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| Passive Income Ideas You Can't Afford to Miss! |
"Ready to Earn Money While You Sleep? Check Out These 10 Ingenious Passive Income Ideas That Will Change Your Financial Game! #passiveincome"
Are you tired of the daily grind and looking for ways to earn money without working harder? Look no further than passive income. Passive income is money you earn with little to no effort on an ongoing basis. In this article, we'll explore 10 ingenious ways to earn passive income and achieve financial freedom. You'll discover how to make money while you pursue your hobbies, travel the world, or spend time with your loved ones.
If you want to achieve financial freedom but you were not born a millionaire, nor are you a Hollywood star or a world-class footballer, you need to start generating passive income.
Notice that most people only receive active income. And that puts them in one of two situations:
1. They work for others 40 hours a week in exchange for a salary. In other words, they sell their time for money until they retire.
2. They have their own business. In this case, they bill according to the number of clients they get, so in practice, they are also exchanging their time for money. And they often work 40+ hours a week!
Fortunately, there is another and increasingly popular way of living. This is a way in which you do not have to sell your time because you create an asset that works for you and generates money on autopilot.
What is passive income?
Before we get into the matter, let's agree on what we mean by passive income.
Passive income is that which is generated automatically without involving an additional investment in time or money.
Once you have launched them, they continue to provide you with money without having to dedicate more resources to them. So you earn income while doing other things, be it working, traveling, or even sleeping.
Types of income
Knowing the three types of income that exist will allow you to assess the advantages of liabilities.
• Income for time: they are those where you exchange your time for money. Most people have jobs of this type, where they pay you a salary of X money per month. The problem is that this greatly reduces your ability to generate income since you are limited by the time you have available
• Income per result: they do not directly depend on the time spent, but they do depend on the results achieved. Many business or self-employment jobs are like this: If you own a shoe store, you will earn more money based on the number of shoes you sell, regardless of how long it took you to do so.
• Passive income: This may depend on results, but doesn't require you to put in extra time or effort to keep making money. They do it on autopilot.
Within passive income, there are two types. Some are unattainable for most mortals, and others that you can achieve with some effort:
• The first are those in which your own money generates money for you. Think of interest on a bank account or dividends on stocks. The problem? You need to have good start-up capital for the income to be significant.
• The seconds do not depend on the money you have. They are what you get after creating a product or service that lasts over time and becomes an automatic source of income.
A good example of the latter would be writing a book: once published, you don't have to do anything but wait for people to buy it.
The Internet has opened up a whole new world of possibilities for passive income. Unlike what happened a few years ago, today you can achieve passive income with little investment or computer knowledge.
As you will see below, there are so many ways to monetize that with a computer and an Internet connection, it is possible to create multiple sources of passive income at any time and place. You do not need anything else.
Passive income is your best option if you want to earn extra money each month, get an automatic salary that allows you to leave your job, or you want to ensure a good retirement.
The best formulas to generate passive income
1. Affiliate Marketing
With affiliate marketing, companies pay you for each sale that you refer to them through your website.
The most common strategy is to create a website where you publish analysis and recommendations of a type of product. For every customer you send through your links, the seller will give you a commission.
The process is the following:
1. Sign up for affiliate programs. There are many affiliate platforms (such as Shareasale or Awin .) but the best known is Amazon Affiliates.
2. Create the website. With this tutorial, you can do it in less than 15 minutes, and here I analyze the best quality-price hosting of the moment.
3. Write analyses and comparisons. You can pay a writer to do it, but it is better to write them yourself at first to expand your knowledge.
4. Position your website in search engines. It will be more or less difficult depending on the competition you have; if it is high, you will need to invest time and some money to make your website more visible.
An example would be creating a coffee maker website where you would post your reviews, linking to your Amazon page for readers who wanted to buy one.
When people search for reviews or comparisons of coffee makers on Google, they will find your website, read your article, and click on the affiliate link. When you buy the coffee maker, Amazon would give you a percentage of the sale.
2. Sell passive courses or services on a blog
This is an idea to create a blog where you write content on a subject that you like and master (productivity, emotional intelligence, travel, seduction, etc.), position yourself as an expert, create a passive product, and sell it.
A passive product could be a pdf course, a video course with recorded classes, a book, or a subscriber-only blog area. That is, anything you can create once and forget about it, and it costs you the same to sell one as two hundred.
It may seem difficult for you to position yourself as an authority on a subject, but I assure you that it is not so difficult. The secret is to hyper-specialize in a very specific target audience; thus you reduce the number of direct competitors.
