Wouldn’t it be a great idea to sit back and watch your one-time effort bare fruits forever? That’s what it means when you hear of passive income. It may sound impossible when you hear someone say they make money even while they are asleep. This is the whole idea of passive income.
There are many ways to make money online for sure but many of these opportunities only help you make your spending money to pay for very little things. Have you ever thought of one that can explode your income potential and provide you your dream life?
These are ideas that are highly profitable and always in demand. They are a great chance to create a sustainable income from anywhere and from your comfort.
- 1 What is Passive Income
- 2 Active Income VS Passive Income
- 3 Passive Income Ideas in 2021
What is Passive Income
In simple words, Passive income is income that doesn’t involve constant efforts or time to earn it. In other words, it is the money earned without working actively for it.
In most cases, passive income is usually not a salary job because when you stop going to your place of employment, you stop being paid.
There are many types of passive income. While some may require a huge amount of money, some require less and others require just your effort. Buying cash flow assets may require a huge amount of money. Building cash flow assets require less or nothing.
These are mostly digital products including eBooks, websites, online courses and many more.
Active Income VS Passive Income
In Active income, you constantly need to do something to generate income or revenue. Consider a full-time job as an active income because you need to pay close attention to whatever task you are given every day. In short, your typical 9 -5 job could be said to be an Active income because once you stop work, you stop earning.
On the other hand, earning continuously without actively working is always a better choice. This is the idea of passive income, earning passive income can be by investing money or time into creating a product or service and then continue to receive income from that product or service for a long time without doing any extra work.
Why do you need Passive Income?
“If you don’t find a way to make money while you sleep, you will work until you die” – Warren Buffet.
If the only way you make money is by going to work 9-5, you will never be able to quit. Do you even understand that? The moment you quit, your pay automatically stops.
Do you even know that no job is 100% safe? From the moment you get a job, a replacement is waiting for you to quit or be fired. Passive income is a way to guarantee financial security.
- Passive income is just the definition of freedom. It gives you freedom in all aspects of your life; you can enjoy a flexible life, spend time with your family, travel to the moon, and back while your income never ceases.
- The market for the passive income listed below is constantly booming at one part of the year or the other.
- You can turn your experience or work experience into a course or an eBook to teach an audience the knowledge you have gained for the years you have been working.
- There is usually minimal startup cost.
Passive Income Ideas in 2021
Start an Online Store
Although, this might not be the best way to earn money. But there are clever ways to make money by having an online store. Since everyone is going digital these days; building a home online, going online to get whatever they want and get it delivered, this option is highly profitable. These are some models to start an online store:
- Dropshipping: In dropshipping business, you become a middle man between a buyer and a manufacturer. This requires you to have a website to start. When a customer places an order on any of the products listed on your website, you forward the order details with the customer’s information to the manufacturer who ships the product to the customer. Dropshipping is this simple and it can be done from the comfort of your home.
Read my full guide on how to start dropshipping here.
- Dropservicing: In dropservicing, you sell services to clients who need them. The difference between dropshipping and dropservicing is you offer/sell products in dropshipping and you sell services in dropservicing.
Although this business has not become very popular in 2020 but promises to make many rich.
- Sell other people’s products: This is a very great idea if you are a blogger or if you have a website. There are so many bloggers out there who want people to help them sell their online/offline courses and ebooks. Commissions are always very high and some offer a commission as high as 40% per sale.
When you have good traffic coming to your website, you might want to try this option out, you make money as much/long as it continues to sell.
- Selling your own physical products
Have you ever wanted to learn Forex and become a trader in the world’s largest financial market?
Tradera is an academy that teaches you how to trade from a kindergarten level to an advanced level. The Trade Academy is comprised of video content designed to take our clients directly into the financial markets to show hands-on examples and explanations and show how all of the education can be applied in a real market environment!
With just $99, you can have access to what I tag as financial freedom for the rest of your life.
How to make money from Tradera
In Tradera, there are two ways to make passive income, having completed the 1-month class, you have a choice to start trading by yourself OR you can make passive income from their compensation plan.
In Trader’s compensation plan (also called Networking), when you introduce 3 people to the platform, each of these people introduces 3 other persons each to the platform – and BOOM… you start to earn $500 just like that. That for a start.
