Making passive income is all the rage these days.
Everywhere you look, people are touting the amazing benefits of earning money without having to do much work.
While it’s definitely true that passive income can be a great way to make some extra money, it’s not as easy as many of these ads would have you believe.
In this blog post, we will discuss six of 6+ best passive income ideas and how you can get started today!
The dream of making passive income bombards you everywhere – Facebook Ads promising instant wealth.
UGC marketing has taken over Instagram influencers are touted as experts on some new strategies to make money through social media platforms such as YouTube and Snapchat where they post pictures or videos that are supposed to guide the user toward purchasing products from partnering brands.
But one thing is for sure.
To generate passive income will not totally passive, you will have to dedicate yourself and put the extra work in to see any extra cash flow or residual income.
In this day of age, building an online business has never been easier and the barriers to entry are minimal.
You can easily get started creating a new passive income source online by selling:
- A digital product such as an ebook.
- Create and sell an online course from something you are knowledgeable in.
- Trade your time in and sell consulting services.
What is Passive Income?
The idea of passive income is to have an easy way of making money without having any work involved.
For example, if you’re lucky enough that your company pays dividends then this would be considered “passive” because all they do in order for me to get paid out my annual bonus was wait around and let them manufacture something first.
However, for the most part, in order to receive any sort of consistent income stream from a passive activity, you generally have to put some form of initial work in first.
Most people know that retirement isn’t always enough and having extra cash on hand can come in handy.
But what if your company pays dividends?
That means they wait around until you manufacture something first before sending some money back to your monthly income statement.
Passive income is an easy way for an individual or business to earn money without working too hard themselves.
A lot of us have this idea about passive incomes like being able just to sit back but there are many ways we could actually generate revenue through our organizations.
There are many different types of passive income sources out there to make extra money and each one has its own set of pros and cons that we will go over.
What are the Best Passive Income Ideas?
What if I told you that there was a way to make money without working?
Can’t picture yourself doing any of the things on this list, but are still interested in making some extra cash?
Well, good news! There’s more than one type of “passive income.”
Here are a few of the best passive income ideas to increase your cash flow.
1. Start An Affiliate Blog.
I’ve been all over the internet looking for a way to make money, and I finally found it.
Starting an affiliate blog is one of the best long-term passive income ideas you have to take advantage of.
An affiliate blog can provide an amazing source of passive income streams that are by far one of my favorite things about this business.
Starting an affiliate blog has also allowed me time in between projects without stressing too much or being anxious that something isn’t working out as planned.
Passive incomes come from blog posts published online which generate original content you control its distribution through social media channels like Facebook & Twitter.
Not only do these provide an advertising platform but also help build relationships within communities that may turn into clients down future roads.
With a blog, you can generate a passive income stream in multiple ways including:
- Affiliate revenue – Taking commissions for products you promote on your blog, you are in essence the middleman between the supplier and the customers.
- AD revenue- Get paid for the ad’s placement on your blog.
- Digital product sales – Sell digital products that are downloaded.
Creating a blog takes a psychological shift in your day-to-day routines.
The transitions from being a blogger to becoming an entrepreneur / full-time business owner.
This psychological shift allows you to see things from a different perspective – it’s not just about blogging but creating systems that will scale your blog and online business.
When creating a blog you must understand the correct ways to monetize your blog during the creation lifestyle cycle to turn it into a reliable passive income source.
95% Blogs fail, Why?
This is because of many reasons the main one being consistency.
Creating passive income from a blog requires tons of working hours as an upfront investment.
But also because the blogs are not based on a profitable niche.
So how can you make your blog profitable?
Choose a blog niche with revenue in mind.
Most people who start a blog begin with a passion in mind.
While there is nothing wrong with this, just it is not a viable solution to a long-term passive income strategy.
The way your blog makes revenue needs to be strategically planned from day one.
The first thing you need to do is find out if there’s a demand for your niche.
This can be done through keyword research, which gives us an idea of how often people search and click on those keywords each month across different websites in our industry (or any specific one).
One great tool that helps with this process is Ahrefs; it provides access not only to show off rankings but also to monitor changes over time based on these searches giving marketers more insight than ever before!
