Earn money without spending too much time? Here are 7 Ways to Earn Passive Income.
Passive income includes regular earnings from a source other than an employer or contractor. The IRS says passive income can come from just 2 sources: rental income or a business in which an individual does not actively participate.
If you’re looking to build wealth, if you’re looking to save up a nest egg for retirement, or if you’re merely looking for a way to alleviate financial stress in your life, passive income is one of the best ways to do it. Of course, this isn’t a get-rich-quick scheme, and you won’t be able to earn millions in passive income, but even a small stream of extra revenue can make a major difference in your life.
Passive income is especially powerful because it doesn’t eat up your time. The best economic decision, then, is the one that earns you the most money for the least possible time–and passive income costs basically no time on an ongoing basis.
Here’s a list of quite a few passive income ideas, so it’s likely that you’ll be able to find at least two or three that will work in your situation:
1.Rented real estate. Investing in rental properties is an effective and time-honored way of earning passive income. Buying a rental property will allow you to pay for the mortgage with the rent your tenants pay you, hopefully leaving you enough left over to earn a reasonable profit.
By participating in Airbnb, you can use your residence to accommodate guests and earn extra money just for renting out space in your home.
2.Affiliate links. Similarly, if you’re already getting traffic to your blog, you can use affiliate links provided by Amazon or similar retailers to forward traffic to specific products they’re trying to promote.
You can find affiliate offers either by contacting vendors directly, or on dedicated websites, such as ClickBank. It’s always best if the product or service is one that you are either very interested in or is highly relevant to your website.
3.Build an app. If you aren’t already skilled in programming, this one may be hard to achieve, but creating a useful app could earn you thousands of dollars in extra revenue. You might be asking if there are so many apps out there, why would you want to attempt to create an app? Isn’t there a lot of competition?
Well, yes, but fresh, creative ideas can win. If you can come up with something unique, you can make quite a bit of money. Simple – yet unique – apps can be pretty passive.
4.Advertising. If you already have a blog in place, or some other means of attracting traffic to your website, you can use advertising to generate a solid stream of income. Most blogs employ Google AdSense, which provides a monthly revenue stream based on ads that Google places on the site. As long as you get a few thousand visitors a month, even a single display ad could help you earn a few hundred to a few thousand dollars in extra revenue.
5.E-books. Publish e-books on a subject you consider yourself an expert in.There are no strict rules to follow here, but you will need to do some research on your target market and competition before following through. You’ll get a percentage of each sale made, and if the book is fairly popular, the royalties could be substantial.
Once posted, even charging a few dollars per download can be highly profitable for you in the long run becoming a completely passive venture.
6.Dividend-paying stocks. Shareholders of dividend-yielding stocks receive a payment at regular intervals from the company’s profits or reserves. Dividends are basically a way for companies to share profits with shareholders, usually for a fixed dollar amount per share of ownership. These companies tend to be in excellent financial health, making themgood long-term investments in general, but it’s the recurring dividends that will serve as your main source of incoming revenue.
The tricky part, of course, is choosing the right stocks.Choose your companies carefully and try to diversify your holdings here; you can even let someone else do this work and simply choose a dividend-based mutual fund.
7.Sell your own products on the internet.The possibilities here are endless – you can sell just about any product or service that you like. It could be a product you have created and can manufacture on your own or it could be digital in nature (such as software, DVDs, or even instructional videos).
You can set up a dedicated website for this product or service, unless of course you have a website or blog already in place. Alternatively, you can also sell it on an affiliate basis, either by offering it direct to websites and blogs related to your product or service, or through a platform such as ClickBank.
While it’s not entirely passive, it’s certainly more passive than getting up and heading out the door to work every morning!