11 Clever Ideas To Make Passive income While You Sleep.
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“If you don’t find a way to make money while you sleep, you will work until you die.” Warren Buffet.
Warren Buffet knew what he was talking about; rarely can the income derived from a 9-5 job sustain you to live the life of your dreams. Creating passive income, on the other hand, can help you to make a full-time income while you sleep.
Passive income is not a new concept, but the wealthy benefited more from passive income than the average person did.
People had a hard time making ends meet, investing and creating wealth was only a dream.
However, things have changed for the better.
The internet has created a pleasant shift from the traditional ways of making money.
It has opened many doors of opportunity for the average person like you and me to create passive income streams without having thousands of dollars to invest.
What Is Passive Income?
Passive income is receiving a recurring income from a business or investment with little or no work done by you to maintain it. It doesn’t mean that you do no work to be quite honest the opposite is true.
In the initial startup phase of the business, you have to do work to create passive income. After you have developed a successful business, you will be able to leave it on autopilot to bring in a consistent income with little to no work.
A good example of this is royalties from movies, books, and music. An author has to do work in the form of researching and writing to create a book.
Then the author has to do promotional work for the book.
After the initial hard working phase is over, the book is published and becomes a best-seller; The author continues to receive royalties from the book for many years to come.
The same principle is true with passive income. Today I want to share with you 11 ideas you can use to generate passive income.
11 Clever Ideas To Make Passive Income While You Sleep.
1) Sell Ebooks
Gone are the days when you had to grovel and beg at a publisher’s doorstep to get a book deal. We now live in the digital age where anyone who chooses to become a writer can do so.
Independent writers all over the world are making passive income by writing and selling their books on Amazon Kindle, Lulu, Book Baby, E- Junkie and other platforms.
Once you have written your Ebook, publish, and promote it. You have the potential to receive a monthly check from the royalties of the book sale.
Pick the genre you would like to write in and head over to Amazon Kindle to list your book for sale.
2) Affiliate Marketing
Affiliate marketing is selling other people’s products for a commission. If done properly affiliate marketing can earn a tidy sum of money.
Don’t believe me, head over to making sense of cents and see how much Michelle earns monthly from affiliate marketing.
If you truly want to make passive income from affiliate marketing, you should be strategic. Consider selecting affiliate programs with recurring payments.
Recurring income allows you to get payment on a monthly basis from referring just a single customer.
This method is much better than getting $50 for a sale and you hand over a customer to the company you are promoting for. Companies that have affiliate programs upsell a lot.
Consider the way Amazon sells, for example, you go to buy a journal on Amazon and Amazon upsell you a pen and a case to match the journal. And, the customer continues to return to make more purchases on Amazon.
Now wouldn’t it be nice to get a commission each time the customer you sent makes a future purchase?
3) Real Estate
Have you ever wanted to invest in real estate but could not afford thousands of dollars to do so?
Now there is a much easier way to invest. A company called fundrise allows anyone to invest in real estate with a minimum investment of $500.
Fundrise manages your investment by buying, selling and renting properties. They take care of all the hard work of being a landlord and dealing with maintenance.
When a profit is made from rental fees you’re paid a quarterly dividend on your investment.
Real Estate is undoubtedly a great way to make passive income. It builds wealth more consistently than other asset classes. 90% of all millionaires built their wealth through real estate.
4) Create An Online Course.
An online course is a great source of passive income. You create your Course once and you’re able to sell it over and over again to make a profit.
Many people are opting out of going to college due to the high tuition cost. In addition, they are turning to online courses to learn new skills and to educate themselves.
The market is booming, as the demand for courses soars. And there is great money to be made from selling courses. You can earn six figures per year doing so.
You don’t have to have a degree to create an online course just teach what you know. Create your course on Udemy or teachable and sell it to your customers.
Udemy is a free platform to create your course, but the catch is they take 50% of your profit. Teachable on the other hand is a paid site, but you get to keep all your money.
The choice is up to you, but either way, don’t miss out on making passive income from creating courses.
5) Start A Blog
Everyone has a blog these days and you should too. There’s a reason why so many blogs are popping up everywhere. Blogging makes good money, period. It can help you to live the life of your dreams.
