What is Passive Income?
If you’re in a regular 9-5 Office Job or selling your freelance Gigs online, then you are earning active income. You get paid for the works or services that you’ve done and that’s the end of it. Our time is limited, so stop trading your valuable time to someone’s money.
Wouldn’t it be nice to make money while you sleep?
In practice though, you may do some or all of the work upfront, but passive income often involves some additional work along the way, too.
However, the idea of creating passive income is to make money 24/7, even while you sleep, without you actively involved in the business. Rather than trading your time, work and experience for money, you generate income over and over again, by selling some kind of digital products or contents that you’ve created only once and profit to it time and time again.
Examples of Passive Income Streams:
1. Affiliate Marketing
For most of the people who are successful online in making money, affiliate marketing is how they get started. The idea behind it is that you promote other people's products, often through an affiliate network, earning a commission if people actually end up buying through your affiliate referral links. Affiliate Programs are free to join. Commissions ranges from 3% (Physical Products) to 75% (digital or cloudbased products).
2. Article Marketing
Article Marketing is one of the best ways to earn money passively.
3. AudioBook Selling
Audiobooks represent an excellent passive income opportunity, and the market is exploding. More and more people are listening to audiobooks while they are doing something else like driving, doing fitness or the likes.
4. App Creation & Selling
Create an app and sell them in marketplaces. If you’re a developer or programmer, you might want to try creating apps as a passive income stream. You can go about it in two ways. First, you can charge a fee for people who want to buy your app. Second, you can make your app free and monetize with ads.
Run a blog. Blogging has helped countless entrepreneurs earn passive income through affiliate links, courses, sponsored posts, products, book deals, and more.
6. Build your own Website
Building your own website can be a reliable source of passive income. Some people create marketing agencies and outsource the work to freelancers. Others, like a couple entrepreneurs on this list, create online courses to share their knowledge and educate others. You can also sell info products or physical products online.
7. Display Ads
Display advertisements are mostly one of the first ways that bloggers make money with their blogs. Getting started with display ads is very easy, and can be very profitable over time. The easiest way to put ads on your blog is by joining an advertising network. Google AdSense is the most popular advertising network that works with smaller bloggers. Other companies to look into are : Media.net and Ezoteric
8. Domain Name Flipping
The domain name industry is quite similar to the real estate industry in a lot of aspects. There are end users, brokers, consultants and domain flippers or “domainers”. Domain flipping works similarly to buying a house, renovating it (or even sometimes just sitting on it) and then selling it again at a higher price point.
The gist of it is: you’re purchasing a domain name and betting it is worth (or will be worth) more than you paid for it. If you’re right, you get a nice paycheck and move on. Those who make a living out of this just rinse, repeat, and scale.
Start a Dropshipping Store. Dropshipping is one of the most profitable passive income sources you’ll find online. And since we here at Oberlo specialize in dropshipping, it’s a good place to start.
10. eBook Publishing
From humble beginnings, ebooks now sell in the millions each year, representing about 20 percent of the publishing market in the United States. And there is plenty of room for a one-person ebook entrepreneur to get a piece of that market.
eBook publishing is so easy nowadays. You can literally create an eBook in almost instant without writing a single word of your own using some AI Intelligence powered software. And you can have you eBook Publishing Empire in just a matter of weeks. You only create them once and sell them over and over again for a 100% profit margin.
11. eMail Marketing
Email marketing might have the highest ROI of any digital marketing method.
According to Aweber, Email Marketing has the highest conversion rates of any marketing channel. In fact, sixty-six percent of online consumers made a purchase after receiving an email marketing message — which is more than social and direct mail, according to the Data & Marketing Association. And transactions from email are three times more profitable than those made on social media, reports the global management consulting firm McKinsey & Company.
How to monetize email marketing.
- Sell something you already have!
- Sell other people's products.
- Upsell premium or exclusive products.
- Cross-sell related products.
- Get repeat purchases.
- Have a cart abandonment plan.
- Ask people to spread the love!
If you too are interested in making more money from podcasting, here are eight different ways you can profit from your show:
- Podcast Sponsorships.
- Increase the sales of your products and services.
- Affiliate marketing.
- Books and audiobooks.
- Virtual summits.
13. Resell an eBook
Maki money selling with Done-For-You with Resell Rights License. You purchase the license once in order to resell and make 100% of the profits over and over again. In other words, you Buy Once and Sell unlimited times.
