Nowadays, financial security is vital to lead a comfortable life. Many people create and manage passive income streams to ensure they fill any financial gap left by their main source of income.
Some people use them to grow their wealth, whereas others consider them to make ends meet. Passive income helps you feel financially secure. If you are looking to have a passive income, here’s how to find it online.
Passive Income Defined
Passive income is any type of work that does not involve getting paid an annual salary or an hourly wage. These can include things like getting paid in royalties, rental buildings providing cash flow, stocks that yield dividends, and sales of products.
It provides security against the risks of a regular job. Even if you have a 9 to 5 job, you can usually manage it. If you face any kind of emergency like an accident or sickness, or you lose your job, you will always have money coming in to stabilize you in these circumstances.
One thing people believe is that you just sit back, and you’ll get money regularly. While it is true in some cases, some may need an active involvement. These are some ways you can do to generate a passive income:
1. Selling Educational Products
A great way to get a passive income is to create an educational product. It may include an e-book or whole audio or video educational course. The creation of this kind of product will take time and energy, but after that, the payments will come in as your product is sold online. Many platforms distribute and sell these products, including Coursera, Udemy, and Skillshare.
If you don’t want to use these sites, you can build up a following. You can do that by providing free content. Then, you can charge for the detailed information. The free content you provide will be a demonstration of your knowledge and expertise.
2. Dividend Stocks
If you are a shareholder of a company, and you own dividend-yielding stocks, then you will receive payments regularly. Mostly, you will receive the cash dividends quarterly depending on the profits. Choosing stocks is really tricky, however, a research service from Investing Daily helps by explaining how to strategize for buying stocks.
Once you buy the stock, you start receiving money in the brokerage account, and that’s it! You do nothing else. There is a risk as well: the market may go down in uncertain times like the Coronavirus pandemic. However, since it’s a passive income, diversification helps during such a crisis.
3. Affiliate Marketing
Affiliate marketing involves the promotion of products or services through blogging, vlogging, or providing a link on your website or social media account. This is a great source of income for ‘influencers’ or people with a considerable following.
Although, if you are just starting out, it will take a lot of time to build your following. If you are successful in getting a good number of followers, you can easily promote the products or services and receive 3 to 7 percent commission. You can select a lucrative niche to ensure you can easily get followers. These include fitness, software, beauty, and financial services.
4. Create an App
Creating an application leads to reaping the rewards of the upfront investment of time. You can create a game, productivity, or entertaining app. When you make your app public, and people start to download it, you will be able to generate an income. You can make the app free, and promote other products or services on your app, or you may monetize by asking users to pay a little fee if they want to download it.
You can also use another strategy: allow users to download your app for free, so they can experience it, and then add payments for additional features.
5. Blog or Vlog
Creating a blog or a channel on YouTube will take time, but once you have sufficient followers, you will be able to draw sponsors. The trick here is to choose a good niche. Try to select a niche you are passionate about, or maybe you’re an expert at it! There are many blogs and channels out there, however, people have become a variety of copied and repetitive content.
For this reason, you should create something you’re good at, and you can write or talk about it at length. The risk here is that you will not feel like it’s passive income because you will have to spend considerable time and resources on it. However, if your channel works, you’ll be able to generate a good income.
Multiple income sources let you have financial security and peace of mind. In times of uncertainty, when you have money coming from passive sources, you’ll be comfortable knowing you are safe.
You just need to ensure that your efforts for these are not affecting other sources of income. Take a look at the options described above, and earn money through these passive income streams.