The keyword difficulty score tells you how difficult it will be to rank for a particular term.
A lower number means that the competition is less intense, so these terms might not require as much effort or investment on your part if they’re something important in relation to what people search for online when looking up products and services like yours.
The main metric that you want to track to do some pre-research in your blog’s niche is:
- Monthly Searches over 1000+
- The keyword difficulty should be less than 50
- First-page search engine results should have web DR ratings under 50
A great SEO tool that you can use to view this data while searching the web is GrowthBar!
Building Blogger Relationships
After you choose your blog niche, choose a Webhosting service and launch on WordPress.
A big thing to focus on is real-world relationships for your blog.
Write a few Blog posts on your website and stop.
Shift your focus to building relationships with other blogs and provide guest posting linking back to your articles.
When you aim to build backlinks, make sure they are valuable links. So the DA of the website that is linking back to your post matters.
By generating backlinks, you can build search engine authority quicker and get more traffic to your website.
If you don’t consider yourself a good writer, you can outsource or use AI content writing technology like Jasper.AI to assist you.
Maybe you’re not an expert in every single field.
That is why it’s important for your business to find experts who specialize, so they can create and distribute content on demand without wasting any of their valuable resources.
Monetize Your Blog
So the first three months of your blog, you should primarily focus on building up backlinks.
This will be the driving force to quickly monetize your blog and traffic.
To turn your blog into a reliable passive income stream, you will need to do the following:
- Launch phase: Pick your niche, Choose a name, Get your hosting, create your content and launch your blog
- Grow: Build backlinks to your website and increase search engine authority.
- Monetize: Insert affiliate links and ads to your website to monetize your traffic.
So in essence the absolute first step is to get your domain name and WordPress hosting.
You can make beautiful affiliate links stand out on your blog with software such as GetLasso!
On to the next passive income idea.
2. Start An Online Course
The digitization of education has been a major shift in recent years.
Accompanied by social distancing and eLearning skyrocketing, it is an excellent time to create or sell online courses that can be accessed from anywhere while creating new passive income streams for yourself.
There are many ways to teach a course, whether through video classes or not.
There is always an option for those who would rather have hands-on experience than read about what they need to succeed academically and professionally in their desired field of study.
The first question really to ask yourself is what problem are you solving?
Then the second question is will people spend money on your solution to the problem?
If that’s a yes you are on the right track for sure.
Course management is key to your online education.
You need a platform that integrates with other solutions, such as Aweber and Google Analytics so you can track student progress in real-time.
Here is some great software to start an online course and create a new passive income stream.
Planning your online course
First, you need to prepare your course outline and content plan.
How will the final product of this work be for those who go through it?
After developing an effective way to organize all information in 10-minute video segments so they can easily digest bits and pieces at their own pace (and save valuable time), creating a detailed description of each part entails is essential before getting too deeply involved.
This not only helps people understand more quickly but also provides them with peace of mind knowing exactly what you are teaching.
Next, create some Pre-sale landing pages to send to your potential customers to gauge purchasing interest.
You can gauge some interest, but nothing is more accurate than tracking pre-sales.
Your course price will also depend on what the audience needs and how detailed you go in the content of your course; it could start at $499 or go up to over $1k for premium classes like neurolinguistic programming or something super in-depth specific.
To make your online course launch a memorable experience, get started with one of these online course software.
When starting be sure to include a link in your welcome email series that transitions into an online course, and post it on social media.
You can also create affiliate programs for people who want to purchase the lessons with their hard-earned money or offer them as gifts through different platforms such as Amazon Prime.
Doing this will help increase traffic flow toward our site which we hope results in increased conversions and active income.
On to the next passive income idea.
3. Affiliate Marketing
Affiliate marketing has to be one of the most reliable long-term methods to generate passive income. Making it our top choice for best passive income ideas.
There are tons of affiliate programs out there for just about every niche you can think of.
The key is to find the best ones to create passive income for yourself.
Affiliate marketing is really a numbers game full of passive income opportunities.
- Let’s say you have an affiliate blog and you rank for best beach chairs and get 1000 visitors to your article.
- Of those visitors about 20% click your affiliate link ie 200 clicks.
