Hello Creatives!
Passive Income
Earnings derived from a rental property, limited partnership
or other enterprise where a person is not actively involved or
requiring minimal to no effort by the recipient to maintain.
In the design world, there are no limits to the types of passive income that can be generated. Passive income used to consist only of investment properties in real estate and stock dividends.
These days, passive income includes affiliations, crowdfunding, publishing and digital bundles. Designers, illustrators, artists and creators have created many avenues to earn passive income.
The Passive Effort
This type of income is recurring, meaning it continuously comes in even while you sleep. Passive income is an income stream that doesn't require anyone to be directly involved once it is started. This is not to say that it is easy, there are varying levels of effort needed based on what the item created is to generate income.
Some forms of passive income require little to no effort to generate, like digital media. Other forms, publishing and teaching, requires a large amount of effort or start-up effort but gets easier the more that are made. All these examples fall under the passive income category but require varying levels of time and effort to initiate.
The Passive Factors
Many creators like to keep their passive income streams simple with minimal effort in order to focus on other sources of income and to have time for multiple forms of passive income. This decision is up to personal preference based on skill strengths.
Factors
Time Value
Effort Expertise
Some creators who are excellent educators may launch a tutorial series or an e-book of expertise and have to put forth a substantial amount of start-up effort with little to no recurring effort. Other creators, such as visual artists or content creators, would create digital content bundle packs requiring little initial effort. It's best to utilize strengths when generating passive income options to provide value to the target audience.
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