How To Build Passive Income With Family And Friends

by Scott on February 13, 2009

Writing writing writing...
photo credit: dbdbrobot

If you work as a team, can you build more passive income with family and friends? Passive income by definition requires an upfront investment and little to no time requirements spent managing the project. The pure example would be stock dividends, the passive income is not actively managed by the investor and no time commitment is required. Sure, you might spend time researching the stocks, but your are not actively managing the day to day operations of the company. What are some ways that you can pool resources and work together with friends or family to make passive income investments?

1. Real Estate.
Investment in real estate requires a significant cash down payment and pooling resources with friends or family could offer you an opportunity you normally wouldn’t have. Coming up with 20% down payment might seem impossible, but if several people pooled resources together, it wouldn’t be as overwhelming to invest in real estate. Consider whether or not you could work together with family and who would manage the property. Could you afford to hire a property management firm to oversee the tenant relationship and maintenance?

2. Book. Do you have a friend that has talked about writing a book for years, but never got around to it? Maybe a parent or brother that has a buried passion, but needs a little help. You can work and create a book together and also help market the published product. Maybe the book would be better suited for an ebook or electronic book format. If the book has instructional material or is a “how to”, an ebook might be the perfect opportunity. Is an ebook passive income? Well, it’s not like stocks or real estate, but after you have written the book the royalties are passive for life.

3. Blog. You’ve read this blog post and are wondering if this blog medium is considered passive income. Well, it’s not. It is writing income and it requires large amounts of time to write, network, and market your blog. Is it fun? It certainly is and can be very rewarding to meet new people who comment and ask questions. Do you make money while your sleeping with a blog? Yes, but you still wake up the next morning and write another blog post for the following day. I wouldn’t start a blog with the thought that you will make consistent passive income day after day writing just one post a week. Most bloggers write daily content and also contribute to other communities throughout the week. You can make a good income blogging, but I would still consider it writing income.

4. ehow. You may enjoy writing, but don’t think you have enough material for a novel or ebook. How can you get friends and family involved in a writing project and create passive income. ehow offers writers the ability to create articles and earn passive income through ads clicked on the site. Say you write an article about “How to make homemade grape jam”, you will earn income each time someone reads your article and clicks on an ad. ehow is perfect if you enjoy many hobbies or have experienced life to the fullest. Maybe you raised 4 boys or climbed Half Dome in Yosemite, you can probably think of at least 10 articles about these topics. The best part about ehow is it’s free to join and you can probably write your first article in under 20 minutes. Be sure to add me as a friend when you join. How do you get your friends and family involved in ehow? Maybe you have a parent or grandparent that experienced the depression or a recession. Call them on the phone and ask detailed questions and start writing posts about what they experienced. How did they earn money in the depression? Did they make clothes? Did they learn how to stretch a grocery budget even further? Did they raise chickens? Offer to split your income with your source and have fun creating articles.

Are you currently making passive income through any of these methods above? Have you ever worked with friends or family to create a passive income stream?

If you enjoyed this post, make sure you subscribe to my RSS feed!

Similar Posts

{ 1 trackback }

What Sizzled the Week of February 8th? | Fiscal Fizzle
February 19, 2009 at 4:47 am

{ 10 comments… read them below or add one }

1 jim February 13, 2009 at 10:52 am

I find it difficult to mix family with business because you lose a bit of objectiveness when working with family, though your suggestions (except for RE) is pretty low risk.

2 (F)reddy February 13, 2009 at 11:08 am

Yeah, I’d never mix family and money. Too many burned bridges. But awesome advice and info.

3 Craig February 13, 2009 at 11:58 am

If a book can get published that would be incredible passive income, as well as with real estate. The more I think about it though, blogging wouldn’t be passive income. It’s more of a second job. There is a lot of time constraint if you are serious about it, and that doesn’t guarantee any level of success with income. Between maintenance, building content, establishing relationships, customer service, etc, blogging is not very passive.

4 Wojciech Kulicki February 13, 2009 at 11:59 am

I’ve never found it a problem to work with family. As long as you trust the person you’re working with, what’s business is business and once you walk out of the (home office?), you are family again. It’s tough sometimes, but it’s also a lot more fun to work with people you love all day. My wife and I work together now and it’s never been an issue. I have a permanent lunch partner.

Great ideas, by the way, regarding pooling resources. There are about 4 or 5 projects in my head this very minute, but there’s just not enough time to get going on any of them. Working with a friend or family member would get my ideas going, while leaving a lot of free time. Plus, it’s always great to bounce ideas off someone else. Would definitely help when you have a case of writer’s block.

5 Scott February 13, 2009 at 1:41 pm

@ Wojciech

Sounds like you could use some friends to help you get those 4-5 projects going. You must have a great marriage if you and your wife can work together in the home. What type of business do you have with your wife?

6 Scott February 13, 2009 at 1:43 pm

@ Craig

I wish blogging was passive income for me as well, but it’s not at the time. The ehow articles are proving to be a more lucrative form of passive income.

7 Wojciech Kulicki February 13, 2009 at 2:11 pm

The home office reference was for my in-laws (which as it happens, also work together). My wife and I are both designers (landscape architect and architect wanna-be’s, respectively), but we do work in the same office. In fact, she can see my screen all day long. It’s a running office joke…

8 Scott February 13, 2009 at 2:18 pm

@ Wojciech

Having your wife look over your should could be a good thing. I bet you can accomplish some great family business meetings at work and also discuss budgets.

9 Dividend Growth Investor February 26, 2009 at 4:57 am

You could always buy stocks and collect the dividends together. Researching the stock could be fun as well :-)

10 Ben Jones February 19, 2011 at 10:24 pm

Great article. I am looking for ways to be at home with my family. I have had success with eHow, but it’s limited now that the site is closed to new additions. Thanks for the post. I’m going to keep an eye on your blog–you have some great ideas.

Ben

Leave a Comment

Previous post:

Next post: