have a great chance to earn money. Suppose you design a program for bank payments and people’s bills, if you spend the time and money spent on marketing and advertising that program and fix its bugs, you will get your inactive source of income.

Investing in stocks

Many of the richest people in the world have been involved in buying and selling stocks, so if you have the capital, you can spend it on the stock market.

Of course, do not forget that to enter the stock market, you must do the necessary studies and accept the risks.

Launching a store website

Launching a store website

Another source of inactive revenue is online sales. All you have to do is set up a store site and allow other people to sell different products, in which case the sales process will be done automatically and you will not need to be present, but you will be charged revenue.


Passive income sources are not limited to these cases and there are many ways to do it. For example, it is enough to be able to share your skills in the form of educational content to others to earn money. By doing this without doing much work, you produce one piece of content at a time and sell it to hundreds and possibly thousands of people and generate revenue.

This income generation, along with having a stable job, can lead to better income and greater financial security. In this article, we tried to introduce some of the most common types of passive income by defining passive income and active income, as well as their advantages and disadvantages.

Frequently Asked Questions

What is Passive Income?

A way to earn money that is done without physical presence; That is, unlike fixed income, it does not have a specific time and place and is created by providing value in the form of services and products.

What is Active Income?

Income that we receive a fixed salary for doing a certain job.

Do we have to give up our permanent job for passive income?

No. In addition to a steady job, you can also think about earning a passive income.

What are the advantages and disadvantages of passive income?

Benefits: Financial independence, unlimited time, unlimited space
Disadvantages: need for initial capital, lack of immediate results, high risk


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