For entrepreneurs wanting to free up their time, passive revenue had been the holy grail, empowering anyone to gain healthy monthly revenues. Although the value of passive income is not often questioned, the colossal challenge to produce a reasonable amount of cash flow is one that takes considerable planning and follow through
Clearly, passive income generation is challenging. It needs an initial commitment of a large amount of our time , typically for extended periods of little or no returns. Without a single dollar generated from passive income activities, we can go for months and even years, making even the most astute entrepreneur shake their head in absolute and utter frustration.
The reality of the matter is that time is much more precious than money. Although it is possible to spend and earn money, time can be spent only once, then it is gone forever. We recognize the importance of time and being able to freely choose what we do with those precious moments that we have in life as we mature and grow older.
- Try index funds out.
Index funds provide you with a totally passive way of investing in the stock market. For example, if you invest money in an index fund based on the S&P 500 Index, you can invest in the general market without having to think about selecting stocks, rebalancing your portfolio, or deciding when to sell or buy individual businesses. The fund, which will base the fund portfolio on the make-up of the underlying index, will manage all that.
You are also free to select a fund which is based on any chosen index. There are index funds, for example, set up for just about every business sector there is, you name it, oil, precious metals, finance, emerging markets. All you have to do is decide that you want to take part, then donate cash and sit back and relax. You will then be on automatic pilot for your stock portfolio. Investing in stocks can be risky so I use this tool to select the best.
- Creating videos on YouTube.
This is rising business. For any area you truly desire (references to my favorite Devil), you can make videos-music, tutorials, thoughts, humor, movie reviews, whatever you want. Put them on YouTube then. Google AdSense can then be added to files, which will overlay your files with automatic ads. You can receive money from AdSense when viewers click on those advertisements.
The key would be to produce compelling videos, to promote those videos on social media platforms, and to generate enough of them from various sources that your revenue would come from. There’s a fair deal of work going into making videos, but it can become a totally passive source of cash flow for a very long time once a video is finished. Here’s another tool that helps me generate thousands of views per video.
- Try to make sales through affiliate marketing.
This is a type of passive income that is best suited to individuals who have blogs and active websites. You may sign up on your platform to advertise such goods or services, for which either a flat fee or a percentage of the amount of the transaction completed would be charged to you.
As there are thousands of businesses around the world that want to market their goods in as many markets as they can, this is not as hard to do as you would imagine.
Affiliate deals can be found either by directly contacting sellers, or on dedicated websites, such as ClickBank. If the item or service is something that you are either really interested in or is highly important to your website, it is always best. Time and again CG served me well as an affiliate marketing platform and generated thousands of dollars in monthly revenue. One of the best courses on making $500 a day with affiliate marketing can be found here
- Put your photography on the web to work.
Are you fond of photography? You might be able to turn it into a passive source of income if you do. Platforms for selling your images include Shutterstock and iStockphoto. They can sell each picture that is sold to a site customer either a percentage or a flat fee. You as the photographer get the lion’s share
Shutterstock is a gold mine for amateur photographers as each photo can be sold again and again . A single picture may reflect a cash flow source. You just need to build your portfolio of images, place it on one or more platforms of images, and then the task becomes absolutely passive. Many of the picture sales technicalities are addressed via the web portal.
- Buy high dividend shares.
You can generate daily passive income at an annual rate that is far higher than what you get on bank investments by creating a portfolio of high dividend stocks.
Just as significant, there is always the opportunity for capital appreciation as high dividend stocks tend to double in value.
You will earn passive income from two sources, dividends and capital gains, in that manner.
To buy these stocks and complete the research needed, and you will need a brokerage account.
- Just write an ebook.
This can be a lot of work up front, but it will provide you with a passive revenue stream for years once the ebook is developed and promoted. On your own website, you can either sell the ebook or offer it as an affiliate relationship with other websites offering content related to your ebook.
- Get rewards on credit cards and cash-back.
There are credit cards that offer cash-back incentives ranging from 1 % to 5% of the purchased amount. Anyway, you’re going to be out shopping and buying, right?
Rewards will give you an opportunity to gain some passive “money” from doing what you will do anyway (in the form of a reduced outgo).
We have recently begun to be mindful of accumulating reward points on our cards, especially as we like to travel. We were able to use our reward points to pay for 9 round trip flights and a few nights in a hotel during the past year. That is what I am worried about now!
- On the internet, sell your own stuff.
There are infinite possibilities here: you can sell just about any product or service you want. It could be a product that you have produced and can produce on your own or it could be digital (such as apps, DVDs, or even instructional videos) in nature.
You should set up a dedicated website for this item or service, unless you already have a website or blog in place, of course. Alternatively, either by selling it directly to websites and blogs relating to your product or service, or via a marketplace such as ClickBank, you can also sell it on an affiliate basis.
If in your current job you make a lot of money and you’re not sure you can make a similar sum by selling goods online, think again. I interviewed Steve Chou, of MyWifeQuitHerJob.com, a while ago. Steve explained how his wife left her job to become a stay-at – home mom in our podcast interview.
Now it’s a full-time job to be a stay-at – home mom, but Steve Chou ‘s wife has started an online company that replaced her previous salary and began to pull in a six-figure income! Wow, huh?
You can also learn to sell things online and make quite a bit of cash. Although it’s not completely passive, every morning it’s definitely more passive than waking up and going out the door to work!
- Invest in real estate
Investing in real estate is a matter of maintaining the property and keeping it running well once you have a property that is built and completely leased.
In addition, there are competent property managers who, typically for about 10% of the monthly rent, will manage your property for you. This technical leadership will make the investment much more passive, but your cash flow can take a bite out of it.
According to the popular BiggerPockets Podcast, Brandon Turner, it makes sense to pruchase foreclosed properties from the bank, build it up, and sell at twice the value in a year.
Buying smart is the secret to success with rental properties. Not all properties will give a good return or prove to be passive. It is extremely important to learn how to analyse future real estate opportunities. As the old adage goes, when you buy, you make money!
It wouldn’t take many paid-off properties to give you and your family a pretty nice, and mostly passive, future.
10. Purchase a blog.
Every year, thousands of blogs are created, and sometimes afterwards, thousands are completely abandoned by their owners. If you can purchase blogs with a fair amount of web traffic, it could be a great passive income stream, as well as a demonstrated cash flow.
Google AdSense, which offers a monthly revenue stream based on ads put on the web by Advertising, is used by most blogs. Affiliate services that produce additional revenue augment the income flow to blogs. When you buy the blog, all revenue streams will be yours.
Blogs typically sell for 24 times their monthly revenue from a financial perspective. So, if the platform produces revenue of $250 a month, you can possibly buy it for no more than $3,000. Translation: an investment of $3,000 would buy you $1,500 in cash flow per year.
This fellow shares how one blog can earn $2000 a month on auto pilot