Passive Income Ideas: 17 Lucrative Strategies to Make Money
On the internet, you are frequently bombarded with ads talking about earning passive income while you sleep. These passive income ads are in every online space: on your social media platforms, on YouTube, and when you open a website.
The passive income vs non-passive income debate is an ongoing one that centers around financial freedom. Even if you have a stable 9 to 5 job that pays reasonably well, the idea of earning passive income online will excite you.
While you want to make more money and gain financial independence, you do not want the income-making process to eat up a lot of your time. You also want more freedom and more flexibility, and not a high-paying non-passive income stream that chains you and your time.
Building a passive income requires your time, money, and skills at the onset. It has long-term benefits such as long-term earnings with minimal effort but requires short-term tradeoffs. The beauty of a passive income stream is that it affords you the flexibility of combining it with your other full-time jobs.
If you are willing to earn passive income, you are at the right spot. In this article, you get a comprehensive guide on the best passive income ideas you can use to build real wealth that can help you retire earlier than you anticipated.
Let’s get started.
What is Passive Income?
Passive income refers to the money you earn without having to do a lot of active work. A lot of people want to make passive income but the vast majority misunderstand what it is all about.
According to Warren Buffet, a business magnate, investor, and philanthropist, “If you do not find a way to make money while you sleep, you will work until you die.” Many people misinterpret this statement and get the wrong impression that earning passive income requires no work.
Passive income streams require you to do the bulk of the work upfront while putting in minimal efforts in the quest to earn passive money. It requires an initial investment of your time, skills, money, and resources to get to the point where you can sleep and earn money with minimal effort.
For example, if you want to earn passive income from your book, you first have to devote time and resources to writing a quality book and set up the marketing and distribution channel. It is only after you have made the upfront investment can you start enjoying consistent revenue from your book without having to actively work.
One of the biggest attractions of passive income ideas is that you can achieve a level of financial independence and freedom you cannot get from non-passive income ideas.
Even if you are the most hardworking human, time and your body limit how much work you can do in a day. With passive income, you can easily scale your business and earnings more easily.
The IRS (Internal Revenue Service) considers earnings you make from rental property or any other business that you do not actively contribute to as passive income.
Passive income, as attractive as it sounds, should not be mistaken as a get-rich-quick scheme with minimal work. Even after your upfront investment in the passive income stream, you may still need to invest more active labor, time, and resources to strengthen or maintain it.
Best Passive Income Ideas You Can Use to Build Real Wealth
Passive income can be complicated due to the large number of passive income examples available to you. Although these numerous passive income ideas may serve as a plus, it is worth noting that not every passive income idea out there is the best fit for you.
You have to choose passive income ideas that work for you. Avoid making the mistake of assuming that because a passive income stream worked for someone, it is guaranteed to work for you. The person may have better skills and more money to spend on building the passive income stream than you do.
If you want to venture into one or more passive income ideas to gain financial independence and build real wealth, check out these 17 passive income strategies. For most of these passive income examples, you can start with very low capital.
1. Earn Passive Income with a High-End Blog
Blogging is one of the most popular passive income streams. When you think of passive income, one of the first passive income ideas that come to mind is starting a blog where you can earn passive income for as long as possible.
The highest-paid bloggers such as Pal Flynn, Tim Sykes, and Melyssa Griffin earn over $100,000 a month from their blogs. Despite its popularity and the countless number of individuals that testify to earning passive income from their blogs, the majority of bloggers fail.
According to AstuteCopyBlogging, a whopping 80% of blogs will fail this year. So why do most bloggers fail? They fail because they fail to open a high-end blog with solid monetization streams.
Opening a blog is one of the most cost-effective passive income streams. You can create a website for free, but it severely limits the extent to which you can monetize your blog. A better alternative is to use affordable blogging platforms.
Even though blogging is a passive income stream, for you to build a successful blog, you need to do a lot of upfront work.
The upfront investment includes creating the blog, setting up your blogging sales funnel, and creating valuable content for the blog, generating traffic to your blog through organic means (SEO), social traffic, and your email list.
The biggest advantage of running a blog is that you can use it to earn different streams of income with the right blog monetization strategies in place.
Best Revenue Models for Earning Passive Income with a High-End Blog
To earn passive income from blogging, you need to deploy the best revenue models that the best in the game use to earn consistent five figures or more monthly. You need to pick a high-income blog niche to get the best results from these revenue models.
One of the best ways to make money blogging is to display ads on your blog. This revenue model does not involve a lot of work. You simply display sponsored ads that people and businesses are willing to pay for on your website and earn passive income as people visit your website or click on the ad.
To make a significant amount of money with this method, you need to have lots of traffic visiting your website. There are two ways you can make money through ads on your blog: earning when ads are clicked and earning through ad impressions.
Earning when ads are clicked means you only earn money when visitors click on the ads while earning through ad impressions means you earn money each time the visitors see the ads on your blog.
Some of the highest-paying niches for displaying ads through your blog are consumer goods, news niche, and insurance.
Many bloggers use Google AdSense to run ads on their websites. However, there are better Google AdSense alternatives that generate better revenue such as Monumetric, Media.net, PropellerAds, Revcontent, and AdThrive.
#2 Affiliate Marketing
Affiliate marketing is a passive income stream through which you sell other people’s products and earn a commission on each sale. Many of the highest-earning bloggers such as Pat Flynn attribute most of their earnings to this revenue model.
Earning from affiliate marketing is simple. Write a blog post about a product and attach your affiliate link to it. Each time your blog visitor uses your unique affiliate to buy a product, you get a part of the proceeds of the sale as a commission.
Some of the highest-paying niches for affiliate marketing are product reviews, personal finance, and making money online.
There are thousands of affiliate programs you can join to start earning commissions from each sale you help generate. However, not all affiliate programs offer the same commissions. Some of the best affiliate programs with high commissions include:
- Bluehost is a web hosting platform that pays affiliates $65 per qualified sign-up.
- SEMrush is an SEO/SEM tool that pays affiliates a 40% lifetime commission for subscription sales.
- WebinarJam is a webinar platform that pays affiliates 40% for every sale.
- Constant Contact is an email marketing software tool that pays affiliates $5 for trial sign-up and $105 for a paid account.
#3 Sell Memberships
Earning revenue for your blog through the sales of memberships is not as popular as other revenue models but it is profitable when done well.
The most common strategy bloggers use to sell memberships is to offer valuable content for their target audience and then preserve premium content that can only be assessed by registered members. You can do this by making a short snippet of your premium content available to everyone but for them to read further, they have to pay for membership.
This revenue model works best when you have good content and a ready audience willing to pay for such content. You can charge a monthly fee for membership and offer members enticing benefits such as exclusive content, eBooks, and discounts.
The highest-paying blog niches for memberships are online magazines, tutorials, gyms or fitness studios, and travel.
Running a successful membership site requires a plugin to help provide the necessary features for a smooth membership experience.
The MemberPress plugin is the best plugin to handle membership registration. This membership plugin works best for WordPress blogs hosted by Bluehost and integrates with third-party software tools such as ConvertKit and Constant Contact.
#4 Sell Consulting and Freelance Services
Many bloggers make the mistake of waiting to attain a certain status before they offer consulting services. If you want to make money from blogging and you have a skill you can offer your audience, why wait till you become a top dog?
