You don’t have to buy property or invest to create passive income for yourself though. Here are 10 ways you can start making passive income and creating your own nest egg:
EBooks
Selling eBooks online has never been easier with the use of Amazon. Simply create an eBook that you are passionate about. Also, make sure there is a market for your book. Then, upload your book online and let the cash flow in. Many eBook authors outsource the completion of their books to freelancers who can do things like write the book, create a cover, develop a sales pitch, and promote their book. This would allow you to create multiple books without having to actually spend a lot of hands on time creating them.
Affiliate Program
A great way to make extra money is through affiliate programs. Here is how an affiliate program works. You will be given an affiliate link from a company to place on your website, YouTube Channel, etc. Every time someone clicks on your link and buys their product or service, you will receive a commission. Affiliate programs are not all created equal. Some affiliate programs pay pennies while others may hundreds if not thousands of dollars to their affiliates.
AdSense & Advertisements
Do you have a website or blog? You should monetize your website by using advertisements. So far, Google AdSense is the most common advertisement source used online. Companies go to Google for advertisement purposes. Then, these ads have the potential of appearing on your site. However, you could contact companies directly and speak with them about potentially advertising directly on your site. This would cut out the middleman (Google) and allow you to receive more profit.
Mobile Applications
You do not have to be a developer to make money with mobile applications. If you have an amazing app idea, then consider finding an independent contractor to create your app for you. You will need to pay this individual. However, if you create an app that receives many downloads, you could easily make that money back as well as much more.
Money Lending
This option is a little risky. You can make passive income by lending money to individuals in need. Simply set the amount you are willing to lend, decide on an interest rate, and have your borrower sign a contract. It’s smart to diversify your lending portfolio and lend to make high quality individuals rather than lend all of your money to just one borrower.
There are many peer-to-peer lending companies, like Prosper, that you can use to create this type of passive income for yourself. As an investor, you can take your pick of who you lend money to and for what. Many companies use P2P lending to help students get their degrees or give personal loans. You can also spread your investment out through several borrowers. This helps your risk level decrease significantly.
Sell Products on Amazon with Drop Shipping
Sure you could sell products on Amazon by keeping an inventory at your home and shipping packages every time a customer buys something from you. Why do that when you can drop ship? This involves sending your entire inventory to Amazon, and whenever anyone buys your product, Amazon will ship the product for you. It doesn’t get any easier than that.
Sell an Online Course
Udemy is an excellent resource to use if you want to make money by selling online courses. Create a high quality course, upload it to Udemy.com, and then promote it. Many Udemy creators start out making a couple hundred dollars within their first couple of months which quickly develops into six figures as the months continue.
Rent a Room with AirBnb
If you enjoy meeting new people from all over the world, then consider allowing others to rent a spare room in your home with AirBnb. AirBnb allows travelers from all over the world to rent a space instead of booking a hotel room. Simple set the amount of money travelers must pay per night and you could be on your way to making extra income while meeting interesting people.
Purchase a Rental Property
Real estate can be one of the best investments you’ll ever make. This is because real estate is a proven investment. Once you purchase a rental property, you will be able to lease it to tenants. This will become regular monthly income. In fact many people use rental properties to fund their retirement.
If you’re looking to get started in real estate, look at a crowd funding solution like LendingClub. When the property is fully funded, you become an owner, and will receive your share of the earnings and appreciation in the property.
Create a YouTube Channel
Simply obtain a high quality camera and record yourself doing something YouTube viewers will find interesting. Grow your YouTube channel, obtain sponsors, and add Google AdSence to your channel. These are just a few ways to make money on YouTube.
Conclusion
If you want to make money passively, then you need to decide which passive income strategy is right for you. Remember, some passive income ideas will make more money that others and some are riskier. Whatever you decide to do, make sure you give your best work as that is what your customers will expect from you. These are a few ways to make passive income.
Photo: Flickr: Tax Credits
This method has worked for me.