 Four passive income business ideas for 2021, earn PayPal money. Hey, over the past few years, everybody has said, hey, I want to make passive income. I want to make passive income. And if you don't believe me, check this out right here. Some of the most popular searches on Google include, how do I generate passive income? How important is passive income? And what are examples of passive income? You know, it's so funny. People are searching something. They don't know what it is. They heard it so much and they know they need to do it, but they don't know what it is. That's funny. But you know what that does? That creates an opportunity for you. Watch this video to the very end. You'll know what passive income is, and you'll know how you can make it. Hey, don't forget, if you haven't subscribed before we get started, make sure you subscribe and ring the bell. Turn on all bell notifications. That way you'll know every single time I do a new video. Give me a thumbs up. That helps the YouTube algorithm. Now, as somebody who investigated scammers, and I did, I investigated scammers. I didn't know I was investigating scammers. When I started online, I wanted to know how to sell stuff online. So I started, you know, just like Googling, how do you sell stuff online? And I found all these different courses and ways to do it. And probably 99.9% of them had never sold anything online but a course. So it told me that there's no way that I'm going to learn anything from these people because they haven't done it yet. It has changed some. There are some really legitimate courses out there. I have several courses out there. You're welcome to check out. But there's some really legitimate courses out there, and you can learn how to sell stuff online. Passive income is not a scam. It's just that some people got involved in it because they saw an easy way to make some money and rip people off. However, there's a lot of passive income things you can do to make a tremendous amount of money. Now, I would say over my past 10, 11 years, 11 years of selling online, I've seen a lot of stuff come and go. A lot of stuff come and go. And I pretty much know what works now and what doesn't work. Now, that's not to say it's not going to change because it changes every single day, but I do know certain things that work. So in this particular video, what I want to do is I want to cover a few parts. Part one is the explanation of what passive income really is. Part two is going to be an explanation of why passive income matters and how important it is to your financial independence. Part three is going to be a quick overview of business ideas that other lists erroneously list as passive income and they're really not. Part four is going to be a look at the criteria used to classify a business, a product, or a service as passive income for the purposes of this list. I will say over the years, there hasn't been just one or two things. There's been a multitude of things that I've seen people do to earn passive income. So I do want to kind of prefix it with that. There's different ways of doing all this. And just because somebody is good at one thing doesn't mean they're good at another thing. I see this every day just because they can, you know, do affiliate marketing and make millions of dollars and then go to try and sell ebooks and they don't make anything, they lose money. That happens, okay? You're going to be good in some areas, not good in others. So sometimes you got to try out a few things that match your personality. What is passive income? Generally, it's defined as an income that you receive with little or no effort from your part. That's pretty cool. Passive income also is not proportional to the amount of time you spend on trying to earn that money. In other words, it can grow and grow and grow without you putting forth any more effort. Now active income would be like a job. An active income would be like a job where you go in from nine to five and you work five days a week and you know you're going to get a set amount of money. That's not passive income because you're actually selling your time for money. Now examples of let's say passive income could be like royalties earned from stock or photography or digital courses that you create. That's passive income because you did it at one point. You did some work at one point and it steadily pays you on a daily, weekly, monthly basis. It could also be a website that you've developed that sells different products that you don't have to maintain on a daily basis. It's kind of like on autopilot like maybe a dropshipping website that's integrated through AliExpress. Now what's really intriguing to me and that I love is that passive income is something that I can make money while I'm sleeping, while I'm going to dinner, while I'm traveling the world, while I'm hanging out with my family or playing with my dog and I'm still making money. That's what I consider a good passive income. This comes to the question and some people wouldn't even ask this question. They go, it already sounds pretty good JR. Why is passive income so important? Passive income is really important because everybody is limited on time. Everybody. Every person is limited on time. You've got 24 hours a day. However, you can always earn more money. If you have a set amount of money, I used to hear people say that and it didn't really click with me that there's really plenty of money out there, but there's not plenty of time. You've only got a certain number of years. That's it. And it's done. So if you could earn more money within those years without having to take time away from things maybe you enjoy or maybe you could take that time and put it into something else to generate even more income, that's the way to go. And that's why passive income is so important. Think about this this way. Time cannot be spent. It cannot be earned. It cannot be saved. It cannot be invested. You can't do anything with it except for whatever you do with your time. So I want to put this chart up real quick. Take a look at it. This is linear income versus residual passive income. Okay. Now, if you look on the left-hand side here, you've got active income trading time for money. So this would be an example of you have a job. Time is money. There's no leverage whatsoever. That's it. Okay. That's all there is. Now, the other type of active income is you own a job. You're self-employed. Maybe you own a hair salon. Maybe you own a car repair shop or something along those lines. So you own a job and time is still money and there's no leverage. Okay. It is what it is. Now, passive income on the right-hand side here, you've got a couple other things. Passive income not dependent on your presence. Okay. You own a business, but you may not have to necessarily be there. So you own a system and then you have people that can actually work for you. So people equals money and leverage. You have a little bit of leverage on this one here because you're a business owner. And then the last quadrant, that's