Admit it. You’ve probably wished that you could work fewer hours while maintaining your current standard of living.
Or maybe you wish for something even bigger, like being able to stop working altogether so you could devote your days doing things you actually enjoy, like travelling the world and spending more quality time with your family.
For me, I’ve done the travelling thing. These days it’s more about being home when my kids come back from school and then going for a quick 9 holes on the golf course or a quick surf or just hanging out at home with them.
Being able to go to all of their school and sport events and just being around as a dad without having to slave away 10 hours a day for someone else so that they can have the freedom to do what they want.
But, of course, you couldn’t do that unless you knew you had plenty of money to live on.
The solution would be to find a way to make money without having to work at a job for 8 or more hours a day. But that’s a pipe dream, right?
Well, actually, it’s not. In fact, more and more people are making that dream a reality.
By creating streams of passive income.
What Is Passive Income?
Passive income is money you make with little if any day-to-day effort…at least eventually. Some passive income streams take time and effort to set up, at least upfront.
But once those income streams are in place, the money will keep rolling in without any significant effort on your part. You could literally be making money while you’re asleep, working out at the gym, or away on vacation.
Some passive income streams might only generate a few hundred dollars a month. But others have the potential to generate thousands.
Here are some of the benefits of having a source of passive income.
- You’ll have more money coming in without having to get a second job.
- You can quit your job and dedicate all of your time to creating more passive income streams.
- You can build up your retirement fund faster, maybe fast enough to retire early.
- Once you’ve retired, you won’t have to rely solely on your retirement fund.
- If you get laid off, you’ll still have money coming in.
So now you know what a passive income is. But how do you go about getting it?
4 Popular Passive Income Ideas
There are many ways to create a passive income stream. And here are four of the most popular.
It’s important to realize that you can create these income streams from anywhere in the world. I do them from a small town on the east coast of South Africa.
The internet is a beautiful thing and it has opened up opportunities for people from everywhere.
At its most basic, investing involves giving your money to someone else in the hopes that, eventually, you’ll get back more money than you put in.
Unlike with many other passive income streams, you often don’t have to do much work upfront to make money as an investor. All this form of income will demand of you is your money.
There are many ways to make money as an investor. For example, you could invest in dividend stocks, buying shares in a successful company. As a shareholder, you’ll receive a cut of the company’s profits every quarter or so. And the more shares you own, the more money you’ll make.
You could also invest in a local business. If the business is new, the owners might use your money to get their operation up and returning. In return, you’d get a cut of the profits.
And as a “silent partner,” you’d make money without having to be involved in the day-to-day running of the business.
If you invest in a successful company, you could receive a high return on your investment. But being an investor comes with its share of risks.
For example, if you invest in a local business that closes its doors after just a year or two, and never turns a real profit, you could end up losing most, if not all, of the money you invested.
On the other hand, if the business is really successful, you could end up making your money back several times over.
Before investing, it’s important to do your homework. If you want to buy shares in a company, investigate the company to see how well it’s doing now, and how well it’s expected to be doing 2, 5, or even 10 years from now.
And don’t hesitate to get expert advice, even if you have to pay it. You might not want to pay just to get someone’s opinion. But if they keep you from investing in a company that goes belly-up in six months, it’ll be money well-spent.
2. Self Publishing EBooks and Courses
If you have a knack for teaching through video or writing, you can generate a passive income through self-publishing Ebooks and courses.
There was a time when selling your own book was a complicated and expensive process. First you had to write the book. Then you had to pay to have copies printed.
Then you had to sell the books yourself, and without the Internet to help you reach potential customers. Most were only able to sell a fraction of the books they’d paid to have printed. Meaning few ever made their money back.
Now days, you can publish an ebook or video course for little to no money.
Many say the hardest part of selling an ebook is writing it in the first place. So this is a passive income stream that requires quite a bit of work upfront.
Luckily, you don’t have to write your ebook yourself. Instead, you can hire a ghostwriter to do the writing.
If you don’t want to do things like creating ebook covers, formatting text, or publishing your book on multiple platforms, there are many services that will do it for you…for a fee.
While some of these services are legit, others aren’t. If you decide to use such a service, try to find some other self publishers who’ve had success with them.
It’s entirely possible to simply upload your ebook to Clickbank or Amazon and make money without doing any additional work. But here are some things you can do to create a steady and reliable income from self-publishing.
- Market your ebooks. Marketing is how you let more people know your book exists. Two popular ebook marketing methods include buying ads on sites frequented by ebook readers, and making guest posts on other people’s blogs.
- Build a platform. Building a platform is about letting people know who you are so you’ll have an audience of people to tell when you have a new book coming out. Some ways to build a platform include creating a popular blog, having a lot of followers on a social media platform, and building a mailing list.
- Publish more than one book. Most self-publishers say you won’t make a lot of money selling one ebook. You have to sell several. If someone buys and likes one of your books, they might be interested in buying any other books you’ve written.
So the more ebooks you have out there for them to buy, the better. This is why some self-publishers write and publish several ebooks a year. Just releasing a new ebook can get all of your books more attention.
The great thing about self publishing is that you can make a steady passive income from it without spending a lot of money upfront.
And if you already enjoy writing or making videos, it’s a way to make money doing something you already love to do.
If you are like me, who do not enjoy making videos or writing books, you can hire a ghost writer to do the writing for you. You put your name on the work and sell it.
I have personally made passive income from Clickbank for years. I have my own Ebooks and courses on there and I also promote other courses and books as an affiliate.
