Smart Passive Income refers to the concept of earning money with minimal ongoing effort after the initial setup. This can be achieved through various methods, such as creating online courses, writing e-books, or investing in dividend stocks. The goal is to generate a steady income stream that requires little to no daily management. The term is popularized by Pat Flynn, an entrepreneur who shares strategies for building passive income through his blog and podcast. By leveraging digital products and affiliate marketing, individuals can create sustainable income sources that allow for greater financial freedom and flexibility in their lives.