Finance & Moneybeginner
Passive Income
Definition
Money earned with little ongoing effort after an initial investment of time or money, such as digital products, royalties, rental income, or investment returns.
Why it matters
Passive income creates financial resilience and freedom. For founders, it means your business can generate revenue even when you are not actively working.
Example
A founder creates a £97 Notion template pack and sells it via Gumroad. Once created, it generates sales every week without her doing anything additional.
Related terms
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