How to make passive income
Passive income, income that needs initial efforts or not pretty much investment to start, but once it starts, you will get the reward of your efforts for months or years to come. In other words, it’s a type of earning, while you are not working.
Passive income does not want you always there to be at work as active income, which comes from your daily full-time or part-time job. Generating passive income streams is also necessary because it saves you from the fear of financial insecurity, which is continuous with you if your source of income is only active, and it enables you to lead a financially stable and stress-free life.
1. Rent out your unused space
Not having enough money or time doesn’t mean you cannot earn passive income. Just take a look around you and you will see space, spare and unused if used properly can be turned into a money-making opportunity for you.
· Empty room
Maybe you don’t have enough money to buy a house and give it to the rent. Don’t worry you can just start by giving your empty room, which is not in your use. Airbnb is a company you can partner with to put your space to rent.
· Parking space
Your home or unused space can’t only be the source of your passive income, but you can also cash out your parking space, which you are not using by renting it to someone who wants to park his car. It could be even better if your space is more capacious to fit several cars or arrange an event there.
· car
Not only the unused space or parking area of your house, but your car can generate a stream of revenue for you by renting it to someone who needs a car for Uber or Lyft.
2. Passive income through a YouTube channel
Can a YouTube channel generate passive income for you? Yes, why not. But it requires upfront work without showing any results in the beginning. YouTube ads are the best way to make money if you are part of a YouTube partner program and set up your account for monetization.
There are two types of YouTube ads. One type of ad is those that appear as a pop-up box while the video is playing. Other types of ads are full-screen ads that play before and during your videos. These ads make your 23% of total passive income revenue. As you add up your content, your passive income increases through affiliate sales, branded integrations, and sponsorships.
3. Affiliate marketing
Affiliate marketing, nowadays, is one of the most effective ways to earn passive income. Affiliate marketing is done by bloggers, social media influencers, or website owners in which they promote products and earn a commission when someone uses their referral links to buy that product.
When you sign up for an affiliate program, they’ll give you a particular link. You will get a commission when a visitor clicks the link and purchases the product from that affiliate link.
It may not require enough money to start. All you need is upfront work and an investment of time to get started and you’ll reap the reward continually.
Affiliate marketing gives you a lot of benefits. You don’t need to leave your full-time job for it as you can do it as a side hustle. It doesn’t require enough expertise to get started. One of the most charming things about affiliate marketing is, it is loss-free. If someone purchases products from your referral links you’ll get a commission, if not you are not at a loss. So, you are in a win-win situation if you are doing affiliate marketing.
4. Starting a drop shipping store
If you are looking for some passive income stream that doesn’t require a lot of cash flow to begin then drop shipping is for you. In drop shipping, first of all, select a niche that appeals to your audience. Then you set up an online e-commerce store where you market your products. Customer place orders on your store and you directly ship that order to the customer’s location. So, you don’t physically manage the products you are selling.
The best thing about drop shipping is that neither you have to manufacture the product nor have to handle the shipping. Furthermore, you don’t pay the buyer until your customer pays, so it has limited the cash risk.
No doubt starting a drop shipping store is one of the best sources of passive income with minimal cost it requires upfront work at the start to find profitable products by doing extensive research and the niche is not overly saturated.
5. Sell photography online
If you have a passion for photography and own a good camera, then your passion can be turned into a good source of passive income for you.
Shutter Stock, Getty Images, pixels, and Adobe Stock are the sites where you can sell your images. After getting approval from these sites you can license your images. These sites will pay you if someone downloads your image.
6. Write an e-book
You can also earn passive income through your knowledge by sharing it with the world in the form of an eBook. eBooks are in popular demand and their sales growth is expected at 3.92% up to 2028 internationally. After having expertise in a particular subject you need to put in a decent amount of effort to write decent content.
You can publish your eBook on any one of the online platforms, amazon is one of them on which books are published through Kindle direct publishing. After publishing work is not over. You have to do a lot of marketing to get the word out to as many people as possible. Through marketing, you can earn passive income through page reads and Kindle sales, which is how most eBook writers make money.
How many income streams should you have?
There is no limit on how many passive income streams you should have. The right plan for one may not be a good fit for another. All of it depends on your current resources and the time you can devote to them. If you have a small amount of money, then you can start with the streams that come up with your budget. Or if you have limited time, then you can just start up with that stream that doesn’t take much of your time.
Surely, it requires upfront work to set up some new stream of passive income. But once it starts it’ll going to benefit you for the years to come.
Frequently asked questions (FAQs)
Can I make a passive income with no money?
If you have no money to invest in some passive income stream and want to earn a handsome income passively. Yes, you can earn it by investing more of your time until you have some money to invest and continue to progress.
Is passive income taxable?
The answer to this question is yes. Your all income is taxable whether you earn it actively or passively. But some special rules and exceptions apply for passive income when it comes to qualification for taxes.
