HOME > GLOSSARY >
P
>
Passive income

Passive income

Noun

[pas-iv in-kuhm]

Passive income is revenue that an individual or a company generates without actively working for it on a regular basis. Make no mistake, it can sometimes take a great deal of upfront effort to generate passive income. But once the initial lift is completed, little to no active effort is required for that revenue to keep coming in on an ongoing basis. This makes it a really attractive method of earning revenue, especially over time.

Partnerships provide companies with an opportunity to generate this kind of passive income. For example, an agency may generate revenue (very actively) by working on client projects. But if they also sell software subscriptions on behalf of vendors, and that vendor offers them 15% of the monthly recurring revenue (MRR) of customers they sold to, then the agency will receive a nice chunk of passive income each month.

Example: With passive income from partnerships rolling in every month, marketing agency CEO Lissandra can feel confident that she could still pay all employees, even in dry months without a lot of new clients.

More Partnership terms beginning with
P
Paid channel

Any marketing channel where you "pay to play," including display advertising, content syndication, search advertising, etc.

Full definition ->
Partner join source

A partner join source indicates the channel from which a partner applies to your program, whether from your owned channels (e.g. your website, email, paid ads, internal team outreach), referrals from existing partners, or through a partner network.

Full definition ->

Fast track your growth with PartnerStack

Get a real-time walk-through of our complete partnerships platform to see how PartnerStack helps you scale up, without doubling down.