Passive income can be generated from one possessing rights of ownership to some intellectual property. Let’s assume you have written a book that can be sold to others. Now not many of us are Coelho’s of the world but most of us have a “story” or information that could be of interest to others. There is a way to convert this story into an eBook that one can market himself or one could sell rights to publish it and to sell it to a professional publishing firm.

An example of the selling it to a publishing firm is to go to BookstandPublishing.com. They pay the author 50% royalties on eBook sales through their web site. We will assume that the selling price of the ebook is $9.97. Your eBook Title 1 was picked up by the publishing house. Let’s make the example more exciting: if you wrote one book, you might have written another one Title 2. Let’s see how it would pen out if you were selling it in one case through publisher, in second case by yourself.

Let’s say that publisher sold 350 of the Title 1 during the year, which means they made $3489 on the sales. Your earned income would be 50% of that – $1744, or $145 a month.

If you yourself decided to carry on the sales of Title 2 and you sold 86 of those in a year you made $857, or $71.5 a month. That totals to $2602 a year or $216 a month.

That is over 83% of your goal.

If you projected that you might bring close to $2000 dollar in a year in the sale of the ebook you might have chosen to invest $2000 in the beginning of the year. Let’s say you choose some safe stock that has a potential to increase: Campbell Soup- stock name CPB. The stock was trading in March-April of 2009 around $27. In March of 2010 it was selling around $34. With a purchase of $2000 worth of stocks you would own 74 stocks selling those in 2010 would gain you $518, or $43 a month.

Goal $259 a month

Passive Income Option Earnings %of Goal Monthly
Title 1 sale $1744 56% $145
Title 2 sale $857 27% $71
CPB earnings $518 16% $43
TOTALS $3119 99% $259

If you liked this post, our author will be glad to receive a cup of coffee from you.

Share and Enjoy:

Did you like that post? You will love these.