Do you want to Earn Passive Income without having to work all day long (passive income) and feel exhausted because of it?
Would you believe it if we said the money can be made even when you are resting at home or going on vacation with your family?
Yes, this kind of income is called passive income.
What is passive income?
Passive income is income that only needs to be done once (very minimal) and we can enjoy it for a long time.
An example of passive income is income obtained from housing rental fees and other business activities where entrepreneurs do not need to actively participate 24/7.
Many people think looking for additional work is the smart way out, but that’s definitely not what you want. What if we don’t have all that time and energy?
Passive Activities in General
Broadly speaking, there are four ways to get passive income:
- Cash flows from income from property or real estate, including profits from capital ownership, rental income gains, and interest on ownership of financial assets.
- Trade (trade) or business activities where someone may not participate materially during the year.
- Royalties are payments made by a company for other companies or certain individuals for using intellectual property (books, music, videos). However, internal service revenues only consider passive income royalties when they are not deducted in the course of ordinary trade or business.
- Rental Activities. In order to be included in the rental category, the real (physical) property is used by the customer, and income is paid through activities that come from the amount paid for using the property.
Some limited partnerships can be considered passive as long as the limited partners do not have a role in the company and exchange their capital investment for a share of the profit from activities.
13 Ways To Achieve Passive Income While You Sleep
Earn Passive Income from Blogging
For this one idea, you really need to invest time and effort at the start.
Do some research on what kind of blog you want to write. Passive income from this business is very smooth, big, and the best.
How to get passive income from blogs can be from Google Adsense, selling banners, affiliate links, selling content placements.
What content is useful for your target audience? Is it about culinary, lifestyle, lifehack, technology, or business?
Then, if your site and blog have high traffic because it is widely read, you can enter ads such as Google AdSense by registering first.
This is where your hard work pays off, the income from advertising is not small if your blog has high traffic.
If you are lucky, there will be companies that invite you to work together by means of endorsements, product placements, or press releases.
If you are able to maintain and increase weighted articles, blog traffic is guaranteed to increase and so will the income from advertising (because more opportunities are clicked).
If you’re at that stage, feel free to out-source or hire multiple authors.
They will write articles for your site, while you can rest at home and enjoy your hard work at first.
Every now and then you can control and view the posts of your authors and provide input.
This is a modern, millennial source of a passive income!
As a shadow, you can get passive income of millions to tens, even hundreds per month from blogging.
Still, in the realm of writing, you can create a book, it can be about anything, novels, fiction, business, finance, technology, lifestyle, comics, and culinary.
Make sure you do good research on the content you are going to host, then look for publishers who are willing to work with you.
It is more helpful if you already have previous writing experience, so make a great piece of paper if you are serious about this.
Passive income here will be obtained through royalty fees. If your book can sell a certain quantity, you will be sure to get a slice of your cake.
Much like writing a blog, you have to struggle extra hard at the start of writing a book because you have to create content first.
Your passive income will be obtained if the book is able to sell and sell well in the market.
Selling Fast Moving Consumer Goods
Millennial entrepreneurs have certainly watched the Thai film The Billionaire by Songyos Sugmakanan.
Tells the story of the struggle of a young man in establishing a seaweed food company, which is now worldwide, namely Tao Kae Noi.
Learning from the story, why can’t you do the same?
If you are good at making pastries and many say your food is delicious, have you ever thought about producing it on a large scale and distributing it in supermarkets or convenience stores?
If you’re able to do it, we’ll make sure it’s one of the greatest sources of passive income. This is not easy, because you need to control to ensure quality and performance.
Investing in Property
This investment requires a large amount of money to start with.
If you have more funds, it doesn’t hurt to invest in real estate because if you buy assets in the right and strategic location, then it is a very powerful source of your passive income.
According to Brandon Turner, an active real estate investor and co-host of the popular podcast – BiggerPockets, he says the key to success with rental properties is buying smart.
Property business benefits:
- You will get passive income in the form of monthly or annual rent.
- No need to do troublesome marketing (if it’s already rented and under contract) because you can enjoy a definite income.
- As long as the building you rent out is still fit for use, your income will also continue to flow.
- For those who lack capital, make a loan from a bank or mortgage. With a definite income every month, you don’t need to worry about income so you can pay the installments, you already have a definite income and add productive value to the loan.
Property business risks:
- Building maintenance costs from facility maintenance to renovation.
- For boarding houses, think about monthly fees such as water, electricity, and building taxes.
- Prepare an absorption fund for property maintenance if you don’t find a tenant or a buyer.
If funds are your obstacle to starting, then be smart in the dropshipping business.
Dropshipping is a category of passive income that can be obtained from the internet.
For those of you who are not familiar with this term, dropshipping is a business where you don’t need to have a real product that you sell with you.
In short, the supplier is the owner of the goods who stores and has stock, while you as a dropshipper are only the party who sells the supplier’s goods by marketing their products to social media and marketplaces.
You don’t keep stock, but you get income from sales. You only need to increase the initial price from the supplier for margin.
This includes income because you don’t have the hassle of looking for products and have a headache in developing branding. You just need to resell and answer buyers’ questions and earn income.
But you still need to pay attention to the quality of the supplier because if you give a bad product, the customer will be disappointed and turn to another seller.
You can use Shopify for this business.
The business opportunities are very wide, from fast food, fast food, salon, laundry, car-washing, and many others.
