Hey, are you into passive income? Today I’m writing about some passive income ideas that really work. Hopefully, this article will help you.
Just in case you’re wondering, it is possible to earn money with passive income.
Many people do, including me.
However, it’s important to understand that passive income is not the same as easy money. You still need to work (in most cases) before you start earning passive income. There’s no such thing as easy money (unless you win the lottery).
What is passive income?
Put effort into something that will then reward you multiple times, for a long period of time. Here are a few examples of passive income:
- Authors write books and then receive a percentage of the sales profits.
- Landlords purchase properties and then rent them out.
- Investors purchase stocks and then collect dividends.
Passive Income Ideas
I will now give you some ideas of what you can do to start generating passive income too. It’s not that hard, believe me. If I can do it, you can too.
Youtube is one of the most popular ways of generating passive income, but remember, you need to work, it really isn’t “easy” money. However, a video that you create today, will potentially generate income for years to come.
It’s easy to start a Youtube channel. All you need really is a mobile phone and some spare time. Many people don’t even show their faces on the videos that they publish. You just need to create content. There is an audience for everything, so your videos don’t have to be funny or intellectual.
But how do you make money with YouTube?
Your videos, like all videos on YouTube, will generate revenue with ads. Simple.
It takes a long time for most YouTubers to start making money, so bear in mind that persistence is the key here. If you’re not willing to put the hours in, there is no point in even getting started.
If you decide to start a YouTube channel, you also need to make the decision of doing for a while. I suggest you create at least 200 videos before you even consider stopping it. No content, no rewards.
Remember, you’ll have to work, but you’ll collect the rewards later. Multiple times, for a long period of time.
I can’t say for sure what’s the future of YouTube but let’s try to be positive and think that any videos uploaded now, will be live for many years to come.
Now, I know that YouTube is not for everybody. Maybe you don’t want to make YouTube videos, and that is totally fine. There are plenty of other passive income ideas to consider.
Real estate is one of the most lucrative ways of generating passive income.
It’s difficult to get started because you’ll need a large sum of money for the deposit, but once you have your first buy-to-let (BTL), you can pay an agency to manage your property and you don’t have to do a thing.
You can own the house for 10, 20 or even 30 years and receive rental income for all that time. I personally receive over £16,000 per year in rental income.
What’s better than that? There really are some passive income ideas that work and help lots of people make real money.
Amazon Affiliate Program
The Amazon Affiliate Program can also be a great source of income, passive income. You may need to learn a little bit about affiliate marketing first but is totally worth it. Some websites make millions per month with this technique alone.
Over 5 years ago, I shared an Amazon affiliate link on my social media. It was a weird device that makes cats go away (my neighbour at the time had too many cats). When people click on that link and makes a purchase on the Amazon website, I receive a commission. The cool thing is that every now and again I still receive commissions from that link.
How to promote Amazon links and make money?
Once you’re registered with their affiliate program, you’ll be able to create and share links for each product/page on their website. Those links are yours only. That’s how they know to should receive the referral commission.
All you have to do is to share those links everywhere you can.
- Create YouTube videos and add the links on the description.
- Share the links on all your social media accounts.
- Create lots of Pinterest images and point them to your Amazon links.
- Write blog posts with product reviews.
Invest in Stocks
Recently I started investing in eToro. It’s a social investment platform that lets you copy experienced investors. Perfect for you, if you’re just starting out.
The earlier you start building a stock portfolio, the better. Most stocks value fluctuate but in the long term, generally speaking, stocks increase in price.
Patience is key.
You can start small, let’s say £50, and top-up your account every month with another £50. One year later you could potentially have £600 invested, and if you do well, £600 could turn into £1000 or even more in the following couple of years.
Some companies will pay you dividends, which is nothing less than pure passive income. That’s awesome, right?
At the very least, move your money to a savings account. Not the greatest form of passive income, but at least you’ll receive some interest, which is definitely better than nothing.
Some savings accounts pay as much as 2% interest.
I suggest you develop the habit of saving money. Start with 10% of income or if you can 20%. Save some and invest some.
I genuinely enjoy talking about passive income ideas. Some are beginner’s level, some are a little bit more difficult, but the point is, start somewhere and learn as much as you can about it. Only great things can happen when you get started.
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