5 Greatest Benefits of Passive Income – Which One Is Your Favorite?

According to Wikipedia passive income is an income received on a regular basis, with little effort required to maintain it. In other words, you are getting passive income. You don’t need to work almost at all to get money. In this post, we are going to have a look at 5 benefits of passive income. I will also reveal to you how I earn money online on “autopilot”.

How to Earn Passive Income Online? – Video

Before we dive into the article I want to give you an opportunity to take a look at my video where I explain the benefits of passive income and how you can earn it as well. I believe you will find this helpful and valuable. Enjoy!

Why is passive income important? Here are the 5 reasons.

1.You can provide value for more people
2.It forces you to learn
3.You have more time available for other things
4.Live anywhere you want
5.No income limits

Would you like to learn to earn passive income online? I earn money while I sleep, go for a walk, chat with my friends or lay on the beach.

=> Start a FREE Step-By-Step Training to Earn Passive Income Online! (I Use This Myself.)

Numerous people who have gone through that training are nowadays earning a full-time income online and having a freedom to live wherever they want and work whenever they want. Some people went even from $0 to $10,000/month without prior knowledgeNOTE: Of course it required work and persistence but over the time course it pays off.

Benefits of Passive Income
Generating passive income is like playing a game.

Anyway, let’s discuss now more in detail about the benefits of passive income

1.Value for More People

If you want to earn money you need to offer value for someone. If you are an employee you are providing value for your boss and his customers. Then the customers pay your boss and the boss pays you and takes a little for himself.

Usually, if you want to earn the passive income you need to sell something. Rent a property, sell books, sell movies, sell music, sell other products or services which don’t require your own time anymore or sell investments when the value has gone up.

We all have 24 hours/day. If you want to counsel 100 different clients every day it’s almost impossible. But if you write a book or create a website you can counsel 100 000 people every day if they read your book or visit your website.

Or you can make a great song that serves 1 000 000 persons all around the world. Once you have made the album people can buy it and you get passive income.

2.It Forces You to Learn

Let’s face the fact: earning active income, in general, is dead easy. You send a job application, go to a job interview and get applied. Then you start doing what your boss tells you to do and he pays you. You are just required to do what your boss says but nothing more. (Okay this is a bit simplified but you understand the point.)

But if you want to earn a passive income you usually have to learn some skill before you can earn it. There are many different ways to earn passive income but probably one of the most common ways is to have your own business.

When you have your own business you need to be interested in your own subject and provide value for other people. Then you need to learn marketing and selling. Of course, you can outsource many things but most of the time having business forces you to face and learn many things that you haven’t ever faced before.

3.You Have More Time Available for Other Things

Let’s say that you are working 40 hours a week and sleep 8 hours a day which makes 56 hours a day. There are 168 hours in the week so you are awake 112 hours a week. That means that you are working over 35% of the time you are awake.

If the travel to your work takes 30 minutes back and forth, then your work requires over 40% of your time. THINK HOW MUCH THAT IS! Add the time you think and talk about your work with your friends. It means that work takes the half of your whole time (and life).

Do you want to learn new skills that you are not practicing at your workplace? Do you want to study some interesting subjects but you don’t have time because of your work? Or are you bored with your actual work? If you answered yes, then passive income could be a good choice for you.

Would you like to be there while earning passive income online?

4.Live Anywhere You Want

Do you want to travel, dive into new cultures and live anywhere you want? When the income you made doesn’t require your presence you can choose where on this planet you want to spend your time.

Online businesses are a great example. When you have a laptop and internet connection you can connect if it’s required.

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I just want to mention that there is no 100% passive income. If you buy and hold stocks then it’s probably 99,5% passive income. and if you are renting houses you still need to find a tenant and see that he has paid the rent.

But compare for example if you are driving taxi and earning commission of your shifts then it’s 0% passive income.

5.No Income Limits – $10,000/Month? No Problem.

There are 24 hours a day. If you earn $50/hour (which is a lot over average) that makes $400 in 8 hours. If you work 14 hours that makes 700$. But there’s actually a limit. Your income limit is $700/day (given that you can work 14 hours a day).

But when you are earning a passive income you can earn $10 000/day because work doesn’t require your presence. Warren Buffett earned $37 million per day! in 2013. Let’s compare $700 and 37 000 000$. Is there a little difference? Which one would you prefer?

If you are working only for active income there always will be some limits. If you earn $20/hour the limit is 280$/day.

Instead of going to study 5 years university degree (and get a student loan) could one possibly be to build a business and start earning passive income?