It’s one of the best, low cost ways to earn great money on the side or turn it into a full time business.
People have done over $3 Billion on Clickbank and the trend is only rising as more and more people come online all over the world.
Watch this video to learn more about how you can get a piece of this huge market.
3. Owning Rental Properties
One of the more “traditional” ways to make passive income is with rental properties.
If you own a house, you can rent it out to individuals who will pay you every month to live there, you can also rent out a room in your home on Airbnb.
Or if you own a commercial property, you can rent the building out to a business.
Managing a rental property can actually be a lot of work. Managing several rental properties can be like a job in and of itself. And if you’re looking for ways to generate passive income, the last thing you want is another job.
Fortunately, there’s a solution. You can use a property management company to manage your rental properties for you. Yes, they take a cut of your profits, but they also do most of the work that you won’t want to do.
If you’re thinking of going into the real estate game, there are some things you need to consider. For example, how much will you be paying in taxes and other expenses on your rental property every year?
If you don’t own the property outright, how much will mortgage payments add to your yearly costs?
Once you have that figured out, you need to figure out how much you can charge to rent the property out. A lot of this will depend on the condition of the property, as well as its location.
You’ll need to ensure that you make more in rent than you pay out for the mortgage, taxes, maintenance, and other expenses.
Getting started in real estate isn’t necessarily easy, especially in the beginning. You’ll need to educate yourself thoroughly before renting out your first property.
Still, there are many people who live quite comfortably solely by renting out houses and commercial properties.
One of the best ways in my opinion to make passive income from real estate is to get control of other people’s properties and rent them out on AirBnB.
People are making $4 to 6K per month with this method while working full time jobs. Others are outsourcing and automating the business to avoid working full time hours, yet earn a consistent monthly income for life.
Want to learn how you can do the same? Signup for this free training class.
4. Becoming an Affiliate
Affiliate marketing is probably the easiest, lowest cost way to make passive income from anywhere in the world.
Affiliate marketing is what I have been doing full time for the past 11 years. I ran my affiliate business from my laptop while travelling the world in 2012 and today I run my affiliate business from my home in South Africa.
To become an affiliate, all you have to do is sign up with an affiliate program. Find some products that appeal to you (and that you think will appeal to others) and place links to those products on your site.
If someone clicks on your affiliate link and ends up buying the product through that link, you’ll get a commission.
Probably the most well-known affiliate program is run by Amazon. Amazon pays up to 8% commission for every sale that you refer to them.
I have personally made over 400K in affiliate commissions from Amazon alone. One of the blogs that I started back in 2010 was about Bread Machines.
I posted reviews of the different bread makers and also posted bread machine recipes on the blog. Bread makers cost around $200 on Amazon and I made 8% commission on each sale. That was around $16 per sale.
Once my site got ranked in Google I started making around 10 sales per day on Auto Pilot. 10 sales times $16 in commission= $160 per day. I was making $4800 per month from that site on complete auto pilot.
I quickly built more sites and they started doing good as well. That’s how i quit my job 11 years ago and still to this day, I do affiliate marketing through Amazon and other networks such as Shareasale.com and Clickbank.com.
Amazon’s affiliate program has a lot going for it, especially for someone new to being an affiliate. First, they have a wide variety of products to choose from.
And, secondly, millions of people buy from Amazon every day. In fact, there are people who place an order with Amazon at least once a week.
If someone is going to buy from Amazon anyway, why not let them buy through your site, so you can make some money off of the sale.
One thing to keep in mind is that not all social media platforms allow affiliate links. If you post an affiliate link on one of these platforms, you could end up losing your account.
So, before doing any affiliate marketing through one of your social media accounts, make sure it’s okay.
If you’d like to learn how to do affiliate marketing the right way and start earning your first commissions as early as today then sign up for John Crestani’s free training class.
John is a Mamba affiliate marketer and he has helped a lot of students to become Mamba’s themselves.
Other Ways to Make Passive Income
The 4 passive income ideas above are just the tip of the iceberg.
There are more ways to general passive income than most people can imagine. In fact, here are a few more.
1. If you’re technically minded, you can create an app and put it up for sale. People who buy an app and find it to be truly useful are often eager to tell other people about it. And those “other people” could end up buying the app too.
I recommend Clickbank over Udemy because you can charge more for your products and you can also recruit affiliates to sell your courses for you in exchange for an affiliate commission. Talk about passive income on steroids.
3. If you have a good driving record, and your car is in good condition, you can get paid to drive. There are advertising agencies that will place ads on your vehicle, at no cost to you.
Once your car has been turned into a mobile billboard, you’ll be paid to drive around so people can see the ads. This is a way to make a passive income just by going about your daily business.
4. Like photography? Then you can make money selling photographs. There are sites where you can make your pictures available for use.
Whenever someone uses one of your pictures on their website, on their blog, or in their ebook, they’ll pay a fee to the service. The service will keep some of the money, and you’ll get the rest.
5. If you have a boat, an extra car, a storage shed, or anything else you don’t really use, you can make money renting those things out to other people.
Think of your hobbies, skills, talents, and even possessions. There are probably ways you can use any of them to generate a passive income.
Generating passive income usually requires some kind of investment upfront. It could be the time you spend finding a good rental property, the work you do writing an ebook, or the money you pay to invest in a successful company.
But considering all of the benefits of having a reliable source of passive income, any upfront investment could turn out to be more than worth it.