Many YouTubers, influencers, and other public personas mention passive income (mostly from trading). We had to see what would be the best five ways to make passive income if you are stepping into unknown territory.
Passive income usually involves earning money from a partnership, enterprise, and even stock trading, but you are not actively engaged. This means you can make what you want of it, but most people consider it an investment into what they want to do in their spare time, or as a fund for rainy days—your choice.
1. Start a Blog (and develop an online business from it)
This is maybe the easiest and most common way to earn a passive income. Being a blogger can include various topics to pick what you like and start blogging about it.
You should look at your blog (or even vlog) as a business, and run it as a real boss. It is your mini-company, and you want to cash on it. Monetizing your blog is an ideal way of making a passive income. It can come with luck or time, but it usually involves both, which means taking chances. You have to be sure that you can make a profit, and doing what you love can bring that zest that will attract people. Figure out your niche, start slowly by releasing free content, and build up your domain. Be consistent and see what your audience would like to know more about.
Eventually, you will be able to advertise on your website, get deals, and generate passive income.
2. Start an Online Course
Online courses became a big thing over the past five years, and now it got even better because you can make your course and upload it to a course website of your choice. You should put on paper what are your best skills, and if you are sure you can explain the subject well. You should also think about whether people would want to spend money on it, aka if they need the course and will it spark their interest.
Keep in mind that this will take longer to prepare. You are a professor, and you should plan your course accordingly. After you have your blueprint, see how you can break it into smaller pieces that are no longer than 10 minutes. Keep in mind that videos that last too long won’t keep students’ attention (and not even yours).
If you have another platform (like a blog and an audience), you can even promote your course like that. Once you have finished creating the whole class (shooting, editing, etc.), you can start promoting and creating an affiliate program. You can also pay for a small advertisement if you think that will help reach more audiences.
3. Affiliate Programs
This goes with the idea that you already have a blog, youtube channel, or a popular Instagram page. You can become an affiliate, and these programs can pay you well. It can be in the form of adding links to your content to show how you are using a particular product. Keep in mind that this will bring more traffic, therefore more money. You can expect this to happen if you are consistent, and you have already built a steady audience. Your content strategy should slightly shift once you become an affiliate but not too much, so your audience thinks you’ve become a sell-out.
Trading is all the talk these days, and here are some basics about the stock market and digital trading in general.
Index funds are a type of investment with no active management. They usually have a minimum investment, which can be around $3,000.
Index funds can be a stack of holdings in various companies that can lower your risk than individual stocks.
Stocks represent shares of ownership in a company of your choice, and they are higher risk/reward than index funds. This is because you need more knowledge and to know when you should buy or sell them, not only collect.
Interestingly, some financial advisors say that you should risk your money using the equation 100 minus your age, and not go beyond that. This means that even if you are experiencing a loss, it will not affect you as much.
5. A piece of advice
We gave you some options, but consider how creative you can be and come up with even more ways of generating passive income. In the end, it is up to you and your ability to adapt. 2020 has been a rough year, so passive income should be necessary to have.