Passive income is when you continue to get paid after the work is done. It includes royalties from books movies or songs. It’s also revenue that comes from real business investments when you don’t have to be present to earn it.
Passive income streams require an upfront investment and a lot of nurturing in the beginning. After some time through hard work these income streams start to build and are able to maintain themselves, bringing you consistent revenue without much effort on your part.
Passive income includes regular earning from a source other than a employer or contactor. “Many people think that passive income is about getting something for nothing,” tresidder says. “It has a ” get rich-quick appeal… But in the end, it still involves work. You just give the work upfront.
If you want to get started earning passive income here’s what you should know first.
- Passive income requires some upfront monetary investment.
- Or upfront time investment.
Here’s a list of quite a few passive income ideas, so it’s likely that you’ll be able to find at least two to three that will work for your situation.
1. Put your photography to work on the web.
Do you like photography? If you do, you may be able to convert it into a passive income source. Photography websites such as shutterstock and Istockphoto can provide you with platform’s to sell your photos. They may offer either a Percentage or a flat fee of each photo that is sold to the site client.
In this way a single photo could represent a cash flow source since it can be sold again and again. You simply need to create your photo portfolio, put it on one or more photo platform’s, and then the activity becomes completely passive. All the technicalities of photo sales are handled through the web platform. And yes, that’s me in a stock photo, you can purchase from Istockphoto. My good friend is a photographer that has uploaded a few hundred photos to their platform and makes a good residual income from it.
2. Investing in business.
Another way to generate passive income is to invest and be in a business for yourself. This is very risky for some persons.but with the risk’s come with potential high returns. For example, several years ago both lyft and uber were looking for private investors to invest in there companies. Today they’re worth billions. But you as an investor will only reap that benefit if they go to public via an IPO, or get acquired, so it’s risky.
But there are ways to reduce your risk. And that’s to increase your financial education in this particular aspect. So that you can see the future of the company you are trying to invest in.
3.invest in real estate:
This probably falls more in the category of semi-passive income, since an investment in real estate is always at least a little bit of an active venture. Still, once you have a property that is established and fully rented, it’s mostly a matter of managing the property and keeping it performing well.
Now, there are Lot’s of Way’s to invest in real estate, which will just look a little on then and take more a closer look at owing rental properties and why it’s such a popular way to earn passive income.
a. Crowd funded real estate:
Real estate investing used to be seen as the preserve of the wealthy, but crowd funded real estates sites want to bring it to the public at large.
- Peerstreets: is a marketplace to invest in high quality private real estate low minimum investment is just $1,000 but you must be an accredited investor. You can set parameters to customize your investment. A investment made with peerstreet are a real estate loan and not an investment in the actual real estate.
- Reit: a REIT is a real estate investment trust. (Think of a REIT as a mutual fund for real estate investing. You can invest in real estate the same way you can invest in any other Industry. By buying stocks. When you own stock in a REIT, you earn a share of the profits produced by the real estate investment. It’s a way to invest in real estate without the hassle of being a property owner.
- Rental real estate: this is the KING, Rentals properties can be great source of passive income once you get rental-up and running. And you can have to invest all with your money. To me it’s artistic. You invest with other peoples money. Hardly for banks to borrow you money to invest in peerstreets or real estate investment (REIT), but you can get leverage of 80% to 100percent finance from either banks or seller. People has create tremendous wealth through rentals real estate investment
How much to spend: now, hear me out on this; if you’re out now to invest in rental property, the truth is that there is a bit risk in all investment, but you can minimize your risk through information. First invest in real estate education, go to your local book shop or amazon and buy books on real estate. Listen to podcasts and take course. The amount you spend on your education will help you minimize the amount you could have lose in the market.
4. Earn a passive income running a e-commerce site.
The level of difficulty depends on what you’re selling. If you’re making things yourself, it’s harder than reselling already existing items.
You can be earning passive income from an online store, if that was your purpose of building it. Whereas most online stores are built to require the owners constant, and active participation. (Packing, and shipping the product for example) ecommerce can be made very lucrative and passive in so many ways.
a. Affiliate marketing:
This consist of promoting other peoples product, and when sales is made you will received a commission. It is best to promote a products you actually love.
b. Selling products physically stocks:
This only requires your implication if you make a sale. What I did at the time was I listed in-demand, nonperishable products from the grocery store. I only had to go pickup, pack and shipped the product once they were sold.