Summary – Everything Is Possible for You!

Earning passive income is highly beneficial and recommendable. By earning the passive income you can provide value for millions, learn a lot of new things, have more time do the things you want and live anywhere you want.

Remember that earning passive income doesn’t mean getting rich overnight. It usually requires a lot of hard work and studying before you start earning it.

If you are interested in earning passive income through online business I recommend to start in Wealthy Affiliate


What do you think about passive income? What are the greatest benefits in your opinion?

I would love to hear from you in the comments below.

By Roope Kiuttu

Hello! I am Roope "Robert" Kiuttu, the founder and owner of YourOnlineRevenue.com. I created this website back in 2015 to help you to make money online. You can ask me anything and I'll be happy to help you out. I help people daily to make more money online and I love seeing people succeeding. If you want to get my 1-on-1 support and help to make money online as well, get started HERE.


  1. That is exactly the reasons why I love passive income. It makes me play, rest, be calm while earning. It makes me live the life I wanted. No boss that will be angry to you or someone that may scold you. You have a lot of time with your family. You can even travel and go to the place where you want. All I need is a stable passive income. And that is why I am here in this forum. 😀

  2. Earning with passive income can be highly beneficial to our health in the sense that you could get to have the time to relax and do other things that interest you on a daily basis. This is just like sleeping while what you setup is making you money.

    This is the core reason I’m keen to settle on an opportunity that will ensure I earn through passive income. Also, the income you can make via passive income is unlimited unlike those that live on salary that already know how much they make on a weekly and monthly basis.

      1. Hi, Roope, I’ve not been able to build up any passive income stream and would be happy to hear suggestions from you on which one is viable to make some income for me. I’ve been thinking of writing an e-book, what do you think?

        1. Writing eBooks is a great idea. I haven’t written them but I have a few friends who have published their books on Amazon and they have done well. Based on my knowledge you either need to have a lot of audience or make effective marketing to sell your eBook well. Other thing that can help is if you write several eBooks.

          What subjects are you planning to write about?

          I consider writing eBooks in the future as well. It’s a great way to gain more authority and influence people positively.

          1. Hey guys I just bumped up with you, permission to reply 🙂

            I like what you two are talking. Just like you eBook is one of my plan to do as a passive income. I have a topic in my mind but I am getting or collecting first information if the eBook really does a good passive income.

            Dear Roope, I know you have a lot of ideas so can you please post a info about eBook? I need so much information about them before starting like where should I sell it. 😀

          2. I think the easiest way to get started is to publish your eBook on Amazon. As I mentioned above, I haven’t written books myself but I have friends who have done it on Amazon.

            A good thing about Amazon is also that many people are already familiar with them so it can help you to drive more sales.

          3. I think the easiest way to get started is to publish your eBook on Amazon. As I mentioned above, I haven’t written books myself but I have friends who have done it on Amazon.

            A good thing about Amazon is also that many people are already familiar with them so it can help you to drive more sales.

  3. I’m going to choose passive income/have my own business. Because there’s no limitation in your earnings. Employed people sometimes didn’t receive their expected amount of salary, because of some deductions like health insurance,etc. Plus your expenses, like when you travel when you go to work, your food allowance everyday.

    Unlike of having a business, you can control your time, no work under pressure, because your the boss,and specially you can have your quality time to your loved ones anytime/anywhere you want.

    I know most of the people wants passive income, but the problem is they do not have any idea on what/how to start.

    1. Yeah, there are many benefits of being an entrepreneur. I agree with you that one reason why people don’t start is because they don’t have an idea. Then they may also be afraid of starting for some unknown reasons. And after they have started a little bit, they may stop before they get results. I have noticed all these scenarios in the real life.

      Those who succeed as an entrepreneur keep on going without setbacks. Then other people start telling them, “You are living a dream life. I would have a life like you have.” But then some of them don’t have a willingness to work 😀

  4. For me time is the most essential benefit of working for yourself and building some passive income, as that is something you cannot get anywhere else. With traditional employment you have to not only be present at the same time everyday and stay there until you are allowed to leave but also you’d have to consider the travel time you’d have to spend daily going to and from the office. It might not seem like much but if you calculate how much time you are spending just sitting in the car annually you will see that it’s just too much of a waste of time considering you have other options.

    1. That’s a good point. Commuting takes lots of time. When you build an online business, you are able to work wherever you want, wherever you want. I have worked in hundreds of different places with my laptop and it’s always exciting to see new places instead of spending 40 years at the same office.

