Not only are there a whole host of different ways of earning money online, there are also different means by which to achieve said earnings. This is often referred to as passive or active income and both are legitimate ways to earn a little bit of extra money, and even a living, online. These are both viable options of producing a steady stream of income, but they are very different and their earning potential is quite varied.
As the names imply, passive income is income that is earned in an almost indirect manner (discussed in more detail below). Active income is income that is earned through the direct provision of a product or service (also to be discussed in more detail below). There are inherent advantages and disadvantages to both of these ways of earning online income and what works best for you will be dependent on your skill set, expectations, and abilities.
Since it is the most common, and also easiest to understand, let’s start with active online income.
Active Online Income
Active income is the most obvious means that you can earn money online. This refers to the rendering of products or services and being paid for what is provided. For example, a freelance writer who works with a freelance job site is earning active income. They seek out specific projects, provide content, and are compensated for their efforts.
Those who provide services, such as online or consignment sellers, are also earning active income. They are producing a good or service, then selling it directly to a consumer.
Essentially, active income is earned online through the provision of a product or service. There is a well known business transaction taking place here. The freelancer or remote worker has a product or service that the client or customer is buying. They provide the product or service, and money changes hands.
This tends to be the most lucrative means to earn money online. While there are easier ways to earn a bit of income, which will be discussed below, these means do not earn nearly as much as the active means do.
Passive Online Income
This type of online income generation tends to be less lucrative, but is also quite a bit easier than the means by which active income is earned. With passive online income, you earn money in what are more indirect ways. There are a number of ways to do this, but most of them involve running a website or blog, or at least utilizing social media networks to engage in like-minded individuals. Let’s say someone has a blog and are interested in earning a bit of money while also talking about their love of indie music.