As a matter of fact, if you do it right, you can make a good deal of money from the comfort of your home. For instance, if you get 100 eBooks sold in just 7 days, you can easily gain 100 prospects. You can buy great eBooks with resell rights from ResellersSuperMall.com.
14. Real Estate Investing from Home
How to make money in real estate: The easier ways to make money in real estate all have to do with investing in the market. That means no home purchases. No worrying about finding people to rent to. No trying to boost your AirBnB ratings with free beers for your guests. Instead, you can invest in Real Estate in the following ways.
#1. Real-Estate Funds
#2. Real-Estate investment trusts (REIT)
#3. Online real-estate Investing Platforms
15. Create a Print on Demand Online Store
With ecommerce being one of the most popular ways to make passive income these days, it only makes sense to give a shout-out to print on demand. Print on demand allows you to sell your custom graphics on products like t-shirts, clothing, mugs, canvases, phone cases, bags, and more. The best thing about this is that you can build your own branded products.
16. Design Tshirts
Doyou like graphic design? Have you ever tried to design your own T-shirts? Earn money designing T-shirts in your free time. There are a lot of guides to starting selling T-shirts online without caring about logistics.
Selling shirts is not hard and many people are doing it now. This could be your favorite money making method in time. It is not the most lucrative, but you could love it for getting some long-term income. Since you do want to focus on the T-shirt design, you do not want to spend your time managing the printing, delivering, or marketing issues.
There are companies that already do that, and all they need are original T-shirt designs from independent designers around the globe like you. We will call these companies permanent store websites.
17. Sell Designs Online
The are a number of marketplace that enable you to sell Designs and artwork in their platforms. You can just create or upload a design in their platform and you're good to go.
Say, when a Zazzle marketplace website' customer buys one of your products, the platform handles all the fulfillment – from printing and shipping the products to handling any customer service. Set your own royalty rates and let the money start rolling in.
18. Sell Cookbooks or Recipes
Whether you're a stay-at-home mom, work outside the home, a grandmother, male or female, or retired, this online business opportunity will work for you. It's a great work-at-home idea!
If you’re a cook, chef, or food blogger who’s also social media savvy, Facebook Groups are a great way to connect with people all around the world and sell your recipes. Different groups on Facebook bring bloggers, virtual assistants, and content creators together in an online space to swap ideas and purchase blog content, specifically recipes.
19. Sell eCourses
Whether you decide to sell a course on your own website or on a platform like Udemy, you’ll find customers who want to learn your insider tips and tricks.
20. Sell eMagazines
Unlike other products, magazines do not demand a lot of marketing effort to generate sales. That makes the magazine business a potential money-maker. Whether you're passionate about food, fashion or fast cars, starting a small print magazine might be an appealing idea, particularly if you've got previous writing, editing or page-design experience.
Creating eMagazine today is becoming easier and easier with the help of the latest technology and softwares availale in the market.
21. Sell your Photos
Do you bring your camera everywhere you go and love taking photos? Monetize your photo addiction by selling your photos on these websites. Each one has a different payment structure, but they offer a great way to turn files sitting untouched on your hard drive into some extra cash, without much extra effort once you have edited and uploaded them.
SmugMug Pro. lets you keep 85% of the markup for your images. The catch is you have to buy a Pro subscription, starting at $12.50 per month, to take advantage of this high royalty; there’s no free option.
Shutterstock. Earn up to $120 per image download on Shutterstock. This site has a fairly complicated pricing structure, but the more you earn (“lifetime earnings”), the more you take home for each image.
iStockphoto. This site has been selling stock images since 2001. Since it’s been around for a while, it has an extensive network of contributors and thoroughly vets new applicants to make sure they’re a good fit.
Your Own Website. Best Places to Sell Your Photos Online is On Your Own Website. That’s because:
- You can set your own prices.
- No one else takes a cut.
- You have 100% control over how to display your photos.
- You can set your own terms and conditions.
- In short, YOU’RE in control!
Don’t have a website yet? It’s not hard to start. There are simple guides on how to create a photography website in WordPress. The majority of professional photography sites online are built on this platform. After creating your website, you need to showcase the photos beautifully to attract visitors and convince them to buy your images. You may use a WordPress plugin like Envira Gallery and similar plugins to create image galleries for your photos.
22. Sell a Software
Here are a few ways you can make money selling software even if you're not a techie.
- Don’t worry if you don’t have coding skills. Hire a programmer to do all of the technical work for you while you provide creative vision.
