I’m all about passive income. There are many great ways to create passive income. There’s really nothing like it. Since my blogs started making money, I’ve become addicted to it.
15 BEST WAYS TO CREATE PASSIVE INCOME
It’s easy to think of passive income as money you make while chillin’ in a beach chair, but there’s actually lots of work to be done in the beginning.
Passive income can be a great supplementary income source, and it can be an especially valuable lifeline during a recession or during other tough times, like the government lockdown we’re going through in response to the coronavirus pandemic.
Passive income can keep some money coming in when you lose a job, or go through some other financial hardship.
If you’re worried about being able to save enough of your earnings to meet your retirement goals, building wealth through passive income is a strategy that might appeal to you.
What is passive income?
Passive income is regular earnings from a source other than an employer or contractor. The Internal Revenue Service (IRS) says “passive income can come from two sources, rental property or a business in which one does not actively participate, such as being paid book royalties or stock dividends”. But passive income can include much more than that.
Many people think that passive income is about getting money for doing nothing. It has a ‘get-rich-quick’ appeal… but in the short run, passive income takes work to create.
You’ll have to do some, or all of the work upfront, but passive income usually involves some additional work at later on too. You might have to update your product or your rental property in order to keep the passive dough coming in.
Passive Income Vs. Active Income
Passive income is the opposite of active income, which is money earned when you perform a service or when you work full- or part-time and earn a salary, a per-hour paycheck, or earn commissions (like a salesperson) or tips (like a bartender).
The key differentiator between passive and active income is this; with passive income, you can literally make money while you sleep. With active income, if you’re not actively working, then you’re not earning any income.
15 Best Ways to Create Passive Income
If you’re thinking about creating a passive income stream, check out these 15 strategies and learn what it takes to be successful with them, while also understanding the risks associated with each idea.
1. Selling information products
One popular vehicle for passive income is creating an information product, like an e-book, or an audio or video course, then relaxing while the cash rolls in from the sales of that product. Courses that you create can be sold through sites like Udemy, SkillShare and Coursera.
Pro: Information products are an excellent income stream, because you make money easily after it’s been created.
Con: Creating info products can be a huge amount of work. And to make really good money from it, it has to be great. There’s enough trash online already.
You have to build a strong platform, market your products and plan to create more products if you want to make more money.
One product is not going to make you a ton of cash, unless you get really lucky. The best way to sell an existing product is to create more excellent products.
Once you master the info product business model, it can be a really good income stream.
2. Let Someone Else Do The Work
In this passive income vehicle, you’re selling information products (like above), but they’re products that someone else creates.
It’s called PLR Content, and yes, you really can buy something that someone else has already created, and sell it as your own.
The products come with a specific license that allows you to buy and resell the product, without fear that you’ll be sued, or admonished in any way. It’s 100% your product once it’s purchased.
You can buy PLR content in the form of e-books, courses, videos, software, articles, etc.
Where Can You Buy PLR Content?
There are many places online where you can buy PLR content. One of the best sites is this one, and it has just about any kind of PLR content you’re looking for.
Once you’ve purchased your content, it’s wise to save it in a folder on your computer desktop. You should also know that you can sell and resell the content as many times as you like. You don’t have to pay for it again.
All you need to do with PLR content, is marketing. But every business requires some marketing.
Click Here to create a FREE account, and start browsing your next PLR product!
3. Affiliate marketing
With affiliate marketing, website owners, social media “influencers” or bloggers promote a third party’s product(s) by including a link to the product on their site or social media account. Amazon might be the most well-known affiliate partner, but Awin, ShareASale and CJ are among the larger platforms.
Pro: When a visitor clicks on the link and makes a purchase from it, the site owner gets a commission.
Affiliate marketing is considered passive income because, you can make money just by adding a link to your site or social media account. In reality though, you won’t make any money if you can’t attract readers to your site to click on the link and buy something.
