Passive income

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There are three types of income - earned, portfolio and passive income. Most types of passive income are derived from real estate/property, while other types of passive income are derived from royalties from patents or license agreements.

An income stream falling into this category is one where money is received usually on a regular basis, without continuing effort. This does not mean no effort at all; most passive income streams require great effort to start with.

[edit] Some Examples

  • Automated web business
  • Interest Income paid from bank deposits.
  • Rental income from real estate/property.
  • Royalties from writing a book.
  • Dividends from shares holding
  • Selling digital files like software / ebooks or scripts or offering a service that doesn't require the merchant's intervention. In these cases, PayPal IPN may be used to achieve this.

Another example of passive income comes from network marketing.


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