How to make Passive Income

What is passive income?

Passive income is income that requires minimal labor to earn and maintain. It is called progressive passive income when the earner expends little effort to grow the income.

Passive income includes regular earnings from a source other than an employer or contractor. The Internal Revenue Service (IRS) says passive income can come from two sources: rental property or a business in which one does not actively participate, such as being paid book royalties or stock dividends.

Sources of passive income

• Rent Out Your House/Land
• Rent your Car
• Cryptocurrency Mining
• Publish A Book
• Dividend stock
• Bonds
• P2P Lending
• Affiliate marketing
• Create an app
• Make a YouTube channel
• Selling Information
• Online Selling

If you’re thinking about creating a passive income stream, check out these 12 strategies and learn what it takes to be successful with them, while also understanding the risks associated with each idea.

RENT OUT YOUR HOUSE /LAND

Rental properties can be a great source of passive income once you get a rental up and running. It can provide a monthly income flow without you having to participate in any kind of daily work.

RENT YOUR CAR

The great thing about renting out your car is you can earn money while you sleep! You don’t have to put in extra work in order to earn extra income. You’ll be working smarter, not harder.

CRYPTOCURRENCY MINING

Mining cryptocurrency is the original way to make passive income with Bitcoin and other cryptocurrencies. Mining involves using computing power to solve complex mathematical problems and verify transactions, requiring the cryptographic expert to share back “proof of work” demonstrating the solution.

Publish A Book

Book sales is the most obvious way to make money from self publishing. You will either earn royalties or revenues (if you print, distribute and sell your book yourself).

Dividend stock

Dividend stocks are one of the simplest ways for investors to create passive income. … Investors can decide to pocket the cash or reinvest the money in additional shares. Dividend yields can vary significantly from one company to the next, and they can also fluctuate from year to year. The biggest advantage of dividend paying stocks is that as long as the company continues to pay the dividend you will receive real cash every 3 months.

Bonds

A bond is a fixed passive income source with an agreement between two parties; the bondholder and the bond issuer. The bondholder is usually the investor, and the bond issuers are generally companies or governments. Several bond types, including the US Treasury Bonds, are a bond issued by the US Federal government.

PEER TO PEER (P2P) LENDING

Peer-to-peer lending, also abbreviated as P2P lending, is the practice of lending money to individuals or businesses through online services that match lenders with borrowers. Peer-to-peer (P2P) lending is an alternative to traditional financing. Instead of the borrower going to a bank to take out a loan, they use services that connect them to investors like you. This allows you to lend money to an individual or a company earning fixed monthly payments.

Affiliate marketing

Affiliate marketers sell another entity’s product or service and earn a commission on the number of sales they make. If done effectively, affiliate marketing can allow you to have a steady stream of passive income. From finding the right products to maintaining blogs, there is a lot of work that goes in.

Create an app

There are a ton of ways to make money with your app.

Here are a few of the most straightforward and simple ways to build up a steady cashflow with your app:

SELL A SUBSCRIPTION: You can have a small free version of your app, but leave the best part of it to be unlocked for a consumer subscription costing just a few bucks a month

SHOWS SOME ADS: You have an app, like a game, that people spend a lot of time on; in that case, you can put some ads in to make some money while users enjoy your creation

SELL A PREMIUM VERSION: You can have a free, or low-cost app. But keep some extra incredible features available for an extra purchase

Make a YouTube channel

YouTube is ultimately a numbers game and the number of views advertising revenue is the most passive way to make money. YouTube income is passive after the video is posted. As long as your videos are being watched. Make as many videos as possible. Keep track of which videos perform the best and create videos with a similar topic. As your video library and views grow, so will your income.

Selling Information

One popular strategy for passive income is establishing an information product, such as an e-book, or an audio or video course, then kicking back while cash rolls in from the sale of your product. Information products can deliver an excellent income stream, because you make money easily after the initial outlay of time.

TODD TRESIDDER says :

Once you master the business model, you can generate a good income stream.

“And to make good money from it, it has to be great. There’s no room for trash out there.”

ONLINE SELLING

If you have any skills, you may be able to turn them into a money maker by selling items You can also sell items like Printed T-shirts by designing them. Many types of passive income can be made online, so if you want to earn money do online selling

“One product is not a business unless you get really lucky,”

SUMMARY

Passive income streams can provide a boost to your savings, investing goals, and an unexpected job loss. Who wouldn’t want to earn money without having to clock in for an eight-hour workday?

The good news is that there are many options to start building out a passive income stream beyond what I’ve already outlined above. Most will require upfront time and energy devoted to building them out before you start to see returns.

Explore these ideas, and you could be well on your way to make money while you sleep in no time.