As your network continue to grow, your income is also growing. Refer to the chart below:
Click here to join
Create and sell eBooks
Since you don’t have to worry about shipping or geographical restrictions, you can sell it to anyone.
If you have a talent or passion for writing or you think you can write, then creating and selling eBooks is an awesome way to earn passive income –
- Choose a niche you have knowledge of
- Make research and findings on potential topics you can cover in the niche
- Publish your eBook in marketplaces like Amazon, Etsy, Gumroad etc.
- Start to earn passive income.
In writing an eBook as a beginner, you are likely to do a lot of research – this is one trick that will make your eBook a successful one and it will add substantial and outstanding value to already existing ideas.
Believe me, a lot of things have been written about what you might want to write about. This is why you must focus on creating something unique, valuable, and outstanding. Writing is just one part of a book and editing and publishing is another crucial part also; Be sure your book is reader-friendly and it must be something you can buy if you were buying.
Start a Blog
Although this requires some initial investment, extensive research, and hours of writing; but there is a whole lot of money to be made from it. This lucrative business only lets you provide amazing and valuable content to people but it also lets you make money while doing this.
If you are reading this, you are here because you are interested in the content – this might just be your blog also. This is what a blog is about. Write informative content that people may be interested in, do some SEO work on the content to make it go viral. When you have enough content and traffic, you can apply for monetization.
Building a blog doesn’t require a lot of money to start, it could cost as low as $100 or lesser most times.
Making money from your blog is super easy, in fact, when you play your cards right, you can start making money from the first month after setting up your blog.
Sell digital products on Etsy
Do you have any skills or anything you think people can continue to purchase? This is a digital product most of the time. If you have some designing skills, you can grow in this business.
There are tons of other wall art sellers who are not so good at displaying their products to potential clients and as such, they are looking for mockup files to advertise their products online.
This could be a great idea for you if you are a designer and if you can design reasonable mockup files that could be helpful to them.
This seems cool, right? Don’t have any designing skills, there are tons of videos and tutorials you can watch on YouTube to get started.
Digital products are one of the most profitable forms of passive income. The file(s) are automatically sent to the customer after they make a purchase – all they have to do is to download the file(s) to their computer or print them.
Not sure of digital products to create? Read this post. Read 20 Digital Products to Sell on Etsy for Passive Income
Make YouTube Videos
According to Youtube statistics, the platform gets more than 1billion monthly users a month. That’s crazy, right? You might just have some of these numbers watching your videos.
Graphics designing, cooking, tech how-to, tutorials, vlogging. Are these any of your fields or passions? Do you have the knowledge to let out that people may be interested in? You can make a video for an audience that needs it. Don’t worry if you are an introvert, there are a lot of people who make videos without showing their faces also. That should not become a barrier to making your passive income.
Just like most other platforms, you can promote both physical and digital products on YouTube through affiliate links. In this way, you can promote a company’s product/service and get paid for it.
Become an Affiliate marketer
In affiliate marketing, you earn a commission when you make a sale. In other words, it is done by referring products that you believe can add value to your audience – after they make a purchase, you earn a commission at no extra charge to your audience.
The commission varies from program to program, but usually, this is a very profitable business that you can earn passive income.
It is a popular notion that you need a website before you can make money in affiliate marketing. This is not usually the case. There are also many affiliate marketing programs that can accept you without a blog, once accepted into these programs, you can start promoting their products.
Affiliate marketing can be done with Pinterest. Pinterest is a great platform to earn passive income with affiliate marketing. Here is an in-depth guide on how affiliate marketing works.
Sell photos online
Business owners, bloggers, social media managers all use stock photos for different purposes. These free photos can all be gotten from Canva, PicMonkey, etc. Not all bloggers enjoy using these photos these days and tend to outsource some spectacular designs.
With websites like iStock and Shutterstock, you can sell stock photos. You can sell these photos single or in a bundle (10 photos for $5 for example).
Also, if you want to make it big you can create your own website and sell your photos on your website. In this way, you can run promotional offers as much as you can. There is also an option to create an affiliate program for your website so others can promote your site and products for you while they earn a commission.
Time, Money, and Effort are the necessities of passive income. You can make money from home and even when you are on holiday.
If you are looking for other ways to make money, here are some ideas.