Passive income, on the other hand, is regular income that you receive with little or no ongoing work because you have already done the work up front. This income comes to you on a daily, weekly, or monthly basis from the automatic sale or billing from a previously sold product or service.

People often mistake passive income to mean income that magically appears without hard work.

That is not true. The hard work is part of the process, but it is done upfront so that you can reap the benefits later.