When someone is looking for an opportunity to earn extra income, they are often advised to find a temporary part-time job. But do you have the strength and time for a part-time job? In such a case, you should look for ways to earn passive income – which will help you make money with a small investment and save a lot of your time.
Let us discuss some best ways to earn passive income right now. Also, here are some of the best residual income businesses that you can look out for.
Best Ways To Earn Passive Income
Index funds will help you to earn passive income from investments in the stock market. For example, if you invest in a fund based on the S&P 500 index, your funds will be invested in the stock market, and you won’t have to think about how to manage your money and whether or not to sell or buy shares of individual companies. The fund will handle all these points, which form its investment portfolio depending on the state of a particular index.
You can also choose a fund that works with any index. There are funds involved in various business sectors – energy, precious metals, banking, emerging markets, etc. You only need to decide for yourself that you want to do this, then invest and relax. From now on, your stock portfolio will work on autopilot.
Make YouTube Videos
This area is developing very fast. You can shoot videos of absolutely any category – musical, educational, comedy, movie reviews – anything you want – then upload it on YouTube. You can then connect Google AdSense to these videos, and they’ll automatically display ads. When viewers click on this ad, you’ll receive money from Google AdSense.
Your main task is to create decent videos, promote them on social networks, and maintain a sufficient number of videos to secure an income from several clips. It’s not so easy to shoot and edit a video, but you will earn passive income that can last for a very long time after doing it.
Not sure if you can do it on YouTube? Michelle Fan combined her love of cosmetics and painting with video shooting, recruited more than 8 million subscribers, and now opened her own company with a capitalization of $ 800 million.
You must have heard the term “dropshipping” several times. However, this is one of the good ways to earn passive income.
Reference! Dropshipping is a supply chain management method in which the intermediary retails without intermediate storage of goods in his warehouse.
To generate income, it is enough to conclude a dropshipping agreement with an online store operating on this system and create a store on the network. Directly required of you:
- creation of an online store;
- placing on it the goods available from the dropshipping supplier indicating the price, including your margin;
- placing a customer order and transferring the order to the dropshipping supplier;
- after – receiving payment, transferring money to a partner, minus their mark-up.
Dropshipping supplier is responsible for delivery, i.e., partner.
Here is a detailed guide: Dropshipping for Beginners
Try Affiliate Marketing and Start Selling
Affiliate marketing is a passive earning technique, more suitable for owners of blogs and active Internet sites. You can start promoting any products on your website and receive a fixed fee or percentage of sales.
Making money this way is not as difficult as you might think because many companies are interested in selling their products in as many places as possible.
You can find partnership offers either by contacting manufacturers directly or on specialized sites. It is best if the advertised product or service is exciting to you or matches the website’s theme. This is one of the most interesting fields that can help you earn passive income.
Make Money Through Your Photos
Do you like taking pictures? If so, you may be able to turn this into a source of passive income. Photo banks like Shutterstock and iStockphoto can provide you with a platform for selling snapshots. There is a fixed commission on every photo sold by you to a client.
In this case, each photo is a separate source of income, which can work again and again. You only need to create a portfolio, upload it to one or several platforms, and your active actions will end there. All technical issues of selling photos are resolved using the web platform. This is one easy method to earn passive income.
Invest in High Yield Stocks
By creating a holding of high-yield stocks, you can consistently earn passive income with a yearly interest rate far surpassing the percentage of bank deposits.
Do not forget that high-yield stocks are still stocks, so there is always the possibility of a revaluation of capital. In this case, you will receive profit from two sources – from dividends and return on invested capital. To purchase such shares and fill out the appropriate forms, you will need to create a brokerage account.
Write an E-book
Of course, this can be a rather time-consuming process, but it can provide you with income for years when you write a book and place it on the trading floors. You can sell the e-book on your site or enter into a partnership agreement with other websites that are relevant to your e-book.
Write a Real Book and Get Royalties
As in the case of writing an e-book, first, you have to work hard. But when you are done with the work and your books are ready to make a sale, it will become a complete and reliable source to earn passive income.
It is particularly true if you succeed in selling a book to a publisher who will pay you a fee on every book’s sale. You will get a cut from every copy that manages to make a sale, and if your book gets popular, these commissions can produce substantial amounts. Besides, these payments can last for years.
The author of several finance books, Mike Piper from recently did this. He wrote The Investment in Simple Language, which was only sold on Amazon. The first book became so profitable that he created a whole series. These books bring him a total of six figures annually.
Receive Cashback from Credit Card Transactions
Many credit cards provide a cashback of 1% to 5% of the purchase amount. You go shopping anyway and spend money, right?
Such bonuses allow you to earn passive “income” (in the form of reduced spending) from actions that you still perform.
Sell Your Goods Online
In this area, the possibilities are endless: you can sell almost any product or service. It can be something you have created and made with your own hands, or it can be a digital product (programs, DVDs, or training videos)
You can use the profile resource for trading if you suddenly do not have your website or blog. Also, you can enter into a partnership agreement by offering the product to sites of relevant topics or using platforms like ClickBank (American marketplace for selling digital information products – Ed.).
You can learn how to sell goods on the Internet and make a lot of money from it. Maybe this is not a completely passive income, but it is certainly more passive than the usual work where you have to go every morning.
Investment in Real Estate
This method is more likely to fall in the category of semi-passive income because investment in real estate implies at least a small activity level. However, if you have a property that you are already renting out, you only have to maintain its condition.
Also, some professional managers can manage your property for a commission of about 10% of the rent. Such managers can help you make a profit from such investments more passive, but at the same time take away part of it.
