Passive Income Challenge Day 2
What exactly is Passive income? The term itself is probably a horrible term to use. Passive income isn’t really all that passive. What really defines it is that you do the work once, and you keep earning from that work repeatedly. Whereas with non-passive income, you are trading hours for dollars and do the work once and get paid once. Let’s look at some examples of passive income ideas.
What Exactly is Passive Income?
Investing in Stocks – This is one that everyone is familiar with. When you take a certain amount of money and invest it each month, the interest you earn on that money is a form of passive income. You simply invest the money, and if all goes well, you will get a return on your investment in the form of interest payments.
Buy & Invest in Rental Property – This is another form of passive income. You buy the property, hire a property manager, and collect rent. The real estate agent finds the property, the property manager does all the labour, and you just invest and collect your rent every single month while also building equity in the property. That’s income today and income tomorrow. passive income challenge day 2
Publishing Books – This is a great form of passive income. You write a book, publish it, and then collect residuals from sales for as long as the book makes sales. You really don’t even have to write the book. You can pay people to do that. A classic example is the Chicken Soup for The Soul franchise. They have sold more than 500 million copies worldwide, earning over $100 million per year.
Affiliate Marketing – This involves promoting someone else’s products or services and when someone buys, you get a percentage of the sale. You can find opportunities within your community, on affiliate platforms like Clickbank.com, Amazon, or if you like a certain product, go to their website to find out if they have a program.
Develop a Digital Product – Any digital product that you sell over and over again, such as an app, or courses, you can earn passive income doing that. You create a digital product, then your job is to promote it and sell it. You can even get affiliate marketers to help you.
YouTube Star – This type of income doesn’t seem very passive at first. You must produce a lot of content on a regular basis that your audience likes and will watch. You make money via advertisements, sponsorships, and affiliate marketing options as a YouTube Star. You don’t even really have to be a star to get started. What makes it passive is that you will earn money on the videos year after year, not just once.
Blogger – Most bloggers would not say their job is passive, but since you do the work once and can get paid repeatedly, it’s still considered passive income. Usually, you pick a niche in which to blog. You can do product reviews, how-to posts, and more. You earn money by placing ads and affiliate product links in the posts.
As you see, there are many ways to add to your income streams. The best course of action is to start with one thing, and then build onto it as you go. Work on it, promote and wait until you’re earning something on one idea before moving on to the next.