Passive Income Ideas To Help Build Your Wealth In 2022
Passive Income Ideas To Help Build Your Wealth
Have you ever wondered, if you could just lay back, and do nothing while earning money? Today I will teach you some simple ways, you can do exactly that. But first let us go over, what exactly is passive income actually?
Passive income is regular earnings, from another source than an employer or contractor. It can come from 2 sources, rental properties or a business, where you don't actively participate, stocks, books etc.
A Lot of individuals think that passive income is getting something for nothing. The passive income has got the reputation of a “get rich quick method”. When it in reality, requires a lot of work to get the passive income stream set up.
When you're actively trying to build a passive income stream, out in the real world, it requires a lot of work upfront, and most likely some work or maintenance along the way too. For example you might need to update your product, or maintain your property.
But if you, after hearing all this, are still committed and want to do this, I will be sharing some great passive income ideas with you, and it will create even more financial security for you, if you get it up and running.
Passive Income Ideas To Build Your Wealth
If you have been thinking about building a passive income stream, then you will need to check out the ones I have collected for you, and learn what it takes to have success building them, all while understanding the risks involved.
Create a Course
One of the most common strategies for creating a passive income, is creating an audio or video course. Then when you have created it, and launched it, you can lean back and watch the money roll in. Such courses can be sold on websites like Udemy, Skillshare and Coursera.
And if you want to do this, but not through any of these websites, you should consider the “free model”. Build up a niche following online with free traffic and organic followers, then people who want to have more detailed information on whatever niche you’re in, will pay for you to sell it to them.
A course can create an awesome passive income stream for you, because when the product is done, the money will keep rolling into your bank account. On the other hand it takes a lot of effort and time put into your course, if you want to achieve a course people actually want to buy.
Affiliate Marketing
If you have a great following, are good at using advertisement tools or have a great traffic source that is interested in a specific niche. Then affiliate marketing might be just the strategy for you, you promote third party’s products, in exchange for a percentage of the selling price. Amazon is one of the best known affiliate partners, among the known ones is Clickbank, Ebay, Awin and ShareASale. If you don't already have an audience to promote your products to, TikTok and Instagram is one of the best ways to create a huge following both quickly and for free.
When individuals click on your promotion link, and buy a product from the third party you’re promoting, you earn a commision. The commission's is very different from affiliate partner to affiliate partner, amazons general commission's is around the 3-7 percent range. Therefore you need a lot of traffic to create a decent income stream. But if you’re able to grow your following, and sell third party products in lucrative niches, such as fitness, finance etc. you will be able to create a big passive income stream. On the other hand if you're new to affiliate marketing, don't have a following and don't have content to grow your following. You will need to put a lot of time into creating all of this. Furthermore you have to choose the right products to sell to your audience, and you need to have loyal followers, so it's not just because of a trend they follow.
Rental Income
Investing in real estate is the most known way to earn passive income, it's effective but it requires more work than you would expect. You also need a lot of money to get started, most people take out a loan to get started, but if your rental property isn't profitable, you will owe the bank money, and you have a property that isn't doing anything other than using your money. Therefore do your homework before you start, and be sure your property will be profitable.
For starters you have to determine 3 things, how much return do you want on your investment? What is the property’s total cost and monthly expenses? And what are the financial risks of owning the property?
For example if you want to have a free cash flow of 12,000 a year from one property, and the monthly mortgage is 1,000, the expenses and taxes is 400, you would have to rent it out for 2400 a month, to reach your yearly goal.
There are a few aspects you will have to consider, before investing in rental properties. Is there a market for the property you're thinking about buying? What if you get a tenant that doesn't pay on time, or damages your property? What if you can rent your property out? All of these huge factors could completely destroy your income stream.
Also there are even more factors that could affect your rental properties negatively. If there is inflation, or economic turndowns, your tenants might not have the money to pay the rent, but you will still have a mortgage to pay every month. The same is true, if you can't rent the property out, you will have to pay the mortgage on the property with your own money. So before you start, weigh these risks and have a plan to secure yourself financially, and do your research on the market.
Write An Ebook
If you do decide to write an ebook, it's a great opportunity to take advantage of the low publishing cost there is online. You can even get your ebook out and seen by possibly millions for cheap. Furthermore ebooks don't have to be long, 30-50 pages is enough.
Though you do need to have some expertise on a certain topic, the topic could be a skill or ability that many people need, but very few offer. It is very easy and very quick to design your book on an online platform, and then research the prices and the market of your specific topic in your ebook.
An ebook is a good way to deliver your expertise to readers, and drive traffic to other products, offers etc, including online courses, other ebooks, or a website. On the other hand your ebook has to be perfectly written, and really be unique, to build up a following, and to get people to buy it. Also if you don't have any ways to market it, such as a website, instagram etc. you have to start from scratch and build up a following, or start an advertising campaign. So you could put in a lot of work, and get very little in rewards.
