5 Simple Ways To Earn Passive Income
How can Passive Income improve your life?
Passive income streams can help you make money on the side of your full-time career or it can become your overall income. In this current day and age, passive income opportunities are rife. If you want to earn money online, or create some form of online business, then passive income could be the perfect option. I this article I will explain how to make passive income.
So what is Passive Income?
It can be described as cash flow being received on a regular basis with little effort to its acquisition. Seems too good to be true, doesn’t it? But, what exactly do I mean by that?
Let’s take renting out property as an example. Hypothetically, I have bought a house and I am renting it out for $1000 a month. I receive a net-profit of $12,000 a year from that rental property. By hiring a (good) agency to cover all the problems the tenants have with the property, I have to do little to no work. Once the property is bought and rented out I am receiving a constant flow of money.
We’re going to look at # types of Passive Income ideas.
So, let’s get started!
1. Digital Downloads
Digital downloads are a great way to earn income passively. With digital downloads, you only need to create the product once to then sell it an infinite number of times from an online source. The creation is sometimes a lot of work depending on your experience in the field you decide to move into, however the income gained can be huge. Types of digital downloads to make passive income online:
- Images – sell images online on certain photo or image storing sites. Images can include photography, web icons and print icons, illustrations, backgrounds and logo types.
- eBooks – Write your own eBook (or hire someone else to do it on sites like fiverr.com – however you will have to give them credit), put it together as a PDF and upload it to certain eBook sites. You can also upload it to Kindle Direct Publishing on Amazon. Most of the time, marketing will need to be done to sell your eBook.
- Audio and Music – Create your own audiobooks, music, sound effects and background sounds to sell.
- Videos – Monetizing your videos on YouTube for example can bring in a moderate income. Courses can also be a very high earning money making method.
- Software – By designing apps, virus protection, WordPress Plugins, APIs, Photoshop Brushes and much, much more you can earn a steady passive income.
- Templates – Businesses need templates for their websites, spreadsheets, PowerPoints, business cards etc.
2. Affiliate Marketing
Affiliate marketing is a income stream earned by selling other companies products for a commission online. You can instantly join affiliate programs and start selling the products advertised. There are currently two main ways to affiliate market:
- Blogging – start a blog using a simple website builder. Build a base of followers and either directly or indirectly market affiliate products to your following.
- YouTube – Once you have gained a following on YouTube, you can advertise products in your videos and then put affiliate links in your description or link them to your blog which contains the products.
Investing can be the fastest way to make massive earnings in passive income. However, you must have a large amount of expertise and knowledge. You must also be ready to risk a lot of your money.
There are many ways to invest:
- Stocks, bonds, mutual funds and cryptocurrencies – Investing in these can come with risk, but if you are smart you can earn low, medium and high yields.
- Property – You can invest in property to rent it out as I mentioned at the start. You can also invest to flip the property either with or without developing it beforehand.
- Business – Whether it be your own or someone else’s, investing in business can be very profitable. If you are a silent partner for a high earning business, you are earning pure, passive income.
If you have a blog or website that has a high following, then you can sell advertising space on the site. You can also do this on any property you own not on the internet. If you own a large amount of land seen by many people, advertising space can be sold.
5. Peer-to-Peer Lending
When you get a loan from a bank they add interest onto your repayments. Peer-to-peer lending is a system where you (along with many other people) lend money to individuals and businesses online and they pay you back with interest. Lenders can make more money than if they invested in products offered by banks and borrowers can get lower interest rates than banks.
Personally, I have found affiliate marketing and digital downloads to be the easiest and most fun way of creating a passive income source. This is not to say that the other methods are not ideas. The ease of utilising some of these ideas (for instance property and peer-to-peer lending) depends on your country of residence. The laws and regulations for each country can differ. If you would like more information regarding earning a passive income, you can invest in a few books I recommend here.