As many of you might know, I’m a huge passive income nerd. My life goal is to create a sustainable stream of passive income that I can live off of. Below, I’m giving you 10 ways to earn passive income. I didn’t want to just list a bunch of things that are impossible, so I included 5 ways that I’m currently earning passive income each month. But what is passive income?
Passive Income according to Wikipedia: passive income is an income received on a regular basis, with little effort required to maintain it.
What I’ve learned from over two years of blogging on VideoSchoolOnline.com is earning income passively is a lot of work. It’s not impossible, but it is difficult. As Pat Flynn’s podcast reminds us, it’s all about putting in effort now to reap the benefits later. But I’m not talking about work not, retire when I’m 75 later. I’m talking about work my butt off this month, so that I can reap the benefits of that hard work for the next months or even years.
Without further ado, let’s get into Phil’s TOP 10 WAYS TO MAKE PASSIVE INCOME. The first five are ways that I’m currently making passive income. The last five are ways that I hope to soon.
Teach Online Courses:
- Many of you know that I have a number of online courses that I sell on sites such as Udemy.com, Skillfeed.com, or Skillshare.com. I began in October 2012, and it has been my most successful form of earning passive income. I’ve made tens of thousands of dollars from selling courses. This money has helped pay for a car in cash, go on vacation to the Philippines, pay down student loans, buy an engagement ring, have a wedding, and lots more!
Sell eBooks on Amazon:
- I started selling two eBooks on Amazon in October, 2014. One is about Teaching Online courses, and the other is about starting a Freelance Business. Since launching, they continue to sell about 5 copies per day. Averaging an extra $100 per month is amazing!
Start a YouTube channel:
- A while back, YouTube started allowing anyone to become a partner and put ads on their videos. I know that you hate having to watch ads on YouTube, but on the other side of those ads is a creator who is trying to make a little bit of extra income through their hard work. I have two channels that bring in some extra dough each month – my Video School Online channel & my Cat Video channel. The cat channel video is making about $6 a month. It’s not a huge amount, but it does pay for a new toy or treat for our dear Zorah each month!
Become an Affiliate:
- If you have a website that contains useful information to viewers, you can put affiliate ads on the site. When someone clicks on those links and purchases something, you make a little bit of information. For example, on my resources page, I share some of my favorite resources including ThemeForest (where I purchase web themes from). I love sharing their website because I truly believe in them, and use them. It also helps the viewer out who is wanting to build their own website. And I get a few bucks when someone clicks through that link and buys something. You can become an Affiliate for most websites. Just scroll to the bottom of the website, and in the footer is usually a link for ‘affiliates’ or ‘partners.’
Investing for Retirement:
- From a young age, I have always been smart about money. I remember being a teenager and keeping money in an Etrade account and investing in General Electric. This was my first retirement account. Now, I try to put away any extra money (mostly money made passively from the above methods) into retirement accounts and other investment accounts. Now, I’m not a financial advisor, so take everything I say with a grain of salt. But I think it’s really important to start saving now (or as early as possible). If you’re not already saving, it’s too late. Why is this passive income? Investing is literally the easiest way to make passive income. On average, the markets have increased about 7% since the beginning of the stock market. So each year, you can average about 7% returns. Adjusting for inflation, this may be closer to growing your money 3-5%. So if you have $100,000 in savings, you make an extra $7,000 per year. But you don’t have to start there. Start with $100. You’ll make about $7 on an average year. And grow from there.
- Renting a home, apartment or even room can bring in a good amount of money each month. There’s a lot of work that goes into it, but there’s no better way to get help paying down your mortgage. Also, you can try renting on AirBnB which gives you more flexibility.
- If you have a website that gets enough traffic, you can put ads that will earn passive income. The key is to make sure whatever the ads are for are relevant to your website audience. It’s also a good idea to build up an audience before putting a bunch of ads on your site – you don’t want to look spammy or scammy. And lastly, be mindful of where and how often you put ads up.
Selling Stock Photography:
- This is something I’m currently getting into. Since we launched the Photography Masterclass, I’ve been curious about earning money with photos. So I’ve started putting photos on places like Dreamstime and Twenty20. It’s a hard business to break into, but I know people making hundreds of bucks each month selling stock photos.
- The Apple and Google app marketplaces are supersaturated with apps. There’s an app for everything now. So the key is to make an app that is better than what is out there, or an app that is unique. The best thing is that you don’t need to know programming. You can hire someone on a site like Elance to build an app for you. You just need the right idea.
- This is something that is getting really popular. The basic premise is that you create a product, sell it online through a marketplace like Amazon, and automate the entire process (creation through distribution). So you have a manufacturing company make the product. They ship it to an Amazon distribution process. They package it and ship it once it’s sold. It’s a lot of work to get started, and you probably have to market the product. But there are people doing hundreds of thousands in revenue each year.
There you go! Those are 10 ways to earn passive income. What I like about this list is that I am currently making passive income using 5 of these methods. And the other 5 are methods that I know lots of people are using. So all of them are definitely attainable for normal people (because I would say that I’m a normal person).
Howabout you? Are you making passive income anywhere? Let us know your favorite ways in the comments below!
COUPON SECTION for the course – Teach Online: Make Money Doing What You Love:
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