Be Smart & Generate Passive income online
In recent times the word “passive income strategies” is searched on google more and more. Due to Covid 19 outbreak and frequent lockdowns, people’s income had a huge impact and they have started searching for ways to generate secondary income. Even if you draw a good amount of money in your 9 to 5 job, deep inside you aspire for more money, more freedom, more time with your family.
What do you mean by Financial Freedom?
Many of us have no clue what financial freedom is and how we achieve it. When one’s assets or investments generate a good amount of passive income to pay for day to day expenses and enjoy luxury. This state of independence can be called financial freedom. In this state you attain freedom and you need not work (do a job) to earn income. It is not about having lots of money, but having enough money to cover your expenses and spend your time doing what you love to do.
What are the 8 streams of income?
From childhood, we have been programmed that to earn more money you need to work hard. But this is not true. The wealthiest people on this planet are not hard workers but are smart workers. The one thing that they are doing differently is they build “Multiple Sources of Income” [MSI]. They do not rely on one source of income. Many small businesses have a single source of income stream, if this goes down your business fails. This is the reason that most of them don’t grow high. Following are the different streams of income
1. Earned Income– This is the income you warm from your job.
2. Profit Income– Income earned from buying and selling Products.
3. Interest Income– Lending money to someone can give you interest income
4. Residual Income– You earn even after the job is done. This is my favourite.
5. Dividend Income– This is earned from your stocks.
6. Rental Income– Income earned through renting out a property or some product.
7. Capital Gains Income– Earned through the sale of Appreciated Assets may be mutual funds or stocks.
8. Royalty Income– Income earned when someone else sells your ideas. This can be through affiliate networks.
“Your path towards financial freedom is through multiple streams of income”
What is Passive income?
Passive income is one of the most sought after elements of personal finance. It can be your source for building massive wealth escaping a paycheck-to-paycheck life. It can have an extremely high impact on just about any financial situation.
Passive income is the money you earn for actions that require no extra or very little effort and time. It requires you to work hard and make some investment in the beginning. Once you have built a strong foundation, your income stream starts working on its own and earns you consistent income in the future. It is continuing to make money without having to leave your job. It is necessary to take corrective actions and invest your time, money, and work in something productive.
How Important is Passive Income?
If you are able to establish a solid source of passive income online you can become the happiest person for sure. Passive income important because of the following reasons
1. Reduces dependency on paychecks (Salary)
2. Establishes financial stability
3. Gives you the freedom to follow your passion
4. You can work from any part of the world i.e you have location independence
5. Reduces stress
6. You can plan early retirement
7. You can give more time to your family
8. You get time to take care of your body and health
9. You can be a philanthropist help the world make a better place
10. You can live a happy life
How can I make passive income with no money?
If you have money, you can invest it in stocks, real estate, gold etc. If you are a student or someone who has little money, you can earn passive income by investing in time. For example, you can be a blogger or can build an information product with the knowledge you have. But this involves a lot of hard work. Many times I come across this question online: What are passive income ideas for students? As a student, you have limited money so you can give your time to create passive income. It is better you start early so that by the age of 40 you would have accumulated enough money and attain financial freedom.
“If you don’t find a way to make money while you sleep, you will work until you die.”– Warren Buffett
Now let’s dive into the best ways to make passive income online
1. Digital Courses
The knowledge industry has changed after the Covid 19 pandemic. Now more and more people are shifting to consuming knowledge online. Creating and selling info products online is by far the best way to generate passive income online. Your courses should promise transformation and help your students achieve their goals. Even if there is a ton of free content available online on youtube, they will go for your course as you offer your content in a structured way with assignments and feedback.
How to teach online courses & make passive income?
The answer to this lies in my blog “5 Steps to start a successful online coaching business”
Selecting a winning niche that aligns with your passion and knowledge is very important. You can go through my Niche selection blog to select your profitable niche. Your content should be powerful and help your student’s product results. You can refer to my blog “create and sell online courses in 90 days” to get clarity on course creation. There are many platforms like Teachable, Thinkific, Podia, Kajabi etc. are available where you don’t have to do any coding, these are all ready to use platforms. My other blog “7 Steps To Sell Online Courses & Build a Big Brand” will guide you to sell your course to maximum people and get good profits.
Your personal branding i.e blogs, podcast and youtube will help you credibility and help you sell courses on auto mode. You just have to give the initial 6 months of your time to create a great info product. This will generate steady passive income for years to come.
2. Publish Ebooks
If you possess good knowledge on a particular topic and your content can prove to be useful for others then you can write an ebook. This method is followed by many people to earn passive income. Write your book, edit it, design an attractive cover and self publish it on amazon’s Kindle Direct Publishing platform. Now you will need some marketing to bring in traffic to your ebook. Results will start pouring in steadily. Just relax and see your new Passive income stream start working for you.
