By: Nick Varterian | August 13, 2022
August 13, 2022
What Exactly is Passive Income?
Passive income is a form of income in which you earn money, but the work to achieve that income is completed by someone else. This is the opposite of active income, in which you are directly responsible for earning the money.
While passive income can be earned in many different ways, it’s often associated with online businesses, since many don’t require you to be present (and therefore can be done when your time is most valuable).
Passive income can be beneficial because it allows you to focus on other aspects of your business or life instead of having to spend all your time working on it. This means that you can take on more clients in other ventures or spend more time enjoying yourself and your family while still generating revenue from your business.
Active Income vs. Passive Income
Active income is the money you earn from working. For example, if you work as a cashier at a grocery store, then your active income would be the pay that you receive for your work. You have to put in time and effort to make it happen. Active income is a great source of cash if you need money in the present, however passive income will help you build wealth over time—and it’s the key to financial freedom!
Passive income is money that you earn without having to actually be involved in the work that generates that income. For example, if you own stocks in Apple Inc., then the dividends that they pay out are considered passive income since you don’t have to do anything to get them. It’s not exactly easy money—you have to put in the time and effort initially to make these things happen—but once done, you don’t have to actively follow up and work to make the money flow in.
It’s important to note that passive income does not happen overnight – oftentimes much work upfront is needed before you can start seeing the significant benefits.
12 Passive Income Ideas You Can Make Money With in 2022
- Create and market information products (info products): Info products are digital goods that you sell online to customers. They can be in any format, from audio to video to text to interactive content, and they help your customers solve their problems and learn.
Selling info products is a great way for you to make money online because:
– You don’t need a website or an ecommerce platform—you just need a place where people can buy what you’re selling.
– You don’t need much inventory—since info products are digital, you only have to produce one copy of each product (and maybe some extra copies if you want).
– It’s easy to create info products yourself and sell them on platforms like Gumroad or Teachable.
- Build a Dropshipping Store: The dropshipping model is a business model in which your business doesn’t have to carry inventory. Instead, you simply fulfill orders from a third party who already has your products in stock and ships them directly to your customers.
This means that you don’t need to worry about storing or shipping anything yourself, which can be a huge cost-saver for small businesses.
Starting a successful Shopify dropshipping store is easier than you might think. Here are our top tips for getting your business off to a great start:
- Choose a niche or product category that sells products that are easy for you to source and drop ship. For example, if you like to cook, consider selling food-related items such as spices, baking ingredients, or kitchen utensils that are relevant to your content and audience’s interests.
- Set up your store with top-rated Shopify themes available and make sure all of them are fully responsive (so they look good on mobile devices). You should also make sure they’re SEO-friendly so they get found by search engines when people are looking for similar products.
- Make sure your website is optimized for conversions by adding CTAs (call-to-actions) throughout the site that prompt visitors to buy things like gift cards or subscribe to an email list in exchange for a discount code (or free shipping at checkout time!)
- Finally, make sure you’re taking advantage of all the free SEO tools available within Shopify such as keyword research tools.
On to the next idea!
- Write Articles & Monetize Your Blog: Monetizing a blog is beneficial because it allows you to make money from your writing. When you monetize your blog, you can also be more creative with your content, since you’re no longer just writing for yourself.
There are many ways to monetize a blog. You can sell advertising on your site or have readers pay for access to premium content. You can offer products for sale through your site (like books or ebooks) and make money by selling those products. You can utilize affiliate links. You can also create and sell courses or products through an online platform like Teachable, which is like Etsy for online courses and products.
- Design an App: You can earn money by building an app through advertising. Many apps allow users to download them for free, and then earn money from advertisements on those apps. This can be a great way to earn money if your app has high-volume downloads and low-cost advertising fees.
Additionally, many apps offer in-app purchases (sometimes called “microtransactions”) that allow users to buy additional features or content within the app. This is often done through microtransactions in which users pay small amounts of money over time rather than one large amount up front—this encourages users to continue using the app even after they’ve purchased.
- Buy and Sell or Flip Properties: The first way is to find an undervalued property, purchase it, and then sell it for a profit. This method requires a little more legwork than the others, but it’s still relatively straightforward. You’ll need to do some research on the area in which you’re looking to buy property, as well as on the market value of similar homes. Remember to negotiate!
