The term passive income means receiving money from a partnership, collaboration, or lease of property in which you do not actively participate. However, over the years, this definition has changed. And now, it also includes the concept of making money on the Internet if this process does not require much effort and involvement. For example, dividends and interest are considered passive income. In a broader sense, passive income can also be earnings from affiliate marketing.
What Are the Best Passive Income Options?
When thinking about passive income, the first thing that comes to mind is digital entrepreneurship: selling digital products, affiliate marketing, online courses, Google AdSense, selling e-books, etc. The traditional ways to generate passive income include investing in real estate, licensing, and dividends in the stock market. We will cover both aspects in this article.
1. Online Courses
Over the past few years, there has been significant progress in remote education. And since social distancing and e-learning growing rapidly, now is the perfect time to create and sell online courses. If you have deep, useful knowledge to share, people will listen to you and pay for your recommendations. To start creating an online course, you only need to have a good experience in the topic that interests you.
Online courses can be more than just video tutorials. You can also develop:
- work aids;
- home assignments;
There are a lot of options. An online course platform you choose should allow you to manage the entire learning process. It also needs to integrate with various services such as Getresponse and Google Analytics.
2. Affiliate Marketing
When planning your content strategy, think about high paying affiliate programs that you could become a part of. There are numerous affiliate programs in almost every niche — the main thing is to find the best ones with the highest payouts. Affiliate marketing is about finding the best services with maximum payout. Let’s consider this example:
- Let’s say you got into the category “Best roller-skates for women” and receive 1,000 visitors to your article.
- Out of these 1,000 visitors, 20% click on one of your affiliate links (200).
- Among those 200 people who followed the link, 1% decide to buy roller-skates (2).
- A pair of roller-skates cost $100, and your affiliate program commission is 5%. ($200×5%)
- Thus, your earnings are $10.
Let’s consider another example:
- You are ranked among the “Best bikes in Nigeria” and get 1,000 visitors to your article.
- Among these 1,000 visitors, 20% click on one of your affiliate links (200).
- Out of the 200 people who followed the link, 2% decide to buy a bike (4).
- The bike costs $750 each, and your commission is 10%.
- This time, your earnings will be $300.
Much better, right?
When choosing a niche for your website, find out which affiliate programs offer high commissions so you can monetize your traffic faster. Add affiliate links to different types of content:
- blog post;
- social media posting;
- YouTube descriptions.
3. Investing in Stocks
Company stocks constitute a higher risk than index funds because you buy securities from one particular company (not a frame of companies). Although they are riskier, stocks should also form part of your passive income portfolio.
Most financial advisors recommend managing your risk by keeping your portfolio at 100 minus your age. Accordingly, if you are 30 years old, you should own:
- 70% of shares;
- 30% of bonds;
- safe assets.
You can also try investing in Forex trading, including CFD trading or other available assets. For this type of passive income, you need to find a reliable broker, for example, Forextime and choose a convenient trading platform.
4. Investing in Real Estate
Another highly successful form of passive income is investing in real estate. In this case, the estate is used as a source of passive income, which, in turn, gives financial freedom outside the main job. Here are some tips for investing in real estate as a source of passive income:
- Study and invest in promising safe areas close to where you live.
- Buy real estate that is easy to lease.
- Find and hire a service company that will actively perform most of the leaseholder’s responsibilities.
- Buy real estate in instalments instead of buying for 100% cash. This will allow you to buy more properties faster and use the rental income to increase your purchase volume.
- Use the rental income to pay off existing loans or mortgages.
5. Creating a YouTube Channel
Whether you are doing product reviews or creating entertaining content, there are many ways to earn passive income through your YouTube channel. The platform rewards channels with an ample quantity of viewers, with built-in ad revenue, but the easiest way to make money on YouTube is through product recommendation. These can be your own passive income products (like e-books), or you can use affiliate marketing to generate click-through income. A product review can bring you thousands of views, and clicks on the description will generate net passive income.Fastest Paying Betting Site in Nigeria: Grab your 140% First Time Deposit Bonus Now — www.Sportybet.Com Copyright © 2021 Completesports.com All rights reserved. The information contained in Completesports.com may not be published, broadcast, rewritten, or redistributed without the prior written authority of Completesports.com.