  5. I have fully invested in stock market for 3 established companies and they’re giving dividends every quarter of the year. The passive income I get from those stocks are being used for paying our monthly utilities and it saves my monthly salary from my job.

    1. Sounds great. I have mainly invested in Finnish companies and they usually pay dividends once or twice a year. I guess you have invested in the U.S. companies because they pay dividends 4 times a year?

  6. Majority of people will love the whole Idea of passive income in line with point number three, having enough time for other things. I mean, who doesn’t want to just sit while the money comes in? This is probably point where the misconception about passive income comes to play. Be it shares or any other means of deriving passive income, efforts and some little work has to be done.

    I like the second point on how passive income motivates learning. From my opinion, I think it also requires some form of experience to complete this point.

      1. I agree with you both on this.A lot of people like the whole idea of passive income seing that it gives room for an investor to just put in money and sit back while the profit rolls in. But I must clarify this, majority of people get the whole concept wrong. Some think its just sitting back and doing nothing while the money comes in. The truth and fact is that little work and effort has to be put in place first before any benefits begin to come in.

        Asides all that, I think passive income is really a good means of investing . thanks for the brilliant review.

        1. That’s true, of course. There isnt’ 100% passive income but it can be close to that. Let’s say that you allocate your money to the stock market and just take dividends. It’s like 99% passive income and you can just sip good drinks in Thailand on the beach 😀

  7. Work freedom and time availability is one of the benefits of engaging in passive income investment. It allows one the opportunity to work as he or she sees fit and having control over the work without being forced to answer to anyone. Recently, I invested in a Forex company bond. I bought 3 bonds at #60,000 to be earning #4,000 on each bond as my Return of Investment on monthly basis.

      1. I sure did @Roope, at first I was a little skeptical of investing in that deal but I asked myself, it’s takes guts to make more money and be successful, then I had to convince myself and did invest. Now, I have actually started reaping from that and I’m quite happy about it.

  8. A lot of people are confused about the term “passive income”. Because for them, when they hear the word passive income, they perceive it as, “literally doing nothing at all” while your still earning money. They find the idea ironic because for them, how could it be passive, if you are “still doing something”?. They don’t understand that even if it is passive, you still have to do some work for you to earn. It could be from the beginning, during, and after or all of the above. One difference between passive income and active income is the amount of work you put into it.

    1. I think the difference between active vs passive income is this:

      With active income you work and make the money immediately. If you stop working, you stop earning.

      With passive income you don’t earn the money right away but you’ll get paid over the time course. Even though you stop working, you don’t stop earning.

      1. This is one good way to differentiate passive income from active income. It’s just that it’s hard to make some people understand that although it’s passive income, you “still have to do some work”.

        The hardest people to convince are those made to believe that the only way for you to make money is through labor and perspiration. They were never taught that there are actually better ways to earn money other than brute force. What makes it even harder is their refusal to gain and accept this knowledge about passive income and they are just stuck with their current knowledge.

        1. That’s true. I think the best way to convince them is to show an example like, “This is how I make money while I am sleeping and you can make as well.” Often people get interested.

    2. That’s true I most say. People often mistake the term for something els like you pointed out. It’s really funny how people read certain things. Theres no way you can earn a lot of money sitting down and doing nothing. Some kind of effort has to be put in place first. Well, am sure this post will give a better understanding of passive income to some.

      1. A lot of people do not have much idea on how to earn money through passive income simply because they are afraid. Afraid of not making the ends meet. It’s because when they work, The salary is guaranteed at the 15th and 30th of the month. Some are weekly, some are daily and some are monthly. But the income is guaranteed. Unlike in passive income, money is unstable in amount and in the day that it comes in. This is one of the major reason why a lot of people don’t want to learn more about passive income. Which results to shallow understanding and poor judgement about doing things that generates passive income

  9. I think the main reason a lot of people like to earn some passive income is that it allows them to do other things whilst still making a lot of money. I mean who doesn’t want to maybe just relax or sit on a beach whilst they keep earning more money? The only problem, of course, is that it’s not always easy to make a steady stream of passive income. If it was easy, I’m sure everyone would love to do it.

    1. Good points. I think many people fail to make passive income because they treat it like active income. They start working and if they don’t make the same amount of income right away, they quit. However, passive income usually grows steadily so persistence is the key.

    2. @Kingcool52 What I actually believe is that it takes guts to invest and make passive income. Some people are actually afraid of making any concrete investment probably for the fear of losing money but I was once told by my mentor that it takes money to make more money.