Even if you are just starting your blog and your skill level is at best medium-level, you can offer consulting and freelance services through your blog. Once your skill level and experience increase, you can increase the rates you charge for your services.
Although you can earn good revenue from any blogging niche, some of the highest-paying niches for consulting and freelance revenue are entrepreneurship, accounting and bookkeeping, software development, and HR consulting.
You can maximize your freelance and consulting revenue by focusing on one high-end consulting offering, collecting testimonials and case studies, and subcontracting tasks that are taking too much of your time or proving too difficult for you to handle.
Create a high-end consulting offer with LeadPages. This software tool helps you create a landing page to sell your high-end consulting offering on your blog.
2. Start a Niche Online Store
The online retail market is booming every year. Many entrepreneurs now have their businesses online, where they sell their products and provide their services.
One of the best ways to earn passive income is to start a niche online store. The difference between a niche online store and an online store is that the former specializes in selling a particular type of product or service to a specific target audience, while the other is not constrained by such limits.
Many online stores are competing against each other and traditional markets in the eCommerce space. The best marketplaces to sell products online such as Amazon and Alibaba have generated billions in revenue.
Many online stores hosted on Shopify and other eCommerce platforms generate millions of dollars from selling products and services. Fashion Nova crossed over $400 million in revenue in 2019.
The exciting thing about starting a niche online store is that you can earn passive income from anywhere in the world. People can visit your sites from different countries across the globe and through the best order fulfillment services like ShipBob and FedEx Fulfillment, you can deliver it to them conveniently.
How to Earn Passive Income By Starting a Niche Online Store
#1 Define Your Online Store
Before you rush into the trend of owning an online store, you have to answer the following questions.
- What type of online store do you want to build?
- What do you want to sell?
- Who is your target audience?
- How will you reach your target audience?
Most people set out to start an online store without defining in clear terms what their brand will be about. There are different types of online stores.
- One-Product Store: You need to decide if you are operating a single product store. This simply means you are investing majorly in one product. Here. your brand and online store are known for a particular product or market. For instance, your online store might be a beauty line store where anything that has to do with skin and make-up can be found on your site.
- General Store: When your online store is not particular about a specific line of products and services, this online store can be referred to as a general store. This means your online store provides different products and services. What this means is that your online store does not have a specific target audience or focus on one line of product and services.
- Niche Store: This store is a segment of a larger market that has its own unique needs and identity that makes it different from the market at large. These are the different sections and sectors in different segments of the market. For instance, within the children's department of the online store, there can be other sections or sub-niches of children’s wear and shoes.
#2 Define Your Product
You have to define what kind of brand you want to be known for. Many online store businesses fail because they delve into different areas of business and end up known for nothing in particular. It is important to establish an online presence where people know or see you as a go-to ‘’plug’’ for a certain product or service.
However, some online stores delve into a variety of products and services. As a new online store with limited resources, you should start with a particular product so you do not confuse your target audience.
As your niche online store grows, you can then move to other areas with your already loyal and patronizing audience. When defining your product, you have to create a unique look that stands out from your competitors.
#3 Define Your Target Audience
To begin your online business journey, you have to define who you want to sell to using parameters such as race, age, social group, gender, preferences, and others.
Identifying your target audience is important for starting a niche online store. You need a customer base who will be interested in the product or service you plan on venturing into.
If you will be selling to a younger generation, you will have to base most of your marketing on social media platforms that are popular with such a young group. For an older generation, you will have to base most of your marketing with more traditional advertising mediums such as newspapers.
#4 Pick a Domain Name and Store Theme
Pick a domain name that describes what your online store is all about. This name will represent you and your business.
You must pick a name that is related to your niche. The essence of this is to give the public or your target audience an idea of what your business is all about.
For instance, 360 Shoes is an online niche store that sells a wide variety of classic shoes. From the name any potential customer already has an idea of what is sold on this online store. Keep your domain name simple, interesting, and short.
The theme of your online store, depending on your niche, has to be attractive. When people land on your online store, you need simple and attractive UX designs in addition to other factors to interest them enough to make a purchase.
SEO helps to market your product and put it out there where people can get familiar with your product. This increases the chances of visibility and potential customers clicking on your page.
While SEO is for the most part free, some business owners pay to have their page on the top searches of anything relating to their brand or product.
#6 Get inspiration from Other Niche Online Stores
Before you start a niche online store, browse through platforms that are similar to what you have in mind. Analyze the platform’s strengths and weaknesses in order not to make the same mistakes or create a better version.
This can serve as a guideline on how to set up your page. One has to be careful while doing this so as not to plagiarize another store’s content and get sued for intellectual theft. The essence of this is to get inspiration and motivation on starting your niche online store.
#7 Show Your Expertise Within Your Niche
Showcase the expertise and customer service rating of your brand and product to create a level of trust between you and your potential customers.
With cyber scams and crime on the rise, an online store needs all the reliability and transparency it can show to pass a positive impression on its target audience. People are skeptical about making purchases from online stores they do not trust.
You can start a niche online store by using the best online store builders such as Wix eCommerce, Shopify, and Zyro.
Wix eCommerce is one of the best online store builders that gives you access to more than 500 beautiful pre-designed online store templates. This platform is suitable for entrepreneurs that want to start their online store and retailers who want to move their business online.
3. Build an Online Course Empire
The methods of learning are ever-evolving. If you want to get a degree or certification, the popular way is to go to a classroom to acquire knowledge and learn. With the help of technology, you do not have to be in the four walls of a classroom to acquire knowledge.
Online courses are quickly becoming a preferred method of learning for many individuals. This method of learning has the advantage of a flexible work schedule and lower costs.
You can pay for online courses created by individuals outside your geographical space and complete the course without incurring travel expenses.
Building an online course empire is a passive income idea you can use to generate massive revenue. Your ability to share your knowledge and turn it into something valuable that others can learn from can be both rewarding and profitable.
Many professionals are making a lot of money by sharing their ideas and information online with people from various parts of the world.
You can build an online course empire by listing your courses on the best online course platforms such as Teachable and Thinkific.
Teachable is one of the best online course platforms for creating online courses and coaching services. This platform has helped 100,00+ curse creators sell over $1 billion+ in courses and coaching.
Thinkific is an online course platform that helps content creators turn their expertise into earned revenue with online courses. With Thinkific’s free plan, creating an online course does not have to cost you a cent. You enjoy total control over your course from designing your course website to marketing your online course.
How to Earn Passive Income By Building an Online Course Empire
#1 Choose a Profitable Topic
To build a successful online course, the first thing you need to decide is what you want to talk about. What do you have adequate knowledge about that you can share or transfer? What knowledge do you have that people will be willing to pay for to acquire?
You need to define your target audience as well as the sector you want to go into. If you decide to write a Tech related course due to the recent high demand for such courses, you have to choose a topic that you will base all your teachings on.
When picking a topic, pick and stick to a profitable niche so you do not go off track and confuse your audience. Picking a topic is the most important part of building your online course empire. If you choose a topic no one is interested in, you will end up making no sales and impacting zero knowledge.
#2 Create a Solution to the Problem of Your Target Audience
The essence of creating an online course is to either share knowledge or provide a solution to a general problem. Successful online course creators provide solutions to an existing problem.
When creating an online course, you have to provide value to your readers. To be more efficient, you can create a comment section for your audience to put in questions or areas that would like you to explain more.
You can also create an email group where intellectual conversations and questions can be reviewed to better provide more information in your subsequent lecture series.