Con: If you’re just starting out, it will take time to create content and build traffic.
4. Sell Courses Online
As of right now, one of my sites sells a couple of courses online. Even though I hardly promote them all, I still get plenty of sales.
While it took a ton of work to create the courses, all I’ve really done since then is sit back and collect money from the sales. I easily make over $500 per month with those courses now.
With this in mind, earning money with course sales isn’t easy! You have to create the course first, which can take weeks or months of your time and patience. Once you’re done creating your product, you’ll start making passive income.
5. Blog Flipping
What is Blog Flipping?
Blog flipping is the business of building or buying a website, fixing it up, and selling it for profit.
There’s a good sized market for turnkey blogs and websites. Many people want to own or run a blog, but don’t have the time or the skill to build one. So if you happen to have the patience that it takes to build a blog, why not build and sell?
Many blogs sell for thousands of dollars, some into the millions of dollars!
What have you got to lose?
6. Get a High Interest Savings Account
Online banks have started to offer higher than normal interest rates that can help earn money on your savings.
7. Sell stock photos:
There’s a big demand for stock photos online, as every business you can imagine has a need for them.
If you’re a photographer with a backlog of great photos, sent them to stock photo sites like DepositPhotos, who’ll pay a you commission for any photos you sell using their platform.
8. Earn Cash-Back Rewards
Make money when you spend money on the things you need!
You might remember them as Ebates, but they recently switched to Rakuten.
It’s the easiest way to get rewarded for shopping. Shop on the website at Rakuten.com or use the Rakuten App. Or you can install the Chrome extension where the Cash Back Button does more than give you Cash Back. It finds and applies coupons and even compares prices, so you get the best deal.
9. Write a Book
While the traditional publishing route can get a down payment and sometimes royalties if you get lucky, Amazon allows fiction writers to publish their work, build a following, and enjoy up to a whopping 70% of all sales as their share of the sale.
Print on demand services allow a similar set up if you just have to have a physical book.
10. Start a YouTube Channel
Starting a YouTube channel is a huge amount of work upfront. There’s no question about that.
You need to learn YouTube marketing, YouTube SEO, and some video editing skills. Ad revenue from YouTube videos can be an incredible source of income. Videos you post can still earn views and ad revenue years after you’ve uploaded them.
You can also create more income streams on YouTube with smart affiliate marketing.
Click Here to grab the YouTube Quick Start Guide.
11. Design and Sell Custom Merch
I’m sure you’ve heard about creating and selling t-shirts, but did you know that you can put your designs on about 2 dozen other products for sale?
There are many websites that allow you to use your graphic design talent to build passive income through original t-shirt designs, mugs, mouse pads, and other merchandise. They take care of shipping and you get a cut for what you sell.
Printify and Printful are two of the most popular print providers. Each one has a slightly different way it works, but they allow you to turn designs into merchandise that can be sold.
12. MAKE MONEY WATCHING VIDEOS
Okay. This isn’t money, but it is gift cards that you can spend on the things that you would normally spend your money on. AND you can get $5 bucks just for signing up!
13. CASHBACK REWARDS CARDS
This is an option you need to be very careful with. You also generally need a very good credit score. However, there are many credit cards that give some really remarkable bonuses from high cash back to free miles, to straight up cash in some cases.
Use the card to get the rewards, pay off immediately before any interest charges take place, and cash in on the rewards.
14. Create and License Music
People need music. If you have a talent for creating original entertaining 5-15 second blips of music, or even longer pieces, you should consider licensing your music. This is like the equivalent of stock photos. Just with sound.
YouTube videos, commercials, podcasts, Twitch streamers, and more all need music. So why not get paid repeatedly for your original little compositions?
15. Start a Vending Machine Business
Vending machines are a great passive income idea. Just remember, as with real estate, the location of your machines is extremely important.
If you can get the right vending machines in good locations, you will be very happy with the passive income that those machines earn.