Term
Passive Income
Definition
Passive income is money earned with minimal ongoing effort, typically after an initial investment of time or resources. It often comes from products or services that require little upkeep, like digital content or memberships.
Where you'll find it
In business, passive income strategies are implemented through features that allow for the sale of digital products or automated subscription services. These can be managed through specific sections in the user dashboard focused on product sales and member management.
Common use cases
- Selling downloadable items such as eBooks, courses, or design templates that customers can purchase anytime.
- Setting up membership plans that provide exclusive content for a regular fee.
- Licensing photographs, videos, or music, allowing others to use your content for a fee.
Things to watch out for
- Underestimating the initial work needed to set up a reliable passive income stream.
- Overestimating how passive the income truly is; some management and marketing are often required.
- The need to regularly update and refresh content to ensure it remains valuable and appealing to customers.
Related terms
- Digital Products
- Subscription Model
- Revenue Streams
- Membership Platform
- E-commerce