#3 Create Content for Your Course
The way you organize and structure your content is very important. It decides the whole outlook of your course and how your audience will view it. You have to create learning experiences that inspire testimonials and comments that encourage potential customers to patronize your online course.
People like to get the worth of their money. When you create content that gives people their money’s money, you earn loyal subscribers who will continue to patronize your course. Your online course can take two forms: text and videos. You can also combine both forms for a richer experience.
Always create quality content that attracts and engages viewers. If your content is not engaging enough, it will not only affect your business but also your subscribers who end up not finishing the course and leaving a bad review.
#4 Protect Your Content from Intellectual Theft
After going through the trouble of picking a course, making content for your course, and marketing it, the worst experience would be to have someone else claim credit for your work and make money off it.
Content is vital in the information and educational business. You need to protect your content with all means possible. Quality content can make your whole career and when the originality is lost, it loses value for whoever came up with it.
You can protect your content through the following ways:
- Get a trademark
- Timestamp your content
- Print and mail your content yourself
- Watermark your content
- Have a copyright policy
#5 How Much to Charge for Your Content
One mistake many new content creators make is to undersell their content or value. Before you place a price tag on your online course, you need to carry out quality market research to know what your competitors charge for a similar course.
Underpricing your online course may seem like a good idea to attract buyers but oftentimes it reduces the value of your course in the eyes of your target audience. The goal is to strike a good balance in your course pricing by not overpricing or underpricing it.
You can conduct A/B split testing on your marketing campaigns to confirm if your audience is interested in buying your course at different price ranges.
Another option is to introduce your course to your market at a low price and then slowly increase the price while adding more value to the course. As you increase or price your market with this option, this gives off an added value. Human psychology believes the more expensive an item is the more value it has.
Successful online course creators use different pricing strategies such as competitive pricing strategy, value-based pricing strategy, penetration pricing strategy, and dynamic pricing strategy to arrive at different prices for their courses.
#6 How to Market and Launch Your Online Course
How you market and launch your online course will determine the level of success it will achieve. This is why most people invest heavily in marketing strategies that can push their content out there after they launch it.
You need to launch your online course the same way you would launch a physical product. Your marketing campaign for your online course can start with running ads on your social media. You can put the link in your various social media bio and continue to write, tweet, mention, and talk about the online course.
If you have a podcast, you can talk about the significance and benefits of your course on it. You can also use influencer marketing and advertise your course on podcasts and other platforms where your target market visits.
Other options for marketing your online course include offering discounts for a specific period after the launch. You can also offer free resources on your landing page in exchange for interested people subscribing to your email list.
Building an email list is essential for running a successful online course empire. By collecting emails of your course buyers and your target audience, you can retarget them each time you launch a new course to add to your online course empire.
4. Buy Real Estate and Make Money with Rents
Investing in real estate is one of the ways you can earn passive income. This popular form of investment where people buy lands to sell much later at a higher price due to the appreciating value lands have has been around for ages.
Lands have always had an appreciating value. This type of investment model has made lots of people millionaires and even billionaires.
Former US President Donald Trump made his fortune from investing in real estate. Donald Bren who has a net worth of $16.2 billion is the richest real estate billionaire in the U.S. His company Irvine owns more than 126 million square feet of real estate.
When venturing into real estate, one has to be very careful. In the same way, you can easily make money from real estate, you can easily lose it when you make a bad real estate decision. Before you start, you need to have adequate knowledge of buildings and lands in order not to make a bad purchase.
You have to consider the location, the soil, the building structure, and building materials. If a building is not well structured, you stand to lose not just money but lives as well.
Best Revenue Models for Earning Passive Income from Real Estate Investments
There are different ways to make money in real estate, you just have to decide what type or aspect of real estate you want to venture into.
Flipping is the act of buying homes or houses just to renovate and furnish then sell. Many people have made a lot of money from flipping houses on real estate money.
Unlike other passive income ideas, investment in real estate requires more money and capital to succeed. Inflation is a very key factor in increasing a property’s value over time.
Don’t have capital? You can apply for a business loan to start your real estate business. Always make informed decisions so you can make a profit and pay back your loan.
Different countries have different rules when it comes to real estate. This is why you have to have vast knowledge about your countries’ laws when it comes to real estate so you do not get into legal troubles that can affect this passive income stream.
You can earn passive income by investing in residential property. The demand for residential homes is always on the rise as the world’s population keeps increasing.
People are moving out from their parent’s home in search of an apartment to call home, people changing residences, and then you people relocating to a new space.
Many homeowners are making a fortune by renting out their residential properties to potential tenants. The benefit of renting out a home compared to selling the home is that you still own the property. However, note that it takes a longer time to recoup your investment in your property when you use the renting model.
You can join the league of real estate investors earning passive income from buying lands and buildings and then leasing them out for residential purposes.
Airbnb is an American company that operates an online marketplace for lodging and primarily homestay for vacations and rentals.
Commercial real estate is a property used exclusively for business-related activities as against residential purposes. This type of real estate is often leased out to tenants to carry out business-related activities.
Many real estate investors invest in lands and commercial spaces where they make daily, monthly, and yearly gains. This involves signing up contracts and agreements to hold these places for a minimum amount of time.
Commercial real estate is a broad category that can include office spaces, single storefronts, shopping centers, restaurants, hotels and resorts, strip malls, and healthcare facilities.
A hotel is a form of commercial investment where an investor buys land or rents space to people who need a place to stay for a minimum number of days.
Unlike other real estate ventures, hotels are mainly about hospitality and they are a great way to generate passive income for the business owner. This is an operational area that works 24/7 and caters to the needs of its customers.
Hotels are real estate investments that can earn you daily income compared to other real estate businesses that tend to take longer periods before you start earning income.
The land is the foundational level of investment. You can generate short-term or long-term gain from it depending on the location or the space.
When venturing into this sector of real estate, you need to have an adequate academic and knowledgeable understanding of lands. Different laws are guiding the acquisition of lands in different countries. If you do not have enough knowledge, you can get into legal trouble or end up being scammed.
Investing in land depends on what you intend to use the asset for. If you want to use it for agricultural purposes, you have to ensure the soil is good and the environment accommodates your plan. For residential or commercial purposes you need to secure it in a good location where you can make your profit.
This type of real estate investment is solely for the production of one or more agricultural commodities or produce. This is one of the lucrative ways of making passive income in the real estate industry, however, it is a long-term gain.
Agriculture is broad and involves several sectors. There is the cultivation of land for growing crops. If you are investing in real estate for this purpose, you have to find fertile land suitable for growing the type of grows you want to cultivate.
Investors looking to venture into livestock have to ensure the environment and water availability are secured before setting out to purchase a property.
Academic exposure to this sector is very important. There are several factors you need to consider before making this investment. One of the biggest is the existing laws around agriculture.
Many countries offer several incentives for investing in agriculture. Agriculture is a big part of human life which explains why it gets all the support from the government.
Without adequate knowledge in this sector, one can lose one’s savings and profits. Bad choice of land, planting the wrong crops, weather and season can bring total loss to your investment.
5. Create and Sell Dozens of eBooks
With more book publications available in digital form and the eBook industry growing rapidly year after year, eBooks are one of the best ways to earn passive income. eBooks make it easy for you to access content from anywhere in the world without having to carry a physical book.