- of those 200 clicks, 2% decide to purchase a beach chair.
- The beach chair cost about $100 each and you get a 15% commission.
- You would make $60
Not much when you think about it.
But once those numbers jump and your article is bringing in 20k + Organic visitors per month, it adds up.
The biggest factor to consider with this passive income method is keyword research and niche selection.
You want to choose a profitable niche with high commission rates and good search volume with low ranking difficulties.
The great thing about affiliate marketing is that you can add links to different pieces of content.
- Youtube descriptions
- Biolink pages
- blog post
- SMS marketing
Affiliate links really do work best though when you use them in well-SEO-written blog articles or website reviews diving deep into the subject.
Putting in the upfront investment of time and writing well in-depth tutorials related to the products or subjects also fit in well with drip-fed automation emails.
When to launch links:
Technically you can add affiliate links to your blog content whenever you feel like it.
It is good practice to add links within your content once your start gaining organic traction on your website.
But be patient don’t expect to make life-changing money from the start, this passive income idea requires time, patience, and consistent work.
Now that we have touched past with affiliate marketing as a way to generate passive income.
Let’s look at the next method to start making passive income.
4. Create a Podcast
Creating a podcast in the year 2022 seems to be of huge interest to many and shall continue to grow in the year 2023.
Not only can it be just a hobby but also a highly lucrative way to create passive income for yourself.
There are many software on the market that can help you create your own podcast.
Once you’ve created a podcast, the way you make money is by going out to conventions or speaking directly to companies that are within your niche and align with your audience the show.
For instance, if you are in the travel or food niche, reach out to hotels and vacation packages and advertise them within your show.
Choosing a topic for your podcast.
Choosing a niche for your podcast can be tricky because it’s easy to choose something that only interests you.
If you want to generate additional monthly income from your own podcast, then it’s good to choose a general interest.
From doing interviews with successful people to talking about cars or whatever, there are so many fields and niches to talk about.
Set up the podcast website.
After you’ve chosen a name for your podcast, it’s time to get started building a website around it.
There are many website builders out on the market today or you can use free options such as WordPress.
If you don’t have the skills, We could always assist you, and possibly for free!
A key benefit of having your own website is the ability to direct the traffic you generate from your podcast back somewhere so they can learn more.
This creates traffic and potentially more revenue over time selling merch, print on demand, and other passive income streams you can create.
Choosing a hosting platform for your Podcast.
There are many platforms on the market today that can help your host and run your platform with ease.
It’s best to use these sites because they are easier to use and more cost-efficient than setting up yourself, although some require monthly payments.
Recording and creating podcast episodes.
When recording a podcast episode, there are a few routes you can take.
If you are just beginning and want to save some funds, go with a free option like using iPhone memos.
To sound more professional you can use paid software like adobe audition.
Podcast creation is a different game, you should be focused on creating quality content over quantity.
If you don’t have much experience be sure to take all steps to make a recording as smooth as possible.
Also, be sure to have all audio edited fully to top quality before publishing each piece of content.
This will help attract and capture more listeners over time and turn them into potential lifelong fans.
Also, be sure to create beautiful well crafted cover photos to attract new listeners. You can use software like canva for this.
Canva is a free-to-use online graphic design tool. Use it to create social media posts, presentations, posters, videos, logos and more.
Start A Mailing / Marketing List
Having a mailing list is a crucial step in starting a podcast and earning residual income.
Using a mailing list that you can market to help keeps your users engage and makes it a lot easier to announce when you drop a new piece of content.
There are many email marketing software available and are super easy to set up and get started.
You can even take it a step further and use your email marketing to do some interesting research such as emailing topics for poll suggestions etc.
This will help you not only produce top-quality content your listeners want but also keep them engaged for a time to be.
Distributing your podcast across platforms.
After you create your podcast episodes be sure to share it across all social networks:
- TikTok snippets
This will help your podcast grow quickly and attract new listeners.
Along with other various marketing tools.
Promoting your podcast on social media can also be a good way to make more passive income from ad revenue.
With Creating your podcast, you also have to build a community behind it, then it will generate income and become a great way to earn passive income.