      Since that day, I have always leaped at any opportunities I see to be fruitful in making an investment and make myself a good amount of passive income without doing any extra work for it.

      1. Making passive income requires investing time and/or money. Some people have money so they can invest it to make passive income but all people can invest so-called “sweat equity” which is work.

  10. I have been earning passive money since 2012. Between 2010-2013 I published over 200 articles on Hubpages. My hubpages articles are making me about $50 every month. I don’t visit hubpages every day, sometimes I don’t visit hubpages for months, yet I receive money from Hubpages every month. I also have a hald a dozen blogs, I am yet to make a good money from my blogs, however, I am spending time and money in a hope that my blogs will bring me good passive income in future.

    1. Sounds interesting. I haven’t really tried Hugpages. Would you like to explain how it works and how you can earn money there?

      I think blogging is one very interesting way to earn passive income. I have published only 1 new article on my language learning website LanguagesAreEasy.com during the last 3 months. Then I have answered comments but that’s it. Still, the traffic is growing each month and income is growing all the time.

      There are so many interesting ways to earn passive income online. From the “offline world” real estate investing excites me a lot. I own one investment apartment and it makes me good money even though I am thousands of kilometres away from it. I have done probably 3 hours of work with it during the last 11 months and it just keeps on paying me well.

      1. Hubpages is a writing site. If you can write SEO articles, you can make money in hubpages. On hubpages you can earn in three ways, Adsense, Amazon Affiliate Marketing and Hubpages earning program. All you have to do is publish articles, add amazon products and promote your article.

        I have checked your language website and I tell you, it is very useful and informative website.

        1. Okay sounds interesting. Probably I’ll sign up and try HubPages for a while just for the curiosity.

          If you are promoting Amazon products on your article on HubPages, why wouldn’t you do it on your own website? It builds your own business and asset all the time but if you publish it on HubPages, you are improving their business.

          If I would write the same article for my own niche website, I always prefer that instead of writing it as a freelance writer to earn some money. Of course, there may be exceptions but most of the time I follow that principle because it’s more profitable in the long run.

          1. I have more articles published on my blogs than on hubpages, yet I am earning more from Hubpages than from my blogs. I use adsense, amazon, comission junction and Linkshare. My problem is I am not getting good traffic and whatever traffic comes in doe not convert well. I started my blog with an intention to earn 100 percent income instead of sharing income with the third party website, however, it is not yet working for me.

          2. It will work if you do the right things and be consistent.

            Again, I can just say that I would recommend taking the Wealthy Affiliate training because it could really improve the income from your website.

  11. I love this topic! At the age of 25, I started learning about passive income opportunities. Business is really the way to go for this. We all get old. Our health deteriorates over time and we can’t just work tirelessly all our lives. I remember Warren Buffet saying that if you don’t find a way to make money work for you, then you will be working for it until you die. I really don’t like the idea of spending my life working, paying bills, then die. I believe that we are not born to live like that.

    The thing I like most with passive income is financial freedom. This should be the ultimate goal, not just to simply work for money. As you’ve mentioned, we all have 24 hours everyday. But each of us have different financial results and it’s because of how we use our time. In our country, travel time is worse than the 30-minute travel you have mentioned. We spend around 3-4 hours traveling back and forth for work.

    I realized that I am wasting an average of 12-15 hours a day working for something that will never give me the financial freedom I’ve been dreaming of. Sad to say but employment is not really a time efficient source of income. Besides, it’s an active income. We all know that once the work stops, the income stops. There is no financial security at all.

    Business is really the way to go. It’s much better to sacrifice temporarily working on your business and have the freedom to live life your own terms later on than to endlessly work for an active income that will never give you financial security. Among the benefits you have mentioned, it’s the freedom (freedom on how much you want to earn and more free time for other things) that I love most. These things encouraged me to pursue financial freedom.

    Only entrepreneurship can give you the benefit of controlling your income, your time, and your life. I totally agree that we should make the money work hard for us so we can be free to do things that matters most, things that are really important and enjoyable. I really want to live a happy life where I am free to live in my own terms, stay healthy, and spend time with the people I love. Financial freedom is indeed the way to make this possible.

    1. Thank you for sharing your thoughts Krisleen!

      3-4 hours for commuting every day sounds like a huge time. It’s 20 hours a week! :O How do you usually spend that time? I think it could also be a good time to pursue your goals. Some things that I do with this kind of “dead time” are:
      -Write down goals (short and long-term)
      -Listen to teachings (audiobook, podcast, speech, etc)
      -Work on my laptop

      Actually, traveling time is one of the most effective times I have when I’m in plane or in train. There I feel focused because there aren’t distractions.