In the early 2000s, there was a move of print and e-book sales to the internet. This move allowed people to access their favorite books from their internet-connected devices.
Many authors publish their articles and books online to their community of readers and earn passive income from it. Creating and selling eBooks is a lucrative passive income idea you can use as a side business to increase your income.
Before the advent of eBooks, you had to either buy or order materials, go to the library to have access to most of these materials. With e-books, you get to have a stress-free production and a wider range of readers.
You can earn passive income from creating and selling dozens of eBooks on eCommerce platforms such as Sellfy and Amazon.
Sellfy is a cloud-based eCommerce platform designed to enable digital content creators to sell their products or services. Content creators can open their online stores and sell their products to their target audience with this online sales platform.
Amazon is an American multinational technology company that focuses on eCommerce, cloud computing, digital streaming, and artificial intelligence. This platform helps you to earn passive income by letting you create and sell eBooks on its website.
How to Earn Passive Income by Creating and Selling eBooks
#1 Decide What You Want to Write About and the eBook Title
When creating an eBook, you need to write about something you have enough knowledge about to hold the attention of your readers and keep them engaged.
Most eBook creators start writing only to lose focus or stop halfway. Many times this is either because of writer's block or distractions. Before you start writing, you have to first think about what you can write about. You can start with a personal experience you think people can relate to.
Pick a title that represents the body of work you have created. Use a title that gives the readers an idea of what your eBook is about and also catches their attention. When creating your eBook title, you have to be creative and keep it short and simple.
#2 Research Your Target Audience
Determining your target audience is essential for creating and selling eBooks. You need to know who your target audience is before you start writing your eBook. This will help you make the eBook more relevant and engaging for them.
#3 Edit and Proofread Your eBook
Once you finish writing the eBook, the next step is not to publish but to review it. Although you can proofread and edit the eBook yourself, it is best to seek professional help to help edit and proofread your content.
The essence of this is to seek a second opinion and check errors to make corrections and produce the best eBook quality possible.
#4 Get Cover Art, Images, and Graphics
You need to get cover art for your eBook. In addition to the title, the cover art or book cover is the first thing your target audience will view about your eBook.
Choose a design that is attractive enough to get viewers to want to read the eBook. The presence of images and graphics in your book can make it more attractive and engaging.
#5 Convert to PDF or EPUB Format
The medium through which you publish your eBook is important. The best format for publishing eBooks online is non-editable file formats such as PDF and EPUB.
Using editable file formats will make your eBook get disorganized and lose its structure when your readers open it. To make it well organized and structured, you have to put it in a PDF or EPUB format.
#6 Promote Your eBook
You need to create a marketing strategy to promote your eBook to your target audience. Some of the best eBook promotion techniques you can use include SEO, email newsletters, social media ads, promotion of book clubs and channels, and others.
#7 Keep Track of Your Sales
Through Google Analytics you can track your sales, subscribers, and the number of people that engaged your eBook.
6. Start Your Own Podcast Show
Many people are making it a habit of listening to podcast episodes more than ever before. Podcasts are episodic series of digital audio files that are pre-recorded so they can be easily adjusted and edited.
Although blogging is still popular, there are growing market opportunities for podcasts. With over 600 million blogs and only 800,000 podcasts on apple podcasts, this is the best time to start a podcast.
The podcast world is still less competitive and crowded compared to the blogging world. This makes it a smart passive income idea that one can start with less money and equipment.
To start your podcast show, all you need is a good quality microphone, a PC, and a headset. Note that this is for a one-person starter pack.
You also need a platform to host your podcast. BuzzSprout is a software tool that makes your podcast hosting simple and a pleasant experience. With BuzzSprout, you enjoy easy and powerful tools you need to have a successful podcast.
Some of these tools include powerful reporting features, promotion tools, and publishing tools. You also get free learning materials that cover everything you need to know to run a successful podcast show.
How to Earn Passive Income from Starting Your Own Podcast Show
#1 Choose a Topic and Sector to Talk On
Before you pick a name for your podcast show, you need to choose a topic and sector that you are basing your podcast on. Failure to specify this and stay within a particular topic and sector will make it hard for your podcast to attract listeners.
Pick a topic that you have adequate understanding and knowledge about. However, you do not necessarily have to be a guru or have vast knowledge to delve into a sector. You can always bring guests on the show or subsequent episodes as the topic unfolds or have a co-host that specializes in it.
Your topic influences your name and brand. For instance, if you decide to pick sports, you can pick a name that relates to this.
You have to find a niche you can stick with so you do not end up talking about different things that you lose your audience. Choose a topic you want your podcast to be identified with.
#2 Pick a Name for Your Podcast Show
The fact that this is a relatively young and rapidly-growing online business makes creating a podcast the best passive income idea to venture into right now.
When choosing a name for your podcast show, you have to decide what you want to talk about and what sector it falls into. For instance, if you are going to be talking about sports or entertainment, you have to pick a name your audience can relate to and are familiar with.
#3 Co-host/Guest Appearance
This is an optional part of starting a podcast. Most podcast shows have a co-host to bring a second opinion into the conversation.
A co-host serves as a form of balance and naturally brings a more engaging conversation to the show. This can help lessen the workload of editing and promoting the show.
Guest appearances also bring more flavor and content to the show. You need to be strategic when bringing in guests to your podcasts. One technique many podcast hosts use is to invite guests with a large following to increase their podcast views and possibly gain more loyal listeners.
Overall, you want to find a co-host or invite guests that will make your podcast show better.
#3 Come Up with a Style and Playlist
You need to come up with a way of approaching your audience and your style in the various episodes. Some common styles used by other podcasters include the interview approach and the solo approach. Then create a playlist of songs and theme music that reflects each episode and topic.
The essence of music is to create a calm and entertaining atmosphere where your listeners can relax. This creates a soothing environment where the audience feels like they are having a friendly chat with a friend.
Deciding which soundtrack to use and when to use them takes a lot of effort. Every soundtrack has to come up at the right moment. You can also decide to use your unique podcast’s soundtrack at the beginning and the end of the podcast alone.
#4 Podcast Equipment
As a starter looking to start your podcast while incurring minimal costs, you can start a podcast with your microphone, headset, and PC. Because of the lack of sound control devices, you need to record your podcast in a quiet environment where you can easily filter sounds with sound filter apps.
You can buy more sophisticated equipment to create better podcast episodes once you start to gain more listeners. They improve the podcast’s sound quality. Some of this equipment includes recording software, noise-canceling headphones, and the audio-Technica ATR2100x-USB.
#5 Recording and Editing
This is where most of the work is done. Recording a podcast episode and uploading it to your listeners without editing it first can affect the reputation of your podcast. What happens when what you upload is bearable audible or filled with mistakes?
You need to take time to edit all your recordings before you upload them. When recording, some irrelevant parts may get mixed into the recording especially at the start or at the end. You need to edit the recording thoroughly and cut off irrelevant parts to make the recording as brief as possible.
The editing stage is where your recording gets polished before it is uploaded to the public for consumption. This is where you can add your intro music, edit the sounds, and record parts that are missing.
Use podcast recording software such as Alitu that makes your podcasting processes simple and efficient (all you have to do is upload your file and the software does the rest).
#6 Promote Your Podcast Show
To properly promote your podcast show, you need to create cover art that represents your brand and gives a good first impression of what your podcast is about.
