Do you like the idea of passive income?
Passive income is basically getting paid for something you have done once over and over again, even when you are asleep! For example, using your skills and experience to create something to solve people’s problems, educate or entertain them.
Creating passive income is the key to making paid work optional one day.
Below we’ll explore some of the common passive income strategies for beginners that could help you start building your wealth snowball sooner rather than later.
Another way to maximize the power of your expertise is to turn it into an e-book and publish it through Amazon’s Kindle publishing platform.
You can write about anything, but you’re going to want to focus on something that can help people solve an issue they’re having in their lives.
The nice thing about making an e-book is that you can do it at your own pace and publish it whenever you’re finished.
Once it’s published, you can also choose to make it available for free if you want to build up your readership.
And if you publish your book successfully, you can earn royalties off of each sale.
Run an online store
Another great way to make money is by running an online store.
This can be anything from a physical storefront that you manage and oversee in person to an e-commerce site that you operate remotely.
If you take the latter route, you’ll want to pick a niche that you think you can succeed in based on your skills, interests, and expertise.
For example, if you have experience in graphic design, you could be an online seller of merchandise or products that you design yourself.
If you have a love for animals, you could create an online store that sells products and pet accessories.
There are a variety of different e-commerce platforms to choose from, and you’ll want to select one that best fits your needs, skills, and level of experience.
If you’re just getting started, it may be best to go with a more user-friendly platform, like Shopify.
Create apps and software
With the advent of SaaS (software as a service) and online apps, the line between online business and remote working has blurred.
You can create and launch a software as a service (SAAS) online business and earn money while travelling the world or just sitting at home.
You can also create apps and software as a service (SAAS) products to sell to customers who are willing to pay a recurring fee for the use of the application.
Imagine if you built an app that helps people with their daily activities, or an app that helps drivers earn money while driving their car.
You do not need to build a single piece of software. You can create an app that serves many people and earn millions!!
You can create an app for healthy living or better meal planning that people could subscribe to for ideas and recipes.
Anything that helps solve people’s problems could help generate some extra income.
As more companies move towards remote work, freelancing has become a more viable option to earn extra cash and create a passive income stream.
You can find work through a variety of websites, ranging from freelance marketplaces like Upwork to crowdsourcing sites like Fivrr or PeopleperHour.
You can also create your own website and offer your services to others.
If you’re looking to get started with freelancing, you’ll want to create a compelling profile that makes it easy for potential clients to find you.
You can do this by including a variety of information, like examples of your work, your availability, your specialities, and any other information that might set you apart from other freelancers.
Although this might initially be drifting more into another active income source with time you might be able to automate and hire people yourself to do the work for you.
Affiliate marketing is a great way to earn passive income, and it’s something that anyone can do.
Affiliate marketing is where you promote someone else’s (or company’s) product or service and earn a commission on a sale if someone clicks through to their site and makes a purchase.
There are a variety of affiliate marketing networks available, and you can apply to join most of them online. If you’re successful in being approved for a network, you’ll likely receive several different offers for different products to promote.
Once you choose a product to promote, you’ll create a marketing campaign based on the terms of your agreement with the network.
Drop shipping is a great way to start a business.
It allows you to sell products without ever having to buy or store any inventory.
Instead, you simply provide customers with links to your products. When they buy, they pay you and the product ships straight to their doorstep from the supplier who has the physical items.
With drop shipping, you don’t need to worry about managing inventory, shipping costs, or customer service. You just focus on selling high-quality products at competitive prices. And best of all, you can start making money right away.
There are two main types of drop shipping: wholesale and retail.
Wholesale drop shipping involves selling large quantities of products for less than retail price.
Retail drop shipping involves selling small quantities of products for more than retail price.
Both are viable strategies, but each has its pros and cons, largely around the scale and complexity of shipping lots and lots of items.
FAQ Passive income strategies for beginners
What is the easiest passive income to start?
The easiest way to create passive income is to rent out things you have for a fee. A spare room, parking space or equipment you have i.e. DIY tools. These are often things you already have and don’t require much additional knowledge or equipment to get started.
Slightly more technical things that require a bit of knowledge and skills are blogs or vlogs about something you know about or are learning about that others also want to know about.
Creating this content and then earning money through adverts on the site, products you sell or recommend, creating courses or selling your coaching are all relatively simple ways to start making passive income.
How can a beginner create passive income?
Even passive income requires some work at the beginning but using your skills and experiences to solve people’s problems is the best way to start a passive income beginner.
Jot down a few areas where you have experience and where people ask for your advice.
From these ideas, you then need to think about how will people find out what you do and what might they be willing to pay to have their problem resolved.
How can I make money while I sleep?
Think about the skills, knowledge and hobbies that you have that other people would like to know about or learn from your experience.
Turning that into written or video content that people can pay for or subscribe to through an online system, website, or platform i.e. Facebook any time of the night or day would be a way to create money while you sleep.
Conclusion: Passive income strategies for beginners
Passive income is a way to make money without actively working for it over the long term.
All income will require some work to set it up but with time the hope is that you can make it more and more passive i.e. not requiring you to be there.
The most passive of all passive income is investing in index funds. You invest your money in the great companies of the world and let them get on with earning, innovating and growing over the long term – proving you with an income and the growth of your wealth over time.
Your other options include turning your passions and skills into income streams through online sources like blogging, course creation, Kindle publishing, affiliate marketing and creating apps to help people in their lives.
Whichever you choose the best plan is to take action as soon as you can.
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