where we want to be, right? Money works for you and dollars equals dollars. So the more dollars you put into it, let's say I run ads to go to an affiliate page and it sells a product and I get more dollars back. So what I'm really doing is investing dollars. I'm not investing time and that becomes passive income and you become an investor. You can maybe invest also in real estate or stocks or anything like that. Now, when you get into real estate that you're investing in, that you have to manage as a property manager, that all goes out the window because you're working again. Okay. That's saying that somebody else actually manages the property. Now, passive income is probably one of the most important factors to getting people rich. I know as I sit here and do this video right now that I'm creating passive income because this video can play on and on and on. More and more people can watch it. More and more ads can get played on it. I can get paid on it. More people can click below and buy my products, buy my courses. But I also know that I have passive income coming in while I'm doing this. I could look down on my phone now and I've made sales from my survival food company or one of my courses and I'm doing nothing for that right now. I'm actually doing this video. Now, here's a good quote. I love it. This is Warren Buffett. He said, if you don't find a way to make money while you sleep, you will work until you die, Warren Buffett. And that's very true. And I'm not saying it's bad to work till you die. I don't know if I'll ever retire. But the point is I don't have to. I wouldn't have to if I make enough money for my passive income. That's the point I think he's trying to make. Now, I'm not going to tell you making passive income is easy. It's not. You're going to have to put in a lot of time and effort up front to reap these rewards. Now, the good part is later on, you won't have to. I've set up my survival food company and my courses to where I'm going to make money every day. You know, now I'm sure if I let everything go and I didn't touch anything and I never checked anything in a few months, some sales would go down. I'm sure of that. But I know for a few months I'd still have income if I did nothing. You know, if an emergency came up and I had to take off a week or two, things are still going to run. Things are still going to happen. I'm still going to make money. First off, you're going to say, well, this thing you're talking about J.R. in the beginning is not going to make me much money. Maybe it's only 100 bucks. But 100 bucks may not sound like a lot. However it is, $100 a month in passive income, you would need to make $30,000 invested at 4% to make $100 a month. Do you ever think about that? So it would cost you $30,000 in an investment that returned you 4%. And you know, savings accounts don't even return that right now. Now that is pretty optimistic because really with inflation, you'd really have to earn about 7% to get that back. You can't earn 7%. I'm sure some stocks go up that much. But as far as savings or money somewhere, it's not going to work. Now check out this chart right here. What I've done is on the left-hand side, I've shown you what $100, $200 of passive income is monthly and how much you would have to have in savings to earn that amount per month. So check it out. To make $10,000 a month, which I definitely make in passive income much more than that, you'd need $3 million, $3 million investment at that 4% to make $10,000 a month. So you can see this passive income is a lot more valuable than what you realize. You know, when somebody's making $100 or $150 a month on their YouTube ads, let's say $200 a month on YouTube ads, that's like investing $60,000 into a 4% investment. $60,000. So they look at that and go, that's not much money. That's a tremendous amount of money. You've done something. You've really achieved something. Now, while passive income may not be the answer to all your problems, I will tell you this, if you get passive income set up, you're going to be a lot more comfortable in life and a lot more financially secure. Part three real quick, what is not passive income? Let's say if you had vending machines or a laundromat that you're going to have to service every single day, that's not passive income. Yeah, you're making money, you know, while you're going to sleep or whatever, but you have to constantly do maintenance on that. Real estate, rental properties, unless you've got a management company that handles 100% of everything, which costs you about 10% of your rent, you're going to have to do maintenance. You're going to have to do repairs. You're going to have to collect moneys. You're going to have to get a court. You're going to have to evict people. That's real work. Refinancing mortgages. People think, well, I made some money. No, you didn't. You extended your mortgage and you're going to have to pay even more money. That's far from passive income. Airbnb or rideshare stuff. No, no, that's a lot of work to manage that, to have that, to repair that, to do that. That is not passive income. So what is passive income? Number four is it's things that's recurring payments. I have some courses that are continuity courses where people pay 27 a month or 97 a month or 197 a month. And I get that every single month. That's passive income. If you can systematize and automate all this, which I do through emails and constantly have people adding income to my passive income, more people paying a month, more people buying a month, and I have that all automated, which I do. That's what's called passive income. Real quick, I'm going to give you a list of comprehensive passive income ideas. First one, stock photography. You can sell that. You can sell stock photography and make money on it. Next thing up, next thing up is writing a book. That can be good passive income because it can continue to sell as you are sleeping, as you're traveling, as you're doing whatever. Next one is creating online courses. I love online courses. I have a bunch of them. There's the courses sell all the time. I make money all the time. Some of those courses I made two, three, four years ago. Next thing is affiliate marketing. I have links in this video right now. People click those links. I make money on those things. The people don't have to pay anymore. I just get a commission off. People click it. That's a passive income source. Now you know what passive income is, what it isn't, and some ways you can do it. I highly encourage you to try some of these ways. If you have questions, put those comments below. Feel free to ask me. I'll be happy to answer any questions you have. Do me a favor. Subscribe to the channel and ring the bell. Turn on all bell notifications when that bell pops up so that I can notify you every single time I do a video. Give me a thumbs up. It really helps the YouTube algorithm. Thank you so much for watching this video. I'll see you in the next one. 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