Ten passive income ideas that work

Ten passive income ideas that work

Passive income ideas,

There are a many passive income ideas out there. But some of them are fairly stupid like opening up a cash back card. You have to spend more money to get the cash back. Unless you just happen to have a really good credit score this won’t work for some people. But, here are some suggestions that everyone can do, if they put in the time and effort.

Passive income ideas: 

  1. Stock Dividends:

With the stock market you can increase both your investment and you can make passive income. The passive income comes in the form of dividends from buying stocks that pay them out. There is an investing strategy called Dividend Investing but that’s another post. Here you can get a passive monthly income or quarterly income based upon how often the stock you buy pays them out. There’s a really good website that gives you all the information you could ever want about a stock and its dividend, unsurprisingly it’s called “dividend.com”.  But with risk there comes reward and investing is risky but can yield a good return if done wisely.

2. Peer to Peer lending:

Lending club is a web based lending platform where people go to get loans and where investors can provide them the money with interest. You can invest in high interest rate loans but those are riskier as the risk of default is higher. But it is a good way to get interest on your money. Obviously here is similar to the stock market as your picks won’t always be good, you should diversify into high risk investments and lower risk investments to get a more stable return. The other option for peer to peer lending is prosper.com. They are both extremely good investments but have slightly different websites, loan amounts, interest rates, and number of loans available.

3. Ebooks:

Ebooks are interesting because they offer a good passive income. You can create a eBook on any topic you want and self-publish to the amazon store. It requires a lot of front load work to create an eBook and self-publish it. But once the book is up and online you can get a trickle coming in. And maybe if you do a great job marketing it and selling it you’ll make thousands of dollars in passive income as it becomes popular. The great thing about this is that it’s pretty scale-able. You can produce and self-publish as many books as you want. So may make very little money while others make a lot. The difficulty here is the competition. There’s thousands of self-published books being uploaded every day. You have to find a way to differentiate yourself in such a saturated market.

4. Invest in Real Estate:

This is one of the oldest ideas in the book. Buying a piece of real estate is similar to the stock market. Asset prices go up and down like any commodity. But just because the price of your asset goes up or down doesn’t mean it still can’t be a good investment. Like dividend stocks real estate can pay dividends in the form of rent. This is a little less passive than some ideas because it requires some management, if you choose to do it alone. You can always hire managers to do it. But the riskiest thing about this is the actual purchasing of property. Buying a piece of land with appreciating value is difficult because there are a lot of factors such as population growth, location, and the macro-economy to evaluate before a purchase. However, collecting rent every month is a really great way to earn money.

5. Youtube Videos:

Youtube videos are good passive income source. If you can create a high quality video and get a fair amount of views on your videos, then you increase the chances of getting money for having ads on your videos. Engagement is how often people click the ads or watch the ad for more than 30 seconds. Engagement is more important than the views to earn money but both are important. If you have special knowledge or are just a good entertainer/story teller this can be a decent way to make money. Smosh, Stampylonghead, and others are extremely famous youtubers who make a lot of money from just entertaining people. It’s hard but possible.

6. Create a blog:

It seems like everyone and their dog has a blog about their lives or traveling. However, it’s also a decent way to make passive income. Creating quality content for your viewers is essential to make a returning viewer base. Here the passive income comes in the form of many things. You can use google Adsense, Amazon affiliate marketing, affiliate links to bluehost or wordpress. As you get bigger you can even create your own fashion line depending upon the content of your blog. There are a lot of ways to make money from blogs you just have to start.

7. Silent business partner:

This is like investing in your friend’s business but here the people are actually tested. Here the risk is that the business fails. But you can receive passive income from this because you just provide the funding (partial or otherwise) for the business and take a percentage of the cut without having to do anything at all.

8. AirBnB:

Another source of somewhat passive income could be renting out a spare room in your house to visitors. My brother and I have been Airbnb customers before and have always received great commendations at a fraction of the price in comparison to hotels. In fact, my brother ran a Airbnb room at his apartment for a while and received pretty good monthly income from this. All you have to do is sign up on the website, post pictures of your guest bed/sofa, and start getting messages from interested people. You can choose the people who stay with you in our house. And you’ll have the option to talk to them through the website’s messaging platform.  

9. Create an online course:

This is similar to the youtube idea but through a website called Udemy you can create your own course if you have a specialized knowledge in an area. If you knew how to do data visualization and modeling, you could create a course on that. According to Udemy’s website the average earnings from an instructor is about 8,000 dollars and they have roughly 20,000 instructors. They give you free to use design tools to help you create your course content. You can help students and make money at the same time! Once it gets up and running it’s all passive income from then on.

10. Buy a business:

Lastly you can always choose to buy a business that is already generating a passive income. There are several websites that help connect business owners with potential buyers. There are often businesses are on sale that require little work. I found one a while ago for sale that was a gas station in Florida for sale that the owner went in once a week just to make sure everything was running smoothly. Here you can also buy websites or blogs that already have passive income being generated.

 

There are many ideas out there about how to create passive income for yourself but the hardest part is just getting started with one. These are just a few that I think could actually work. But picking an idea you think you’d like and seeing how far you can take it is fun and you’ll build skills along the way.  

Better choices, better info.

Passive income ideas Passive income ideas Passive income ideas Passive income ideas Passive income ideas

 

One Reply to “Ten passive income ideas that work”

Leave a Reply

%d bloggers like this: