People are interested in earning passive income these days. It’s all over social media with many people offering fantastical ideas on what you should be doing, how much you should be investing, and how you can buy their programs to make money passively through blogs and other methods.
Passive income is the money earned from activities in which you are not directly involved daily. It implies you may generate money while devoting time to it daily and instead focus on your other work or interests. Sounds great, right?
With passive income, you can have money flowing in while still doing your regular job, or if you’re able to build up a steady stream of passive income, you may want to relax a bit. In any case, passive income provides you with additional security.
If you’re concerned about being able to save enough of your salary to reach your retirement objectives, growing wealth through passive income may appeal to you as well.
What is Passive Income?
Passive income is the money that you make without having to perform a lot of “active” work to keep it. In essence, you may complete most of the work upfront and put in some extra effort along the way to make money.
Let’s say you just published a new online course, you just need to keep the content of your course updated to keep the money coming in.
Like many people say, “make money while you sleep”?
Passive income gives you the power to do just that! This is the biggest motivation for many to quit their 9-to-5 and start with their passive income business.
Generating passive income is not difficult. You can make money while you’re not working by creating anything (a blog, course, ebook, videos, or an e-commerce store. You may also invest in passive income (property or equities) to generate money passively.
How Passive Income can benefit you?
Earning additional passive income with little ongoing work is achievable if you can afford the initial financial or time commitment necessary to establish a passive income stream.
In an unstable economy, especially during the COVID crisis where many have become unemployed globally, it may be difficult to find a consistent full-time job. Even if you have a job you adore, being prepared for unforeseen events that may disrupt your temporary or permanent work is a vital money management skill.
That’s why it’s a good idea to have multiple sources of income so that if one fails, you can still maintain financial independence with your other operational sources of income.
So, without any further due, let’s look at the 10 passive income business Ideas to create wealth this 2022.
1. Start a Blog
Blogging is a great way to start generating passive income. If you want to earn passive income through blogging, then you have to do everything right from the beginning. Creating a blog takes only a few steps but the key is to be consistent with your blog postings and get the right kind of targeted audience.
For those who are internet savvy, this is an excellent avenue to pursue in the venture of creating residual income for one’s self. Though some amount of experience is desirable, it is not required because everyone must start somewhere. Learning to apply the greatest blogging tactics available will directly correlate to the quantity of residual money generated.
Choosing a blogging platform and a web hosting plan is the first step in getting your blog online. For example, most people pick Bluehost as a WordPress website host. WordPress being a blogging platform is hosted by Bluehost. However, this is only an example, you can choose any platform and web hosting plan for your blog.
You must drive traffic to your blog to make a steady passive income. And how do you do that? By posting relevant content.
Receiving a steady flow of consistent traffic is a sure-fire way to know that your blog has started to generate attention with your content. Just make sure your content reflects current trends or addresses a current issue. Most visitors to your blog will return to read what you posted if your content is providing relevant value to them.
Let’s face it, you’re new to blogging, and it’ll be difficult to make money if your content doesn’t reach a large audience. To get the traffic you have to optimize your blog. Optimization is a process of using tools that contributes to the growth of websites or blogs.
You need to ensure that your blog is properly optimized so it can appear higher in Google’s search results and attract more readers. Usually, SEO optimization is done on blogs and articles to drive traffic and increase conversions.
If you are starting with blogging, don’t just post once or twice in a month then wonder why blogging isn’t working out for you. Generating passive income with your blog requires you to be consistent with your blog posting.
Creating a blog will require you some effort as it takes time to build it. However, if you are generating high-quality content and promoting your content through proper channels (ex. social media marketing), your blog will then start to build a bigger audience enough to get monetized.
You can earn passive income from blogging by:
- Selling affiliate products
- Creating sponsored posts
- Charging companies or brands to do a guest post on your blog
- Running affiliate CPA Ads
- Selling your digital products and paid courses
All you need to focus is on your content marketing.
Remember – CONTENT IS KING!!
2. Affiliate Marketing
With the power of affiliate marketing, you can earn thousands of dollars a month by endorsing products and services that will provide a solution to your customers.
Affiliate marketing is a great way to earn passive income with little initial work and earn while you sleep. You may earn money from someone else’s product or services without having to create it yourself.
