Generating a passive income stream which requires a one-time effort and investment is crucial in achieving your financial goals and building wealth, it can also provide support in times of emergency. So, everyone should build a few streams of smart passive income, as world’s most successful investor Warren Buffet say “if you don’t find a way to make money while you sleep you work till you die.”
WHAT IS PASSIVE INCOME?
Passive income is money you can earn that doesn’t require you to do a lot of “active” work to continue making it. In essence, you can do most of the work upfront and put some additional effort along the way to earn an income.
Additionally, you require some initial investment to build these streams of income, they are not entirely passive as they require you to put in some effort from time to time to make them successful.
Let’s have a look at those Passive income ideas in 2021.
Creating a blog in a specific niche is one of the best ways to earn a passive income. Blogging is hugely popular in the world, as blogs provide a great platform to people who wish to earn money in alternate ways. You can start up your own blog or even website which will be dedicated to readers.
Starting a blog usually requires minimal computer skills as it is pretty easy to get setup with a WordPress or Blogger type of website in just minutes.
If you have a decent following on Instagram with a well curated page you can become an Influencer and make money through sponsored posts or stories. Brands pay a good amount for sponsored posts depending upon the number of followers.
Posting daily and maintaining engagement with the users is important to attract brands, there are people who rely on Instagram as their main source of revenue.
Youtube ad-revenue is another major source for generating steady income. Content creation is becoming the most lucrative career options. Creating art or vlogging or teaching if you are not camera shy and are consistent you can be successful in creating a steady passive income stream as videos once posted can bring ad-revenue years later.
Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products. You find a product you like, promote it to others and earn a piece of the profit for each sale that you make. Affiliate marketing is the place where you assimilate all the above stated streams Blogging, Instagram and Youtube and promote affiliate links on all the three platforms and earn a true passive income.
WRITE AN E-BOOK
Creating content that people want to buy is a great way to get passive income, and e-books are a good way to do this because of the low production costs. If you have expertise in some area, sell it to a niche market by putting it in e-book form and marketing it directly to them. Self-publish through Amazon and promote through advertising or an extensive social media campaign
CREATE AN ONLINE COURSE
Have something you are good at and you know how to teach the topic? You, my friend, are halfway there to becoming a course writer for some very popular websites. Online courses have become a real hit and have taken off in sense of popularity lately, as people are starting to understand more and more that it’s not always about degrees and which college you went to.
If you are good at Mobile app development, you can create educational videos and articles, and even teach a whole class by signing up to websites that offer such services. Making an online course is no easy task, however quality content and a little effort can make your course a popular one so it might be a good idea to consider.
Udemy is by far the best place to offer your online courses as it has been getting increasingly popular over the course of past few years, steadily becoming the most popular and most used platform on the internet for people offering online courses.
Online shopping has become quite popular these days. Because of that, drop shipping has become a major source for developing a revenue stream. What is drop shipping? Basically, it’s where you create a site that advertises other companies’ products. A buyer would order the product from your site, which is set up to send the order to the manufacturer of the product automatically. Then the company that makes the product is responsible for shipping the item to the client.
With drop shipping, you don’t have to worry about carrying any inventory. You’re simply a go-between of a client and a company that makes a profit. You can use a platform like Shopify, to sell your digital products.
Do you like taking pictures? How about earning passive income with your photos? Companies and website owners purchase stock photos to use for their online stores and blogs. Open an account on any one of these websites such as Adobe stock, Shutterstock, Alamy or Etsy and you are good to go. The more photos you have uploaded on the site, the more money you can earn. Note that photos that contain people doing everyday things are the ones that earn the most money.
Investing in Stocks, Mutual funds for dividend income. Investing in real estate for rental income can give steady passive income, but there is a catch both investing in stocks and real-estate has upfront capital requirement and there is always a risk of capital depreciation.
In conclusion, if you can integrate these above-mentioned ideas together, you will be able to have a steady passive income, which would aid you in creating long term wealth.