Passive income. The Holy Grail of online marketers. We all strive to create multiple streams of passive income to live our dream of financial freedom and no time constraints. The big question is what are the best ways to make passive income online?
There are thousands of articles out there giving you different ideas to create passive income. Some may work but many don’t. That’s because they give you the ideas, but don’t show you how to proceed.
So why listen to me? Because I not only found methods that work but also found the best platform to learn how to build them. And if it works for me, it can work for you too. It all starts with having your own online business.
You see, even though I knew how to use the internet for information, shopping and paying bills, I had no idea how to start my own online business. I picked up snippets here and there, but all that did was overwhelm me. I ended up quitting on the idea of having my own business. Oh, how I regret that now.
Today, I want to share with you the types of businesses you can build to create passive incomes. And then I’m going to show you the best place to learn, for true success!
If you want to check it out now, please CLICK HERE.
What IS a Passive Income?
Let’s start by defining passive income. According to Wikipedia,
“Passive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it.”
So, in terms of an online business, it means that the income you receive from your website is continually being deposited to your bank account, with minimal effort on your part.
Without trading all your time for that money, you now have more time to travel, spend time with your family, or cross off those items on your bucket list!
Income is categorized into three broad types: Active, Passive, and Portfolio.
This is what most of us have been trained to do since school age. We are taught to study in a particular field of choice, graduate, find a job in that field, and trade our time for money.
If we work, we get paid. If not, no money. Though this is the backbone of our economies, it leaves us with little extra time to fully enjoy life.
This is what most of us dream of having. This type of income, allows us to earn revenue after the work is done.
Some people build streams of passive income as insurance in case of job loss or health issues.
Others create such massive streams that they can quit their day job entirely. This affords them a quality of life well beyond what a regular job can give.
This is acquired through investments, dividends, royalties, etc.
Unfortunately, you are required to initially invest a large amount of money, upfront, before seeing any return on that investment.
Though very lucrative, most of us just don’t have the extra income to invest.
Is Passive Income Really Passive?
Yes, and no. Confused yet?
Let’s clear up some misconceptions about passive income.
I know “passive” has you believing that you don’t have to do anything to bring in that income, but this isn’t quite true.
Creating passive income requires at least two things:
- An upfront money investment, or
- An upfront time investment
You need to be willing to provide one of these elements to earn a residual income.
Best Sources Of Passive Income
Upfront Money Investment
If you have a lot of money that you can invest, then do it!. The interest gained will help your passive income in the future. But you’ll be needing to keep an eye on it. (Time investment)
Or maybe you wish to invest in real estate? But this too requires your ongoing time. (Time investment)
For example, if you own a rental property, the rent comes in month after month.
But because you own the property, you are required to maintain it. So when the roof leaks or the furnace quits, it’s up to you to put in your time to get it fixed.
Let’s look at some passive money investment ideas…
#1: Invest In Real Estate
As I said above, you can purchase real estate in the traditional way. This requires you to have the money invested upfront. You will also be looking for tenants and many other landlord duties.
The other option is to invest in trust companies. When you buy shares in the trust, they use your money to develop real estate projects. If they make a profit, so do you.
Other opportunities with less risk would be investing in crowdfunding real estate. These companies will usually allow you to start with as little as $500.
- Fundrise – Buy shares for as low as $500 to invest in more than 48 real estate products.
- RealtyMogul – Invest as little as $1000 and become a limited partner in a large development.
#2: Invest in Dividend Stocks
This is the tried and true way to earn passive income. But to be successful, you’ll have to do a lot of research to find those good stocks.
Dividend-paying stocks typically payout each quarter, so if you’ve invested a significant amount of money, you have the opportunity to receive large dividend cheques.
- M1Finance – This is a free investing platform that allows you to build your own portfolio, and invest in it for free.
- Ally – You have the option to have managed portfolios, or use their self-directed trading platform.
