Passive income is getting paid regularly for work that you completed once. It’s distinct from your regular income, which you get paid by doing the actual work each time it comes in. By contrast, passive income refers to money that comes in without being earned through your direct efforts.
The following article will explain what is passive income and how you can start earning for yourself.
Passive Income: A Definition
While there are many ways to define it, the simplest definition of passive income is often this:
Passive Income = Money coming in without actual work being done.
Depending on who you talk to, “passive income” may sometimes be called “unearned income”. Unearned revenue means money that comes in without selling anything or providing any value. It is not the same as unearned revenue (such as royalties).
Passive income is earned by doing work once to create a source of revenue that generates money on its own.
It means, if you have a website, you earn passive income as long as your website keeps creating revenue without any additional effort from you after the initial time and cost investment. The idea is that it’s all about building assets that can work for you. It is a great way to earn money if you have a website or blog that you want to monetize from.
How To Start Making Passive Income?
Now that you know what is passive income, here are some tips you can use to help you decide how to earn money in this manner.
Capitalize On Assets You Already Have
One of the easiest ways to generate passive income is by using something you already have (or could quickly get) an ongoing supply of. It includes your skills, knowledge and expertise.
For example, if you want to start a blog, you can use your existing knowledge/skill to teach others what they want to learn. All you need is a computer and an Internet connection, which you probably already have.
Once the blog is set up (which doesn’t take too long), it will start generating revenue without any additional work from you. It is generally the passive income that you can call “set and forget”.
Start A Business (If You Don’t Already Have One)
Starting your own business may seem overwhelming, but you don’t have to do it alone. A business means anything you intend to make money from. It can be a one-person show such as consulting, coaching or freelancing, businesses with employees such as a restaurant or retail store, or more giant corporations like Apple.
There are plenty of resources available to help you with the process, including books, online courses and local experts who can guide the way.
Some easy startup business ideas include:
- Dog walking, pet sitting or dog boarding
- House cleaning by yourself or with a partner(s)
- Selling used items online (such as your unwanted stuff on eBay)
- Register yourself as a tutor on tutor hunting sites like Tutor Hunt
Use Your Unique Talent Or Hobby To Create A Product
Do you have a specific talent that others would be willing to pay for? If so, there are plenty of ways you can use your talent to help others while making money from it.
Examples include:
- Artist/painter who starts a store online or another marketplace to sell their creations and art prints
- A musician who starts giving guitar lessons in their home or at a local music store
- Part-time baker who starts selling their creations in office buildings and through an online store (such as your website)
Start A Membership Site On Your Website Or Blog
One of the most lucrative ways to generate passive income is by starting a solid membership site with loyal readers who keep coming back for more content. It is typically the best option if you have a blog or website with an established audience.
According to reports, more than one-third of total online time worldwide is spent on social media. You can use your social media presence to earn a passive income. You can do this by building valuable information using articles, courses, and videos (information products), which your members will pay to access.
Sell Your Own Digital Or Physical Products
Maybe you like to create your products. If so, any products you create can be sold for a profit (and not just for using them yourself). You could potentially sell digital or physical products online or even create your store where people can buy the items.
Self-Publish Books Online
Do you have a way with words? Do you enjoy writing and sharing your knowledge with others? If so, self-publishing is one of the best ways to make passive income quickly.
It includes creating eBooks and paperbacks and selling them online on various websites, as well as selling your books through your website.
