Thread: Passive Income
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Old 03-08-2008, 04:03 AM   #13 (permalink)
Acting Like Godot
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Quote:
Originally Posted by John P View Post
Advertising revenue from a blog is absolutely passive income.
It is not passive income, not any more than running a newspaper is passive income.

Quote:
When you set up that system, you've decoupled your time from your wages - i.e., your blog will still pay you even when you're not working on it.
Your blog will not pay you if you do not constantly produce new content. For example, if Steve Pavlina quit blogging today, all his readers will eventually go away. His rankings and Internet visibility via Alexa, Technorati, Google etc would slip.

Quite quickly his advertising revenue from blogging would dwindle to zero.

Passive income really means that something like you have a million dollars and place it on a rolling fixed deposit. You earn, say, 2% per annum and so you get $20,000 per year doing nothing.

Another example of passive income is owning an extra property and you rent it out to a tenant. The guy rents it for 5 years and pays you $3,000 per month. That's passive income.

Another example of passive income is that you write a book that continues to sell well over many years, going into reprints etc, getting translated into different languages, selling into different countries. After the initial labour (of writing the book), the book brings in passive income.

Theoretically it may be possible for a blog to achieve the same - eg you write 50 articles and then you quit posting - but a large number of readers still visit for the next 3 years and contribute to your advertising revenue. That would be passive income. However, I haven't seen any blog like that yet.
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