It’s cool to have a 9 – 5 job and waiting for your paychecks bi-monthly. But it is super cool if you have other passive income on top of your regular gig. As we all know, more income means more flexibility, and more money means more freedom.
Passive income is a great source of income. It is valuable most especially as we are facing these tough times brought by the pandemic. Passive income can keep some money flowing in times of financial hardship.
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What Is Passive Income?
Passive income is the earned money that does not require a lot of “active work. It means that you can do most of the work upfront and put some additional effort along the way to earn an income.
Actually, the Internal Revenue Service (IRS) says passive income can come either from the rental of property or a business in which you do not actively participate, e.g., being paid book royalties or stock dividends.
Read: The Goal: How to Get to $10,000 Per Month
Best Passive Income Ideas:
Create A Dropshipping Store
One of the most profitable passive income sources is creating a Dropshipping store. Dropshipping can help you find trending products on various online marketplaces. Some popular niches are in home decors, fashion, pet accessories, outdoor gear, and more.
Dropshipping is a great model because you are able to choose your rates. You are able to adjust how you want to sell your products and services based on the market.
Shopify is a popular platform for dropshipping. Look at the Oberlo marketplace in the Shopify App Store for potential products you can sell.
Buy Property and Host In Airbnb
We all know that real estate can be a good way to make passive income. Buying properties like pre-constructed condominiums can be profitable in this niche.
Work with a real estate agent on prices and the rental market. Investing in rental properties is an effective way to earn passive income. You also have to be aware that it often requires more work than expected.
Once you have a property you can look at getting involved with Airbnb. You can always rent your property. Hosting your property to Airbnb is great because you can earn money on a space you already own.
This is a great idea for a passive income as you will only wait for people to reach out to you whenever they have the interest to rent out your property.
Although it requires a little work upfront to prepare your place and clean it up, it is pretty passive. You can hire someone to do the cleaning for your homes.
If you have a spare room or a small apartment or a larger space, you can do well on this platform. Look at building systems that will make your business thrive.
Running A Blog
Blogs are an unbelievable source and the most popular way of earning passive income. There are different ways to monetize on these platforms. You are able to do affiliate marketing, sponsorships, book sales, advertising revenue, and more.
Starting a blog may require a bit of upfront work to build a successful blog. Nonetheless, it is still one of the most sustainable ways to build a following.
If you’re looking for an affordable yet adaptable way to earn passive income, consider to run a blog, you will be surprised by the outcome if you are doing things right.
Read: Blogging as a Side Hustle
Create a Course
Nowadays, one of the exploding business opportunities is “Online Learning.” Creating an online course about anything that can already be a way for you to earn a passive income.
Short courses like how to tie a fishing knot, how to start gardening, arts and craft tips, cooking guides, or cat grooming are different courses you can create. There are so many different needs that people have. If you have some kind of expertise, you can sell your online course.
Selling online courses is a popular way to build passive income. If you can build or get a traffic source, you can repeatedly get more income for your business.
Read: How To Develop an Online Course
Think About Your Platform
There are different platforms you can use. You can host your courses yourself on Teachable and Thinkific. Some other popular platforms are Udemy, if you don’t have a base of followers.
Creating a course and selling it online can control how much passive income you earn. You may just need to find the right customers for you, but there are many platforms that can actually be the best of help to what you need in promoting your course.
Udemy is a popular platform if you don’t have a following. You will be expected to discount your prices.
Other platforms like Teachable, are great for people with a following. You may be able to sell your course for a lot more money. It’s not unreasonable to charge hundred or thousands of dollars for a course.
Rent Out Your Car
If renting out your property is a great idea to earn passive income, how about renting out your car?
Yes, it will also generate a good passive income for you. Nowadays, you can lend your car. You would need to create the systems to make sure it is passive for you.
If you have another car, enlist your car in Turo’s free platform and charge whatever you want for the day. Depending on your location and car, you can generate passive income through Turo.
Car Wash
If renting out your car is not a good idea for you, you can still make money out of cars, and that is putting up a car wash business.
The car wash business means the use of a coin-operated pressure washer. This can be a great way to earn a semi-passive income if you have some capital to invest.
Vending Machines
Another great low maintenance to earn a passive income are vending machines. Vending machines can be displayed all around the neighboring towns. Fill it up with your products to sell, then cash them out once every two weeks.
Laundromat
Like vending machines, washers and dryers have coin-operated laundry machines too, where you can only display them in a certain plan.
Then cash them out spending on your schedule. However, this may be a semi-passive income that definitely one great try for you to earn money in the making.
Create YouTube Videos
Social media platforms are one great way to help you earn a passive income. One of the social media platforms that keep on giving recurring income is YouTube.
You can earn money from the sponsored videos to ad revenues from YouTube Channel. In order to find success on your YouTube Channel, you need to consistently produce content. You also have to consider targeting your audience and making sure to hook them by always watching your channel.
Read: Ultimate Guide On Making Money On YouTube
Design T-Shirts
If you have the skills to design t-shirts or logos, designing t-shirts can be a good way for you to earn passive income. If your designs becomes popular and makes sales, you’ll be able to earn royalties.
Amazon created a new service called Amazon Merch, where you simply upload your designs, and Amazon takes care of processing, packing, and shipping the product. All you have to do is wait for the payout.
Become A Social Media Influencer
If you do not have anything to start with for a business, you can always start with yourself. What I mean by this is to be a social media influencer.
Yes, you can get paid for posting on social media. There are many social media platforms exploring its potential to earn money. There are also a variety of ways to earn money as a social media influencer.
Connecting with Sponsors as an Influencer
You can produce sponsored posts/content for companies to which the company will pay you. Rates may be calculated by the number of followers and engagement rates. One way to earn passive income as a social media influencer is by sharing affiliate links, writing sponsored blog posts, or by events as an influencer.
Quick tip for you to start earning passive income as a social media influencer: create a media kit that will highlight your social media accounts, what you do, and the samples of your work.
Read: Influencer Strategy For Brands: How To Sell More of Your Product
How many streams of income are you looking at?
Honestly, it really depends on how you can handle the business. It does not matter how many streams of income you have as long as you are managing to run it very well. There is no “one size fits all” advice when it comes to generating income streams.
How Is Passive Income Generated?
Passive income can work for you regardless of how much money you invest and time to spare. It is recommended to set your financial goals, and you should analyze and decide how much time, effort, and money you can commit to the business venture.
You can always rely on success on earning a passive income from different aspects of businesses as long as you put your determination and commitment into it.
Frequently Asked Questions:
What make a business a passive income business?
Overtime, you are able to generate income without you doing anything else. In general, you are able to build passive income streams overtime.
What is the best passive income business?
It highly depends on your own interests. If you are interested in real estate, I recommend land investing. It allows you to get into owner financing properties relatively easily.
If you have some other interest, I recommend publishing. You can get into writing articles, creating videos, or starting a podcast.
How long does it take to start building passive income?
Expect to take a couple months to get going. Depending on your systems and capital, it can take longer or shorter.
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