The essence of this is to give a welcoming look, something that attracts listeners to your page and creates a form of curiosity in their minds. This cover art can be used to promote your show on different social media platforms.
Promoting a podcast is not quite different from promoting a blog. You have to run media campaigns that do not just bring visitors to your page but make them stay enough to listen and be interested in what you have to say.
There are several ways you can promote and market your podcast.
- Paying for ads
- Asking people to subscribe
- Show reviews and other listener’s positive feedback about the podcast
- Create an email list where you can update and check in on your listeners
- Create an interesting community and relationship with your listeners
7. Launch Your Exclusive Newsletter Business
A newsletter is a tool employed by business entities or organizations as an efficient strategy for sharing valued information with their respective customers.
Newsletters are very important for businesses as it provides a platform to increase awareness of their products and services, and the company. Businesses use newsletters to increase the coverage of their target audience.
The newsletter business is one of the fastest-growing businesses in the world today that allows newsletter business owners to have direct access to their customer’s inboxes.
Newsletter businesses also avail owners of the opportunity to share exclusive content while promoting sales and driving traffic to their site. With the right strategy employed, exclusive newsletter businesses can deliver stable return on investment (ROI) in addition to a variety of added benefits.
Using the appropriate software tools to run your exclusive newsletter business is a huge plus. These software tools save you time and make the process more convenient for business owners.
Many engaging email newsletter examples use software platforms to create and send mass newsletters to their email list. You need email newsletter tools such as ConvertKit, Constant Contact, and GetResponse to help you launch and run your exclusive newsletter business.
ConvertKit is an email marketing service that helps you grow and build your email newsletter. Over 500,000 creators use ConvertKit to connect to their audience. This software helps you create long-lasting connections with your audience through its wide range of features such as powerful sales funnels and email editor.
Constant Contact aims at providing efficient email newsletter solutions to a variety of businesses. This platform boasts of easy-to-use features such as email marketing automation and eCommerce integrations, with a multi-channel support system to help with issues as they arise.
GetResponse is a powerful and simple tool for creating and sending emails and automating your email newsletter campaigns. You can create an exclusive email newsletter by making use of the available templates as well as the drag-and-drop email editor feature.
Best Revenue Models for Earning Passive Income from Your Exclusive Newsletter Business
You can diversify your income streams easily with adequate investments in exclusive newsletter businesses.
#1 Sales of Sponsorship
Sponsorships are the backbone of many newsletter businesses. They are the primary source of revenue. This can include a direct partnership with native email ads, dedicating your newsletter to a particular sponsor, or displaying snippets of sponsorship articles.
#2 Seek Donations
Most reputable newsletter businesses operate an easy and obvious donation-seeking network. Donations are majorly a result of proper appreciation of the value of your content in your newsletter.
The donation network needs to be adequately exploited to roll in enough revenue needed to keep the business going. In your effort to get donations, you need to ensure the process involved in placing donations is easy enough in order not to discourage potential donors.
#3 Publication of Premium Editions
The process of creating a premium edition of your newsletter and selling it at an affordable fee is one of the major starting points of an exclusive newsletter business. You can also do a free-based edition aimed at catching intending customers and converting those to active subscribers.
Your focus should always be on providing your paying subscribers with enough value to keep them wanting more.
#4 Run Programmatic Ads
Programmatic ads help input ad placement in your newsletter by the simple means of a lightweight code. Most people consider programmatic ads as spam.
To beat this perception, you need to ensure that your ad placement has a substantial cover and blends in well with your newsletter content. Special emphasis should be placed on the font, color, and format.
Programmatic ads can step in to replace native sponsorship in extreme cases where you do not have a sponsor for a particular edition. By simply pasting your ads code, you can turn your newsletter into a revenue ramping machine.
8. Invest Money Using Crowdfunding, P2P Lending, or Robo Advisor
Investment platforms allow potential investors to buy and hold investments. These platforms provide relevant information on investment opportunities as well as news that can have a deliberate impact on investments.
Investing money is one of the best ways to earn passive income. Some of the best ways to invest money are by using crowdfunding, P2P lending, or Robo advisor.
Crowdfunding is the practice of raising money for the funding of a business or project through the small contributions of a large group of people. From an investor’s perspective, crowdfunding is the easiest way to generate funds for your business.
There are several crowdfunding investment platforms available in the market. They can either be security-based, donation-based, reward-based, real estate, or human capital crowdfunding.
Businesses and organizations often make use of crowdfunding investment platforms to raise capital for their operations. This provides them the opportunity to network with a large network of investors.
Investing in crowdfunding platforms helps contribute to the growth of the business and you become a direct beneficiary of the business’ proceeds.
Peer to Peer Lending
This is a platform specifically designed for people to provide lending services to individuals or business entities. Investing in peer-to-peer lending is a lucrative way of generating passive income. You receive interest in your investment.
The peer-to-peer lending platform is a financial marketplace that brings potential investors to loan seekers. Peer-to-peer lending platforms offer a considerably larger interest in return on investment than the traditional financial institutions would guarantee.
Robo advisers are digital platforms that provide financial planning and management services without human presence. They rely solely on previously gathered data in proffering solutions to new clients on their financial situation and the best way forward. Robo advisers also assist clients in investing their assets.
Best Revenue Models for Earning Passive Income from Investment Platforms
Investment platforms such as Crowdfunding, Peer to Lending, and Robo Advisors offer great opportunities for potential investors to earn lots of passive income.
#1 Fees and Commissions
Investing in these investment platforms comes with special offers of fees and commissions to be paid on the investment. These fees are charged to the borrowers and it is shared between the investment platform and the lender.
Certain commissions are also placed on loans given to different individuals, As an investor, you are a direct recipient of these commissions.
#2 Interest on Investment
Investing your money with investment platforms and seeding it out to loan seekers is one of the passive but efficient ways to make money.
You tend to generate significant interest on your investment through various investment platforms all at the expense of the borrower. The interest percent usually differs and is dependent on the amount the borrower requires.
#3 Trading Commodities
You can make money through trading commodities on investment platforms by investing directly in the commodity itself against a future change in the price of the commodity. Buying shares of companies that manufacture these commodities can help generate more money for you.
#4 Peer-to-Peer Lending
This can be an efficient way of earning passive income and involves seeking financial aid in the form of capital from investors on a worthwhile project venture.
Unlike many business founders, the aim of peer-to-peer lending is finding a loan. You generate passive income as an investor once the lender pays back at a pre-discussed time frame with interest.
#5 Index Funds
An index fund is a combination of stocks and bonds grouped based on specific qualifications. Your index fund is efficiently managed by a mutual fund manager that helps save you money as you are not required to pay for the services of the mutual fund manager.
With the inclusion of a mutual fund manager, the likelihood of decisions influenced by personal conflicts is eliminated. This helps increase your return on investment.
#6 Investing in Yourself
Making a significant investment in yourself through skill acquisition improves your money-making capabilities.
Investing in yourself can help you generate more passive income from your investments as you are better vested with the investment market. Most investment platforms offer significant programs aimed at making you a better investor.
9. Become an Influencer on YouTube or Instagram
You can earn passive income from becoming an influencer on YouTube or Instagram. Social media influencers are individuals with a high number of followers on social media platforms. They boast loyal and engaging followers who seek their pages for several reasons.
Social media influencers are indeed role models to their loyal followers as they often thrill them through their daily life routine and spell out their life choices for all to see.
