We hear about passive income all the time and how it could change our lives but it requires a lot of money to get started with it and there is always a risk factor involved.
The first thing that comes to the minds of the people when they hear passive income is investing money to gain profits.
But that’s not always the case, we can easily make passive income without investing money but alternatively we will have to invest our time and effort.
Before getting started with the list of the passive income ideas lets see what passive income actually is?
What is Passive Income?
Passive income is earnings derived from a rental property, limited partnership, Online business or other enterprise in which a person is not actively involved
In simple words passive income is something that puts money in your pocket even if we stop working or work for a minimum time frame.
Who wouldn’t like to live a life like that?
But Building a passive income stream take a lot of work upfront and also some maintenance along the way. It is like a tree that we are growing, we have to first plant a seed and water it regularly to have its fruit in the future.
It could also let us quit our job by paying us even more than our jobs could ever pay. I usually recommend to all my friends who have a have a job and work 9-5 to start a side hustle which could help them make different income streams and they won’t relay just on their job to pay them.
Make different income streams to be rich was mentioned is the book Rich dad poor dad which was the first financial book i ever read and after that i have been focused on doing just that.
More and more people are now understanding the value of passive income and have started to work for it, even the kids of 16 years of age have started to do this so what are you waiting for?
1. Affiliate Marketing
Affiliate Marketing is basically selling someone else’s product for a commission.
That commission could range anywhere from 5% all the way up to 75% per product you sell. Then there comes the monthly subscription affiliate product which are actually the gold mine.
If you manage to get someone on a monthly or yearly membership program you will get a commission every time the person renews their subscription, that could be every month or every year.
Most famous affiliate marketing market place is amazon associates.
Best feature about this program is that if the person comes to amazon through your link and didn’t bought your recommended product but bought something else within a day you will get the commission of that product.
Or better yet if the person bought your recommended product and also added 5 other things to the total you will get commission on all the product the person bought in a day.
The only downside of amazon affiliate is their commission rate is very low it ranges from 5% to 15% which isn’t the best.
Another very popular affiliate marketplace is Clickbank. They only deal with digital products like eBooks, Video courses etc. but their commission rate is mind blowing, we could earn from 50% all the way up to 75% which is a hell lot.
But at the end it all comes down to choosing the right product and doing some research. Not all the products you promote will sell.
2. Start/Buy a Blog
Blogging is one of the best sources of passive income and it has the potential to make millions of dollars online.
You can literally start a blog on anything until it has an audience but if you want your blog to make a lot of money i have listed 7 most profitable blog niches which have the potential to make millions of dollars online.
There are 2 options, you can either start a blog from scratch or buy a blog and start to work on it.
Starting a blog from scratch is a very easy task all you need is a Domain name, Hosting and WordPress, that’s it now you can start writing blog posts other things you would require is a theme and plugins you can start with a free theme if you want but buying a premium one will always come in handy.
Most of the plugins also have a free version which limits you to its full potential but trust me you can do a good job with free ones. I personally use only 3 paid plugin which came to me as a bundle when i bought the X theme and then i loved the plugins and decided to pay the developers for making amazing plugins.
Starting a blog would cost you around 60$ – 70$ including the domain name 10$ which is provided for free if you get hosting with bluehost just for 3.75$/Month and some additional charges if you decided to buy a theme.
Where as buying a blog can be a little bit expensive because it’s already been setup and it has articles written on it.
You can buy/sell blogs at Filppa. It is a auction based website where if you like a certain domain you will have to bid on it or you can also directly buy it with the sellers optimum price. After buying you will have to use your own hosting and continue to grow the blog.
So I would suggest you to start your own blog from scratch as it will be a good experience and much less expensive than buying one.
3. Start a YouTube Channel
YouTube has created many millionaires, Last year a gamer made it to the top by earning 16M$ in 2017 followed by 2 more games.
Same as the blog you can start a youtube channel on anything you like but to make a lot of money you need to target something semi-broad, like Comedy is very broad but fails is semi-broad you will have to think something semi-broad to get a lot of views.
There are 2 ways you could make money with youtube. one is with ads and another is with affiliate marketing or selling own products.
To make money with ads you need a lot of views and it also depends upon the niche which you are in and various other factor if you use the Adsense program provided by Google themselves. Adsense pays you a few cents or dollars every time someone clicks on any ad shown on your videos and also pays you by impression i.e. you would get 1$ for every 1000 or so views along with the ad click money.
If you don’t want to use Google Adsense to monetize you youtube videos you could also use sponsored ads where you would get paid from a company to promote their products in your videos. Doing sponsored ads will get you a Fix amount paid but if you use Adsense you will continue to make money as long as your videos are getting views.
You can also make money with affiliate marketing with the help of youtube videos. Just make a review video about a product and link the exact product into the description with your affiliate link and if someone buys the product through your link you will get the commission.
I have been making curated funny youtube videos and have a made over 30 videos so far. All of those videos have been monetized with adsense and they bring in almost 1M combine views per month and somewhere between 700$-1000$.
Teespring is an awesome company which helps you to make put any design on your t-shirt and they will even deliver your designed t-shirt to you if you want it.
They also have a feature where you could even sell your t-shirt and make a profit.
