Passive income is the holy grail for entrepreneurs. Passive income ideas are great, but how can we figure out which ones are not only profitable but consistently so?
In my opinion, getting familiar with the different types of passive income ideas is the first step to deciding which one is right for you.
Passive income comes from capitalizing on talents/skills that you possess and leveraging them in different ways so they bring in money for you. By applying these sources of income you are looking at what has been deemed to be the most consistent and profitable passive income.
Are you interested in getting familiar with passive income ideas? Your search is over. This article highlights the most reliable passive income ideas.
1. Start a YouTube channel
Youtube is huge. The 2nd most popular search engine in the world. It has become one of the leading platforms for generating passive income. If you’re a natural at teaching or have useful skills or have an interesting personality, YouTube could be your ticket to a passive income.
As you gain more views and viewers, you are able to earn more money from commercials, sponsorships, and advertising fees. Whether you want to tutorial videos, or upload your own videos, this is a great platform for earning money. It’s completely free to sign up and use, so get started today.
Starting a YouTube channel doesn’t take time. Start with the following.
- Come up with a channel name
- Decide on the content of your channel
- Set up the equipment (camera and software)
- Create your channel’s icons/banner
- Record yourself talking about relevant topics connected to the niche of your channel
- Upload content, build an audience, and start monetizing it
SEE: How to make money on YouTube: the ultimate guide
2. Invest in real estate
The dream of having your own property is not just a homeowner’s dream. It’s also the dream of many individuals when it comes to the prospect of passive income.
If you’re a homebody who loves to spruce up your home, you may find yourself looking for good passive income ideas.
If real estate sounds appealing, hear me out. Real estate has been one of the best long-term investments a person can make. Investors who realize this opportunity by buying properties, holding them, and renting them out get relatively high long-term returns.
You’ll own property and receive rental income every month from tenants; thus receiving passive income. You have different options to make money with real estate. Some of your considerations will be;
- Making money with rental apartments
- Making money by flipping houses
- REIT: The term “real estate investment trust” covers a type of real estate investment trust owned and managed by individual investors looking for passive income.
- Making money with vacation rentals
- Making money with land
SEE: How to make money with real estate
3. Sell your photos to stock sites
Nowadays, one of the best ideas to make passive income online is to sell digital content such as photos or images. By creating and uploading photos, you can earn a passive income from the efforts of others who need a high-quality image for their social media posts.
Stock photos are used by many large websites. You can earn money for your photos on sites like Fotolia, iStockphoto, Dreamstime, and Bigstock photo.
Use a photo editing site to edit any pictures you have before uploading them. The more professional you can make your photos, the greater the chance of selling them at a high price. Getting started is easy. Here‘s how.
- Learn how to take and edit good photos
- Signup for stock sites
- Browse the stock sites, get acquainted with what sells best and check out requirements for submissions
- Choose the right pricing strategy
- Market your photos to the right audience
SEE: How to make money with photography
4. Starting a dropshipping business
Want to start your online store but are unsure of how to get started? You’re not alone. Many sellers have tried their hand at eCommerce, only to fail to make any real impact. It may be frustrating, but you can achieve success simply by making the right decision today – dropshipping.
A dropshipping business is a fantastic way to start a business. It doesn’t require much capital, it’s easy and quick to set up and you can often charge a very healthy profit especially if you’re selling high-margin items.
Starting a dropshipping business is incredibly simple and easy to do. All you need is to
- choose a niche that you are interested in and want to sell on your online store (dropshipper),
- pick the products you would like to sell,
- provide a little bit of information about the supplier and shipping method,
- then list them for sale on your store, for example as an Amazon seller.
- How to make money with dropshipping: top dropshipping companies for your eCommerce business
- A complete guide on how to start a successful dropshipping business
5. Start a blog and monetize it
A blog is one of the most popular ways to create a passive income. When monetized properly, it can become a very effective money-making machine.
A growing number of revenue models can monetize a blog: affiliate programs, advertising, sponsored posts, selling digital products – the list goes on. A blog gives you complete control over your content, and it can generate an impressive income if you work at it.
To start a blog, consider the following.
- Come up with a blog name
- Find a domain name/ web hosting
- Choose your preferred blogging platform
- Write blog posts in advance
- Research on other websites to write for ideas
- Connect your site to social media accounts like Facebook and Twitter
- Advertise your blog and engage an audience for success
- Decide on your monetization strategy
- Find ways to generate traffic and leads
- Take action and keep learning
6. Become an influencer
The internet has given new power to “influencers”. Influencers are agents of change. Having a large following on social media such as Instagram, Twitter, Snapchat, Youtube, or Facebook is becoming more and more sought after. More advertisers are looking for influencers to partner with.
This is one of the best passive income ideas. It is going to be profitable if you build up a large enough following, you can charge high rates for promoting products or services to your followers.
SEE: How to make money as an influencer
7. Advertise on your car
Get paid for simply driving around the city. This is a great way of making money passively and it has very little effort involved. There are several apps that allow you to put ads on your car, which you can easily remove if they ruin the look of the car.
Also, there are companies who will do this for you but make sure to do your research first before going ahead and signup.
Furthermore, it is also one of the most common passive income ideas. Car advertisement is even better these days if you already use your car for rideshare gigs like Uber or Lyft.
It is a cool way to make money for what you’d do normally anyway. You’re going to be driving that car anyways… why not advertise on it. Your time behind the wheel is valuable, use it to make money.
