It requires minimal daily effort to maintain the income compared to active income, including cash earned from working a full-time job.
Passive income is not:
- The wages earned from a job. It does not include something that makes you materially involved in the work all the time.
- Nor is it a second job. You will still show up and get the work done for a second job; therefore, it is not considered a passive income. Passive income means that you do not have to do a lot of work and still create a consistent stream of income with it.
How can you generate passive income?
1. Rental income
An effective way of generating passive income includes investing in rental properties. However, it requires some extra work than what people expect.
To effectively earn passive income from rental properties, you must keep in mind the following three factors:
- How much return do you expect from the investment
- The total expense and cost of the property
- The property’s financial risk
2. Affiliate marketing
The social media influencers, website owners, or bloggers are into affiliate marketing. They promote a third-party product on their website by including a link on their social media account or site. The best-known affiliate marketing partners are Amazon, ShareASale, eBay, and Awin. Moreover, TikTok and Instagram have also become popular platforms to promote and grow products.
Also Read: Best Niches for Affiliate Marketing
In addition, you can draw attention to your blog by growing an email list that can direct people to your products and services.
3. Initiate a Dropshipping Store
Another most profitable source of passive income includes starting a dropshipping store. You can find on-demand and trending products on platforms like AliExpress and sell the products to customers online worldwide. Further, you can sell products in several dropshipping niches like beauty, fashion, and home décor.
The most important factor of dropshipping is that it allows individuals to control the charges and build the business. Dropshipping is an idea where you have the most control over your income.
4. Start a Print on Demand Online Store
Print on demand is the most popular way to earn passive income among all available options.
You can sell customized graphics on shirts, mugs, clothing, phone cases, canvases, bags, and more with print on demand. Further, you also get the benefit of creating your own branded products.
Also Read: How to Position your Online Store for Growth
5. Host an Airbnb
You can choose to put your home or condo on rent over Airbnb. You are not required to buy a new property to generate passive income through Airbnb. You can also begin with your current apartment or home if a spare room is available.
6. Sell Photography Online
Being a photographer may look like an active income business, but it can also be a passive income generator. Photographers also make money by selling pictures instead of only taking photographs.
Sites like Stock images, canvas printing, and magazines for clients can also help you earn money through photography.