You get the flexibility of working from the comfort of your home or while you travel. You will enjoy the process of earning consistent affiliate commissions if you set up your affiliate marketing business correctly.
If you want to generate money online without making a large investment, affiliate marketing may be a smart choice for you.
Affiliate marketing according to me is by far the easiest method I know of making money without having to shell out any startup costs and you don’t need to have any sort of computer programming knowledge.
You can start this business immediately while you are in the process of creating your products and websites.
If you are just starting with affiliate marketing and want to scale up your affiliate marketing business, then I would highly recommend these affiliate marketing courses which have greatly helped me 10X my affiliate marketing business and earn great commissions.
While affiliate marketing has a lot of potential for helping you generate passive income, it isn’t a cakewalk. You should only consider being an affiliate marketer after you conduct an extensive study to understand the obstacles you may face in your affiliate marketing journey and whether you have the necessary skills and motivation to thrive in this sector.
3. Using Leveraged Income
In an ideal world, most people would strive to earn this type of income in both the short and long term. In its most basic form, leverage income allows an individual to focus on other projects once the first phase of setting up and getting a particular project started.
This said project is then left to generate income with no need for any more particular involvements on the part of the investor or inventor.
Most people who are financially comfortable have ventured into this type of investment, to generate some sore of leveraged income.
This style of earning power gives an individual the option to retire early and enjoy the fruits of his or her labor without the hassle of having to oversee the foray or having to be physically involved.
4. Have a YouTube Channel
Having a YouTube channel is a great way to earn passive income and express your ideas online. Starting a YouTube channel is free, and you can start to upload videos in no time.
I would say, growing your YouTube channel is a long-term process and it does require you to upload videos consistently. If you think you have what it takes to grow your YouTube channel, then your future income potential with your channel will be very high.
When you acquire a decent amount of subscribers to your channel, then you can start promoting your affiliate offers, digital courses, ebooks, etc. This can all add up passively as you accumulate content, clicks, and views to grow your audience.
If you would like to learn how to start a successful YouTube channel without showing your face and getting tons of subscribers, then do sign up for the below webinar training video –
5. Creating and Publishing your Ebook
An eBook is a book published in an electronic format that gives us instant access to a book by being able to download the book over the internet. It can be downloaded on various device platforms, such as a computer, smartphone, tablet, or any other kind of reading device, such as the Amazon Kindle device.
For you to publish your eBook, you will need to be an expert on a specific niche topic, although it might be a niche area that requires some exceptional talents or abilities that few people have but that many readers require.
You can use free software online tools like Canva to design and publish your eBook.
I do recommend creating and publishing multiple eBooks for you to create an online digital store. A great way to drive visitors to your other services, such as audio or video courses, other eBooks, a website, or perhaps an invitation to a high-priced seminar, in addition to delivering useful information and value to your readers.
6. Start a dropshipping store
Dropshipping is one of the most profitable passive income sources. It has many benefits other than just saving you from needing a large upfront investment for inventory. Let’s take a look at a few of the biggest benefits.
- Little to No Startup Capital is required – The most obvious benefit of using dropshipping is the fact that you don’t need to pay for inventory upfront, so you can start your online store on a budget.
- Less work is involved – With traditional retail methods, you must keep inventory, remember to restock products before you run out, handle packaging and shipping products, deal with returns, and more.
- Lower overhead cost – When you stock your inventory, you must have the space for that inventory, which often means renting warehouse space and/or office space. Even if you keep your inventory at home, you’ll need to set aside space for it and spend time managing it, plus you must buy things like shelving to hold the products.
- Flexibility – Rather than be fixated on a specific location, which would be necessary if you keep your inventory, you can operate a dropshipping business from pretty much anywhere in the world as long as you have a computer and reliable internet connectivity.
- Wider Availability – Because you don’t need to spend money upfront, you’ll have products that you can offer your customers more than you might be in the beginning if you were purchasing inventory upfront.
- Scalability – Your business will also be able to scale upward more quickly if you use drop shipping because adding new inventory is as simple as listing it in your shop. You can scale almost endlessly as long as you can find appropriate products.
Finding a legitimate drop shipper, that has fair prices, and is reliable can be tricky. It can take weeks or even months of research to find those few gems that will be reliable enough to base your online dropshipping business and have prices that allow you to make a decent passive income.
