Passive income seems to be one of the topics everyone seems to be very interested in, and for a good reason, who wouldn’t want to make money while they sleep?
The fact that you can detach your income from your time is a very appealing and honestly very realistic option. So I decided to put together a list of things you can do to create passive income.
A disclaimer; passive income does not mean that you will not have to do any work at all. Contrary to popular belief, you will have to put in some real work to build these assets, and then after you will have to do some maintenance to keep them running. These are meant to supplement the income that you already have, but they can definitely replace your income if that’s your goal.
These are the easiest passive income assets that you can start with no or little money:
The beautiful thing about building a social media channel that you can monetize is that you can make videos about anything that you find interesting. If there is something that you find interesting, chances are other people will too, and you can find an audience that will enjoy your content. The way this works is that you can connect your channel to Google advertising program to where they can play automatic ads from your audience watch your videos.
Depending on your niche, time of the year, and advertisers, you can earn anywhere between a dollar up to four dollars for every thousand views. For example, if you get a hundred thousand views and you get an average of two dollars and fifty cents per thousand views, you’ll have around two hundred and fifty dollars. If you get a million views, you’ll get around twenty-five hundred and if you get 10 million views, you’ll get around twenty-five thousand dollars.
It normally takes some time and work at the beginning to build some passive income, some channel took about a year or two to actually earn passive income.
The reason why social media like YouTube for example can be considered a passive income source, is because once you upload a video, it is there for people to keep watching in the future and as long as it keeps getting viewed, it’ll keep generating income.
Social media can be one of the starting points to build passive income because having a good social media presence will help you develop many other sources of income like affiliate marketing.
This is where you help other businesses sell their product for a chunk of their profits or a commission. This is why I started the list with social media because it is much easier to make an extra passive income with affiliate marketing when you already have an audience.
I will have to tell you, if you become an affiliate marketer do not promote things that you wouldn’t use yourself because if you are promoting a bad product, you will lose in the long term.
Another great way to create passive income is through Kindle publishing. Here, you can write and publish an e-book through Amazon, the largest online book retailer. You can talk about anything that is interesting to you, and since e-books are becoming very popular, this is a very good option for some passive cash just like YouTube. Once an e-book is published, you will make some money every time someone reads your content, and if you’re not much of a writer you can actually delegate the writing process to other people, which I think is really cool.
Another way to create passive income is to create an information course. If you have some knowledge or if you’re an expert at something, you can teach others by creating a course that helps other people learn the skill. This depends on what you’re good at, for example if you’re good at light painting photography, you can create a course teaching others how to do amazing light painting photography. You create the course once and you get paid every time someone buys it. This can also be used with social media when you have an audience that wants to learn what you’re teaching. It becomes easier to sell and you’re not only helping your audience get better but you are also receiving passive income.
This is a semi passive income source since you will have to do a bit of work. The basic idea of dropshipping is that you find a supplier that sell stuff at wholesale price and you set up a store selling the product at retail price, which means that you make a profit for every sell when someone buys the product from your store.
You send the order to the supplier and they ship the product to your customer and you won’t need to spend any money on buying the supply because when somebody buys it from you, you use the customer’s payment to buy it from the supplier. The reason why I call this semi passive income is because you will have to do a little work. You can go on with your day as people buy your product and the next day in the morning for example you can spend a button now we’re sending the orders to your supplier basically you will have to constantly send the orders to the supplier or hire someone to do it if you make enough money also you will need to do a bit of marketing to promote your products
I am personally not involved in this type of business but I know many people who are very successful at it. The basic principle of this is that you sell products, you get a percentage of the sell and you get other people to sell them and you make a commission on what they sell.
There are many videos on YouTube about this subject and I personally don’t have much experience with it, but I wanted to include it in this list because I know people who are very successful in this business and made a good passive income.
Passive Income That Requires Capital
There are other ways to create passive income that do require some capital, you can do this if you have some cash to spend. I’m sure you’ve heard of Amazon FBA. The basic principle of Amazon FBA is to look for products that are popular and people are buying. You find the suppier that sells them a wholesale, then you can create a label to brand those products and ship them directly to Amazon, then Amazon being one of the largest, if not the largest online retailer takes care of selling the product and shipping.
They also take care of customer service and holding the inventory for you. Just like the rest of the other ones, it’ll take some work to get started. This might require a bit of capital at the beginning to buy the inventory, but once you have it up and running, it can only take a few hours a month to run it.
How do I get started
What I recommend is to get started with the easiest ones in the list. All you need is a camera phone or a microphone to start creating content online, and it’s very easy to set up a Google Adsense account. There’s a lot of information out there about how to set up things like affiliate marketing. You can go to companies that you love and you can go to the bottom of their website and usually they have an affiliate option. For example, you can review new electronic products that you’re interested in, and go to bestbuy.com and become a Best Buy affiliate for those people who want to buy the product.
For the rest of them, like Kindle publishing, dropshipping or Amazon FBA, I would recommend getting a course that can teach you how to get them up and running in the quickest way possible. If you’re thinking about getting a course, make sure to get it from someone who knows what they’re talking about. There are many people out there that make products but they’re not experts of what they’re teaching, so do your homework before buying.
All right guys, in the comments let me know what do you think about this list if I missed anything, or if you have something else to add and if you’re doing something different to build your passive income. I am very curious to see what you’re up to as always guys, thank you.