What is Passive Income?

Passive income is revenue earned with minimal ongoing effort after the initial setup. For creators, it often comes from assets that can be sold repeatedly—courses, templates, memberships, or affiliate partnerships that keep paying long after launch.

Common Passive Income Streams

• Evergreen online courses sold through an automated funnel
• Downloadable digital products such as templates or toolkits
• Subscription experiences like a membership site
• Affiliate marketing and sponsorship deals
• Micro-licensing arrangements and automated service packages

Passive vs. Active Work

Passive-Oriented	Active-Oriented
Requires upfront build, minimal ongoing delivery	Requires continuous delivery or client work
Scales with automation and audience growth	Scales with available hours or team size
Depends on systems, funnels, and automation	Depends on real-time effort or live interaction

Building Passive Income Thoughtfully

• Start by solving a validated problem with your side hustle or service work
• Systemize delivery with email sequences, lead magnets, and content libraries
• Track key metrics such as conversion rate, retention, and average cart value
• Reinvest part of the passive revenue into audience growth and new offers
• Maintain compliance with tax rules and platform policies to keep revenue streams healthy