- Don’t skimp on quality. Do not hire a programmer just because for low cost in exchange for quality service. Hire a programmer that is worth every penny .
- Recruit affiliates for your product… and keep recruiting. Affiliates could change the game for you
- Email your own list and talk about it on your website or blog. Publish to social media about your software. Those who already know you will make a natural audience for what you’re offering. These people are often the first to sell for you and recommend your product to others
- Try new marketing tactics that scare you.
- Prepare to deal with customer service (and hire others to take care of it if possible)
- You don’t have to go in to paid marketing to be a success… but it can help. Make sure that you know what you’re doing and start small.
- Expect ongoing maintenance. The more people use your product, the more bugs that you’ll uncover
- Try to create some kind of monthly fee. This was a game changer for my business
23. Sell your Videos
Create videos and sell them in various marketplaces. Nowadays, people are obsessed with video content. Selling video content can be very profitable if you put them in front of the right people.
24. Start an Etsy Store
Start and etsy store and sell your merchandise. The money you'll make on Etsy depends on a lot of things: the effort you put it, the uniqueness of your product, the demand for your product and how well you market yourself. Some people make a steady $50 per month, while others make a full time income and quit their jobs to sell on Etsy.
25. Stock Market Investing
When you look at the world’s richest people, it’s pretty safe to say that stocks have played a big role in their deep, endless bank accounts. There are Four Different Ways To Make Money In Stock Market:
- Method #1: Buy low and sell high.
- Method #2: Short sell high and buy back at low price.
- Method #3: Earn dividend income from the stocks.
- Method #4: Sell options on stocks.
26. Youtube Vlogging
Many Youtube Bloggers are making a killing online. They make money in different ways. First off, it depends on how big your following is, of course the larger the better but also engaging is key, with no engaging from your audience it’s hard to get any money.
Here are some ways on how vloggers make money:
- Paid adds: YouTube is the second website most visited in the world, with millions of people going in and out watching video all the time, it’s become a good platform to advertise. So, many companies advertise their products or services on YouTube. Vloggers can monetize their channels and get paid by it.
- Sponsorships: if you are a well-known vlogger chances are you have plenty of opportunities. Nowadays the people who have the most attention are the ones who earn the most. You can seek for hotels sponsorships, many airlines and hotels lines are looking for people who can bring them more clients, some times you don’t make cash but you get a free reservation or flight instead.
- Affiliate Marketing: A number of vloggers are sponsors from different brands. They fill their YouTube with affiliate links where they can make a commission from.
- Online Stores: The online market has been crushing it the last few years and everybody wants to get a piece of the pie. It’s never been easier to set up your store through Shopify or Woocommerce.
- Online Courses and Info Products: people come up with ideas on how to make courses, this has become a very profitable way to make an extra buck, the teaching industry has grown immensely the last decade.
27. Website Flipping
Create Websites and sell them for profit. You can either build and sell a new site or “flip” an existing one. Building a site is a bit like building a house; you pick a market and a location, decide what you want to put there, and go to work. Flipping is another real estate analogy. You buy a site that isn’t living up to its potential, fix it up so it’s a money-maker, and then sell it. Flippa.com and Empire Flippers are marketplaces for buying and selling sites.
28. Become a Brand Ambassador
A lot of people are making thousands of dollars by working as brand ambassadors. When it comes to earning money online, the world is teeming with opportunities, just waiting for you to tap in to. Regardless of whether you are looking to make some quick bucks, or aspiring to get your hands on long-term sustainable income-generating results, there are many authentic ways to make money online today and becoming a brand ambassador is one of them.
29. Purchase high dividend stocks
By building a portfolio of high dividend stocks, you can create regular passive income at an annual rate that is much higher than what you get on bank investments. Just as important, since high dividend stocks are stocks, there is always the potential for capital appreciation. In that way, you can earn passive income from two sources — dividends and capital gains.
You will need a brokerage account to purchase these stocks and complete the research needed.
30. Buy an Existing Blog
Thousands of blogs are created every year, and thousands are either completely abandoned by their owners sometime afterward. If you can buy blogs with a reasonable amount of web traffic — as well as a demonstrated cash flow — it could be a perfect passive income source.
Most blogs employ Google AdSense, which provides a monthly revenue stream based on ads that Google places on the site. There may also be affiliate programs generating additional revenue. Both income sources will be yours once you purchase the blog.