For example, you could create a blog on study techniques for International students living abroad, or an emotional intelligence blog for newlyweds
3. Sell courses on platforms
If the idea of creating an online course appeals to you but you don't want to spend months creating content for your blog, you can always publish it on a training platform.
These are platforms like Udemy or Tutellus, where you can earn money by selling your own paid course.
These websites already receive thousands of visits a day from people looking for training courses, and the key is to create one that meets the demand and expectations of the users.
The difference compared to selling a course on your own blog is that on Udemy you will have to adjust its price quite a bit (the vast majority of the courses that are sold cost less than 50 euros), so you will have to sell more to bill a significant amount.
To calculate the economic potential of your course you can use the Udemy Marketplace Insights calculator.
If you want to increase your chances of creating a successful course on Udemy, look for topics where popular courses are making a lot of money, demand is HIGH, and the number of courses is MEDIUM or LOW.
4. Sell your creations on marketplaces
If you have some technical skills like composing music, programming, or photography, you also have the possibility of turning it into a recurring income using platforms that act as marketplaces.
The idea is simple: you associate with one of these websites and they include your work in their product directories. Every time someone buys a license to use your content, you get a commission that is usually between 30% and 60%.
The negative part is that in photography and melodies, there is a lot of competition and if you are not a professional on the subject it will be difficult for you to stand out. In addition, the prices (and therefore the commissions) are usually low.
Although there are more and more offers, the market for WordPress plugins and templates is not as saturated, and creating them is not as complicated as it may seem. There are very good guides and free courses where you can learn HTML, CSS, and PHP programming languages.
These are some of the most popular marketplaces:
• For templates or plugins you have Themeforest. It is one of the most popular platforms, where some authors have come to invoice more than 1 million euros per year.
• For photography, you have image banks such as Shutterstock or Fotolia, where you will receive a percentage of the subscriptions of users who download your photos.
• For music you can license your creations on Premium Beat, Audio Network, or AudioJungle.
5. Publish e-books
With the appearance of the electronic format, publishing a book is no longer a utopia.
You may be lucky that a publisher takes an interest in your work (as I did) and prints and distributes it for you, or you can also publish it yourself as an e-book on many online platforms such as Amazon.
Also, unless the content goes out of date quickly, once published it becomes completely passive income that will continue to provide you with benefits for a long time.
To publish your book you have two options:
• Publish it with a publisher. You will probably get more circulation and sales, but your percentage will be around 8-15% of the price of the book.
• Self-publish it. Surely you will sell less, but in exchange, you can get to keep 70% of the sale price.
The most popular option is to self-publish a book as an e-book on Amazon. In fact, almost half of the best-selling books there are self-published. You just have to sign up for their Kindle Direct Publishing service to do so.
You can also self-publish it in print. In that case, you have several options:
• Convince a small publisher
• Pay a printer to make you a print run
• Using a print-on-demand service, where the book is only printed at the time someone places an order, avoiding the costs of printing an edition and storing stock. Amazon also offers this service.
The success of your book will depend on many factors: the theme, the title, the reader's reviews, and of course, its quality. But once published, you no longer have to worry about anything else.
6. Rent a property
In the end, the brick is the brick, no matter how digital we are.
Not all passive income is online. A good example, due to its simplicity and ease of management, is renting a flat or premises. Furthermore, if the location is central and the property is in good condition, the economic potential can be quite high.
The main disadvantage is that, if you are not lucky enough to own a property that you can rent, you will have to make a very high initial investment to buy it or, directly, it will be out of your reach.
To all this, you have to add the repairs, possible conflicts with the tenants, and the fact that ultimately you are responsible for the property.
On the other hand, its biggest advantage is that it is a very stable income.
You do not depend on traffic to your blog, views of your videos, or the number of customers. For this reason, many people who start to earn money online end up reinvesting it in a property to rent.
7. Monetize a website with Adsense
One of the most popular ways to generate passive income is by using advertising to monetize web pages.
Personally, it is my pending subject. By focusing on membership and blogging, I haven't really gotten into this modality, but I have colleagues who are achieving spectacular results.
The idea is similar to affiliate marketing. In this case, you create a web page with information on a topic, place ads and earn money every time a reader clicks on one of them.
This system is called PPC (Pay Per Click), and it is how the most important ad network in the world works: Google Adsense.
With Adsense you don't choose what kind of ads appear; Google does it automatically according to the theme of your website and the profile of the reader.
That's a great advantage because it can then display personalized ads for each reader, maximizing the money you earn by increasing the chances they'll click on them.