If you want to sell a product you don’t have to handle, them dropshipping is the way dropshipping consists primarily in selecting and promoting products that are offered by a fulfilment service. The fulfilment service stocks the products and ships them directly to the client once the sales is made.
D. Selling your own products:
Selling your own products may be a bit trickier because you will have to create the products and deal with support. To make your sales process as passive as possible, try to focus on creating evergreen products (things that will be relevant in 5plus years from now.)
Or it can also be digital goods that are created and bundled into a file and sell as a digital good.
- Shopify: if you want to build an online store, shopify makes it easy. They also have a lot of tool to help you run your business, you can create coupons and promotions, process payments, and handle returns.
5. Create a course on udemy:
Udemy is an online platform that let’s it’s user take video course on wide array of subjects. Instead of being a consumer on udemy you can create your own video course, and allow users to purchase it. This is a fantastic option, if you are highly knowledgeable on a specific subject matter. This can also be a great way to turn traditional tutoring into a passive income stream.
If you want to get started on udemy. You are not alone this below process can help you get started.
a. Choose the right topic:
You can either pick a topic which you are specialized in or you can check out the popular courses which are available on udemy and choose a topic accordingly, in both the cases, you will find numerous available courses on udemy. Watch, learn, analyzed and think.
b. Pick a captivating title:
A catchy short and descriptive, title is crucial, and also decide how you will break down your lessons and pick a titles for each section accordingly.
C. Decide the format for the body of the course:
On udemy, you can teach in different formats: text, video, presentations, audio, document, and mash-up, mash-up(video and presentation) is the most recommended of the formats.
And also set out a plan on how you will break down all the lessons and pick a title for each section accordingly.
6. Start a blog:
We wrote this article to make money, and the way to do this is by providing value to your readers. Which drives traffic to your site and then monetizing it with affiliates links.
Remember, the more niche your website and topics are, the better. When you’re building for residual income, the less competition the better.
We know that passive income is the money you earn passively and regularly from your blog without trading hours for dollars. Now let’s talk about how to actually set up a systems and earn passive income from your blog.
a. Running ads on your blog.
It’s relatively easy for bloggers to place ads on their website and earn some ad income from them. Initial set up is usually quick and easy, and you can start earning some pocket change even with a low number of page views (with some ad networks.)
b. Selling your own digital products:
Creating and selling your own digital products is one of the way to earn passive income through blogging. It might sound daunting at first, the ideas of creating and selling your own digital products online. But believe me, you can do it, and it can be very rewarding.
C. Affiliate marketing:
With this passive income stream, you promote products and services for other business on your blog. And when someone makes a purchase through your trackable link, you get paid a common.
7. Write and self-publish a short book on a topic you’re passionate about.
If you prefer the written word and you’re knowledgeable about the topic, you can simply turn that warehouse of information into a short book. Then self-publish that both on the kindle and in print via amazon, or via your website or blog.
You don’t have to have a degree in literature. Considering all the education we have to go through college and beyond and all the research papers and writing projects we’ve had to complete. I bet all the writing you’ve done in your life would add up to at least 20-30 books. Maybe more but you never organized any of it into a book format. Writing a book is simply learning to Be a little more structured in what you’re writing about.
In your first book, you’ll want to aim for somewhere between 30,000 and 50,000 words of text for a shorter book, and the best way to delve into a project like this is to organize the entire things like a giant outline. Consider what five to 10 main points you really want to hit home, put an introduction and a conclusion at the beginning and end. Then start break down each of those sections.
After the writing editing and the formatting you can visit Amazon kindle publishing website and you’ll see how to publish your eBook.
You’ll be able to set price at some point and depending on how much you change will effect how large of the royalty you’ll earn per sale. Amazon has a 35% royalty and a 70% royalty they pay per book sale so check out the price requirement for each.
8. Start a YouTube channel.
Whether you review products, give your opinions on local events or perform entertaining work, there are many ways to earn income passively through a YouTube channel.a tripod), good lighting, some good video editing software https:
3 thoughts on “Living above average financially through passive income.”
I liked this post, especially since we have tried passive income. I wrote a book – no money from that. My husband makes money from Flickr and Getty Images. We bought a rental property and made a small profit on the sale. My blog doesn’t make money but I guess it could.
To be honest, we have made most money from taking further education, getting well paid jobs and being thrifty. There is no real substitute for hard work. Good luck with your blog!
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My pressure Kerry, thanks.
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This is Nice Post! I really enjoyed this post. Nice post!!