As the word suggests, passive income is the opposite of active income. Passive income is a situation whereby one earns money without actively participating in conventional work activities. In essence, it is a side hustle where you collect payment overtime for work done from a source other than an employer or contractor, as opposed to active income.
It’s important to note that passive income may sometimes have the allure of a get-rich-quick scheme, just like choosing to sit and go poker. However, it requires patience as income growth may not be as fast as expected. But this does not mean that you can’t get rich with the right effort, dedication, and sufficient time.
Now, let’s look into how you can generate a side income.
Forms of Passive Income
Now, let’s look into some major investment ideas you can use to craft your passive income portfolio. They are as follows:
Drop shipping
Drop shipping appears at the number one spot because it may just be one of the best ways to earn passive income. This is because it does not have any restrictions on location or region, nor do you need too much capital to begin. In the real sense of it, all you need is to create an e-commerce store where customers can go for online shopping.
Furthermore, you never have to worry about money loss with drop shipping because the customers only get their package delivered after payment. Also, you don’t have to put in too much effort because your supplier takes care of packaging and customer satisfaction. All you have to do is find trendy products in different categories that you can sell.
Sales of Digital Products
Selling digital products is another means individuals can generate passive income. Simply, digital products are intangible media assets that customers are unable to touch such as plug-ins, PDFs, templates, etc.
So, with these digital assets, sellers can enjoy high-profit margins by simply creating the asset once and selling it repeatedly, making it a great source of income. Additionally, you can choose to boost sales by incorporating other materials like files, kits, printables, etc.
Create And Teach A Course Online
In this present age, it’s very easy to create online courses and teach them. It doesn’t matter what aspect you choose; there’s always a demanding market for any pre-recorded course. Thus, you can sell online courses over and over in a bid to generate passive income.
Moreover, the major sacrifice online courses require is your time as you must create a course outline, record it, and curate it in a downloadable template. This thus means that with online courses, you don’t have to sacrifice much money to make money.
Renting Out Spare Rooms and Unused Space
For many who lack any form of startup capital, the best way to go about earning passive income is by renting out that extra room in the house. Or if you will be out of town for weeks and don’t mind the idea of making some money while at it, then it’s best to partner with a rental company and rent out your space. Also, if you have any unused space in your garage or shed, you can also put them up for rent.
This way, you can make some side income without doing too much.
Begin a YouTube channel
Statistics claim that over 2.7 billion people globally use YouTube each month, so do you see the potential income if you start your YouTube channel? Although it might seem like a lot of work at first with no real revenue, in the long run, the income potential is on the high side.
So, all you need is to create content that captures the eye of your target audience and encourages them to subscribe. Also, with the input of affiliate sales and sponsorship deals, you can earn a lot more money.
Sell Stock Photography Online
If you are already in the photography business, using your skills as a side hustle doesn’t hurt. It may not sound like an ideal place to start, but selling stock photography online is a lucrative business. On the right platform, like Getty Images or iStock, you can sell these photos not once, not twice, but as long as there’s a market for it.
However, to begin selling on such platforms, you must first get accreditation, and then you can license your photos for use. So, each time someone downloads and uses your photo, you get paid. As a result, it’s important to know what kind of pictures are in demand and then capture them accordingly.
Peer-to-Peer Lending
P2P lending involves giving out loans to borrowers with the intervention of an escrow or intermediary. This is a passive income idea because when refunding your money, you can charge interest on the money borrowed. However, note that there’s a risk attached to P2P lending because loans are not secured,, so you may lose if the borrower defaults on payment.
Last Words
It never hurts to have a side hustle that adds to the income you get from your main source. So find newer ways to make the most of your day and take your personal finances to the next level. The world of passive income awaits you.