The economic potential of Adsense depends on three things:
1. The theme you have chosen. According to this, you will earn more or less money per click since the ads that will be displayed will be different.
2. The number of visits your website has
3. The percentage of those visits that click on the ads
To see the potential of a topic, use the Keyword Planner There you can see how many people search for information on that topic on Google and how much advertisers pay per click (you keep 40%).
For example, if you created a website about recipes, each click of the readers would generate between 0.24 and 0.28 dollars and you would take 40% (approximately 0.105 dollars per click).
If 2 out of 100 readers clicked on your ads, and you had 100,000 visits per month, you would earn 210 dollars per month.
In this case, the click is paid little, so to earn a good figure you would need to have a huge volume of visits.
In any case, if you create content that does not become outdated quickly and monetize it with Adsense, you can earn good money in a totally passive way.
8. Create a YouTube channel
Creating a YouTube channel and publishing your videos will allow you to earn passive money with advertising as they get views.
However, if you really want to make a significant amount of money, you are going to have to put in the time. Most professional YouTubers dedicate entire working days to their channel.
How much money can you earn with Youtube?
Although some Youtubers bill millions of euros a year, in reality, they can be counted on the fingers of one hand.
On average, YouTube advertising pays between 0.20 and 3 dollars for every 1,000 views of a video.
As in the case of Adsense, this figure depends on the theme of the channel. In the channels about curiosities or video games, it is less, while the channels about financial topics tend to pay more per view.
Let's do a calculation. Imagine that you managed to grow your channel to 100,000 subscribers, quite an interesting number.
• If every week you uploaded a video that achieved 75,000 views and YouTube paid you 1 dollar for every 1,000 views, your income would be approximately 300 dollars per month.
What this means is that to earn a living, you need to post videos regularly. For this reason, it is not a very passive system (except for viral videos or thousands of daily searches).
In addition to advertising, there are other ways to earn income with a YouTube channel:
• Reach agreements with companies to sponsor you or advertise your videos
• Sell personalized merchandising such as t-shirts and caps with your channel's logo
• Receive donations from your subscribers through Patreon
9. Dropshipping
The dropshipping system allows you to generate income with e-commerce without having to make shipments or manage stocks. Thus it becomes a totally passive method.
The idea is to create a website that acts as an online store where you will attract customers and collect orders, and partner with a manufacturer or wholesaler to handle shipping.
Some programs send order data to the manufacturer in real time. This way you can get the product to the customer without your intervention being necessary.
The dropshipping markup can be as high as 50%. The main disadvantage is that you do not have control of the delivery and the state of the merchandise.
This means that, if the shipment does not arrive or a return has to be attended to, customers will complain to you and you will have to resolve the incident with the manufacturer.
And that can be a real headache.
For this reason, it is important to work with serious and trustworthy manufacturers, who allow you to synchronize their stock with your product catalog so that discontinued or out-of-stock references do not appear in your store.
Fortunately, some platforms put you in touch with manufacturers that work with drop shipping. Some of the best-known are:
• Aliexpress – A huge Chinese platform with thousands of suppliers.
• Oberlo: an American website where you will only find products that are sold through dropshipping
• DHgate : another Chinese giant, specializing in electronic products.
Amazon also offers a model very similar to dropshipping, called FBA (Fulfillment By Amazon). They are products from external sellers where distribution and after-sales are carried out by Amazon. You will recognize them because the seller's brand appears next to a "fulfilled by Amazon ".
In this case, you will have to send an initial stock to Amazon to save it and make the shipments. Then, you will use a program like Woocommerce to integrate your online store with Amazon FBA and have them shipped from there.
10. Social trading
If you are attracted to the idea of generating passive income with trading but are new to it, social trading can be a good alternative.
It is an investment system that allows you to replicate the movements of the greatest stock market experts. In this way (theoretically) you increase your chances of making money.
The key to success is to choose well those traders that you are going to copy. For this, there are online platforms where you can see their profiles, with the percentages of successful operations and other statistics, and which also act as social networks to exchange ideas.
Currently, the market is dominated by two platforms:
• Ayondo: although its part of the social network is less developed, it offers a lot of statistical information from the traders, making it easier for you to choose.
• eToro: one of the pioneers in social trading, it already has almost five million users so you can replicate the operations of the best.
Since the program simply copies your investments on autopilot, after choosing your “model” investors you hardly need to do anything else.
The stock market does not attract me much, so I use social trading as a long-term investment with small amounts to diversify the rest of my sources of income.
Remember that there is a lot of risk in the stock market, even for the best traders, and while they can afford to lose a lot of money, most mortals cannot.