Passive Income versus Active Income versus Commission

Passive Income


Passive income is a way to make money that is passive in nature and do not change the time for money. Passive income will generate money for you while you are working or not, assuming that it has taken steps to first generate revenue.

Once you have done that, your income will be paid to you regularly and not because you have to trade your time for it, but because you are being paid for something that you have already done.

Passive income can take different forms such as writing investment income to signing earnings to make money from their online efforts. It can also be inferred from network marketing, affiliate marketing and advertising revenue from their online efforts. This is called making money while you are asleep.

Passive income differs from active income, which is a regular salary people earn from their work and bonuses, boards and commissions that they can get.

Below is a complete list of potential sources of passive income:

  • Pension payments
  • Interest on bank accounts or other financial instruments
  • Royalties on a book
  • Sales of a digital/e-book
  • Multi-Level Marketing pay plans
  • Stock dividend payments
  • Rental income from investment property
  • Commissions from automated repeat sales
  • Affiliate commissions

 

Active Income


Active income means income from their work. Let’s say, for example, your earned income. Each month work hard at your job and at the end of the month, you will receive a reward. It is active income.

Active income is income that is created for our work. When we work for money, he is active income. But when our own money is works for us, it is passive income. Passive income is income that is generated from our investments. How to generate a passive income without the active intervention is not the kind of magic that everyone can have.

So what is a job?

A job is an activity that requires a person’s mental or physical effort and performed in exchange for payment.

Because of the employment related to personal needs first, it is easy to focus only on the work and living conditions. The work can be anything from the person has needs and hopes to improve over time, which can lead to trapped when conditions are unacceptable or job requires strength far below what is already developed.

What is a Career?

A person has a career that they are developing with every position held and through those jobs they have acquired knowledge, skills, and abilities.

 

Commission


As the owner of your product, you can choose how much commission you want to offer your customers. If you are connected at one time or another, it is probably the fact that, in general, the affiliate gets the biggest piece of the pie commission merchant taking with regard to the smallest piece for yourself.

Do you want to earn affiliate commission? If you are just starting on the road to earn affiliate commission is likely to discover that only love and victory is two completely different things.

Affiliate commission can turn it into a passive income in the long run if a person work hard building his online business.

 

Business Opportunity


Finding passive income business opportunities leads the pack of options for establishing the multiple streams of income required to remain financially viable in the current economy. Starting your own legitimate online business opportunity is going to require a lot of commitment from you, just like a traditional offline business. The only difference is that starting a home based business on the internet is a whole lot cheaper.

Related article: What are the benefits of working from home?

Starting your own legitimate online business opportunities require a lot of effort on your part, as well as traditional offline business. The only difference is that starting a home business on the Internet is much cheaper.

There are opportunities out there all the time for people. And the popularity of the Internet has the potential in particular because many of them increased available online.

Related article: Tips to build an online business while you are still studying.

No need to access large amounts of money to start, it certainly will not help and offices for rent and do not have dozens of employees to work for you. It’s just you and your computer at home or wherever they choose to work.

There are so many legitimate online business opportunities for you to choose from, but what it really comes down to is this:

  • What are you good at?
  • What are you interested in?
  • Why do you want to work online?
  • How much cash do you wish to earn?
  • Are you open to starting a new business opportunity that perhaps you would never have thought about previously?
  • Are you willing to learn new skills?
  • Can you consider your self to be an individual person?

 

In conclusion


Passive income is no limitation on the expansion of the scale as compared to active income. The more passive income you get, the greater the increase get most of these mechanisms. It can help ensure your financial future without much effort.

 

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8 Replies to “Passive Income versus Active Income versus Commission”

  1. Hi Peter,

    You clearly delivery the concept of Active and passive income by ” When we work for money, he is active income. But when our own money is works for us, it is passive income. ” It is really useful for those who looking for more passive income.

    I was lucky to join wealthy affiliate not long time ago. I really learn a lot of info from find a niche in your passion , create value for customers to getting traffic. It help me out to build up my own online business as well.

    Looking for more valuable content from you soon!

    George

    1. Hi George,

      it is great to know that you joined Wealthy Affiliate. Rest assured that the lesson provided will lead you to the correct path in build your online business. Be sure to stick to the lesson and not to skip the task at the end of every lesson. I am very confident that you will see a difference in your online business and is for the better.

      I will continue to share more things that I know in the online business world. 🙂

    1. Hi Rick, you are welcome. Just want to share with many people about what I know and also do my best to benefit a lot of people. 🙂

  2. Hi Peter,

    Great explanation on passive income, active income and commissions. I chose to get into Affiliate Marketing 10 years ago and have never looked back. There is no better way to make money. PERIOD! There is a bit of a learning but, Wealthy Affiliate is the best training platform there is online. I know, because I’m a Wealthy Affiliate member.

    Jack

    1. Hi Jack Taylor, good to hear that you chose affiliate marketing to build up your passive income and you joined Wealthy Affiliate which is the best decision you have ever made! Affiliate marketing is the cheapest way to build your business online. Wealthy Affiliate provides lessons for you to teach you how to build your business through affiliate marketing! Keep it up and continue to strive!

  3. Hi Peter,

    You really go into really good descriptions between the groups of income someone can generate. I have active income currently working part time, but I am trying to get into the business opportunity as you described. How would I get started? Thanks so much for sharing this information!

    1. Hi there, you can click the image at the my top recommendation to check out more about the business opportunity and it is totally free to sign up to get you started! The key thing to get out of rat race to earn passive income is to stay determined, focused and always have the belief that you can achieve it.

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