Due to the ease of accessibility that social media platforms provide, social media influencers can build an interpersonal connection with their followers. This provides social media influencers with the much-needed leverage to be able to woo their followers to make business-based decisions based on their recommendations.
One of the main distinguishing factors among the high number of social media influencers buzzing around is their content. Content forms the basis of your connection with your followers and it should be kept as professional and fun-thrilling as possible.
Best Revenue Models for Generating Passive Income from Becoming an Influencer on YouTube or Instagram
#1 Sponsored Posts
Sponsored Posts are one of the major ways influencers make money through social media. This involves promoting brands and products through posts on your social media page. Reviews, as well as information about the products, are posted alongside to aid effective marketing.
The amount of money you can earn from sponsored posts as a social media influencer depends on your followers count. The more followers you have, the more passive income you can generate.
#2 Become a Brand Ambassador
You can secure contracts from different organizations to be their brand ambassador and earn money from it. You are also likely to get free products from the brands you associate yourself with.
#3 Earn Passively Through Affiliate Marketing
Leveraging affiliate marketing is a great way of making money as an influencer. With your huge follower base, you are almost guaranteed to rake in a high number of referrals through your unique referral link.
This is a smart way of utilizing your popularity as you earn commission by simply converting your followers to the brand.
#4 Sell Your Photographs
This is one of the most underutilized ways of making money through social media. This method involves selling your high-quality taken photos to intended buyers on your follower’s stream. However, note that you need to have a strong reputation (almost celebrity-like) among your audience to pull this off.
10. Make Passive Income with Stock Photos
Stock photos are pre-taken photographs edited and ready to be used. They are usually not free and require special licensing from the photographer before being used.
The process behind stock photos involves photographers turning their work to stock photo agencies or companies which assist in putting your work out there in the market space through their respective catalogs.
Income generated as a result of licensing of these stock photos is shared between the photographer and the licensing companies in certain percentages.
Best Revenue Models for Generating Passive Income from Stock Photos
Passive income can provide money to intending stock photographers in a variety of ways.
#1 Sales of Your Stock Photos Online Through Stock Libraries
An efficient way to buy and sell stock photos is through a stock library. You get a percentage of the sales of licensing for your stock images as a stock photographer. This is an efficient passive income stream.
#2 Sale of Your Stock Photos as Prints on Social Media Platforms
Unlike selling through stock libraries, selling your stock photos as prints online through social media can be a more efficient passive income earner.
Simply by taking photos of certain products and sharing them with affiliate links, you can earn a commission when people make purchases through your link.
#3 Sale of Images as Photo Books
Sites like Blurb, a self-publishing platform offer stock photographers the opportunity to publish and sell their finished photo eBooks to a large customer base.
#4 Become a Freelance Photographer
The process of selling photos anonymously on the internet has proven to be one of the best ways to earn passive income. You need to know your photography niche as well as work out an efficient and affordable rate to enable you to maximize the best out of the freelance photography market.
With the freelance photography market booming, you should consider getting a press-free pass as well as offering your skills for a series of events and functions.
11. Buy a Small Business and Install a Great Management Team
A great management team is a network of professionals who implement efficient strategies in changing the outlook of a business venture.
The management team works hand in hand with the business owner in taking bold steps in changing the face of the business. Small businesses benefit from these new changes as they often experience notable growth in business operations.
As an intending business owner, buying an already thriving small business often comes with a lot of challenges you have to resolve. Seeking the services of a notable management team to help you through the initial business stage is critical to the longevity of the business.
The management team is at the top of the decision-making process of a business organization. The team of managers leverages efficient cooperation and communication to meet the needs of the business. The decisions made by the management team are usually aimed at the future of the business as they always look ahead to the next big step for the business. You must create an atmosphere of trust between you as a new small business owner and your new employee management team as It helps boost the fate of the business.
How to Earn Passive Income from Installing a Great Management Team for Your Newly Acquired Small Business
The primary purpose of introducing a management team to a small business is to boost the profit margin of the business.
#1 Focus Primarily on Customer Service
A great management team usually comes with efficient strategies on how to improve the business. At the core of these strategies is effective customer service.
Studies have shown that good customer service increases the profit outlook of a business entity by almost 50%. Improving your customer service relations can be the core of your money-making process as a new small business owner.
#2 Expanding Marketing Efforts
An efficient marketing strategy is a major boost to the sales department of your business organization. An efficient marketing strategy is one of the perks that a great management team brings to the business operation.
Good marketing strategies usually come with a lot of costs but there are inexpensive strategies you can employ to cut down costs and generate a good ROI.
#3 Building Online Presence
With the world constantly moving deeper into the digital age, small business owners need to move with the trend.
With the vast majority of your customers constantly on the internet, you must position your strategies towards securing the interest of your intending customers. Moving your business online can generate enough profit to balance your books for the fiscal year and drive in more sales and revenue.
#4 Updating your Business Plan
A business plan is strategic for every new startup and established company. With the introduction of a great management team, your initial business plan needs to be revisited and edited to meet strategic needs.
Great management teams often come with significant changes to the business operation in a bid to improve the profitability of the business. You must make changes to your business plan to complement the new management strategies.
#5 Cut Business Costs
In a bid to post significant numbers in your newly acquired business, great management teams would recommend cutting your operations cost by a significant amount.
Keeping expenses in check is crucial for the survival of a business. Regular tracking of your operating income and expenses is vital. Make cost-effective changes to help save you money.
12. Buy and Sell Domain Names
Buying and selling domain names can generate an extra source of income for you. Domain names can be a form of investment, which appreciates with time depending on how unique or relatable the name is.
The tech world is evolving with popular names, business names, and catchy tech phrases becoming hot sales for web platforms. For example, the highest domain name of all time “business.com” was sold for $345 million. This goes to show buying and selling of domain names is a profitable passive income stream.
Domain names are unique and relatable names to particular businesses that represent and entail the content of your platform. To start making money from this passive income strategy, you need to build an online presence on a “keyword” domain name.
How to Earn Passive Income from Buying and Selling Domain Names
#1 Find Domain Names
When picking a domain name, you need to make use of simple, short, and relatable names that your target audience will find attractive enough to pay for it. You need to check the availability of the domain name chosen on domain name registrars such as BlueHost and GoDaddy.
Buy domain names through domain hosting services such as Name Cheap, Domain.com, Dynadot, GoDaddy, and NameSilo.
You need to be careful when picking or buying a domain name to invest in for it to appreciate. If the name is not catchy enough for your target audience, it might not sell or end up reducing in value.
#2 Set a Price Tag on Your Domain Name
The act of buying and selling domain names is called domain trading. What this means is that you either build a website from scratch including the domain name and sell it for a profit or you are strictly in the business of buying domain names and selling them for higher prices.
Before you put a price tag on your domain name, you have to know its worth. You can know this by using tools such as Free Valuator and Domainindex.com. Then set a price tag on your domain name and auction it on websites such as GoDaddy, Flippa, and Sedo.
#3 Drive Traffic to Your Domain Name Auction
You can create a landing page using ConvertKit to drive traffic to your domain name auction on your website. While buying or selling domain names, you have to be very careful not to get defrauded. In some cases, a domain name might have been stolen and put on sale which can lead to court cases.
Investing in domain names comes with its challenges. Finding a buyer can take a very long time especially when the domain name bought does not hold a strong appeal to your target audience.
