Doing a 9 to 5 job and earning a steady paycheque is cool, isn’t it? But deep down inside do you want to earn more than your regular income, want more freedom and flexibility? If yes then it’s time to take some action.
This article states 9 ways to make a passive income while maintaining your full-time job regularly.
But before revealing how to make a passive income you must know 2 things:
What is Passive Income?
How is it different from Active Income?
So without any further distractions let’s get started.
What is Passive Income?
Passive Income is the money that you earn without putting in much “active” effort regularly to continue making an income. In essence, you can put in most of the efforts upfront and make regular income by putting in some additional effort, if required, along the way.
Suppose, if you create an online course then you just need to update its content from time to time to continue making money from the course.
Do you get fascinated with the idea of generating passive income? If yes, then have you ever thought about why the idea of passive income fascinates you, and let me tell you that it’s not just you who gets fascinated; in fact, everyone does.
Everyone aspires to earn passive income so that they retire early and can spend their life peacefully.
Making money while you sleep is a fancy term that points to passive income which indeed makes it fascinating. However, to generate money while you sleep, you have to put in the necessary efforts and time now to build up income streams that you can rely on in the future.
You can create something like a blog, course, digital product, or an online store that generates money even when you’re not working. You can also make investments in property or stocks that allow you to earn passively.
How is Passive Income different from Active Income?
If seen theoretically then you will not find any difference between active and passive income but when it comes to reality where practical things matter, passive income makes a big difference and always overpowers active income.
Let me make it more clear for you; active income is the income earned from all the efforts you are currently putting in and you need to keep working in order to continue earning. If you quit then you don’t get paid. So basically, when it comes to active income; your time equals money.
Passive income is the income that doesn’t require you to work every day actively but still, money keeps flowing in for years. Building good passive income streams could be the key to becoming financially free.
Just remember, while you might be able to build a passive income stream with a small investment, you’re not making any less of a commitment than an active income stream requires. Making passive income comparable to income earned from active efforts requires a good amount of work and efforts upfront.
Ways to Make Passive Income
Now that you know about 2 basic things that are
What is passive income?
How is it different from active income?
Let’s dive deeper into the various ways to learn how to make passive income.
Start a blog
Starting a blog initially can be challenging, however; it turns out to be the best passive income source once established. Remember one thing that you don’t need to be a celebrity to gain traction and earn money online. All you need to do is target two or three platforms where your target audience spends time the most and send the traffic from those social channels to your blog.
As I said that establishing a blog takes time but once the trust and credibility are gained there is no looking back. Start creating valuable and authentic content that resonates with your target audience and promote it through social media channels. Soon you will be able to build a strong audience that can be monetized.
Some ways you can use to generate passive income from your blog:
Create sponsored posts
Run ads using Google Adsense
Sell affiliate products
The best thing about starting a blog is that you don’t have to know any coding or design skills. You just need a content management system and hosting to get started which requires a very little investment.
Build Affiliate marketing business
Recommending someone’s products and services to an audience is called affiliate marketing. It is a great source of passive income as you earn a commission every time a user uses your referral link to purchase the recommended product or service.
Affiliate marketing is a growing industry and many online entrepreneurs do affiliate marketing to generate another source of passive income.
Here are some reasons why affiliate marketing is loved by online entrepreneurs:
It has a low risk
Joining an affiliate program of any company involves no cost to it. You can sell their products or services and earn commissions without any financial investment. The only investment you will be needing is your time. You need to invest time in building up traffic sources so that your affiliate links get more clicks. Once the systems are in place you can earn a handsome amount of passive income through commissions.
It is easy to execute
The brand builds up its own products or services and delivers them to the people. You only need to look out at the marketing part and get enough traffic to generate good commissions.
It is scalable
You can register for as many affiliate programs as you wish to and keep introducing new products or services to your audience. Meanwhile, your past links will keep generating commissions for you.
Earning passive income through affiliate marketing seems easier and rewarding in the long run. All it demands is your time and hard work up front to help you enjoy the rewards in the future.
Do you love photography? If your answer is yes then this method can be the best way to generate passive income for you.
The biggest drawback of being a photographer is that you need to be present at the location to earn money. Basically, time is money for you. The amount of time you put in is the amount of money you earn.
Now that you have the photography skill and own a good camera, you can create an extra source of passive income for yourself by monetizing your photos. Stock pictures websites like Pexels, Shutterstock, Pixabay, and many more pay for providing high-quality photos and videos. You only need to upload your pictures to the websites and the rest is done for you like marketing your pictures to selling them.
Sell digital products
Digital Products are assets that can’t be touched physically. These include downloadable worksheets, ebooks, cheat sheets, and templates.
Digital Products are a great way to generate passive income because they have higher profit margins. You can create them once and sell them as many times as you want. However; remember one thing that digital products also need to be updated from time to time with new trends and updates coming in.
Create online courses, host online workshops, and teach
Every online business niche has a scope to create an online course and host online workshops. Online courses are similar to digital products which can be created and sell online repeatedly.
Creating an online course and teaching requires a lot of time investment initially. You need to create an outline of the course, record it, and publish it on some online platform to make it accessible to your students.
Online mentoring is undoubtedly a good method to generate passive income. You can even upsell one on one mentorship or training with your online course making an additional income for yourself.
Become an Instagram Influencer
An Instagram influencer is a person who can drive peoples’ decisions.
To become an Instagram influencer, you need to build an audience with the same interests. For Example: You are a home decor fan, then create an Instagram page and start posting about home decor items on your page consistently.
If you have an engaged audience then you can find many ways to generate passive income through Instagram. You can partner with similar niche brands and earn money by promoting their products amongst your followers or you can even run sponsored posts for them.
Sell handmade goods
According to statista.com; there will be 4.66 billion internet users in 2021. With billions of people connected to the internet, there is a huge opportunity to build an online business of handmade goods.
There are various online sites that help you in selling your own goods but selling on your own store is more profitable as you do not have to pay the platform fees on each sale and you can also build a brand for yourself over time. The benefits of brand building will surely get you more sales and recognition in the long run as you start connecting with your audience much better.
Starting an online store to sell handmade goods will definitely demand investment. You need to invest your money in buying the materials and your time to make them. If you are ready to put in the upfront investment of time and money then build an online business that will generate passive income.
Invest in stocks
Investing in stocks can be a great way to build passive wealth, although it can be confusing and has a steep learning curve. The most common mistake people do is investing in the short term instead of the long term.
I know that understanding stocks is tricky, however; it is a great source for generating passive income and you should definitely try them.
Create a YouTube Channel
YouTube Channel is a passive income stream that keeps giving rewards once monetized using sponsored videos to ads revenue.
The only secret to creating a successful YouTube channel is to create content consistently following a strict schedule. Remember; YouTube is a long-term thing and if you stick to it consistently then you will definitely reap amazing results in the form of passive income.
Passive income can really elevate your earnings and fill in the income gaps that your regular 9 to 5 job is not able to. If you want to quit your 9 to 5 job and get freedom then the ideas mentioned in this list will help you achieve your goals.
But if you love your full-time gig and want to earn some extra bucks then that’s also possible because all the methods mentioned here tend to be manageable with your 9 to 5 job. So yeah, you can do both if you wish to.
Whether you are planning to start a blog or sell handmade goods, you’ll find that there’s wealth to be created in all areas mentioned. All you need is to get started, that’s it.
So, if you are a creator looking to earn passive income online, host workshops on GoSocial and get access to a community building platform with loads of monetization opportunities.