Look, even Wikipedia admits it!
Passive income is a type of unearned income that is acquired with little to no labor to earn or maintain.
“I work very hard as a landlord”
“I am a leech on society”
I don’t think that’s a fair or accurate definition. If I programmed a paid piece of software*, or a paid API, that I don’t intent to upgrade much, that’s passive income, which is earned.
In this scenario you have made something and it is available for purchase. A landlord creates nothing and will not sell so that they can benefit from scarcity.
In this scenario you have made something and it is available for purchase. A landlord creates nothing and will not sell so that they can benefit from scarcity.
He’s basically talking about the digital equivalent of “what if i built a saw mill and then got income from people using it.” Just because he created something doesn’t mean the income received after is not a form of rent seeking, it’s profit derived solely through ownership of the thing that was made despite the labor that made it potentially having already been paid for multiple times over, and since all this income accrues passively with no labor input beyond the initial creation, it’s passive income
Sure, but it’s still passive income. Being a landlord is not the only way of having a passive income. And I’m criticizing the way it’s defined.
idk, this reads like using a semantic difference to run cover. The app isn’t passive income because you did something even though the creation of it is over, passive income comes from owning something as opposed to doing/making or anything else of actual worth.
Passive income is a type of unearned income
Serving APIs that anyone would pay for requires constant work and maintenance
You choose to ignore the key point of the comment. I also listed apps/games. Technically, I may choose not to maintain the API. It might not remain relevant or profitable for very long, but I can just ignore it.
Besides, being a landlord also requires constant maintenance. It’s just that the income is arguably disproportionate to the work done.
Technically, I may choose not to maintain the API. It might not remain relevant or profitable for very long, but I can just ignore it.
Wow damn that’s crazy it’s almost like it requires constant effort and is a job unlike owning a property deed and failing to hire a contractor when my AC breaks down again.
Technically, I may choose not to maintain the API. It might not remain relevant or profitable for very long, but I can just ignore it.
But that’s the key difference: you actually are doing labor to maintain it, and you did all the labor of creating it in the first place. It’s not passive in the way you’re making it out to be, especially in contrast to income earned simply from owning assets and extracting interest or rent from it.
Besides, being a landlord also requires constant maintenance
As if most landlords do that themselves.