Many people become rich because of the passive income they get from the franchise business.
The real fast way to success is to study those who are already successful and do what they do, but in a different way – your own way.
If your franchise business is successful, this is a source of your passive income that is profitable, because you are not required to work all day there. There are already employees who take care of it.
You may occasionally come to control and check the quality and performance of employees.
Mutual Fund Investments
Mutual fund investing is a good passive income to do because it can be done through your smartphone.
Mutual funds are a vehicle that is used to raise funds from the investor community to be subsequently invested in securities portfolios by the investment manager.
If your funds are limited, there is nothing wrong with making this investment because the funds needed are not much and are much safer.
Income from Royalties
If you are an artist such as a film star, musician, writer, and comic artist, you can get royalties from your work.
People who want to work together will pay you if they use your creative assets or work.
Royalty is one of passive income. This is why so many people want to become songwriters or singers.
Did you know that Mariah Carrey still earns passive income every year because her song “All I Want For Christmas For You” is played every December.
Peer to Peer Lending
P2P is the activity of lending funds to the borrower. If in the past we had to go to the bank and the hassle of managing various documents, now it has been facilitated by the practice of P2P lending.
The terms of this loan differ from other old and money market loan models.
As a lender, you can choose which borrower you want to invest in, as well as the amount of your investment in it.
Usually, your profit as an investor is in the form of repayment or payment of principal and interest on the loan. This is a very attractive passive income, right?
Affiliate Marketing (Online passive income)
Affiliate marketing is the practice of partnering with companies (being their affiliates) to receive a commission on a product.
This method works best for those with blogs and websites.
It takes a lot of time to build your site before you can get passive income. It always starts with building and developing a blog that provides useful articles and helps readers.
If the traffic starts to get a lot, you have a great chance of being successful in affiliate marketing. This means that the more your blog is accessed and the opportunity for your affiliate banner ad to be clicked on is increasing.
For those who are not familiar, a simple definition of affiliate marketing is as follows:
- You have a blog or website;
- Your search for your favorite brand or company site;
- If they have an affiliation, please apply first;
- If they accept you, a consent email will be sent with information about your affiliation with the company and cooperation contracts;
- You can then select ad banners, ad links, product links, and other variations to do product marketing;
If your ad banner is clicked, and someone makes a transaction from your blog link, that’s where your commission is earned.
If your readers buy a product from your affiliate ad, the commission for that transaction is yours. The amount of commission varies depending on the policies of each company.
Passive income from shares
Stocks are a fantastic source of passive income – only if you know the tricks of using them.
If you want to get passive income on the stock exchange, make sure to choose blue-chip stocks that have a good history.
Hoping to earn abundant income through stock trading requires adequate knowledge.
However, if you can’t, the passive income from stocks is with dividends.
There are still many stocks that pay dividends of around 8-10 percent per year.
Blue-chip stocks are generally risk-controlled with good returns.
Even though a large company has a reputation for blue-chip stocks, not all of them are necessarily performing well.
There are also stocks of a similar category that underperform even though they are still very rare. Make sure you understand diversification and the right time to buy and sell.
We do not recommend investors, especially beginners, to trade stocks in the short term because the risk is very high.
You must provide a realistic time period for the growth of your chosen stock (No matter it is a short or long-term investment).
You have to know when to buy or when to sell. Common advice that is often heard is to buy stocks when the price is still low and sell when the price is high.
The problem is, you can’t predict the time of day. Nobody knows when prices fall or go up and when they happen. The timing is unpredictable – at least not precisely predictable.
Therefore, stock traders must understand the true nature of this business so they are not disappointed later. Understand that making a profit trading stocks is not the same as selling fast food.
If you are equipped with experience and knowledge, you can withdraw or continue trading stocks.
However, for beginners, we recommend the rule of using auto trading to trade if the share price reaches a certain limit.
No need to check stock prices every minute and hour. Unless you are a day trader.
Simply analyze and monitor every quarter when the company releases financial reports and reports releases at the end of the year.
Place funds that are ready not to be used in the long run. For example, for the next 5 years, you must understand that stock investing is a long-term investment. There is no such thing as instant profit here.
Earn Passive Income from Selling Photos
Are you passionate about photography and often take photos from the camera? Your hobby can be cashed in quickly in this era!
Many people are willing to pay you high paying to get the shots you produce.
Join a site that provides a place for photographers to upload their work and can be purchased directly by enthusiasts.
One of the names is Shutterstock and Fotolia. They offer an incentive for each user to earn passive income from the photos they upload.
Passive income from this profession is great fun! Imagine, with just 1 photo you can generate abundant income!
Of course, if your work is purchased by the wider community. Therefore quality photos are your best investment.
Passive Income as a Crypto Trader
Cryptocurrency trading is the next big thing in finance.
If you want to earn income by becoming a Crypto Trader, purchase cryptocurrency from one of the bitcoin/crypto exchanges and wait for its value to increase.
What is a bitcoin exchange?
This is an online marketplace that allows traders to sell and buy bitcoins using a variety of paper and altcoin currencies (alternative to bitcoin – a digital currency similar to bitcoin, is all cryptocurrency that is not bitcoin.)
Don’t forget to always do thorough research before you invest in large amounts. Since this is also a risky business, your chances of losing money are very likely.
After we finish our summary of how to Earn Passive Income. Choose according to your abilities and expertise, of course. Warm regards and thank you.