3. Start a Blog
If you feel that you are a knowledge giver or can provide valuable content to your readers, building your blog can be the best option to build your online business. Blogging is the most popular passive income online stream. Your blog can provide solutions to people’s problems or it can provide some how-to stuff or it can be entertaining. You can choose your winning niche where you can hook your audience to your content. Blogging has helped countless entrepreneurs and content writers earn passively. You can make money through blogging in the following ways:
- Through AdSense advertising network
- Direct Advertisements like banner Ads
- Affiliate links in your content
- Paid reviews or Client Sponsored posts
- Sell Digital products like ebooks or blueprints
- Sell your Online Course
- Offer Online consulting for high paying customers
Blogging is not an overnight business you need to do some hard work to make your blog a hit. Knowing SEO and Social media marketing can help you rank your blog and bring it in front of more and more people. Write some good quality content so you can see your blog skyrocket in no time.
4. Stock Photo / Video / Music
Transform your passion into passive income. If you like photography or love creating videos or creating music, you can make a good amount of passive income. Websites like Shutterstock, Freepik provide you with platforms to sell your photo, video and music. You just have to upload your content and create your portfolio on their website and all the hard work of selling is done by them. They charge your flat fees or offer revenue sharing for the content sold on their site. A single piece of content could represent a passive income opportunity, it can be sold again and again, without any additional effort. You get paid each month for the royalties you receive on your content.
5. Stock Designs
Due to the increase of social media marketing and other advertising avenues, there is a huge demand for stock designs. Most of the advertising agencies subscribe to these stock design websites to buy content like vectors, readymade templates. Now are gone the days where each and every creative was hand-drawn. Websites like Freepik, Shutterstock provide a stock of ready to use designs. If you are good at designing, sketching and basically good in imagination this passive income stream is just for you. You get commission on your content being sold on the stock websites. The following points need to be considered if you wish to make the most out of this
- Do a thorough research of what designs customers are buying
- Bring in new content during festive seasons
- Price your content right, try bundles and discounts
- Be updated with current design trends
So once you have put in the hard work of uploading around 8000 of this valuable design content you can expect between $1000 to $1200 of passive income on a monthly basis
6. Affiliate Marketing
Affiliate marketing is one of the top-rated passive income opportunities available in the market today. Affiliate marketing makes passive income online easy to achieve if you follow proper steps. So what is affiliate marketing? It is the commission you earn for promoting others’ services or products online. The biggest advantage of this is that almost 80% of big brands and companies have their affiliate program. Finding the right product is not so difficult. There are very high chances that your prospects will buy these products through your recommendation because you can help them solve their problems using these products. There are 2 types of commission involved in the affiliate marketing program
- One time commission: It is paid for the first time when you recommend the service or product to your prospect. This can go up to 50% of the total price. You will not be paid for any renewals of the service.
- Recurring Commission: This is paid monthly or yearly till the time the prospect is using the service and paying for it. Most companies pay 10% to 30% commission on recurring mode.
You just have to bring traffic to the company’s website through your affiliate link and thereafter everything is controlled by the company. If you think affiliate marketing only this then you are wrong. If you follow this strategy you will not make it big in this revenue stream. Whether you are promoting these products through blogs, personnel websites, youtube videos, podcasts to support your people for how to use the product and help them get stuck somewhere. If you are able to build trust they will follow your recommendation blindly. Don’t try to sell something crap to your prospects as they will buy once and will come back to you.
Blogging is the most cost-effective way to make recurring affiliate commissions without having to spend huge money on ads.
7. Mobile App
Mobile penetration has doubled in recent years. If you are a developer and can think of an app that can solve people’s problems, you can make a good passive income by selling it to unlimited customers. You may say there is a lot of competition in the market and where will I stand after all the hard work I put into creating the app. The thing is you need to do research properly and find the pain point. Fresh and unique ideas can help you stand out in the market.
If you are a non-programmer you hire one and get the coding done. This would prove to be more expensive but it would be worth it if you can generate that traction for your product. You can make money from your app in 2 ways. You can charge for people who want to use your app. Second, you can make your app free and earn from ads. Your app may need some updates to keep it alive.
8. YouTube Channel
YouTube is the world’s second-largest search engine after google. If you have more than 1000 subscribers then you can apply for youtube monetization. The key to success here is to create compelling videos on a constant basis. You will not earn substantial income from just one video, you need to have multiple videos.
Work on creating a large audience base who regularly watches your video and new people subscribe to your channel. As people only prefer those who showcase something new and different from others. Audiences only prefer those who showcase something new and different from others.
Make money while sleeping
With initial efforts earning passive income is a reality. It can help you achieve your financial goals. If you are thinking of quitting your 9 to 5 job the above passive income stream can help you do that. You just have to make the first step.
Which of the above passive income ideas are you going to try, comment below.