Having a stable 9 to 5 job is great, but a reliable passive income stream is better. Imagine having more money, more freedom, and more flexibility without showing up to a workplace. Now picture yourself trotting the globe or driving your dream car. That's the prize you get for solving the passive income puzzle.
Generally speaking, most people misunderstand passive income. It is not something you build overnight or a magical online tool that will rake in money while you sleep. It often requires hard work upfront before the business can finally run on its own. Having said that, there are tools you can use (see the Motley Fool review at Joywallet for an example), but it isn’t as easy as setting up and go. You still have to put in some effort.
Stay with me as I walk you through the best passive income ideas you can start today.
Creating an informational product is one of the best ways to make passive income. Think courses, e-books, and even a YouTube channel. I have seen people sell classes on topics like "How to Build and Rank an Affiliate Website" on Udemy, and the same courses are still making sales several years later. The idea is to keep adding info over time and creating a community to collect valuable feedback on your offering. That might not be passive enough to some people, but it is one of the most laid back ways to rake in big money.
In short, none of these methods are easy to start. Take an e-book, for example. There's a lot of research, writing, and editing needed before launching the product. That means you'll need to hire a good writer to make the draft, a decent editor to straighten the piece, and a graphic designer to create a cover.
Ahh, landlords. They are a perfect example of people living off passive income. However, getting to the point of collecting rent is not exactly a walk in the park. You have to buy the section, get plans approved, and deal with the construction part of it. And, none of these things go as planned. Approvals take longer than expected, and the final budget often exceeds the initial plan by a considerable margin. That makes the entire process very stressful.
Still, house sharing solutions like Airbnb have made it possible to rent out tiny houses in the middle of nowhere. That means you can get cheap land in a scenic part of the world and build a tiny house village for people to visit. This strategy has worked for people before, and you can do it too.
Affiliate marketing is where I started my passive income journey three years ago. I bought a domain name for my niche, built a stunning website, and populated it with SEO-optimized content. Everything didn't go as planned, as my traffic levels were so low that no advertiser wanted to take chances with my site.
One hundred thousand words later, the website started gaining traction, and I got my first affiliate links online. That's how I started waking up to money in the bank. I've also built other websites after this, with most of them concentrating on selling leads to business.
With so many peer-to-peer lending apps out there, you can join one as an investor and start making passive income. These apps handle everything for you, including background checks and collections. Examples of such apps include Prosper, Lending Club, and Funding Circle.
People have tried this method with mixed results - some many good money and others losing. That means this is a high risk – high reward business that is not entirely passive. You have to vet every customer to make sure they are legit and able to pay.
Whether you decide to become a landlord, an affiliate marketer or something else, there is some money to be made out there so good luck!