When buying domain names, ensure that the name or phrase used has not been trademarked. Using trademarked names can bring about lawsuits in which the domain name will be withdrawn without compensation.
13. Start a Software Business
The evolving tech world has created passive income ideas for techpreneurs. Such passive income streams include starting a software business where you build or buy and sell software for a profit.
A software business is the buying and selling of software, which includes installation, consultation, development, and distribution of software. You can start a software business by obtaining a degree in computer science or taking programming classes and gaining knowledge in a variety of computer languages as well as coding.
Knowledge in business and taking accounting courses and financial classes would help gain more ground in this sector. As it takes a vast knowledge to start this business, one can team up or employ others to fill up the deficits.
How to Earn Passive Income from Starting a Software Business
#1 Identify the Problem the Software Will Solve
To start a software company, you need to ensure that the software you want to develop solves an existing problem of your target audience. If the software you are developing does not address or solve the issues your target audience face, you will have a hard time making sales.
You can use surveys and other market research techniques to find out the needs of your target audience and then use this knowledge to design software that helps solve this problem.
#2 Identify Your Target Audience
You need to identify the buyer of the software you plan to develop before you create it. Choose your target audience by different factors such as age range, social class, tech sophistication, and others.
#3 Market Research
Before you put money into running a software business to generate passive income, you need to first undergo critical and thorough research before putting in money and time into it.
If the software idea is already in the market, study your competitors as part of your market research. Check out the strengths and weaknesses of your competitors. Use this knowledge to create better software to give you that competitive edge in the market.
#4 Take the Legal Side of the Business Seriously
Many businesses, especially small-scale businesses, pay little attention to the legal side of their business. This can prove costly for the software business.
Before you start partnering with other people and forming your team for your software business, you need to get a lawyer to protect your business and product (software) from intellectual theft. You can also register a trademark for your product.
#5 Setting a Plan
Create a business plan that will guide you in making business decisions and mapping out your target audience. While identifying your market strategy, you must also decide the types of partnerships you want and the type of brand you want to associate with so as not to mix with brands or individuals that will contradict your product or services.
You need to have the skills and programming knowledge in software development so that when you hire developers you will be at an advantage.
However, if you have basic knowledge in the software business, you can partner up with software-savvy people who will handle the software development process while you handle the business part.
#6 Carry Out Beta Test
There is a reason why almost every software company is running beta tests before they officially launch their products into the market. Beta tests help you identify bugs and other problems in the software so you can conveniently correct them before you launch the software.
Create a mock product and use a beta test to get public opinion about the efficiency and suitability of the software.
#7 Offer Free Trials
Offering a free trial of your software product is a great incentive to get your target audience to try out your software. During this trial period, your target audience has access to your software for free and gets a full experience of your software. If the user experience is good, they will end up as subscribers or buyers.
#8 Show Visual Representation of How Your Product Works
Create a short clip or pictorial representation to show users how to operate the product or show features that create solutions to their needs.
#9 Offer Money Back Guarantee
Your target audience is by human nature unwilling to pay for your software unless they have enough guarantee to base their buying decision. By putting out a money-back guarantee policy, you gain more customers.
14. Sell Printables on Your Own Website
Printables are pieces of artwork, drawings, or graphic designs that can be downloaded online or printed. Certain printables are free while some are sold and purchased on sites like Etsy.
Various tasks need planning and organizing. Printables make it easier to achieve these tasks. Examples of printables include calendar planners, meal planners, stickers, and journals. You can also make use of a printable to sell your project and ideas online.
Selling printables is a passive income idea that can create profits for you. The exciting part of this passive income idea is that you do not need to be a graphic designer to start this business.
You can create your own printables even if you are not a graphics savvy person by looking out for available printables online. However this is not for you to copy and paste other people's work and images, this is for you to learn and understand how to create yours. This is a passive income idea that once created can be used or sold over and over again.
Before you can sell printables online with your own website, you need to create and host your website.
Bluehost is one of the best web hosting platforms available in the market. Thanks to its integration with WordPress, you can enjoy drag-and-drop WordPress builder in addition to its web hosting service. You can use Blue host to host your website where you plan to sell printables.
Shopify is an eCommerce platform that helps you to sell online with your own eCommerce website. With this platform, you can start your own online store to sell your printables. Shopify offers you a wide array of mobile-responsive themes.
How to Earn Passive Income from Selling Printables on Your Own Website
#1 Find Printables Templates
Gather templates of printables that closely resemble what you intend to create. If you have no idea what printables to create, you can use these templates to find inspiration for your work. You can find templates of printables with a simple Google search.
#2 Sketch Out Ideas and Design Them
Create several sketches of the printables you want to create. You can create, edit, and design printables for free with word processors such as Microsoft Word, spreadsheet, free PDF editors, and graphic design tools.
#3 Put Price Tags on Your Printables
Placing a price tag on your printables without doing proper market research will make them record little or no sales. You need to put a price tag that indicates the worth of the printables but also reflects what your target audience can offer.
If you have no idea what your printables should cost, you can always check out the price that other sellers price their printables.
15. Design and Sell T-Shirts or Greeting Cards
Clothing items have always been a way people express themselves and even promote their business. From musical artists selling merch to business owners designing clothes to promote and create awareness around their product and brand, clothing is an evergreen niche for earning income.
This has since become a household business that you can invest in as a side hustle. Passive income ideas such as this are quite affordable to start.
During festive seasons or celebrations, cards and T-Shirts are very popular and widely used. This means more money for people in this line of business. For instance, during Christmas and Valentine seasons many people buy designed cards to gift their loved ones to show love or appreciation.
This is not limited to festive seasons alone as business owners also make use of business cards to introduce their business and give direct access to their business line.
Before you decide to design and sell T-Shirts or cards, you need to have adequate knowledge of clothing and designs before you start your business. However, you can always employ people who have enough experience to execute the job.
How to Earn Passive Income from Designing and Selling T-Shirts or Greeting Cards
#1 Choose a Niche
You need to choose a niche for your business to stand out from your competitors. When you have a niche, people will use this to easily identify you and your work.
The essence of choosing a niche is to help trademark your work and idea. When someone sees your work, they will know immediately that you must have made it. Niche businesses tend to do better than more generalistic businesses.
#2 Source Quality Materials
One reason why most businesses in this sector fail is that many business owners try to create or produce low-quality materials for higher gain. Avoid making the mistake of becoming too greedy for financial gains, especially in the use of substandard materials.
When you start putting out materials of low quality, people will ditch your product for other businesses that provide quality materials for even higher prices. Most household names are established and known due to the quality and standards they have associated with their brand.
Designers like Gucci and Chanel, no matter how much they raise their price, will always have customers that will buy their product due to the quality they have associated with their product.
#3 Create Your Own T-Shirt or Greeting Card Design
When creating your own T-shirt or greeting card designs, ensure you are at your creative best. Create designs that are so attractive that your target audience will have an instant urge to make the purchase.
Your quality and design make you stand out. You can also be dynamic and follow certain social media trends which can help you generate more sales and ultimately more revenue.
#4 Set Up an Online Store
You need to set up an online store where you will display and sell your T-shirts and greeting cards. Creating an online store gives you a wider range and connection with online shoppers from different parts of the world. You can create an online store with online store builders such as Shopify and BigCommerce.