SEE: How to make money by advertising on your car: these companies will pay you
8. Create an app
A mobile app can be considered the ultimate passive income generator. Even though creating a mobile app requires skill and knowledge, learning to create one is not very difficult.
There is an app for pretty much everything these days. If you have a special talent or expertise or if you have your product idea, consider developing an app so that people can benefit from it on the go. Over time, as your app generates revenue, you will earn passive income.
9. Invest in forex and cryptocurrency
If you are looking for a passive income source, then you might want to look into forex or cryptocurrency.
Investing in forex is very similar to investing in the stock market as it trades around the clock and requires no work.
Contrary to popular belief, forex trading and cryptocurrency investing are easy. Anyone can do it.
The easier part is knowing how to do it. However, the challenging part is having a winning strategy that consistently wins. So, before you get all excited about passive income ideas, get familiar with the market.
10. Invest in CDs or a high-yield savings account
Most people have this notion that if they are to invest, it should be in something that will bring them a big return. But what if I told you there is a way to earn a pretty reasonable rate of return on your investment with minimal risk?
One of the safest ways to invest your money for the long-term is in certificates of deposit or CDs. They are offered by banks and sometimes credit unions. You typically can choose how long you want to keep the money invested. It can be anywhere from a few months to several years.
To find the best CD rate or savings account, you’ll want to review the country’s top rate lists. A good strategy is to use an online bank so you can get the best interest rate available in the country.
11. Invest in a business as a limited partner
A passive income source is not limited to merely owning stocks or real estate. You could invest in a company’s stock as a limited partner, investing capital in an opportunity where the returns are guaranteed (also known as recurring monthly income.)
Just as if you’d invested in a private business, you would share in the profits. You don’t exercise any control over the daily operations, but you’ll get your cut of the action. A limited partnership is a passive income investment vehicle that you merely buy into.
Because your role is limited, you can avoid most of the paperwork and bureaucracy that goes along with any active investment opportunity. Limited partnerships are ideal investments for larger amounts of capital because their returns are often tax-deferred.
Though they require more money, some investors see this as a positive because that means more potential for returns.
12. Sell information products online
Selling information products, such as books, CDs, and DVDs is a serious money maker. Over the long term, this is by far one of the best passive income ideas that can be used.
You’d be on your couch and get notifications of people who just paid to download your information products. Cool way to make money, yeah?
Before you begin selling information products, you should research what information products are and what the competition is like. This will help you choose a market with an opportunity for success and avoid any “clone” products.
SEE: How to make money selling information products
13. Affiliate marketing
Affiliate marketing is a great source of passive income because you can make money from online ads, links, or social media posts alone.
In an affiliate marketing program, a company rewards you for attracting customers. Obviously, one of the most popular ways to do this is with Amazon affiliate marketing. You can sell products on your website and share a small cut from every purchase that is generated by your site.
For each sale or lead you generate, you earn a commission when you send traffic to the merchant’s website.
For example, let’s say you write a review of men’s watches on your website or blog. Each time someone purchases a watch through your website, let’s just say 2% of the value sales go directly to you as passive income.
What does it mean to have passive income?
Having passive income means you generate a regular income over time without being directly involved in the daily operations of the company. It is generated through a consistent investment of your time and information.
In other words, passive income is the closest to “making money while you sleep”. The goal of passive income is to build up regular sources of income that give you freedom and financial security.
How do I know which business is reliable?
The most reliable businesses are those that have been profitable for a very long time. These businesses typically do not experience the kind of rapid growth that inherently leads to failure.
Although there is no way to know which business is the most reliable, before you roll up your sleeves and get in on one of the top two, you should make sure that it’s a good fit for you.
We all have different risk tolerances, trading capabilities, time commitments, and other factors that influence our abilities to succeed in business. Choose a business that fits with your abilities and weaknesses, so that you can grow into a long professional relationship.
Who should consider passive income?
Passive income is ideal for individuals and businesses who do not need to build wealth overnight. If you are looking for ways to earn extra cash in the short run or are simply looking to supplement your other income sources, passive income can be a great choice.
Besides, everyone should consider passive income.
How many streams of revenue should you have as a beginner?
As a beginner, you can start with just one stream of revenue. You can also start with two streams and build your way up. You should add more streams of revenue as you grow your business and have the time to focus on them.
Is it possible to scale revenue from each of the different passive income ideas?
Yes, each of the above ideas can be scaled. One of the ways to scale up revenue for a passive income idea is to add more services, products, or other features to your idea and offer them as part of a package deal.
I get it, you need to make money. You want to quit your job or work for yourself but don’t know where to start.
These are some of the most reliable passive income ideas. Choose a few to start with, or you can combine them later on after gaining some experience.
The truth is everyone needs money and ultimately you will have to do something, so may as well do something you enjoy and get paid for it.
If you’re struggling to make ends meet, you may be looking for other ways to earn money. The majority of the time, your basic salary is not enough to cover all your expenses. Thus, you need a second job to augment your income. Check out the article on best second job ideas to max your monthly income.
Even teens are not left out. Making money online is a way to enjoy your college years to the fullest while you study in school. As a result, I wrote an article that will be helpful to you. Discover the best online jobs for teens to earn extra money.
These tips will teach you how to make money from online jobs as a teen. There are many tips and tricks to making money on the blog, regardless of your age. Kindly visit Surveystor and navigate to the make money section to explore different options.
Thank you for reading.