Affiliate Marketing, Online Business, Passive Income

Passive Income vs Nonpassive Income

Passive Income v Nonpassive income
What is Passive and Nonpassive income?

Passive Income is defined as earnings an individual derives from rental property, limited partnership or other enterprises in which he or she is not materially involved. In simple, it means money that is being regularly earned with little or no efforts on the part of the person receiving the money. Passive income is taxable income.

Now let’s define Nonpassive income. Nonpassive income is defined as income wages, business income, or investment income. This means it is money made by working any job; money earned running a business or money you make from investments you have made. Nonpassive income is better known as “Active Income.”

Obviously, making money, either way, is great as long as you are generating a steady stream of income to support your daily needs and enough to put a little away every month.  But I think we would both agree that passive income vs. nonpassive income, passive income is the more desirable.


How Do You Make Passive Income?

As stated above, passive income is created through little or no effort of your own. This does not mean there is no work involved, but rather you do the work once and from that work, you continue to reap the benefits. I don’t care what you do in life, making money requires time and effort. Whether it is a continuous effort Passive Income vs Nonpassive incomelike on a 9 to 5 job, or putting in the work in the beginning and receiving the benefits of that work, you have to put in hard work.  Get rich schemes do not work. As the famous song by Billy Preston stated, “Nothing from nothing, leaves nothing, “ if you put forth no effort you will get nothing to show for that lack of effort. Of course, there are those few people who made a lucky investment, hit the lottery, or received a huge inheritance. It happens, but chances are it won’t occur to us. For us, we will have to roll up our sleeves and get to work.


There are many ways of making passive income. You have thousands of MLM (Multi Level Marketing) business. You have Amway, Forever Living or my favorite MLM, ACN (American Communications Network/ ID 03569064 ) to name a few popular MLM companies. All of these businesses require you to develop a downline and as your downline grows so does your income. Each business has their unique compensation plan, and there are several legitimate businesses like the ones I named above. Most MLM companies require you to sell services or products to generate revenue. If sales are not your strong point, then MLM is probably not for you. Aside from sales, MLM businesses require you to manage your downline and keep them motivated for them to increase your earning power. If you get a few unmotivated individuals in your downline, you will be in for plenty of headaches.  The money you make from your downline is passive income, and if you work hard, you can make a lot of money in the legitimate companies.

Click here to see my review on ACN! The TOP MLM business in my opinion.


Affiliate Marketing

Another way of creating passive income is Affiliate Marketing. Affiliate marketing is a marketing arrangement by which an online retailer pays a commission to an external website for traffic or sales generated from its referrals. This is an excellent way to make passive income. I am sure you have heard of Amazon’s affiliate program which is probably the biggest affiliate program in the world. If you can make arrangements with Amazon to sell their products, all you have to do is build a website and advertise the products you are selling for Amazon. For each sale, you will receive a commission from Amazon or whatever company you have an agreement with to sell their products. You can have arrangements with one or several companies at a time. Another way to Affiliate market is to build a website based on whatever you decide and advertise your affiliates on your site. You can usually do this by placing banners on your site that are specially designed to give you credit for any products sold to customers who used your link to get to the affiliate site.


Writing a blog is another way of creating passive income. Blogs can generate massive amounts of revenue if you select the right targeted audience. There are many publications and books about starting a blog. It requires a lot of research and studying to create an effective blog but if you have a specialty, put it to use by writing a blog about it.
There are many other ways to build passive income, but the ones I just covered can all be made easy if you follow my recommendation.

My Recommendation

The most difficult part about starting something new is knowing where to start. If you want to create passive income using the three techniques I covered above there is a simple solution to get your business started. Wealthy Affiliate helps thousands of people daily to get their blogs, Affiliate websites or advertise people’s MLM business to recruit thousands of people they otherwise would not have access.

Wealthy Affiliate

Wealthy Affiliate is free to join, and with a free membership, you will get two free hosted websites. Yes, I said FREE! You can literally start your business for free. But the free sites are not the most important wealthyaffiliate.jpgaspect of Wealthy Affiliate. The most important part of Wealthy Affiliate is the training. When you join Wealthy Affiliate, you immediately have access to a certification program that walks you through every step in building a high traffic website. Whether you decide to write a blog or embark on affiliate marketing, Wealthy Affiliate will guide you every step of the way.

The other aspect of Wealthy Affiliate that makes it unique is the community on their website. Every member of Wealthy Affiliate strives to help the other members succeed. Any question you have, there is someone with the expertise to answer your question in minutes. There is more talent in the Wealthy Affiliate community then I have seen in any community. The special aspect is everyone in the community the goal of helping one another.

Please take a moment to leave a comment or ask any questions you may have and I will get back to you as soon as possible.

If you want to start earning passive income in the next few months, then I would encourage you to join Wealthy Affiliate today!

Other articles of interest:

Working After Retirement – Social Security

Product Reviews

Building a Website for Free for your Business

CJ Affiliate Review


Please follow and like me:

10 Comments on “Passive Income vs Nonpassive Income

  1. This post is fantastic and you do a brilliant job at conveying the differences between passive and non- passive and also ways to make that passive income happen! Wealthy affiliate is a brilliant platform for passive income and I love that you are spreading this info to the rest of us as it is one of a kind! How did you first find out about it? Thanks

    1. Hi Manika, I heard about Wealthy Affiliate from a friend of mine who has had great success through their program. He told me about the program, and I researched Wealthy Affiliate and soon after joined. It has been one of the best decisions I have made. The training is phenomenal. Passive income is the way to go!!!!

    1. That is great news Miles. Welcome to Wealthy Affiliate, I am sure you will find this community to be very helpful. The WA community is second to none. Take advantage of the training, and I can’t wait to hear about your success.

  2. Thank you for this interesting and clearly written post about passive and active income. As someone who was already working even as a student, I couldn’t agree more with your point that passive income is more desirable than the latter. The wonderful thing is that the internet has provided us incredible opportunities (as you have enumerated) to earn passive income. Among the ones that you shared, the two that I found most suited to my strengths and interests are blogging and affiliate marketing.

    1. Thank you Cassia! I always love and welcome feedback. As you, I lean toward blogging and affiliate marketing. ACN is the only MLM business I found interesting enough to get involved in personally. They offer services that everyone needs so they have a great platform to sustain business.

  3. I had a short stint with MLM several years ago and it opened up my mind to the concept of creating a passive income. I discovered a lot of financial intelligence that I never learned before and quickly realized that there’s more that I wanted to do in life than to work for someone else.

    Unfortunately, doing sales with MLM isn’t my forte and I much prefer the affiliate marketing route where I get to learn about different niche and pick up internet marketing skills which is so cool.

    Thought of just sharing my experience.

    1. Thank you Cathy for sharing your experience. I personally lean toward Affiliate Marketing also for much of the same reasons you mentioned. But if you get involved with a well established MLM it can be rewarding as well. I am just not much of a salesman so I have to work a lot harder at MLM than I do with my Affiliate Marketing businesses. Both require work but I like Marketing more than selling.

  4. This is a great post explaining the differences between passive and non-passive income. I’ve always been a big believer in creating passive and residual income streams. After all, there aren’t enough hours in the week to work for every single dollar.

    I’m not a fan of MLM schemes, but I do like affiliate marketing. I’m already an active member of Wealthy Affiliate – the company your mention – and it is a great place to get started.

Leave a Reply

Your email address will not be published. Required fields are marked *