All you have to do is to make good looking t-shirt designs which would attract people to buy the t-shirt and then put the t-shirt in front of people who are more likely to buy your t-shirt.
Make t-shirt designs for some hobbies which people are interested in or shows/movies where people are interested and make designs according to that and put the t-shirt in front of people who love the niche.
There is a specific cost which teespring takes to make the t-shirt and asks you put your selling price. So maybe the cost price is 20$ you could sell it at 30$ and make a profit and on the plus side all the shipping and handling will be managed by them so all you have to do is to find right people to buy your t-shirt.
Ebooks are a an amazing source of passive income. You just have to write the book once and sell it over and over again and make money.
But many people make it complicated by thinking that you have to be an expert to write a book.
The only thing you need to write a book is a skill no matter if you are not the best at it but have atleast tried it and know the basics of how its done.
There are many people on this planet who haven’t ever tried it but you have. You just have to jot down few points on how its done and elaborate on it and make it a 10-20 page Ebook and sell it for 2.99$ on amazon kindle.
Amazon takes 35% of your earnings if your books cost is below 2.99 and takes 70% if you cost it at anything above that.
You could even List your book at Clickbank Marketplace for a 50%-60% commission rate and let the affiliates make sales for you instead of ranking for search terms on amazon kindle.
6. Create an Online Course
Similar to writing an ebook creating an online course isn’t that hard. You just need to know something that others want to know even if its basic.
Now a days more and more people are getting attracted to videos because it is much easier to watch than to read, and because of that most of the video courses are of much higher value than the ebooks so you could really make a killing with selling your product.
Many people would think that you have to show your face in the videos but its not the case every time especially if your are creating something related to computer.
I have personally paid 99$ back in 2013 to learn google adsense and in the whole course the person never showed their face. I cannot recall the name of the person and the course either, but all there was a screen recording of his computer and a voice over explaining what he is doing.
You could simply do just that there are plenty of people who want to learn Photoshop, After Effects and many other things, you know the basics you can make a video course and sell it to the people.
You can also list your course at clickbank and let the affiliates do the work of selling for you. But for the affiliates to pick your course over the others it needs to have 2 things good value and also high commission rate.
7. Sell Your Photos
If you are a professional photographer or even owns a professional camera you can pretty much make good money with selling your photos.
Stock photograph websites like shutterstock and getty images need more and more good quality photographs added to their collection and they pay you around 30% to 40% of whatever your images make.
This is a very good passive income stream because just like other streams you only have to click the photographs once and then send it to these companies and they will sell it for you but only if its good enough.
You can also click some nice stock images with your phone as most of the latest smart phones are equipped with high end tech a smartphone can handle making it a awesome way for you to make money.
But before clicking images you need to do a research on what types of images are actually selling and click accordingly. Most of the stock images are bought by businesses so keeping that in mind Start clicking.
Patreon is just amazing. If you are a creator and have an audience who appreciates your work you need to have patreon.
Patreon is a subscription based website where your followers can pay you to get extra from you on a monthly basis.
You can put anything on the offer like your art piece, upcoming music, videos on how to sketch, behind the scene whatever you may like or your audience want.
Although it’s not completely passive income but you are getting paid for what you love to do, which is the best thing ever in this world.
9. Evanto Market
Evanto market allows you to sell stuff mostly related to websites. You can sell web templates, website themes, graphics, audio files, plugins etc.
Similar to others Make it once sell it over and over again.
To sell into evanto market you first need to get approved by them by submitting your project and upon reviewing you might get a green light or get rejected.
This is because evanto is known for its high quality products and if someone is selling worthless products its not good for their reputation.
Evanto charges some fees according to your earning, ranging from 37.5% to 12.5 if your product is Evanto exclusive and if its non-exclusive they charge you 55% of your fees.
10. Build an app
Building might seems pretty though but its really not that hard if you use tools like power apps and outsystem 10.
You could also hire someone if you want to make an app.
I did an experiment back in 2016 when i was in college, I saw a crazy trend of people getting attracted to instagram and keeping track of how many followers the have and who unfollowed them and also they were searching ways to increase their following so under their influence i also got crazy with instagram and paid my friend to make a analytics app and a follow unfollow bot in one app.
Once i got the app i placed adsense ads in the app and told my friends about the app and soon it spread like fire in the whole college and everyday i started to get over 1000 ad impression and a decent money with the ads which didn’t covered the built cost but i got what i wanted.
Using ads is just one way to make money, you can also start a monthly subscription or put a value in the app store for the people to buy.
11. Sell Instagram Shoutouts
Instagram is getting into trend, more and more people are getting onto Instagram.
Which is the best time to leverage instagram and make good money. Businesses often look out for influencers who has a decent following and pay them to promote their brand.
Although this is not a complete passive income stream but it could really get you a lot more than just money like free stays in 5 stars hotels or special discount on Flight bookings and many other things in return for a shoutout.
Building up an Instagram following does takes time if not some money for shoutouts. But once you understand the algorithm of Instagram you can quickly scale to 100K or even a Million.
These were the free passive income sources which i think are the best but it takes a lot of effort to get started to any of those and turn it into a passive income stream.
If i have missed a passive income stream which you are working on or if you have any suggestion fell free to write it down in the comments below.