To be able to understand the amazing qualities of passive income, we must compare it to the common wage or salary which falls under active income.
Active Income is the profit that you earn which is mostly proportional to the work you do. Let us say Mark is an architect in a consultancy firm. By working 9 hours from Mondays until Fridays, he gets his monthly pay check. Although he gets his salary every month, the actual computation of his wage is based on hours.
If he cannot perform a job for 2 days because of sickness or some emergencies, his salary is deducted. Of course there is sickness leave, a "benefit" to cover that absence.
If he files for vacation leave next month for thirty days, his salary is also deducted for a whole month. Yes there is "vacation leave", to cover the days he is off.
Passive income on the other hand is usually earned even if less activity is done. This kind of income is earned from using skills - skills on how to create an online business which you develop over a considerable amount of time. You might say that this kind of income is acquired from being smart. And it is always a smart move to take passive income opportunities.
A lot of employees do not have that many benefits.
Employment benefits are actually part of the salary which is reserved for leaves and emergencies. When these benefits run out (which often does), there is nothing to cover the days of absences.
The incredible thing that people have to accept is that those benefits cannot be carried over the next year. People in some offices, are allowed to add their unused vacation leave to the next, but they "lose" sickness and emergency leave if they could not use it.
But you should not lose it!
Is it not a great feeling if you can stay at home to take care of your sick child, knowing that you are covered by emergency leave? What if you run out?
In your online business, you do not work like an employee. You can have vacation any time you want while you are earning online. You are free to wake any time you want. You are free to rest any time you want.
You do not lose your benefits! When there are times that you do not feel well, you still earn. When you want to fly to another country, you will still earn. This is because most online businesses are automated. This is how you earn passive income.
If you have a legitimate online business, like affiliate marketing for example, most of processes there from selling, to payment processing, to delivery are usually automated. So, you do not have to do the tedious tasks.
Unlike traditional businesses, your market is worldwide and you have the ability to create multiple income streams and develop more passive income ideas.
Active profit is only earned when work is performed. When you do not work you don not get paid. This is the type of earning that employees get, whether you are a clerk, a supervisor or a manager.
Try computing your annual income by adding your basic salary and the sick leave, emergency leave and vacation leave. That is your value to the company. Oh, you can also add your separation pay but do not forget to divide that by the years you have stayed in the company.
Passive income is more special than an active one because the profit you earn here is not proportional to the time you spend working. In most cases, here you work a lot less. Of course you have to toil at the beginning but in the long run, you get to earn passive residual income.
You can say that this is automated income -a residual income opportunity. This is because you still make money even while you are spending time with your family or when you are on a vacation. Yes you do a lot of marketing which is your main task, but you do this online. You do not have to go out and find prospects. You can market even while you are sitting on your bed.
And since your business is online, you can access it almost anywhere as long as there is internet connection.
Like traditional businesses, there are also risks in passive income opportunities and you have to initially invest money, time and effort before you could actually earn online income. In short, it is no easy wealth. But hey, if you want financial freedom, you have to be ready to face the challenges, at least in the beginning. Can you succeed? Of course you can, if you wish to.
Learn about having Passive Income Passion and be compelled to make a better lifestyle for you and your family - A life that you wish for.
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