Earning money is always on the top of everyone’s agenda. You may have seen some people labouring day and night but barely making a living, while on the other hand there are some people who doesn’t seem to work much but earn quite well. Ever wondered how do they do this? Well the answer is they rely on some great passive income sources, now don’t get baffled as to what is this “Passive Income” because this post is going to take through this passive income world.
Passive Income Meaning
Let’s begin by understanding as to what passive income actually means. Passive income simply means a source that regularly gives you some monetory benefit without you doing a lot of work or doesn’t demand your active participation and attention.
Don’t think of this as some kind of magical lamp that or some money making scheme that would make you rich without doing anything and in a blink of an eye. Instead, Passive income sources requires you to put efforts but very less in contrast to your primary job and that you too at long intervals. So, the key takeaway is that you surely have to put in efforts.
This Passive income may be derived from a lot of various sources including rental income, limited partnership or even through royalties.
How much can be earned through Passive income?
There is no cap as to what you can earn through passive income. Your passive income depends on a lot factors such as your choice of source of passive income, the profitability of that source, if it creates utility for anyone and even on the economic conditions.
But once you start getting money from these passive sources you can really scale it up and earn much more. So if you are on point and have an early start you can simply sit back and enjoy at the later stages of your life while your friends and colleagues might still be struggling for making money.
However, in case of passive income you must be well aware of the compounding principle. This means that what you earn, a major part of it should be invested back so that you can earn more and more importantly sustain the income source.
1. Rental Income
The best way to get started is to look at some of the most common ways of earning passive income and Rental bags the top spot in this.
In case of rental income you can always be sure of consistency if you own even a decent property. However, same is the catch. You must own some property and that too, one which is in demand and is a good location to get rental income. If you don’t have any such property, you have to buy one before leasing it.
But if you already own one, then you must really put it to use in case you haven’t done it yet. Around the globe, rental income is the most common form of passive income. However, it certainly requires a lot more effort than you might think. You have to ensure that the property is maintained quite well, you also need to ensure that your tenet doesn’t blow up the house and all such things.
2. Start a Dropshipping Store
Dropshipping is another great source for passive income. Ina dropshipping business, you sell others product. Now what makes it different from affiliate marketing is that you are not only advertising others products but also you yourself are the owner.
This means that you are in control of everything starting from the price of the product to the product itself. You can charge any amount and can then take your cut after paying the company of the cost of product.
There are a lot of different stores that offer dropshipping business. You must also take note of the fact that it might not be easy for you start a dropshipping business if you don’t have ready demand for products because then you have to advertise the products and then do a lot of other things which then eliminates it from the passive income sources.
3. Affiliate marketing
With affiliate marketing, website owners, social media “influencers” or bloggers promote a third party’s product by including a link to the product on their site or social media account. Amazon might be the best-known affiliate partner, but eBay, Awin and ShareASale are among the larger names, too. And Instagram and TikTok have become huge platforms for those looking to grow a following and promote products.
You could also consider growing an email list to draw attention to your blog or otherwise direct people to products and services that they might want.
Again, in case of affiliate marketing also the main influencing factor is your reach on social media and on the internet. You can more than any job through affiliate marketing if you do it properly.
4. Create a Course
Selling online courses is yet another good option to consider.
With the rise of different skill teaching-learning platforms, you have the option of starting a course of your own. You can build a course on Udemy, coursera, skillshare or any other platform that you think is appropriate for you.
To succeed, your course must be unique and should create some kind of utility for the students and should not be something which could easily be learnt from the internet.
If you can get a good number of students, say 40-50, and a good watch time of 2-3 hours per viewer then you can certainly make some good money. Also, you don’t need to put to much efforts and attention towards the course. You can simply build a course and run it for how long you want with some special and live classes once in a while. This comes handy especially for the students. They can leverage their knowledge and earn a good sum.
However there are a lot of others way as well for students. If you are a student and want to earn then you may check out my Post on ‘How to Earn Money as a student‘.
5. Dividend Stocks
Dividend stocks are a tried and tested way of earning a passive income. Dividend stocks are those shares or stocks of those companies which very regularly and consistently announce dividends for their shareholders.
So, here once you buy a good dividend stock, you can sit back and relax. Unlike the intraday trading or for that matter trading itself, you don’t have to put in your sweat and time to find good stocks to invest everyday, research about the shares, plan your investment and keep a constant eye on the performance of the shares you invested in, you can simply leave the stock and each time the company announces dividend, it will automatically get credited to your account.
6. Create an App
Creating things be it a course, a blog or even an app always gives higher returns because of the utility and uniqueness that it posses.
Creating an app might be a bit difficult but if you get in right, you are already earning. Once you create an application you may put it on any platform like Google Play store, App Store or any other platform and then start playing advertisements on your app which will generate revenue.
If you aren’t a full stack developer, then you might even buy the source code of an app and then simply modify it as per your requirements to create something unique.
7. Create a Website or Blog
Again creating a website or a blog of your own is a good way to start earning. A blog not only provides you with earning opportunities through ads but you can also do affiliate marketing through you blogs to earn a bit extra.
Also by having a website of your own you get full control over the products and services you offer. You can do dropshipping or affiliate marketing through your website.
In case of blog, you may chose to write weekly content for the audience and gain more view. This is generally not a big task as compared to some other ways of earning , so you can surely try it out.
8. Write and Sell your own e-book
Adding to the blogging part, if you are good writer and have something worth sharing then you may go for self-publishing and create your own e-book.
To create an e-book of your own, you need to first write the main body of your e-book, create a cover for it, publish it on a p[platform and then advertise it and bring it to the notice of the people so that it does not just remain any e-book because this domain is quite competitive.
However, once you are successful in doing all this, there is no looking back. You will earn a lot through sales and royalty. Also, creating an e-book will help to increase your reach among people on the internet. In this way, it assists in some other passive income generating activities.
Passive income can really help elevate your earnings and fill in the gaps that your 9 to 5 job can’t fill on its own. If you’re looking to replace your 9 to 5 income so you can quit your job, the passive income ideas on this list can help you do that.
And it’s okay if you like your full-time gig too. The work that goes into earning passive income tends to be manageable when paired with a 9 to 5. So, yup, you can do both.
Whether you’re looking to start a dropshipping store, start your own agency, or create profitable content, you’ll find that there’s money to be made in all these areas. All you need to do is get started.