5. Take Advantage Of A High Yield Savings Account
There are many different high-yield savings accounts that offer you extra money just for having a positive balance in your account via interest rate.
Making capital gains on your bank account is also something to consider, and some credit card companies will give incentives when signing up.
This is a great way to make some extra money without having to do any work making it one of the best passive income ideas.
Mastering personal finance is without a doubt an essential key to building and maintaining wealth throughout your life.
Most people are not taught any of this in school.
Personally, for years I’ve struggled with budgeting, planning, and making more money.
But it’s one thing to make money, another thing to protect and grow it to make more money.
Here are some great avenues to make some solid passive income from investing:
Risk is everywhere. Especially in the stock market.
The markets are volatile, and companies go bankrupt all the time- but that doesn’t mean it’s impossible to make money off this game.
If you’re smart about where your spend though (and invest), then Stocks should actually be one piece in a portfolio designed around generating long-term earned income with little risk involved overall.
Financial advisors are always telling you to be careful with your money, and they’re not wrong. You do have to invest money upfront.
You should always keep an eye on the markets, even when it means sacrificing some percentage of stocks or bonds in order for them not to take off too much.
Holding dividend stocks and equities or bonds is great to have within the portfolio.
Stocks are a great way to build wealth and earn passive income, but you must be careful not to put all your eggs in one basket.
A balanced portfolio will help protect against market fluctuations and has been proven by experts as being more profitable over time than risking everything on just stocks alone.
Investing in crypto is easier than ever before.
With so many exchanges and trading platforms available, investing your money has never been more simple.
These types of passive income can be volatile with risks but if you’re looking for long-term success passive income ideas then this type will offer it to all.
But be careful dealing with cryptocurrency can help you earn passive income but there is a learning curve associated with blockchain so be sure to do thorough research before putting live money in this virtual stock market blockchain.
Techniques such as real estate investing are a popular form of passive income generation.
Yes there is a monetary investment to take place but the returns for real estate investment are a great way in generating passive income
This can be done by leveraging assets in order to generate cash flow outside your job and using those funds for whatever you want; whether that’s saving up or trying out new investments.
The key to making good returns is knowing how in real estate.
There are plenty of ways you can get involved in buy-and-hold real estate investing, or even as an owner-operator with your own rental property management company.
If that’s not enough then consider going the route of REITs- they offer higher rates than traditional landlords could ever hope for!
There are many platforms that allow you to real estate and rent properties and it has never been so simple.
The great part is you don’t have to take care of maintenance and other paperwork associated.
All you have to do is buy shares and leave the rest up to the investment platform and earn rental income.
Real estate Investing tips to earn passive income:
- Research is key. Figure out where the best-located upcoming neighborhoods are developing.
- Single-family homes 100k – 150k are easy to rent out.
- Put down 20% rather than purchasing in full, this will allow you to scale quicker with more properties.
- Take excess cash flow from rental properties and pay off mortgages. You will eventually see a snowball effect.
- Acquire more rental properties to earn passive income.
How to Generate passive income ideas.
Passive incomes come from two sources; labor and/or capital, which can be anything like stocks or real estate in addition to your base salary at work.
The IRS categorizes it into three different types: Active Incomes (work for someone else), Passively Acquired Properties & Securities Income.
So what makes the best passive income ideas?
Anything that makes you recurring revenue on a weekly, monthly, or annual basis.
Earn Passive Income
There are many side hustles and Skill sets you can learn to create passive income streams for yourself.
In my opinion, SaaS-related businesses ( Subscription as a service) are great passive income streams because they can be remotely monitored and scaled largely.
Subscription product boxes all fit well with passive income ideas that can be potentially very lucrative to build wealth long term.
The more passive income sources you obtain the better financially you can be long-term.
So, while passive income can be a great way to make some extra money, it’s not as easy as many of these ads would have you believe.
If you’re interested in building up your passive income streams, the best place to start is by creating content that people will want to consume on a regular basis.
Once you’ve built up an audience for your content, you can start looking into ways to monetize that traffic through advertising or affiliate marketing arrangements.
We have all the software tools you need to know about to grow and scale.
Have you started working on any passive income streams? What’s been your experience so far?