8 Legitimate Ways to Generate Passive Income
by Arina Smith Job & Career 14 May 2018
Creating a sustainable passive income is an alluring idea for most people. Who wouldn’t mind receiving a little extra money in the mail each month?
Many people just don’t know where to begin when seeking to create a passive income. Well, we’re here to show you where to look and how to determine which is the right choice for you!
One of the most exciting frontiers for passive income is the world wide web. However, many entrepreneurs would still rather meet a customer’s 1st world needs.
Before deciding which path is right for you, check out these recommendations before deciding how to make passive income. These great passive income ideas help you supplement your active income or even leave the traditional workforce entirely!
So rather you’re looking to get that mailbox money in your inbox, or via snail mail, read on and get ready to start planning your early retirement. Learn more about passive income vs active income with Yieldstreet.
What is Passive Income?
Passive income is any money that you make without actively working to receive it. The IRS generally recognizes income as belonging to one of three subtypes. Active, passive, or portfolio.
Active income covers any of the conventional jobs you may think of. The average 9 to 5 job is a good example of active income, but this also includes unconventional jobs like eBay sellers or rideshare drivers.
Portfolio income is any money that you may be making off of stock investments. Cryptocurrency investments would be included in this field as well. This is an especially relevant form of portfolio income due to its recent spike in popularity!
Passive income, however, is any career that requires minimal day-to-day effort. Sound nice? We thought so too.
Passive income can be generated in the realm related to technology or by meeting real-world supply and demand. Most of the ideas we’ll present do require some initial effort. However, if you play your cards right, you’ll soon be rolling in the dough
Passive Income Ideas for Internet Entrepreneurs:
1: Design an App:
Dude, do you even code? If you’re handing with coding and have a great idea you’re ready to share with the world, you might be the next app millionaire.
This demand was created by our modern availability and dependence on our cellular devices. 68% of American adults own a cell phone. This doesn’t even take into account all of the tablet devices that also use apps!
The more we rely on our phones, the more we expect our phones to do. This is why new innovative apps are such a great way to generate passive income. Near enough everything has an application to make life easier. For example, if you are wanting to make money in the world of gambling and sportsbooks, pph software from companies like Bossaction is really taking off.
Apps can generate money in one of four ways:
- Generate money through sales (e.g. purchase price)
- Generate profits through recurring subscriptions
- Generate money through in-app purchases
- Generate profits through selling advertisements.
Depending on what your app does and how it functions, you can assess how to make your money with your winning app-based idea!
2: Writing an eBook:
Many online marketplaces now offer independent writers a new place to sell their wares. Although writing is hardly a new career path, leave it to the internet to change the game again.
Because the internet provides such a wide platform, many writers find that eBooks are the easiest way to break into a writing career. Gone are the days of waiting for your local bookstore to order that book you’ve been wanting. eBooks provide the customer with instant access to a digital copy of their purchase.
While writing a novel is no easy task, the long-term passive income you create is still one of the best ways to make passive income.
3: Start a Youtube Channel:
Do you have a hidden talent? Are you a great storyteller, personality, or makeup artist? If so, your best passive income may be in creating online video content.
Creating content isn’t easy, requires consistency, and video editing skills. That said, if your channel becomes a hit, you expect to make thousands in Youtube ad revenue off your content for years to come!
4: Become a Blogger/Social Media Influencer:
Not much for how-to videos? You might be better suited to create multiple revenue streams through social media.
Social media stars make thousands for each sponsored post and also take home some pretty impressive swag.
You can even create a blog highlighting your field of expertise. Bloggers can earn thousands in sponsored posts and affiliate marketing.
5: Dropshipping :
Perhaps one of the newest innovations in the world of passive income is ‘dropshipping’.
Dropshipping is the practice of promoting and selling a product that you do not have on hand. Dropshipping involves creating an online store that compiles products. These products are sourced from a variety of companies/manufacturers.
When the order is placed on your website, it is then passed on to the manufacturer. The manufacturer is then responsible for shipping the item directly to the customer.
Real World Income Producing Assets:
Not ready to make the leap into the world of selfies and e-commerce? That’s ok too. There’s still lots of passive income potential to be had.
6: Vending Machines:
Vending machines like HealthyYou Vending are growing in popularity and require little maintenance by the franchise owner. Vending machines are a great passive income idea because they require so little overhead.
One of the best attributes of a vending machine franchise? Your fleet of ’employees’ will never ask for a raise or overtime.
If you’re less of an entrepreneur and more of an artist, this last category is all about you. Song and image licensing are two great opportunities for creatives who want to generate passive income.
Songwriters and photographers can list their catalogs online or with an agency for licensing opportunities. These agencies will pitch your work to people who can purchase the rights to use your music or images for commercial purposes.
This can be one of the best ways to make passive income for artists who are looking to supplement their creative endeavors with their more commercial work.
8: Trading Crypto:
If you still don’t know where to begin, you can start with crypto. Because it’s so easy to get started, you can create an account on one of many currency marketplaces and get started immediately.
Many people are going in on alt-coins, a bitcoin alternative. Because of the recent bitcoin boom, many are convinced that online currency is the way of the future!
Cryptocurrency can be a volatile market, but if you stay up on the latest finance news, you can turn your know-how into cold hard cash.
Search for More Residual Income Ideas & More:
Regardless of how you decide to introduce multiple income streams to your monthly income, stay in the know with more great articles.
You can turn short-term input into long-term output with a great idea and the right amount of commitment. For more money-making and passive income, ideas check out our finance blog.