Active Income and Passive Income

by Alison Stapleton

Let’s Look at Types of Income

If you have a day job it means you have an active income like making kids clothes.

money tree

Your Money Tree

A passive income is one that brings in income whilst you sleep. It is something you set up and then it continues to generate income by itself.

A passive income will pay in even after you are dead.

Eventually you want your passive income to out strip your active income.

So you can be free from your day job.

Examples of Active Income

  • Working for someone else and getting paid.
  • Working two or three jobs and getting paid.
  • Being paid by the hour for whatever you do.
  • Crafting crochet hats, barefoot sandals or sweatpants and getting paid.

Example of Passive Income

My strongest stream of passive income comes from eBooks and writing.

Selling eBooks online or from your site. People can buy an ebook at anytime of the day or night even when you are asleep, thus passive income.

I started with eBooks in 2012.

It took me six months to write the first one for a course I was already teaching so I had the info on the page. I just had to get it into an ebook.

This takes time.


Smashwords is an ebook creator and will take mainly text booked and format them to sell on all the platforms.

The only thing is as its is an American company you get caught with withholding tax at a rate of 48%. This cuts into profits. But you get better exposure.

Enter the PDF ebook and eJunkie

Since 2014 I have been selling PDF eBooks as immediate downloads and these eBooks are full of charts and images.

Don’t kid yourself the income is slow but constant.

In the first year I sold 24 books and in the third year 187. Still small potatoes but at $2.99 each it still counts as income.

In 2015 and 2016 I wrote and published two more eBooks and things have slowly turned around.

Income from my eBooks is now at around $20 per month and that is one of my income streams.

A passive income stream.