Definition of Passive Income

What is "passive income"? What is the definition of the term "passive income"? What does the term "passive income" mean?

According to Wikipedia.org, passive income is:

"..an income received on a regular basis, with little effort required to maintain it."

Source: Wikipedia - Passive Income

Here are some examples of "passive income":

1. You decide to invest in a new bar that will be opening up in town. In exchange for your investment, you will be entitled to 30% of the profits. Assuming that the bar would start generating profits, this would constitute "passive income".

2. You decide to start an investment web site that will hold your weekly thoughts on the stock market. You put up a few ads on the site, and the site starts to generate revenue. This would be "passive income".

3. You create a software program that will be used in dental offices. In exchange for using your software, the offices will pay you a monthly licensing fee. This is "passive income".


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