Passive income is any income that is generated from something you are not actively involved in. For example, your earnings from an employer are an active income; however, if you invest in the stock market, this will be classed as passive income.
Passive income allows you to top your income with little or no ongoing effort. In addition, it enables you to diversify your income and give you additional revenue streams if your primary source of income ceases.
If you want to know how to make passive income, continue reading. This article lists some of the best ideas to start making extra money.
Stock Market
Investing in stocks can offer you a lucrative passive income stream if you are confident you know how to work the stock market. However, along with the gains, you can always experience losses, so you need to be careful with how you invest and make sure you are actually making a profit.
Real Estate
You can become a landlord by joining a property purchasing group that buys you shares in real estate investment trusts. You can also invest in real estate mutual funds and EFTs too.
Investing
You can also invest in an up-and-coming business as an angel investor. You can become a Forex trader or invest in commodities to help build your wealth as part of your passive income strategy.
Silent Business Partner
Becoming a silent business partner means you invest in an up-and-coming company with no input into any decisions. You then make money on any profits the company makes.
High Yield Savings Account
A high yield savings account will typically earn you 20 to 25 times more income than a standard saving account. However, you may be required to have minimum savings or an initial deposit to get started.
Blogging
Blogs can earn money via affiliate links, sponsored collaboration work, SEO outreach, and paid reviews. Although it can take some time to become established, it can be a great provider of easy passive income when you do.
Freemium Model
A freemium model is when you set up a business model that offers a basic “free” package while also having premium features that need to be paid for to be accessed. The more valuable the content, the more people are likely to pay. Thus, creating an ongoing revenue stream for you.
Peer to Peer Lending
Peer to Peer lending is where you lend a person or a company funds with a pre-agreed interest rate and prepayment plan. You get to assess the risk of lending to the specific organization to determine what you lend them and how much money you will make.
Dropshipping
When you find the right store font, dropshipping can be a great passive income generator for you.
Dropshipping is an order fulfillment method that doesn’t need a business to maintain a large inventory of products. Instead, the store sells the product and then forwards the sales order to a third-party supplier, who then ships the order to the customer.
Creating Online Courses
If you have training and expertise in a specific area, creating an online course from which people can find value will enable you to charge for the course. Over time, as more people purchase the course, you find you have a steady income stream. Additionally, make sure you use popular course creation tools to help you get up quickly and easily.
Flipping
Flipping is the practice of taking something that is run down, restoring it or making it better, and then selling it on. You purposely buy something in poor condition to flip it to generate an income.
Popular flipping sectors are:
- Real estate
- Cars
- Websites
The following sites are handy for both buying and selling your items once flipped;
- eBay
- Amazon
- Olx
- Craigslist
- Garage sales
- Auctions
Affiliate Marketing
Affiliate marketing uses links tracked by companies for users to click and purchase. If you have an affiliate link, you then make a commission from these sales. Sharing these links via social media or your website is the best way to generate clicks.
Influencer Marketing
Suppose you have a popular social media account and a sizable following. In that case, you can get into the influencer marketing game, which means you earn money when collaborating with brands to help them increase their sales.
YouTube
Via YouTube, you can create monetized videos and earn money from the ads shown or work directly with brands to develop content as part of a sponsored collaboration.
Rental Income
Renting out your belongings or property can be a high residual income for you, especially if you don’t use it frequently.
Rental ideas include:
- Your house
- Your spare room
- Airbnb
- Household items
- Car
- Bike
- Storage space
Car
Your car can be a great way to gain passive income. Companies pay for their branding to be added to cars. Therefore, you can sell advertising space on your car. Then, they will provide the advertisement and pay you to drive around as you normally would.
High-Earning Passive Income Ideas
Some passive income streams can be highly lucrative. Of course, they may require an initial investment upfront, but these ideas are great passive income strategies when looking at the revenue you can generate.
These can include:
- Buying a laundromat
- Buying a self-service car wash
- Buying and running a parking lot
