What is Passive Income meaning?

Passive Income refers to earnings generated from activities or assets that require little to no daily effort to maintain once they’re set up.

Common sources include royalties from digital products, income from online courses, affiliate marketing, investments, rental income, or monetized content on platforms like YouTube.

While it often requires upfront work or capital, passive income is designed to scale or sustain itself over time without constant involvement.

Example

"She built a passive income stream by creating a course on personal branding that continues to sell on autopilot through her email funnel."

How is Passive Income used in business?

In business, passive income is a key strategy for solopreneurs, indie creators, and digital entrepreneurs who want to earn recurring revenue without trading time for money.

It allows for financial flexibility, scalability, and freedom, often complementing active income streams or enabling lifestyle businesses.

Digital products, SaaS, affiliate websites, and subscription models are common business tools used to generate passive income at scale.

Pro Tip

Start by turning your most valuable knowledge or process into a repeatable digital product or automated service. Simplicity and systems are key.