Another option is finding properties that are already flipped by other investors, and buying them from them at auction or through another method of sale that doesn’t require an agent’s help (such as private party sales). This can be easier than finding an undervalued property and flipping it yourself because there are fewer steps involved. Either way you will earn some nice passive income after some work upfront is done. - Buy and Flip Online Businesses: You can research already established online businesses and purchase them for a multiple of their monthly profits.
You can hire a team of virtual assistants for a few months to scale the business aggressively then re-sell the business for a much higher value than you purchased for. This model is gaining popularity as it is quite lucrative and does not require much time–just capital. - Rent Out a Spare Room: Another way to earn passive income is leveraging real estate. Rent out a spare room or list your property on AirBnb.
It’s important to understand that the city where you live may have laws about short-term rentals. In some places, short-term rentals are illegal; in others, they’re not allowed in certain neighborhoods or only allowed if they’re registered with the city.
Second, make sure that your home insurance policy covers short-term rental use. If it doesn’t, you’ll need to buy an additional policy from a provider. This is a great option to earn extra income and is almost completely passive!
- Start a YouTube Channel: There is a variety of ways to monetize your channel and earn a little extra cash for your efforts. The first step is to set up an AdSense account. This is Google’s way of allowing you to monetize your content. Once you have an AdSense account, you can start making money right away by adding ads to your videos. If you’ve got a lot of subscribers, then this could be a good way to generate some additional income from your content.
Another way to make money with a YouTube channel is through affiliate marketing. This involves signing up for an affiliate program and promoting products on your channel that will earn you commissions when people click through and buy them. Almost every large YouTuber incorporates affiliate marketing into their strategy.
Finally, you can earn through sponsored videos as well as branded merch stores that are usually set up using the Print-On-Demand drop-shipping model.
- Build an SEO Agency to Help Other Businesses Increase Leads: An SEO agency is profitable because it saves clients time and money. SEO agencies can help businesses optimize content for keywords, which increases the chances of being found in search results. They also help businesses drive more traffic to their website, which means they’ll have a greater chance of converting visitors into customers. By hiring one or two virtual assistants and teaching them the ropes, you can earn passively as the agency owner. You just need a few clients on a retainer to start generating some serious passive income.
- Sell Unwanted Idle Goods: Have unnecessary items lying around the house? Good news– you can sell on sites like eBay, Etsy and Poshmark to earn largely passive income while cleaning up your household environment.
- Sell Photography or Art: You can earn largely passive income by selling photography prints or by using a print-on-demand company to display your photography on various items (i.e. custom pillows, blankets, coffee mugs, keychains, notebooks). Selling on Etsy is a great idea for this idea. Etsy charges a relatively low fee – between 3% and 5% of each sale made through its site (as opposed to Amazon’s 15% fee).
- Invest in Index Funds or Dividend-Paying Stocks: Investing in index funds, which are a collection of stocks that have been selected because they represent a broad range of companies in a particular industry, can be a great way to start making money on your investments. They are often considered safer than other investments because they’re diversified across many different stocks. The downside is that you won’t make as much money as if you were investing in one or two companies that are doing well.
Dividend-paying stocks offer another way to make money: by collecting dividends from companies that pay their shareholders periodically throughout the year. You can buy shares in these companies and collect these dividends, which can add up over time and provide a steady stream of income for those who choose wisely when picking out which companies to invest in.
Final Analysis
In conclusion, we hope these ideas helped inspire you to create a new stream of passive income! The key is making sure that you are earning enough passive income to cover your expenses and then some. The goal is to free up your time and energy so that you can focus on doing what you love and finding other ways of generating income if you so choose.
When you have passive income, it means that your money is working for you rather than the other way around. This means that instead of having to work hard in order to make money, your money works hard for YOU. When you have passive income, you don’t have to worry about being fired or being laid off because another stream will be there for you! This means that if something goes wrong with your job or business, your passive income will still be there supporting you financially since you set up multiple streams of income. This is the goal for many today!
To get started with a passive Amazon store, contact us today.
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