Passive income is money earned in a way that requires little ongoing effort. Some passive income streams will require a little more time and effort initially. But once set up will earn you money without any or minimal further intervention. This means you can literally earn money while you sleep.
You might want to learn how to generate passive income streams to generate extra income alongside your job. Or depending on how much work and dedication you are willing to put in, it might also be possible to earn enough to quit your job in future.
As stated, some of these require a little more effort to set up. But if you put in the hard work first you will be rewarded later. Remember these are not get rich quick schemes – you aren’t going to become rich overnight. You do have to put some effort in at first but over time you will reap the rewards. The main thing you need to make money online is perseverance.
There are many different ways of creating passive income and below we will show you how to generate your own passive income streams. This will be the first in a series of posts listing some different methods that you can use to start generating your own passive income streams.
Which Passive Income Streams Should I Create?
There are many different methods but we will focus on 4 popular ways of creating passive income streams which are easy enough for anybody to start. You can find more on our blog including this post >>> How To Make Passive Income Streams With A Blog
With affiliate marketing you earn a commission by promoting another company’s products and services. This has got to be one of the simplest ways you can make money online. You are not creating or selling your own product or services. All you are doing is promoting existing products.
You will usually be provided with a tracking link or other promotional materials by the vendor. Each time somebody clicks through one of your links and makes a purchase you will earn a share of the proceeds.
Now you may be wondering how do I promote something if I don’t have a website or blog? Whilst having your own blog or website can be a useful tool to utilise for affiliate marketing they are not essential. There are many free ways you can start to promote products including on social media such as Facebook and Instagram, and forums.
What Products And Services Should I Promote And Where Do I Find These?
There are a multitude of online platforms that connect vendors and affiliates. You can browse products in a variety of categories and select the ones you prefer. It is ideal to start with a type of product you are familiar with and where you know the correct audience to target.
Dropshipping is a method of retail fulfillment, where rather than a store stocking items, you buy the items from a third-party supplier. The items are then delivered straight to the shopper. This means the vendor doesn’t need to deal with the item directly.
For the store, this is generally a hands-off process. The shipper doesn’t need to arrange stock or fulfill the orders in any capacity, the third-party provider deals with the actual products.
Outsourcing is great since it doesn’t require as much money to operate as the conventional retail model. You don’t need to open a physical store, pay overheads, and stock items. Instead, you open an online retail storefront (for example on Amazon) and purchase wholesale from providers who have the items and distribution centre space.
The shipper is principally responsible for acquiring clients and handling orders in dropshipping. It’s a relatively simple model and one that can be extremely fulfilling.
A great many business people run to outsourcing on the grounds that it requires less effort and cash to begin. That is most likely why you’re intrigued! With dropshipping, you can create a business that is rewarding for the long term right from your PC.
If this is something that interests you then we recommend SaleHoo as the place to start. They are dropshipping experts offering expert e-commerce training in addition to wholesale supplier services. Please read our review of SaleHoo training here >>> Fast-Track Your Success With eCommerce Training From The Experts
Or click the link below for a course guiding you on how to successfully build a dropshipping business on Amazon.
e-Book Publishing On Amazon Kindle
You can create e-Books and publish them yourself on Amazon’s Kindle Direct Publishing platform. Once published you will receive a royalty payment from Amazon each time somebody purchases one of your e-Books. You can earn up to 70% royalty fees through Amazon Kindle sales.
This may sound like there is a lot of work involved in writing e-Books. But as we show you in one of our previous posts, there is a way to quickly and easily create dozens of e-Books and start earning in minutes. And don’t forget once it is set up you don’t need to put in any additional work. You leave it and collect royalty payments.
Stocks and Shares Dividend Passive Income
Many company stocks pay shareholders an income known as a dividend. There are 2 things you can do with dividends. You can elect to receive the cash as an income or re-invest them into more stock. Investing in stocks may not be for everybody as you require money to invest in the beginning and your capital is at risk. However if invested in the correct way, then as well as dividend income you can also benefit from capital growth over time.
We will aim to cover stock investing in more detail in a future post but we wanted to include it here as it is one of the easiest ways of generating passive income. If you are keen to get started trading right away then we recommend eToro, the world’s leading social trading platform. As it offers commission free trading on stocks and ETFs. And it offers access to a wide variety of investment types including stocks, cryptocurrencies and CFDs.
Learn more about the eToro platform is this post >>> Commission Free Trading For Better Profits
This list is intended as a general overview of a few types of passive income streams. You can find more posts on each topic on our blog. Please join our newsletter to receive the latest content.