      You are right that employment most of the time doesn’t lead to a financial freedom fast. I was working on my 9-5 job until June (4 months ago). I was progressing fast and I got a promotion faster than anyone else in the company has received. In addition, the salary was rising comfortably.

      However, I took a look at my life in a longer term. What if I stay at my 9-5 job? What if I quit and start working full-time on my online business? I realized that I could achieve a financial freedom with my 9-5 job but it would take quite a lot of time. On the other hand, if I would start working on my online business I could achieve the ultimate financial freedom in a few years.

      At the moment I have a freedom to work and live basically anywhere I want. I can spend time with people that I want. I wouldn’t have that freedom with a regular job. That’s why I’m convinced I make the right choice that I quit my job. Online business looks extremely good and promising. Income is growing each month and I’m experiencing growth on many areas.

      Have you already started Wealthy Affiliate training to learn affiliate marketing? I would like to help you to make money online as well. 🙂

  12. “But if you want to earn a passive income you usually have to learn some skill before you can earn it.”-Roope

    Yes, we need skills and knowledge no matter what job we go in and work hard for it. My friend invested her money to stock exchange she has skills on this, she bought shares then she can earn thousands from it, but sometimes she loses the money because she didn’t have time to check it every day.

    What I’m trying to say is that I think it’s not only the knowledge you have and skills but also give your focus, time and attention on it, we can’t be rich overnight from passive income you are right. it’s like planting, you sow the seed, give them the right care and be patient it will produce much fruit.

    Nothing will happen to the seed if you don’t plant it Passive income for me is gambling but in a good way, you trust the company, invest your money and wait until it grows. but wait how can you trust the company if you don’t know their process how they grow your money so this is your duty comes, you must learn.

    1. You are right that focus, time and attention are important elements when we’re talking about passive income and success. Tony Robbins always says, “Wherever focus goes, energy flows.” If you focus on building passive income, you’ll get more energy to do that.

  13. The fact that you have a lot more time on your hand because of passive income is probably the best reason. I think the best method of passive income is to buy shares in a company and then receive large dividends from your shares.

    Usually to be able to earn a large income, it means the person would have worked extremely hard in the past and they are now reaping the rewards of their previous work. This is why having more time to do whatever you want is the best benefit of passive income. Due to having worked hard in the past, having free time to relax or do what you want is perfect.

    1. Hi KingCool,

      investing in companies in the stock market is of course one of the easiest ways to earn passive income. However, the earning potential is not as big as creating your own (online) business.

      Usually, you earn max.10% per year in the long run in the stock market on average. But if you create a successful business, it can pay you back 1,000 times and even more. What do you think?

      You can also learn to create your own online business in Wealthy Affiliate. (It’s completely free to get started)


  14. Hi Roope,

    I enjoyed reading this article very much! I especially liked that you listed “learning” as one of the benefits. (Many would view it as a struggle, you know)

    Aside from the financial freedom, more time available for loved ones, the benefit of having a passive income for me is the personal growth, both financially and professionally. I’ve been in one profession for the past 15 years. Although I did grow professionally (gained skills in the field), my income didn’t increase much for the 15 years. That’s the characteristic of active income.

    In the case of passive income, the effort you put in today can pay off big time in the future. Your income could drastically jump up in a few years. This is almost impossible when you are working for an employer or an organization. It gives us hope for the future, so even the learning stage could be enjoyable. That’s at least how I feel it 🙂

    I am part of Wealthy Affiliate and enjoy every step of learning! I already started seeing a small amount of income and I know it is going to grow from here. I like this feeling of “looking forward to the future.”

    I would recommend every reader of your website to give an online business a try! It will be a time well invested as it is going to change your future. I know you are going to be very successful here as well! Wish you a wonderful and prosperous 2016 🙂


    1. Thank you for your insights Yuko!

      Yes that’s certainly a characteristic of active income that it doesn’t grow fast. Sometimes it doesn’t grow at all although the worker has more experience and skills. That’s why it’s motivating to earn passive income because revenue usually correlates with the skills and effort. Income doesn’t grow linearly but sometimes exponentially.

      Wealthy Affiliate is certainly a great place to learn how to earn passive income.

      I wish you a great year 2016, let this be the year of breakthroughs! 🙂


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