Passive income is something that many people aren’t familiar with. At school, we learn how to work for money, not how to make money work for us. This is one of the reasons so many people are struggling with debt and find themselves in sticky financial situations.
But did you know that you can create your own streams of residual income without investing five or six figures into traditional investments?
Did you know that you can build an online business that generates passive income in a just a few months?
When it comes to our relationship with money, so many of us are stuck in a space of love/hate. What I mean by this is we’re taught things that are just plain wrong about money and finances. Becoming financially independant involves unlearning alot of the things that have been fed to us over the years and mastering our psychology.
Financial freedom isn’t just about wealth, it’s so much more than that. It’s about having the time to do the things you want to do. The time to focus on projects that you’ve always wanted to work on. The time to create what you’re here to create on this planet.
All that being said, let’s have a look at some popular passive income ideas that can be used to create successful businesses.
Passive income ideas that’ll change your life
When it comes to passive income ideas, there’s plenty of material to get your hands dirty! One of my personal favourites is e-commerce businesses. Why? Because you can start a business without having to learn so many skills that you would to build a profitable blog.
Let’s take a closer look…
Starting an e-commerce business is actually easier than most other online business ideas. You don’t need to create incredible long-form content that inspires people to take action. You just focus on finding the right prodcuts in the right niche and selling them to consumers.
The dropshipping business model is a revolution in physical product sales. One would assume that they’d have to invest a lot of money in inventory and find somewhere to put all their stock. But this has all changed over the last few years.
Dropshipping is a business model where the “dropshipper” doesn’t hold stock of any products that they sell. Instead, a large supplier keeps hold of the stock and the dropshipper only purchases items when they are sold in their online store.
This keeps costs low for dropshippers as well as minimises risk.
I’m sure you’ve all heard of AirBNB. The short-term lettings marketplace that has turned the hotel industry upside-down. At first glance, this doesn’t seem like something that could prodcue passive income, but hear me out on this one…
Renting out properties on AirBNB is more lucrative than renting a place traditionally. Investing in property and renting these places out can be very profitable and highly passive if done in the right way.
So how does it work?
Most people that rent out their placeon AirBNB manage most things on their own. This means organising and overseeing guest bookings, replenishing consumables and resolving any problems. Doing it this way is definitely not passive and really not worth your time.
A more efficient way of handling your properties is to hire an AirBNB management company. These businesses handle everything from listing your properties to exchanging keys and providing guest support. Yes, it costs money and you won’t make as much profit from your properties but your income will be almost entirely passive.
Buying established websites
What’s more efficient than building your own profitable website from scratch? Buying one that’s already in business ofcourse. This strategy requires a fair amount of statup capital but at the same time, you’ll be buying a legitimate business that’s already making money.
Empire Flippers is an entrepreneur marketplace that lists online businesses for sale. The business model range from affiliate marketing to dropshipping and subscription websites. You’ll find all manner of domains from little baby sites making $200 a month to tremendous titans producing multiple five-figures a month in profit.
This method of investing trumps traditional ways of putting your money away such as in the stock market. Why? Because the return are much greater and the investmnet requirements are usually a lot lower.
A traditional stock investment provides less than 5% return in most cases. To put this into perspective for you, investing $100,000 will give you $5000 a year. On the flip side you can spend $20,000 on an affiliate marketing website that produces $2000 a month in profit.
It’s a completely different league we’re talking here.
We’ve all come across coupon websites on our quests for discounts and digital bargains! Did you know that these websites make money every time you use one of their codes? This is another form of affiliate marketing. A form that most people don’t know about – until now!
The tough thing about coupon websites is ranking them for search terms in Google. This is the main way people find these sites. That being said, there are quite a few niches that don’t have much competition. With proper research and due diligence, you can establish yourself with a profitable coupon site in a pretty short space of time.
Speaking of profit, these websites practically have no expenses. You can get one of these up and running for literally a few dollars.
Real estate investing
Real estate investing is a classic passive income idea that has created thousands of millionaires all over the world. Property is a great business to get into. It’s a shame that there’s so much noise out there nowadays about “flipping houses” and becoming rich from property. There are plenty of courses that cost an extortionate amount of money and are very thin on substance.
But these courses have been created because you can build a genuine empire through property investment. Just a small handful of properties can bring you a few thousands dollars a month in passive income.
I’m referring to buying rental property here. The market is always tough when it comes to real estate and really knowing your stuff is essential to succeeding. The best way to turn this into a scuessful passive income operation is to pay someone who spends their life in this market to find the best properties and manage everything for you. Yes, you’ll make less profit but you can sleep safe at night knowing that your invesments are being handled by someone who knows exactly what they’re doing.