Are you looking for passive income online ideas to create your own passive income streams? Passive income can be one of the most rewarding ways to earn money but what actually is passive income? We’ll explain this and list some great passive income online ideas below.
Passive Income Definition
Passive income is an income source that will continue to generate revenue after it’s initial completion. A source of passive income will usually require no further intervention after initial completion but will still provide an income stream. It is literally a way of earning money while you sleep.
The great thing about passive income is that there are many options for creating your own income streams through both free and paid methods. It can allow you to earn extra income alongside your job or even provide your main source of income.
You can earn passive income through many different sources which includes both online and offline. The internet has made it easier than ever for anybody to set up multiple sources of income. Doing this can allow you to make more money, provide greater freedom and achieve your goals quicker.
Top Passive Income Online Ideas
Some top passive income online ideas, click each one to learn more;
Types Of Passive Income
It is possible to generate passive income from a variety of different income sources. These include the following;
- Interest Income
- Dividend Income
- Royalty Income
- Rental Income
- Profit Income
Learn the importance of creating multiple sources of income.
Interest is the return on money that is lent out to others. One of the simplest ways to earn interest is through a high yield savings account. High yield savings accounts offer better yields than regular savings accounts, usually opened and operated entirely online. Learn more about the different types of savings accounts.
Some stocks pay shareholders a payment from their earnings known as a dividend. To receive dividends you would need to hold shares in a dividend paying company. Dividend income is a great way to accumulate wealth over time through compounding. Learn more about shares and the different types of dividends.
You can trade shares and funds commission free with apps like Public.
Royalty income is a method of earning money from an asset, service or idea that you own. This can be licensed out to other individuals and companies in exchange for a royalty payment. For example, you own the rights to a book. You could allow others to publish your book under license, then pay you an agreed fee each time a copy of the book is sold. Common ways to earn royalties are through patents, trademarks, franchises, music and book publishing and more.
Rental income is money earned from rent payments received on a property or product you own. The most common form of rental income is through property rents. Rental income can be earned on physical property or more easily through REITs. REITs are real estate investment trusts – companies that own income producing real estate assets. Learn more about REITs.
When goods and services are sold, the money left over is known as profit income. Most types of businesses fall into this category whether they are operated online, offline or both. Whilst many businesses require a lot more time, money and dedication to run, there are also many online businesses that are more passive.
Passive income is still applicable to many eCommerce businesses through the use of automation. Examples of this include dropshipping stores, print on demand stores, affiliate marketing, blogging and digital downloads such as eBooks.
More Passive Income Online Ideas
- Building online income streams – 50 ideas.
- Free PLR products you can re-sell
- Real ways to make money from home for free
- 10 investment ideas to build wealth
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