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East Side Lenders on How to Make Your Income Passive Income


Have you ever heard the term passive income? If you are a regular reader of this site, there is no doubt that you have. If you have not, passive income is simply an income that is continually generated through no work (or very little work) from the one receiving the checks. Much of the time, the passive income business requires a large amount of work up front with no money promised whatsoever. It is only after this enormous amount of work do the checks actually start rolling in, that is, if your idea is a good one.

East Side Lenders Examples of Passive Income

There are some passive income sources that are fairly common, yet you may not have thought of them as passive:

20110617 - money1) Books – Authors often do not make money until their books actually sell. So, they spend a great deal of their time slaving over their laptop with no guarantee of a paycheck. But, if the book is a success, that author may receive sizable checks for the rest of his or her life. Those checks would no doubt be considered passive.

2) Songs – This is along the same lines as books. Write a song and you own it. If anyone would like to buy the song for its use, you earn the profit. Write a song like, “Happy Birthday”, and you won’t have to work another day in your life.

3) Real Estate – Buy a property and rent out the units. Very little work needs to be done on your part and yet, because you had the money to buy the place, you are receiving the rent checks.

4) Apps – This is now one of the most popular ways to become rich and famous. Design an app and publish it and you could earn thousands of dollars per month. Develop a game like Angry Birds and you might even start getting paid for merchandise.

5) Multi-level Marketing – These are often referred to as “scams”, but there are many people who have been able to hang up their regular day jobs and cruise the Caribbean because of their success in an MLM business. Once they develop a solid line of distributors beneath them, they continually get paid and are required to do very little work.

piesThe Self-Employed Trying to Earn Passive Income

East Side Lenders states the examples above are known ways to make a passive income, but there are plenty of other businesses that can be turned into a passive income source if you want them to be. With the book, “The e-Myth Revisited“, by Michael Gerber, there is a story about a woman named Anna (frankly, I’m guessing at the name right now, but it really isn’t important).

Anna owns and operates a bakery. She wakes up at 4am and starts baking delicious pastries and pies, which sell faster than you can imagine. The end of her day isn’t until 8pm, and she leaves more exhausted after each day. Anna only started her business a couple of years ago, but it is already a huge success. The only problem is, when she looks at pies or pastries, she almost wants to throw up. She used to love to bake; now she wishes she never opened her store in the first place. It has taken over her life and she feels trapped.

There are many people that feel trapped by their business. They work 70 or 80 hours a week and don’t see a way out. Anna made an effort to lessen her workload by hiring an accountant, but they did not get along and the accountant often did things differently than what Anna believed she should. It almost took longer with the new accountant because Anna had to double-check everything. She soon decided that things would be easier if she just took on all of the work herself once again.

How to Transform Your Income Into Passive Income

1020934_retirement_moneyWithin any business, if you want to create a passive income, you just have to take yourself out of the recipe. Anna tried to do this by hiring an accountant, but it simply didn’t work out. Anna thought the problem was the person she hired, but the real problem was the system, or in Anna’s case, the lack of one.

If you think you are the magic of your business, then you will be stuck working long hours with no vacation days in sight. But, if you believe that your work can truly be done by anyone, then you can develop a system for someone to follow and take your place. This is how passive income is created, through a system. Anna can hire someone to bake the desserts and train them with her freshly printed manual. It is full of ingredients and directions. Every possible question that might be asked will be found in this manual. With this action, Anna has saved herself 4 hours per day. Next, Anna can hire another able body to work the front counter. With another manual describing the position and what should be done in each scenario, Anna just replaced another piece of her job. With each manual/system, the business you created is slowly freeing up your time, but still providing you money.

Money Lost?

For you true business owners, you might be thinking, “How can I possibly make any money if I’m paying so many people to work for me?” Well, it is obvious that if you are earning $75,000 a year, you shouldn’t spend $60,000 on employees. That would mean that there would be nothing left for you to live on! However, what if instead of working 80 hours a week and earning $75,000 a year, you hire some people, systematize your work and earn $40,000 a year with only 5 hours worked per week. Wouldn’t that be better?

If you’re saying no, then you don’t understand the power that I just gave you. If you can reduce your working hours down to 5 per week instead of 80, that means 75 of your hours are now free to do whatever you wish. If you don’t think that $40,000 a year is enough, then start another business to make more! If you duplicate your systematized bakery, you can earn a total of $80,000 a week (that’s $40k x 2) and you’re still only working 10 hours per week. If that’s still not enough money, go out and systematize something else! By creating a passive income, you have created an infinite supply of wealth because it is repeatable and time is no longer an issue. Systematize your work, create a passive income, and enjoy your riches.

Do you aspire to create a passive income?

Money Passive Income


My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.


  1. I agree, the most common way now to become rich is to design an app and hope that a big company will be interested enough to buy it.

    • As for the apps though, I think many of the valid ideas have already been done. With over a million apps out there, we may have missed the boat on this one. It’s time to think about what’s next!

  2. My husband is a programmer, so we are always thinking about how to make his products generate passive income — once he codes something that other people can use, he can license it out. So far, he has been able to build off of the code he designed in one project, for use in another. It’s not completely passive income, but he does get paid again for the time it took him to develop the re-used code. As his code library grows, so does his effective hourly rate.

    • That is very cool. As you said, it’s not passive income, but it is certainly more and more of a time-saver with each project your husband completes! Thanks for the comment!

  3. I am trying to move more and more of my income toward passive income, making my money work for me. I’m not very tech savvy but I’m certainly interested in rental property.

    • I just picked up a “For Sale” pamphlet from a house in my neighborhood and they’re only asking $56,000! Smells like a rental to me. Ha! I’m trying to pay my house off first, but these deals sure are teasing me!

      • Wow we wouldn’t be able to purchase anything where we live for $56k and if we could I would definitely jump on it. I suppose maybe we should focus on purchasing our own home first before we begin dabbling in rental properties.

        • I am in the same boat Jon. My goal is to get my mortgage completely paid off before I invest in real estate. I think it’s just the sensible thing to do. I know there will be other deals in the future, but it sure is difficult to pass this one up! I mean $56k for an entire house? That’s crazy!

  4. Passive income is definitely a good thing to shoot for. I think for me, the closest I’ve come to passive income/money growth are the investments I have in stock/bond index mutual funds.

    I haven’t been very successful so far in creating truly passive income with my self employed blogging and ebay selling efforts thus far! 🙂

    • Passive Income is definitely not easy, but it certainly can be done with the proper system in place. Through blogging, I have been able to cut my work time from 20 hours per week down to about 6 or 7. It’s not passive yet, but I’m getting there!

  5. You may think that it is too simple but earning passive income take a lot of work and a proven system. Thanks!

    • True. It can be a lot of work, but it can also be incredibly lucrative! 🙂

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