I have been introducing lots of money making opportunities website for some time and this is the first time that I’m actually thinking about passive income and active income. Well, my goal of pursuing money making opportunities is to obtain passive income but never did actually thought about it deeply. I search and introduce lots of money making opportunities and they are all mixture of active income and passive income. The most important part that I should think about is how to get to passive income. Initially we start out with active income but should aim to convert it to passive income if possible. The question is how to do it.
According to Wikipedia, passive income is an income received on a regular basis, with little effort required to maintain it. If you check back all those money making opportunities website that I introduce and review, some of them are passive income and some are active income. Most of the freelancer websites are basically falls into the category of active income. That’s because for the amount of work you can only generate income just that once. That means you have to keep on working and producing new product in order to continue make money. The blogging websites that implemented revenue sharing are mostly categorize as passive income. That’s because the work that you’ve done can continue to keep on generate income as long as it takes. The work that you’re done will keep on accumulate can continue to generate income. That includes selling products like eBooks and collecting royalty fees for images. Basically there is a difference between job at home money making opportunities and business at home money making opportunities. Guess we have to understand the difference and focus on the actually goal, which is the passive income in this case.
Once we have a clear understanding of what kind of work generates passive income and which job provides active income, next is to decide which area to focus on. In my opinion we have to work on both passive and active income. Passive income normally takes longer time and lots of effort to actually see money coming in. Before reaching the status which you can depend on passive income for a living, you have to work on active income to survive. That means while you’re working on active income of money making opportunities online, try support and link it to your passive income. Take for example of this blog ToastEggMe Money Making Opportunities. The blog is going to be my passive income. Still sometimes I take up some freelancing jobs in writing reviews and articles to cover my living expenses. Once my online passive income grows and started to make enough money, then I’ll graduate from active income.
P/S: Online passive income normally makes less money at the beginning. But it has a potential to make a lot of money. Active income instantly generates lots of money at start. But there is a limit of how much you can earn.