#3: Peer-to-Peer Lending
Peer-to-peer means that you’re loaning money to other people who don’t qualify for traditional financing.
There are many companies who give you the choice of who your borrowers are and even spread out your investment to help lessen the risk.
- Worthy – A lower risk company that offers $10 bonds at a 5% return.
- LendingClub – Invest your money and get paid back your principal plus interest averaging from 4 to 6%.
#4: Invest in High Yield Savings Accounts
This type of investing is one of those “place it and leave it” scenarios. And with interest rates on the climb, a hefty investment can generate a solid passive income stream.
These investments are typically low-risk, but the gains are lower as well. Most high yield savings accounts are typical of banks. The advantage here is that your money is insured.
- Do research online to compare interest rates in your part of the world!
#5: Reducing Your Debt
This may or may not require a lot of upfront money. Ideally, you could pay off your mortgage and any other debt with upfront money, but many of us don’t have that kind of money lying around, lol.
But there are other ways to increase your income by lowering the interest rates you’re paying each month.
- Refinance Your Mortgage – While rates are still fairly low, refinancing could mean saving multiple thousands over the life of your mortgage.
- Balance Transfer – Transfer your 19% credit card balance to one offering you a low or 0% transfer option to give you time to pay it off your cards. These typically run from 6 to 15 months.
Upfront Time Investment
Now, if you’re like me, and don’t have money to invest, then finding another means was necessary.
There are so many ways to make yourself extra money, but it’s looking for something that can become passive that’s the key.
In my own experience, I’ve found that earning a passive income with an online business was the easiest way to go.
This method requires an upfront time investment.
But after the initial work of building and growing your business, the income starts coming in, even while you sleep.
It still requires some maintenance to keep it active and ahead of your competition. But the nice part is that it requires much less of your time.
You’ve now earned financial freedom, more time with your family, and security for your future.
Here’s a quick video by “Matt and Liz” explaining passive income…
Does this sound amazing to you? Because it really is!
But please understand, you don’t earn passive income overnight. With any of the ideas, I show you, they all take time and dedication, to begin with.
At first, it seems you’re getting nothing for your time, but with consistency, the income generated begins to snowball. That’s when the magic happens.
Many business owners are building these passive income streams to be able to exit the 9-5 rat race. Some are doing it to have supplemental income for travel and toys.
Personally, I’m wanting a passive income to help us in our retirement years!
Whatever your reason, don’t let your long hours at a day job prevent you from starting. Almost anyone can squeeze an hour or two a day to build towards your future.
It’s not hard to do, it just takes commitment.
#6: Sell Ebooks
This is great for you creative types. Whether it’s fiction, a recipe book, or a manual, turn your idea into an ebook others want.
You don’t have to be an expert. Whatever knowledge, hobby, or passion you have can be captured in a well-planned-out ebook.
So you invest your time upfront in writing an incredible book that people love, and the sales can come in for years to come.
Your ebooks can be sold on platforms such as:
Better yet, start hitting up affiliate networks and have affiliate marketers help promote your books for sale:
Now that you have the work done, why not sell it in another format – an audiobook. If you have the equipment, you can do it yourself, but it can be much easier to outsource it to sites like:
#7: Create Online Courses
If you know your niche from head to toe, then building a comprehensive online course is the way to go.
It may take 5 times longer to make than an ebook, but you can charge 10 times more.
People absolutely LOVE online education with practical applications. Creating specific courses related to your niche is a great way to sell from your website.
If you want professional help, sites like:
- Teachable – provides excellent tutorials
- Udemy – For DIY, taught by a respected and successful online marketer
Or go one step further and create a members-only website with a monthly fee for updates, new material, mentoring, etc.
The trick here is finding a niche that’s getting lots of searches, but have few competitors in it. This may sound difficult, but with the right tools, it’s really not! I’ll talk more about that later on.
#8: Create a Digital Download Store
Many online stores deal with inventories, shipping, returns and customer service. Not something I’d consider passive!
