I have recently been asked if income from online ads, such as the ones served by Google Adsense on my website could be considered a form of passive income.
|
|
The answer is simple. There’s only one way to determine if an income is passive or active. Here it is in a nutshell:
If you don’t have to work to maintain your level of income then it has to be considered a source of passive income.
On the other hand, if you need to continuously put in more work such as posting new comments, submitting new links and writing more articles just to keep visitors coming to your webpages (and clicking on the ads) then your system is not automated.
In this case we will refer to that income as active income or earned income.
A website which contains unique quality content tends to get and maintain a position in search engines results.
Therefore, little or no work is needed to keep a decent level of income.
In conclusion, having a couple of such quality, high traffic, websites up and running is a source of passive income.
What is so great about passive income?
Passive income means you can enjoy a lifestyle that very few enjoy. It may allow you to travel all year long while your portfolio makes money for you.
What are the different sources of passive income?
Passive income comes from assets from your portfolio.
That portfolio may include real estate, stock options, websites or a business that your managers run for you.
A quick accounting lesson:
Is Adsense revenue a form of passive income? is also published at blog.com :
tips2earnmoneyonline.blog.com/about-passive-income/