Another way to invest in real estate is to pay back a loan. If you take out a loan to purchase the premises, you will lease each month. Your tenants will gradually pay off this debt. When the full amount is paid, your profit will increase sharply, and your relatively small investment will turn into a full-fledged program to leave your primary job.
Buy a Blog
Many blogs are created every year, and many of them become abandoned after some period. If you can buy a blog with a sufficient number of visitors – and, therefore, with adequate cash flow – this can be an excellent source to earn passive income.
Most blogs use Google AdSense, which pays once a month for ads placed on the site. Partnership arrangements can also be made to provide additional income. Both of these profit streams will be yours if you own a blog.
From a monetary point of belief, blogs generally sell for up to 24 times the monthly income that any other website can make. If the site can earn $ 250 per month, you can most likely buy it for $ 3000. This means that by investing $ 3,000, you can receive $ 1,500 annually.
Perhaps you can buy a site for less money if the owner wants to get rid of this asset. Some websites have everlasting material, content that will not lose its relevance even after a few years and will generate revenue years after publication.
Bonus tip: If you buy such a site and then fill it with fresh content, you will be able to increase your monthly income, and after a while, you will be able to sell the site again at a significantly higher price than what you paid for it.
You can also create your blog instead of buying a blogging website. This is also an excellent way to earn passive money.
Create a Marketing Website
If you know about a particular product, you can start selling it on a profile site. The methodology is the same as selling your product, except that you do not have to deal with the production itself.
After some time, you may find that you can add similar products. If this happens, the site will start to generate substantial profits.
If you can find a way to deliver products directly from the manufacturer to the buyer, you don’t even have to get in the chaos of shipment. Maybe this is not entirely passive income, but it is very close to it and a great way of making passive income.
Social Media Investments
The main thing that is worth noting is that the principle here is the same as with sites. Groups can be bought and sold, invested in their development, and strive to gain the most massive possible audience (real, not wound) because it is the audience that will earn passive income.
Moreover, if the group is promoted and has attractiveness for advertisers, you can hire a person for an administrator who will maintain the state of the site. You will receive the real passive income only by tracking the leading indicators.
Invest in Real Estate Investment Trusts (REIT)
Let’s say you decided to invest in real estate but do not want to devote full-time attention to it. In such a case, investment trusts will help you. They are a kind of fund that owns various real estate projects. Professionals manage funds, so you don’t have to interfere with their work at all.
The significant benefit of investing in REIT trusts is that they regularly bring higher dividends than bonds, stocks, and bank deposits. You can always trade your stake in the trust whenever you want, making it more liquid than having your property.
Become A Passive Business Partner
Do you know any successful company that needs funds to expand its business? If so, you can become something like a short-term angel and provide this capital. But instead of giving credit to the company owner, ask for a share of the shares. In this case, the company owner will manage the work of the company, while you will be a passive partner, also participating in the business.
Become a Source of Recommendations
Every small business needs a source of advice to support sales. Make a list of entrepreneurs whose services you use regularly and whom you can recommend for cooperation. Contact them and find out if they have a payment system for recommendations.
You can add familiar accountants, electricians, plumbers, landscape designers, carpet cleaners, and anyone else to your list. Be prepared to recommend these services to your friends, relatives, and colleagues. You can get a commission from each recommendation just by communicating with people.
Do not underestimate referral programs in the professional sphere. If the company you work for offers any reward for suggesting new employees or customers, use them. This is an effortless way to earn passive income.
Rent Unused Housing on Airbnb
The Airbnb concept came about just a few years ago but very quickly spread around the world. Airbnb allows people to travel the world and pay much less for accommodation than in regular hotels. By becoming an Airbnb host, you can make use of your unused or brand-new house to entertain guests and earn passive income just by renting.
Your income through Airbnb will depend on the location, area, and condition of your home. Your house will automatically become of a higher cost if it’s in any posh city or near any famous buildings. This is a way to make money from the free space in your house, which in any case would be empty.
Make an App
Applications can be incredibly lucrative revenue streams. How many people own a smartphone? Almost everybody! People download apps madly – and for a valid purpose.
Applications make people’s lives easier. It doesn’t matter if it helps to post beautiful pictures or tracks tasks; there is always an application useful to someone.
If there are so many applications and competition in this field, then why create another one? Right, but new and original ideas will always win. If you can come up with something unique and useful for people, then go for it, and you can make money on it.
Not sure how to program? Not a problem, you can learn. There are a lot of different courses on the Internet, including free ones. Alternatively, you can hire a developer to create the application based on your idea.
The result is an application that will potentially earn passive income.
Create Online Courses
Each person is an expert in something. Why not create an online course about your hobby or about something that you excel in?
There are several ways to create and conduct online courses. One of the easiest ways is to use sites like Udemy.com. With over 8 million students, Udemy is a great way to present your content to others.
Once you have created your online courses, they can earn for you even when you are asleep.
What will you include in your course? You can add video tutorials, checklists to follow the recommended steps, small e-books in addition to the lessons, audio files for people listening while traveling, interviews with experts and like-minded people.
You can create several packages at different price schemes. Some people will want everything to add an all-inclusive segment at the highest price and two cheaper sections to get the highest possible volume of orders.
Create an Online Guide
If creating online courses is not your thing, but you want to earn passive income online, go for an online guide.
A good example is the Pat Flynn website of SecurityGuardTrainingHQ.com. This website consists of the United States maps, which allows you to click on any of them to see the requirements for security officers in this state.
By giving precise information in the form of a guide, you can make money using the previously mentioned tools: advertising through Google AdSense, affiliate links, and you can even sell a subscription to your guide.
Earn Money on What You Would Do Anyway
Yes, you can earn passive income through several things that you already do.