But if you remove the physical and instead use digital, you can have a passive income dream.
Set your online store on autopilot by creating your products once, then sell them over and over again.
Everything from woodworking plans to greeting cards. Anything that is downloadable!
- Designrr – My tool of choice to create beautiful digital products
#9: Set Up Your Own YouTube Channel
In this age of short attention spans and instant gratification, is it a wonder why YouTube is the second biggest search engine in the world?
And the bonus is that Google favours videos, so ranking is a snap.
People love watching how-to videos. I know I do!
And with relevant pop-ups for products or services, there’s a real good chance people will click on the ads.
Links to your awesome website could bring you even more business.
On another note, how about automated webinars. Start doing weekly live videos, and when they start to convert to sales, you can automate them for passive income.
With a decent webcam and microphone, you’re ready to go.
- GoToWebinar – An excellent platform for your webinars.
#10: Start A Blog
Depending on the niche you choose, there are plenty of ways to monetize your blog.
The more “niche” you are, the better. What I mean is don’t pick something broad, but a much smaller, targeted niche.
I know this sounds counter-intuitive, but you will actually get more click-throughs this way.
Did you know these are the niches making the most money?
- Money related blogs
- Diet and fitness blogs
- Dating and relationship blogs
- Beauty and fashion blogs
Just remember to drill down your niche to something very specific to start. When you gain traction, you can branch out.
With consistently published content that gives your readers valuable information, you’ll gain authority and trust.
And along with that trust, they’ll want to purchase the items you recommend.
There are so many ways you can monetize your blog, from paid ads to affiliate links, and everything in between. You can even combine all different methods if you wish.
#11: Build An Affiliate Website
How would you like to make money selling other people’s merchandise, for a commission? This is called affiliate marketing.
Just like the digital download store, you don’t need to house inventory, worry about shipping and returns, or even customer service.
All you do is promote the product or service, and receive a commission for any sales.
Like blogging, you want to find a targeted niche and start building trust with your readers. And don’t forget to start building an email list.
You’ll want to create a relationship with your subscribers by providing valuable information so that in turn they will want to purchase your recommendations. With a sizable list, this can run on autopilot with little maintenance.
How I Learned To Create My Passive Income
The ideas I gave you above are the main methods used to make passive income, but there are so many more. Too many to list here.
But what do you do with these ideas? That’s the issue. Where do you go from here?
None of these money-making ideas will succeed without the proper training and tools to develop them. Sure, you could bee-bop around the internet, getting some answers here, some there. But what a headache!
And the worse part is that all these different sites can offer contradicting information. Or some may be current and others outdated. It just doesn’t work out too well!
Wouldn’t it be better to learn everything in one place, who provides you with current training and all the tools you need? I know I did, and I found just the place.
This is an all-inclusive platform that has everything you need under one roof. No need to hop around from site to site trying to figure out what to do. It’s all there for you.
Here’s a bit of what they offer:
- Training – Step by step courses, classrooms, tutorials, and live weekly webinars.
- A domain registry – An easy way to find the perfect name for your business.
- A website builder – With over 4,000 WordPress themes to choose from.
- Website hosting – With powerful servers, security, backups, and emails, and more.
- A keyword research tool – Find low-competition keywords for the best ranking.
- A large and active LIVE community – They always have your back!
- And much more…
And the owners, who you meet and interact with whenever you wish, are so confident in their platform, that they allow you to start with a FREE starter membership. No credit cards necessary.
There’s really no other place like this online today!
If you click on the image below, you can read all about it. And when you join, I’ll be there to greet you and help you as long as you need me. See you soon!
So what do you think? Would you like to make some passive income? With the number of options at your disposal, there hasn’t been a better time to consider starting your own online business.
Please leave any questions or comment below. I’d love to hear from you.
P.S. Should you know anyone else who would be interested in this blog, please share!