Passive income is earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. Portfolio income is considered passive income by some analysts, so dividends and interest would therefore be considered passive.
Here are a few ways you can make money as your passive income. Although it may take some efforts at first but it’s worthy it later.
1. Affiliate Marketing
Affiliate marketing is an income idea that requires you to have a website or platform you can use to promote other companies, or “affiliates.” When someone uses your affiliate link to purchase a product or sign up for a service, you get paid.
You could start nearly any type of website and find affiliates that work in your niche.
And remember, you don’t necessarily have to start a blog . People are crushing it with affiliates using YouTube, podcasts, and other avenues. You can even build an affiliate business using social media!
2. Display Ads
The beauty of having online property is the fact that you can monetize it in so many ways.
Display ads work like billboards you see on the side of the highway, only they’re featured on your website instead. The point is that advertisers are paying to promote their products — their ads just so happen to be on your website.
Most display ads are set up by ad networks that work as the middlemen between you and advertisers who want to pay you. The best part about display ads is they are entirely passive. You can get paid a ridiculous amount of money based on your traffic — even while you sleep!
3. CPC Ads (Cost Per Click)
With affiliate advertising, you only get paid when someone clicks on your link and signs up for something or buys something. Display ads, on the other hand, pay based on the amount of traffic and eyeballs you get on their ads.
With CPC ads, also known as “cost per click” ads, on the other hand, you get paid when someone clicks on an ad no matter what they do after that. I don’t have to hope and pray they buy something or sign up for anything at all. Every single click puts money in my bank account.
Does that mean I can head to my own website and click on ads all day long? I guess I could, but eventually that company would figure out what I’m doing and cut me off! With that in mind, clicking on your own ads should not be a part of your strategy here. Instead, try to build up traffic so your ads are seen by more and more people every day.
4. Sell leads
While selling leads is a lot less lucrative than earning life insurance commissions, I realized over time that selling life insurance was way too much work. Now that I do, I’m bringing in passive income with hardly effort on my part.
5. Course Sales
Earning money with course sales is not as easy as turning on a switch! You have to create the course first, which can require weeks or months of your time. Once you’re done with the work required to create your product, however, the income can become passive.
6. Create a Digital Product
While courses are digital products you can sell over and over, there are other types of digital products you can dive into. I’m talking about e-books, online instruction guides, and basically anything else you can market and sell online.
7. YouTube Ads
While YouTube ads aren’t nearly as “passive” as some income-producing strategies on this list, they still fit in with the rest of this post. I’m making YouTube videos anyway, so why not post ads that bring in additional revenue? The passive part comes in because I make the video once and earn income over and over as more and more people see it.