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Benefits of Passive Income

Mar 1, 2008
Passive income is the earnings an individual derives from a rental property, limited partnership, or other enterprise in which he or she is not actively involved. Passive income does not include earnings from wages or active business participation, and doesn't include income from dividends, interest or capital gains either. The most popular way to earn a passive income is online.

There are many benefits that can come from a passive income, but in order to reap them you must make a strong initial effort to get your income started. The first benefit comes from the minimal work (or virtually none) thereafter, and should result in earning more and doing less. You also have the freedom to choose when and where you wish to work, but discipline obviously comes into play with this one. You must have the discipline to get off on the right foot, which can be hard work. However, your passive residual income is not dependent on a 9-5 work week and can be generated 24 hours, 7 days a week, which is why after the initial hard work the minimal work pays off.

You will be able to give yourself a pay raise whenever you want by creating multiple income streams. This leads to the ability to create an unlimited amount of income in which you are only limited by your imagination. You will be more able to give to charitable causes, which you should do regardless, as well as spend more time with your family and friends or going on vacations. The free time that comes with a good passive income might be the most rewarding thing, competing against the creation of residual income for your future retirement.

A popular way to earn a passive income online is through advertising commissions. If you have a web site that attracts thousands of visitors a day from various search engines, you can offer to place a banner or link on your site for a fee that you collect each month. All you have to do is set it up once and collect the passive residual income. Newsletters or ezines are also popular places to offer advertising space. The greater number of subscribers you have the more you can charge every time you publish.

With the rise of Google, it is becoming more valuable to use Google AdSense and place Google ads on web sites. When someone clicks on the ad, you get a commission for every click. If you have hundreds or thousands of pages on your site you can earn a very substantial monthly income.

Building passive income streams is a great way to get secured for the future. You never know if you will be laid off from your regular job, get too ill to work, experience a disaster, or want to start saving for your retirement, so the sooner the better.
About the Author
Louis-Charles Martel is owner of TheMoneyMakerClub.org and writes on a variety of subjects. To learn more about this topic Louis-Charles recommends you visit: TheMoneyMakerClub.org
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