It’s easy to start a blog on Siteground. Here are some of the perks that come with starting a blog.
- Make a full- time income
- Travel the world
- Spend more time with your family and friends.
- Own your own business.
- Blogging may help you to pay off your debts.
- Meet new friends
- Express yourself
- Escape the 9-5 rat race
- Be your own boss
- Work on your own time
Create useful content and monetize your blog with ads, affiliate marketing and sell your own courses, ebooks, printables, and other digital products.
6) Rent Your Car
There are two ways to create passive income with a car.
If you have some extra money to invest. Buy a few used cars to start your car rental business.
Do you work part-time and would not be using your car on selected days. You could rent your car on your days off and make additional income, instead of having the car just sitting in the garage.
Are your weekends free? You could rent your car on the weekends.
Start your very own small business and advertise your car for rent on craigslist or your local paper to incoming visitors to your city.
If you prefer not to handle the rental details, another approach is to put your car up for rent on a website like Getaround and make thousands of dollars yearly.
7) Sell Photographs
Do you like to take photos of everything you see? Sell your work and make money on the side.
Selling photographs is a great way to make passive income. You don’t need a camera to take photos or be a professional photographer.
Just use your cell phone to take great photos and sell them on stock photo sites like Shutterstock, deposit photos, Etsy…etc
A better way to make more money is to create an eCommerce site and sell your photos yourself and keep all the profit.
8) Create A Youtube Channel
Blogging is not for everybody, lots of people don’t like to write and create a blog post or maintain a blog.
Does that mean you’ve lost out on the opportunity to make money online? Not at all, Try YouTube instead.
There are many Youtuber that makes more money than bloggers. So if you’re more comfortable speaking on camera than writing, go ahead and make videos.
Monetize your youtube videos with ads, Affiliate marketing or sell your own courses on the platform.
Youtube is even easier to make money with than blogging. You already have an audience on Youtube. All you have to do is to use great keywords and optimize your videos to be found.
Blogging takes more work because it takes time to build an audience.
9) Rent Extra Space
Do you have an empty space in your house or apartment you are not using? Take advantage of your space by renting it out to visitors from out of town or overseas to make passive income.
There are so many people who want to travel, but can’t afford expensive hotel charges. You can charge them a fraction of what hotels are charging in your area.
You can also list your available room for free on Airbnb and earn money as an Airbnb host.
10) Peer To Peer Lending
Do you need a loan, but want to avoid the bank at all costs? Peer to peer lending is the way to go to eliminate the middleman and high- interest rates.
Peer-to-peer lending allows you to obtain a loan directly from other individuals through an online platform. The bank is completely cut out of the transaction.
Both investors and borrowers meet on the platform. Investors are able to see and select which loans they want to fund. While borrows have a choice to borrow from the investor with the lowest interest rate.
Having good credit will, of course, attract a lower interest rate. But having bad credit does not automatically disqualify you for a loan. However, you will attract a higher interest rate.
The borrower is expected to repay the loan with interest to the lender of the money.
Examples of peer-to-peer lending platforms are
Investment is one of the most popular ways to make passive income. Traditionally you need a financial advisor to make smart investment decisions.
However, hiring a financial advisor tends to be too costly for most people.
Technology has made it easier to invest. You can try a new type of online software called Robo advisors to help you manage your investments.
A Robo advisor selects your investments for you and help you to build a portfolio.
Betterment is a great Robo advisor to try. It helps you with your investments. based on your criteria and investment objectives.
You don’t need to have any previous knowledge of investments or money to get started. The fees are low with no minimum restricted amount to invest.
All you have to do is add funds to your account and Betterment will take care of the rest.
Passive income is a great way to generate wealth.
Choose a passive income stream based on the resources you have available to you. Then gradually increase and build more passive income streams.
If you have the cash to invest, you may try one or more of the passive income streams mentioned in this blog post. However, if you have no money to invest start cheap.
Aim to create passive income that doesn’t need a lot of money to get started.
Which one of these passive income streams are you interested in trying? let me know in the comments below.