I recommend going with SaleHoo which is a directory service providing you a prominent list of suppliers in the eCommerce space from China, the US, the UK, and Canada.
All you have to do is to contact the supplier that you need for your product, place the order, and then SaleHoo takes over. It’s just that simple!
7. Start investing in stocks
Over the years, the stock market has generated great riches. Investing in stocks, like the S&P500, which includes 500 of the largest publicly listed corporations in the United States, has returned 8% to 12% yearly on average. A $10.000 investment in the stock market 50 years ago would now be worth more than $380,000.
Stock investing can let you create passive income that considerably exceeds far beyond what you value at your 9-to-5 job is worth. Consider this passive income option if you are knowledgeable about numerous markets and industry changes.
8. Become a Seller on Fiverr
Fiverr is a great freelancing platform to help you start making passive income as a service provider. It is an online marketplace that offers a wide variety of outsourcing services, tasks, and mini-jobs. You can straight head over to Fiverr and start listing your services to your potential customers.
You can be based anywhere in the world and still provide your service on Fiverr. Over the years, Fiverr has grown to become one of the largest freelance outsourcing sites to offer an online service exchange.
Making money on Fiverr is simple. You just need to complete the following steps, and be up and running with Fiverr in no time.
- Register for a new Fiverr Seller Account: To become a seller with Fiverr, you must be a registered user. Your first step would be to sign up for a new Fiverr account.
- Make a Seller Profile: This is a very important step to start getting your customer’s attention and potential customer orders from Fiverr. Having a good seller profile on Fiverr allows you to showcase your skills, expertise, and your work history to your buyers. Tip: Try to copy the profile descriptions of one or two established Fiverr sellers in your line of work.
- Create your first gig: Now that you have a detailed descriptive profile, you want to create a gig to share with your potential buyers. As a Fiverr seller, you must provide detailed information about your services, buyer requirements, and how much you would charge.
- Start sending offers to your Buyers: If you are just starting with Fiverr, I highly recommend you reach out to potential buyers regarding your services. Some buyers may submit a service request, explaining what kind of service they require, and how much they are ready to pay for it. As a seller, you can browse these requests and send offers directly to the buyer. I recommend you send offers to the buyers and also reach out to them via message. Very few Fiverr sellers do this.
9. Become a Ghostwriter
Do you have a passion for writing? If you are the kind of person who is very creative in your writing skills and can write about any given topic, then you should consider being a ghostwriter.
As the name suggests, a ghostwriter is an anonymous professional writer who takes your concept (the story) and he works it up, and puts it in your words. Most of the time, ghostwriter names are not disclosed, although some books are “co-authored” to give the ghostwriter public credit.
Many people hire ghostwriters to write content for their upcoming ebooks and write high-quality blog posts, non-fictional books, and how-to guides. Some don’t even have the required time and energy to write a full ebook. And for that reason, they would like to take advantage of hiring a ghostwriter.
Clients are constantly looking out for good ghostwriters who meet their terms and conditions.
A few of the terms and conditions include the following –
- Price and Payment terms
- Delivery Period (total length, word count, revisions)
- The originality of the Content and Plagiarism free
- Ease of communicating (will the ghostwriter be able to understand the client’s thought process and ideas and put them into his own words in writing).
- Termination Rights
- Signing a Non-Disclosure Agreement (NDA)
10. Start selling stock photos
Have you ever thought about where the photographs on your favorite websites, blogs, and even publications come from? These are often purchased from stock photo websites. If you have a passion for photography, you may like to submit your photos to stock photo sites like iStock, Shutterstock, and Pixabay, and start to earn commissions every time someone purchases one of your photos.
Wrapping Up…
While it can be tempting to pick a lot of these passive income ideas, I recommend you stick with one if you are just starting as a beginner. Being good in one passive income stream requires you to be focused and committed.
Select only the passive income stream which you are passionate about and make sure to master it well!
It’s going to take you some time and energy in the beginning to build a successful passive income stream, but I assure you that you will start to see results if are dedicated to it!
I hope you enjoyed reading my blog post.
Let me know your thoughts or suggestions in the comments below.
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My name is Sujoy Mukherji. I am an Internet Marketer, Entrepreneur & Professional Blogger. Founder of the Affiliate Hub Blog.