You can also sell your T-shirts and greeting cards on online selling sites such as Bonanza, eBay, Amazon, VarageSale, AliExpress, Etsy, and Handshake.
16. Become an Angel Investor and Invest in Tech Startups
Angel investors are individuals with excess funds at their disposal seeking ways of increasing their money through a higher rate of return on investments. They are notable for venturing into investment opportunities at the early stage of the business startup.
As the name suggests, angel investors come with much-needed capital to a business at its startup stage. The primary focus of angel investors is to help the business grow beyond its startup stage to a more formidable business entity.
Tech startups have proven over time to be the most lucrative site for angel investors guaranteed to generate high ROI. With the world constantly moving towards the technology age, investing in tech startups is just one of many choices available to angel investors.
You can pool your resources as an angel investor with other investors to invest in promising tech startups by using reliable angel investment platforms.
GetEquity is designed to provide angel investors seeking to generate money from investing in tech startups with information on investment opportunities. This platform also enlightens angel investors on how to trade in the digital security assets market while investing in small and medium-tech startups.
WeFunder provides angel investors the opportunity to make investments as low as $100 in tech startups of their choice. This platform charges potential angel investors a 2% fee pegged at a minimum of $8 and a maximum of $100 for bank and wire transfers and 3.5% through credit cards.
SeedInvest is a startup investing platform that helps angel investors invest in highly vetted tech startups. This platform boasts over 575,000+ total investors, $350 Million+ total raised, and 250+ successful offerings.
How to Earn Passive Income By Becoming an Angel Investor Investing in Tech Startups
The process through which angel investors make money through a series of investments in tech startups is called exit.
This involves directly purchasing a majority share of the tech startup company to give you significant control and a large sharing advantage of the profits in the future.
#2 Secondary Sale
Angel investors can make money through a secondary sale of their shares by selling their existing stock to a third-party intending stockholder. The proceeds of the sale directly benefit the angel investor in this case.
#3 Initial Public Offering
This involves willingly offering up your shares to a private or public corporation to raise capital as a result of significant investments from the incoming public investors.
17. Invest in Dividend Paying Stocks
A stock dividend is the distribution of profits that a company shares with the respective stock owners. As a shareholder in a company, you are paid a portion of the company’s profit based on the amount of share you invested.
Dividends are often paid 4 times a year quarterly, although some companies pay on a semi-annual basis or in extreme cases, annually.
Several platforms provide unsolicited support for new investors looking to take advantage of the dividend-paying stocks market.
Dividend.com helps educate potential investors by providing a well-analyzed system of over 1,600 stocks according to certain criteria.
Unlike most dividend-paying stock informants, Dividend Detective offers basic and advanced training while also providing spot-on information about the stock market.
How to Earn Passive Income By Investing in Dividend Paying Stocks
#1 Invest in Stocks that Pay Good Dividend
In the process of trying to select good stocks to make money from, a series of factors need to be considered. They include a proper understanding of the company’s operations as well as their financial position. Buying the best dividend-paying stocks is one of the best ways to make money from investing.
#2 Reinvestment of Dividends Received
This strategy simply involves making dividends from your already made dividend. You can either directly re-invest in the same stock or allow your money to accumulate and invest in other enticing stocks.
#3 Aim Investment at High Dividend Yield Stocks
Investing in higher dividend yield stocks generates more income for you but it often comes at a much higher risk on investment.
#4 Swapping of your Portfolio Holdings
With the inconsistencies in the stock market, at certain times, opportunities will arise for you to swap out your current portfolio holdings with new ones due to raised dividend rates by certain companies. You can also transfer your money from one stock to a fast booming one.
#5 Sale of your Portfolio Holdings for Homemade Dividends
You can sell shares of your dividend stock without waiting for a company to pay dividends. This can be done for stocks you are holding that have experienced a rise in value.
Passive Income Ideas FAQ
Yes, passive income is real. There are lots of people all over the world making fortunes from different passive income streams. Passive income is a continuous income stream that does not require persistent active work from the owner.
You can build passive income that will continue to create more income for you only after putting in a lot of work and investing time to create a fantastic product.
Everyone is looking for ways to create an income stream that will make them work less. Different people have ventured into various businesses that can make them attain this passive income idea. Passive income is achievable but it requires you to put in the initial work that serves as the oil for the passive income-making system.
You will not make passive income overnight or suddenly become rich from it. Many times it takes a while for these passive income streams to generate good revenue for you.
If you want to create a passive income stream, there are several types you can consider.
Create and Sell Digital Products: You can create online courses which provide rich value to your target audience and earn revenue from selling these digital products.
Affiliate Marketing: This is when you earn commissions for selling products or services for someone. Many people who blog and create YouTube channels use affiliate marketing to make more money.
Rental Property: You can invest in a rental property and earn money each time someone leases your property. Another option is to buy and develop real estate properties including land and sell them for a profit.
Dividend Stocks: Shareholders that have stocks with the company get paid at intervals. Companies pay from their profits to shareholders. Dividends are paid based on the share of stock you have. The more stocks you have, the higher the amount the company will pay you from its profits.
Create Software: Building an app is another way of making a passive income. This is an upfront investment. Once the app is created and out to the public, you start making your money. This app can be a game or something that helps users to perform a particular task. It must be able to catch the interest of your audience. You can run ads in your app or users can pay for certain features on the app. This will help you generate passive income.
There are several passive income streams that you can start with little or no money.
Start a Blog: Starting a blog is one of the best ways to get passive income without any money. You need to have a large audience to be able to monetize it to earn good revenue. People make a lot of money through blogging by writing content that their target audience wants to read.
Create a YouTube Channel: YouTube is almost like a blog but in video form. You make video content and attract viewers to your YouTube channel. Your content must be able to attract the audience and also keep them watching more of your videos. You can monetize your YouTube channel through your views, through affiliate marketing (advertising someone’s product on your YouTube videos and earning a percentage each time someone buys from your link), and selling your own products or services.
Publish eBooks: eBooks are a great way of making passive income. You write an eBook and publish it to Amazon or on your own website. You can promote it on your YouTube channel or blog if you have one. If you publish eBooks that people want to read, the money will keep on coming.
Create Online Courses: Creating online courses is a good passive income stream. This passive income idea involves creating courses that people need and selling them to them online. Creating online courses and selling them provides you with an extra source of revenue.
There are a lot of people who have made a substantial amount of money through passive income ideas. According to Forbes, The top paid Youtuber of 2020, Ryan Kaji, earned an estimated $29.5 million.
Bloggers also make a lot of money from passive income strategies. Ariana Huffington, the co-owner of The Huffington Post makes over $250million per year.
The amount of money you can realistically earn with passive income strategies varies and depends on your application.
Ready to Make Money While You Sleep and Gain Financial Independence?
Imagine sleeping and waking up to discover you have made some amount of money while you slept? That is what passive income ideas can do for you. If you want to gain true financial independence, passive income ideas should interest you.
Working around the clock to earn money may be a good short-term strategy but not so much a good long-term one. Ideally, you want to combine your current work-the-clock job with passive income streams to build wealth significantly.
Although passive income ideas can make you money while you sleep and provide you with financial independence, it is not an easy thing to achieve. You need to acquire the needed knowledge, put in the work, and most times financial investment to make the most out of it.
While it takes time to properly set up a passive income stream that generates revenue for you, that investment will pay out handsomely. By following the passive income ideas in this article, you will edge closer towards gaining financial independence.