Passive income is a lucid dream of many who wish they could make money without having to directly work for it. It sounds too good to be true, but when you set up a passive revenue stream, the money comes in at only the expense of time it takes for you to maintain it. These nine ideas are some of the best ways to get started with passive income.
1. Start or Buy a Blog
Starting or buying a blog is a big investment, either financially or time-wise. You can start a blog for next to nothing and fill it with quality content, articles, pictures, and videos of yourself. Or you can elect to purchase a blog that is already put together for more money but less work.
Blogs make income a number of ways including ad revenue, affiliate marketing sales, and more. Building or maintaining a blog also gives you a platform of followers that you can introduce products to later, such as an ebook of the blog posts you’ve written.
2. Write an ebook
With today’s technology, you don’t have to be a great writer to have an ebook made. If you can write or maintain a blog, you can write and publish your own ebook. Ebooks are a passive income stream because they can be downloaded directly by anyone who wants to buy one. This means you don’t have to do anything active to sell them unless you want to enhance your sales. It’s relatively simple to format your book with any standard suite of office tools. Many different ebook distributors offer a platform for you to sell your book for a percentage of sales or a flat fee.
Intimidated at the thought of writing a book? Hire an editor or a ghost writer through a freelancing database for a little extra help. Just like buying or selling a blog, the more work you put into it, the less money you spend.
3. Sell stock photography or design T-shirts
Websites like Cafepress make it easy to upload and sell t-shirt designs and original photography. You could start your own store as well if you have the ability to screen print the image yourself. Uploading photography and licensing it could also give you a stream of passive revenue. People will pay you to download the image, and all you have to do is collect the money. This is a particularly good way to make money if photography is something that you already plan on doing. When you can make money off your hobby, it makes your passion even more fun!
4. Sell digital files
Digital files such as fonts, craft patterns, stationery, and more can be uploaded and sold on Etsy. The time it takes to create and upload the file is the investment. Afterwards, you can continue to make money from it again and again for only the cost of maintaining the Etsy listing. Offering customized digital files takes a little more work and is slightly less passive, but it usually doesn’t take much time after the initial creation of the file.
5. Affiliate marketing
Affiliate marketing refers to marketing someone else’s product and getting paid for the referrals you make. Sometimes you get paid when you refer someone who purchases a product, while other times you earn money for each person who visits the website you refer them to. If you maintain a blog or have a large social network following, then affiliate marketing is a passive income that pays for as long as your posts are getting traffic.
6. Make Youtube videos
Youtube is full of content for every imaginable subject matter. Making Youtube videos could pay off because of compensation through ads. Youtube videos can be about anything you want from current events, to opinions, to how-to guides, or any other crazy attention-grabbing idea. The more viewers you have, the more money you make, even long after the video was posted.
7. Airbnb or Real Estate
Renting out a property is a traditional way of making passive income, and Airbnb is a modern spin on a classic. Both methods of making passive income have pros and cons, but if you have the means to invest in a rental property, then you can choose which is right for you.
Although this option means purchasing a piece of real estate and is therefore a potentially large monetary investment. However, if you were able to rent the property consistently for more than the cost of the mortgage payment, then you might not have to put more money into it than the closing costs and down payment.
If maintaining the property and handling the renters sounds like more work than you can take on, consider hiring a management company to handle your property. For a fee, they will handle renting out the property, any repairs that need done, and collecting the rent which they will deposit into your account every month.
8. Vending Machines
A vending machine is a fun way to earn passive income, and it’s similar to running a very tiny convenience store. All you have to do is come around, take out the money and replenish the products. The amount of money you make will depend on where the vending machine is located and how much foot traffic the area gets.
The costs for this include the price of the machine itself, which is more expensive than you might imagine at first. After that purchase, you’ll need to find a location where it can be plugged in, and there can be costs associated with that as well. Last, you’ll have to buy the items you are offering in the machine at a wholesale rate and make your profit through the markup.
9. Stock market investing
The stock market is synonymous with passive income in the United States. The right stock picks and accounts offer hefty dividends, but this form of investing is not without risk. Talk to an officer at your bank for more information on what options they offer for general saving and investing. You could also speak to an investment specialist or do research online about what investments might make the most sense for your financial needs.