# Passive Income



## JTLP (17 October 2010)

Howdy all,

Just wanted to kick off a topic about passive income. Basically looking for idea's etc - and whether people have any coming in/experience in this area.

Cheers!


----------



## tech/a (17 October 2010)

JTLP said:


> Howdy all,
> 
> Just wanted to kick off a topic about passive income. Basically looking for idea's etc - and whether people have any coming in/experience in this area.
> 
> Cheers!




Property both Industrial and Domestic.
Business is set up so I have a passive income when I take extended periods of leave.I will eventually be a silent partner in my own company with a passive income.
Looking into an Internet based passive income generator.
Trading adds to the investment portfolio.


----------



## prawn_86 (17 October 2010)

At the moment we have a small passive income coming from interest, dividends and online websites.

I also like the idea of being a minor partner in businesses and letting others do the work (obviously need to trust the owners etc)

Will maybe look at property later down the track


----------



## JTLP (17 October 2010)

tech/a said:


> Property both Industrial and Domestic.
> Business is set up so I have a passive income when I take extended periods of leave.I will eventually be a silent partner in my own company with a passive income.
> Looking into an Internet based passive income generator.
> Trading adds to the investment portfolio.






prawn_86 said:


> At the moment we have a small passive income coming from interest, dividends and online websites.
> 
> I also like the idea of being a minor partner in businesses and letting others do the work (obviously need to trust the owners etc)
> 
> Will maybe look at property later down the track




Thanks for your replies. I too am thinking in the way of the internet and some web based generation of incomne - Prawn what do you mean when you refer to websites?

I wish I could sing or something and receive continuous royalties for the rights of my work!

Cheers


----------



## So_Cynical (17 October 2010)

I noticed one of my watchlist stocks is planning a rights issue of convertible (for 3 years) redeemable, perpetual, unlisted preference shares paying 9% fully franked on there issue price of 0.30 

Seems a reasonable passive income...as long as the company stays in business.


----------



## jersey10 (17 October 2010)

tech/a said:


> Looking into an Internet based passive income generator.





prawn_86 said:


> At the moment we have a small passive income coming from interest, dividends and online websites.




I have a few ideas for websites that i am keen to explore further.  tech/a what sort of things do you have in mind?

Prawn, how did you go about setting your websites up?  Did you do it yourself or get it done by a professional? What is the best way to go about setting up a website if you don't know much about how to do it?


----------



## tech/a (17 October 2010)

> tech/a what sort of things do you have in mind?




Its something the babyboomers I believe would embrace en mass.

So its a new idea.
simple and I cant think why no one has thought of it.
Early investigation by copy write attorneys indicate the same---nothing---yet!


----------



## prawn_86 (17 October 2010)

JTLP said:


> Prawn what do you mean when you refer to websites?




Check my signature links for examples. Nothing major, just a bit of a hobby that may/should build into a little passive income




jersey10 said:


> Prawn, how did you go about setting your websites up?  Did you do it yourself or get it done by a professional? What is the best way to go about setting up a website if you don't know much about how to do it?




The benefits (and competition downsides) of the web its its so cheap and easy to start a site. If you are tech/programming minded a few hours reading and you will be able to set up a basic site. Otherwise if you cant be bothered plenty of cheap services out there to design host etc a site for well under 1k (depending on what your after obviously).

Feel free to PM me if you want further details, dont really want to bore with too many intricate details in this thread


----------



## TraderPro (18 October 2010)

Nice travel website Prawn! How long has that forum been going for?

How did you manage to get that forum jump started with people coming and contributing?

That's the one thing about websites - easy to put up but hard to get people to come and contribute stuff.

JTLP: Passive income has a nice ring to it - making money passively without doing anything? But the truth is nothing is free and any income stream: property, interest, bonds, shares (via dividends), internet websites all require a lot of (smart & hard) work. 

The advantage of passive income is that there is potential for residual income - do a lot of work now and the money keeps rolling in as time goes by. Different from "active income" when you need to go to work, put in X hours and you get $X money back.


----------



## prawn_86 (18 October 2010)

TraderPro said:


> Nice travel website Prawn! How long has that forum been going for?
> 
> How did you manage to get that forum jump started with people coming and contributing?




It's been up for about 2 yrs, but its a hobby so i only spend time on it when i get a chance (not as often as i would like).

Basic promotion and SEO has got it to where it is at the moment. But to be honest it is no-where near the level of traffic or posts i would like it to be so i really need to put more effort/money into it. At the moment im working on a world map for the homepage so that will give it a bit of uniqueness


----------



## Bat_Ears (28 October 2010)

prawn_86 said:


> It's been up for about 2 yrs, but its a hobby so i only spend time on it when i get a chance (not as often as i would like).
> 
> Basic promotion and SEO has got it to where it is at the moment. But to be honest it is no-where near the level of traffic or posts i would like it to be so i really need to put more effort/money into it. At the moment im working on a world map for the homepage so that will give it a bit of uniqueness




Interesting. What is the amount of traffic you need to start to turn a profit over?


----------



## prawn_86 (2 November 2010)

Bat_Ears said:


> Interesting. What is the amount of traffic you need to start to turn a profit over?




Depends on the website. Is it a service website or do you sell an actual product. Numbers will be vastly different for either approach


----------



## Ageo (5 November 2010)

Loan Sharking @ 10% interest p/m


----------



## againsthegrain (5 November 2010)

Prawn out of curiosity are you running a ready php solution such as oscommerce or you created the code?


----------



## prawn_86 (5 November 2010)

againsthegrain said:


> Prawn out of curiosity are you running a ready php solution such as oscommerce or you created the code?




Both websites i have run are off of packaged programs. I can build basic databases etc, but prefer ease of use of a customisible out of the box solution


----------



## prawn_86 (21 June 2012)

Thought i would ressurect this thread.

What are members currently doing differently to generate passive income? Has the prolonged global economic downturn affected anyone? Obviously those holding cash are now earning less due to IR decreases.

Personally i am going to invest quite heavily into my websites over the 12/13 financial year and i have a goal of getting my passive income to 10k pa, within 2 years (not solely from the websites)


----------



## Julia (21 June 2012)

prawn_86 said:


> Obviously those holding cash are now earning less due to IR decreases.



Not if you locked in the high rates for a long period.  I have funds earning 8% and 7%.


----------



## prawn_86 (21 June 2012)

Julia said:


> Not if you locked in the high rates for a long period.  I have funds earning 8% and 7%.




For how much longer out of interest?


----------



## young-gun (21 June 2012)

prawn_86 said:


> Basic promotion and SEO has got it to where it is at the moment. But to be honest it is no-where near the level of traffic or posts i would like it to be so i really need to put more effort/money into it. At the moment im working on a world map for the homepage so that will give it a bit of uniqueness




If you don't mind me asking could you please clarify basic promotion? 

We currently rely heavily on facebook ads as it's a great way to target our demographic. We have also tried adwords, and a little magazine advertising. Would love to hear of any experiences you have had, and what has worked best for you.


----------



## Julia (21 June 2012)

prawn_86 said:


> For how much longer out of interest?



Getting toward half way through a five year term.


----------



## MrBurns (25 July 2012)

Just got 3 months at 4.9%

Don't know if thats good or not but we're talking peanuts these days whichever way you look at it.


----------



## Julia (25 July 2012)

Mr Burns:  if you don't know whether it's good or bad, why not check what's overall available, viz infochoice:
http://www.infochoice.com.au/banking/savings-account/list.aspx

Better rates around without tying up your funds for any set period.
That could, of course, be a disadvantage if rates are cut further but it would still only likely be 25 basis points so you'd still be ahead with many of the advertised at call rates.


----------



## MrBurns (25 July 2012)

Should have checked but it seemed about right
Thanks for alerting me that there is better around
Using the iPhone to post this hope it works


----------



## ROE (26 July 2012)

I just leave my cash in comsec cash management get 3.75% then I play options which generate another 12-18% a year

this new financial year off to a good start 3% already for July -

then another 20k to 30k of dividend a year this grow atleast 1k a year

then when the panic start and stock trading at price I like I take the cash and buy and trade their
cash flow and dividend for my cash, dividend then pile back into the cash account for options play
until Stock trades at the price i like...repeat year in year out not much work good passive income


----------



## MrBurns (26 July 2012)

ROE said:


> I just leave my cash in comsec cash management get 3.75% then I play options which generate another 12-18% a year
> 
> this new financial year off to a good start 3% already for July -
> 
> ...