Sell Photos Online
If you're good with a camera, and likes taking photos of anything. Then selling your images online may just be the right choice for you to build a passive income. Selling photos might not be the first thing you think about, when I say passive income. But it is a great way to build a passive income stream, especially if you can just sell the same photo over and over again. Websites you can use for this include Getty Images, Shutterstock and Alamy.
As a start you need to get approved by the platform, then you can start uploading and licensing your photos. Then every time a company or a person buys your photo, and uses it, you will get paid.
You should focus on taking photos that are appealing to a specific target group, and figure out what demand there is on photos. You can shoot photos with models, landscapes, and cars etc. If you shoot photos of cars, for example, you're targeting a specific group that might be interested in buying such photos.
If you have uploaded a photo to one of these platforms, and for example uploaded high in demand photos, you could sell the same photo thousands of times, and earn money every time. But you could also be unlucky, and upload hundreds of photos to a website, and none of them sell, or some of them sell very little. Therefore you just keep uploading, trying to find the golden photo that will just sell like crazy. It also takes a lot of effort and time, to go out and take high quality and beautiful photos, and if it doesn't sell, you have wasted a lot of your precious time.
Flip Products From Retail
There are alot of online platforms, where you can sell your own stuff. Take advantage of sites such as Ebay or Amazon, where you can sell products that you can find for low prices elsewhere. You will then earn money on the difference in buy and selling price, and maybe build up a following, that follows the deals you put online.
You will be able to take advantage of your research, and sell products the average consumer can't find online, therefore you can sell the product for a higher price than you bought it for. Furthermore if you're lucky enough to have a friend that can get you access discounted products, that not many consumers can find, you will be in good luck, and be able to make a great profit
Of course sales can happen all the time, when it's an online marketplace. You will need to find a reliable selection of products to sell that people actually want to buy. And you will have to invest a lot of money in the products you buy, until they begin selling, so you need a good fund to get started. Last but not least you need to know about the market, what products people want to buy, and what price they are willing to give for your products. Otherwise you could end up with a lot of products, you bought overpriced and/or people simply just don't want to buy them.
Dividend Stocks
If you are a shareholder in a company that has dividend yielding stocks, you will receive a payment on regular intervals from the company. The companies pay you in cash, every quarter based on the profits they have made. If you have dividend stocks, you're paid per stock you have, so the more stock shares you have, the more money you get. You can use Apps such as Etoro for this.
The income you get from dividend stocks is only based on how much money you have invested, therefore it's one of the most passive ways to earn money. When the money is invested, you will just earn money every quarter and it will be deposited directly to your account.
Of course you have to choose the right stocks to buy, you don't want to buy stocks in a company that doesn't pay out a lot, and you don't want to buy stocks from a company that is doing badly. For example a company that offers a high dividend might not be able to pay it all, therefore you really need to do your research before jumping into this market.
Post Sponsored Posts On Social Media
Are you good at growing a social media account? Or do you already have a huge following on social media such as instagram and Tiktok? Then you have the opportunity to do sponsored social media posts, especially new and growing brands, are open to pay a lot to get a sponsored post.
Using your social media presence as a business model can be quite profitable. Of course you need to have the right content, and people need to keep engaging on your posts. If a lot of people are engaging with your posts, a lot of brands are open to pay a lot of money to get a sponsored post.
The hard part is getting started, you will need to build quite a big audience, before thinking about getting sponsored posts. Therefore you will have to spend a lot of time trying to grow your social media account, and be at the risk of not succeeding. You have to spend a lot of time, following trends, and creating content. And even when you have built up a huge following, and got some sponsorshiås, you will still need to have an audience that keeps engaging with your posts, otherwise potential advertisers won't use you in the future.
Create A Blog Or Youtube Channel
Do you have an extreme obsession with something, such as traveling, cars, comedy, magic etc. Then you can build a blog or a youtube channel up around this, and turn your expertise on a subject into money. For a start if you're not an expert on any special subject, you will need to choose a niche or subject that interests you, but is also popular. Then become an expert on your subject, and slowly but steadily build up an audience, with your engaging content.
You can, with a free or relatively low cost platform, build up an audience with engaging content that interests people. The more unique your subject is, the more you're gonna become the person people follow, and search up when they need something from that specific niche.
You will have to in the start create a lot of content, then afterwards begin creating ongoing content. Therefore you need to be really passionate about your subject, product or niche. It will be tough especially in the start, because people first need to find you, which isn't the fastest process. If you create tons of content, and spend hours a week creating it, but no people are interested in your topic, therefore you will just have to start, and try experimenting.
So to conclude, it is really not that hard to find a way to earn passive income, the hard part is getting started, and of course being lucky enough to create sales passively. But i wish you good luck on your journey, and hope you learned something valuable.
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