What are examples of passive income streams?

• A. Selling lesson plans, selling photos for stock images, renting space, and owning vending or gumball machines
• B. Active consulting services
• C. Paying employees
• D. Investing in startups with active management

Answer: (A)

Passive income means money earned after the initial setup, with little ongoing effort. The examples given fit this because each one can generate earnings repeatedly once you’ve created or arranged it, without requiring constant, daily labor:

• Creating and selling lesson plans: you put in the work once to produce valuable materials, then sales continue with minimal ongoing effort.

• Licensing stock photos: once you upload and license them, they can generate royalty or licensing income over time.

• Renting space: once a property is leased, you receive regular rent with relatively little ongoing work beyond occasional maintenance or management.

• Owning vending machines: after placing and stocking the machines, they can produce steady cash flow with limited ongoing maintenance.

The other options involve active, ongoing work or costs rather than ongoing, largely hands-off earnings, so they don’t fit passive income.