Smarty pants:


----------



## MrBurns (26 July 2012)

Julia said:


> Mr Burns:  if you don't know whether it's good or bad, why not check what's overall available, viz infochoice:
> http://www.infochoice.com.au/banking/savings-account/list.aspx
> 
> Better rates around without tying up your funds for any set period.
> That could, of course, be a disadvantage if rates are cut further but it would still only likely be 25 basis points so you'd still be ahead with many of the advertised at call rates.




The only ones that would do better are  - 

UBank 

Bank of Cyprus and Beirut Bank (no thanks)


----------



## Julia (26 July 2012)

MrBurns said:


> The only ones that would do better are  -
> 
> UBank
> 
> Bank of Cyprus and Beirut Bank (no thanks)



I don't know what you're looking at.
This is from the first page at infochoice re search for at call rates:
The format hasn't transposed well but the first figure for each institution is the available rate.



> 5.75% 	$47.92 	4.95% 	$41.25 	Enquire
> 
> USaver (Base Rate 5.01%, Bonus 0.70% with savings plan) 	Not Required 	5.71% 	$47.58 	5.01% 	$41.75 	Enquire
> 
> ...


----------



## MrBurns (26 July 2012)

Julia said:


> I don't know what you're looking at.
> This is from the first page at infochoice re search for at call rates:
> The format hasn't transposed well but the first figure for each institution is the available rate.




If you put the amount in up top and clcik search it quickly reduces the rate for larger amounts.


----------



## Julia (26 July 2012)

MrBurns said:


> If you put the amount in up top and clcik search it quickly reduces the rate for larger amounts.




What sort of amount are you typing in and what was the suggested available rate?

I've just tried it for $5 million and there was no change to the rates.
I've also had quite large amounts with Rabodirect and these have attracted the maximum advertised rate.

None of my concern what you do with your funds.  I'd have thought, however, if you're depositing significant amounts you would be wanting to get the maximum available interest rate.


----------



## MrBurns (27 July 2012)

Julia said:


> What sort of amount are you typing in and what was the suggested available rate?
> 
> I've just tried it for $5 million and there was no change to the rates.
> I've also had quite large amounts with Rabodirect and these have attracted the maximum advertised rate.
> ...




It's not that sugnificant any more, I'm buying Lotto tickets..........


----------



## MrBurns (27 July 2012)

Julia said:


> What sort of amount are you typing in and what was the suggested available rate?
> 
> .




I was looking at fixed term, at call shows different numbers.


----------



## Julia (27 July 2012)

MrBurns said:


> I was looking at fixed term, at call shows different numbers.



My point was that you can actually get better rates in online at call accounts.  If you're only committing to a three month term for a fixed deposit, I'd have thought it more useful to go for the higher rate.
Different story in an environment of falling rates if you're planning to put the funds away for, e.g. five years.


----------



## MrBurns (27 July 2012)

Julia said:


> My point was that you can actually get better rates in online at call accounts.  If you're only committing to a three month term for a fixed deposit, I'd have thought it more useful to go for the higher rate.
> Different story in an environment of falling rates if you're planning to put the funds away for, e.g. five years.




To be honest I hadn't looked at that as it's a Super fund and a bit complicted to set up an account but youre right might as well be at call for the higher rate that gives flexibility as well.


----------



## Julia (27 July 2012)

MrBurns said:


> To be honest I hadn't looked at that as it's a Super fund and a bit complicted to set up an account but youre right might as well be at call for the higher rate that gives flexibility as well.



Yes, it's certainly a complication, but wouldn't you have to do all the same paperwork for setting up a term deposit for a SF?
Mine is also in SMSF.  I have found Rabodirect by far the simplest set up, plus they have really helpful staff and a great website.


----------



## MrBurns (27 July 2012)

Julia said:


> Yes, it's certainly a complication, but wouldn't you have to do all the same paperwork for setting up a term deposit for a SF?
> Mine is also in SMSF.  I have found Rabodirect by far the simplest set up, plus they have really helpful staff and a great website.




I move between the NAB and the CBA where all the paperwork has been done so it's easier just to stay there, I only take 90 days in case an opportunity crops up, never does really ....


----------

