How to earn passive income online
Every person today dreams of permanent profit. But not to work. And to live in such a way that some specific source brings money constantly, without active participation in this process. But how do you get passive income?
You can have passive income only if you provide a suitable asset (real estate, copyrights, shares, money, etc.). To get extra money, you need to know the sources of passive income.
What is passive income and its main types
Passive or residual income should be understood as such permanent income, where the active participation of a person is not required. For example, certain amounts of money are credited to a bank account from invested finances, for work performed earlier or services provided, the money was successfully invested in some business, a creation was sold, and now a person receives a reward over a certain time period.
But in order to start receiving passive income on the Internet or in reality, you will have to make an effort, in some cases it will take more than a year, but the result is worth it. The most important thing in this business is the idea and the presence of an asset.
There are such types of passive income:
- Financial. To receive passive income, you will need a certain amount of money that is invested in an asset: real estate, stocks, securities, etc. These investments will be a source of profit in the form of interest payments and dividends.
- Marketing. Sources of passive income are your brand, website or marketing network.
- Intellectual. Profit can be received on the creation of a specific product of intellectual activity (video, book, song, development, etc.). This may be receiving a fee from the sale of an invention, receiving interest from the sale of each copy, a patent.
- Legal. Many citizens receive such types of passive income, in accordance with the current legislation of the country: pensions, material assistance, social benefits. To do this, you must provide the necessary package of documents to the state institution and receive the assigned amount of money every month, without any effort.
If a person receives passive income, he is called a rentier. As a rule, he has his own real estate, which is rented out, monetary assets or intellectual property, which provides a constant passive income, where active participation is not required.
Characteristic features of passive income and its differences from active
Modern man is accustomed to using active income to ensure his vital needs. But in order to increase your financial stability, it is important to know how to create passive income, as well as how sources of passive income differ from active income. The difference is as follows:
- An asset (initial funds) is required to receive interest and dividends. To have an active income, you do not need to have any values.
- Assets invested in several projects allow you not to get zero in the end, losing all your money. Even if one project fails, passive income will come from the rest. With active income, there are more risks of losing money. So, if a person is fired from work, he will not receive a salary and other payments, respectively, he will completely lose his active income.
- A person will receive passive income, regardless of whether he worked this month or not. Active income is the reward for work done or service rendered. As a rule, this is a salary, bonus, advance payment, etc. If the employee stops his labor activity, he will lose this income.
- With passive income, there are no restrictions on activities: a person can invest existing assets in several different projects or directions. Active income imposes restrictions on a person’s actions: the ability to work only one, maximum two jobs.
- Passive profit enables a person to live for his own pleasure, to be independent. Active income is the prerogative of people who do not understand money matters, so they cannot ensure their financial stability.
It can be concluded that passive income on the Internet or in real life is the main factor for financial stability and independence. It will only take some effort to create an asset, as well as choose the most suitable type of passive income for yourself.
Next, you need to dwell on the most effective ways that tell you how to get passive income.
1 way. Deposit in a bank
Many people, in order to preserve and increase their money capital, prefer deposits in banks. And receiving interest on such deposits is an additional income, because a person does not make any effort to receive it.
To open a deposit, you need to have a sufficient amount of funds that will cover the minimum costs. Obviously, the larger the amount of the deposit, the greater will be the monthly interest charges. But be sure to take into account that a certain percentage of the percentage will go to the bank commission, taxes and inflation.
You also need to take into account such a factor as the risk of bank failure. In the current situation in the economic sector, this can happen even with a large banking institution. Therefore, in order to protect yourself from losing the entire amount of money, it is better to open deposits in several banks.
Before opening a deposit, it is necessary to carefully monitor banking institutions for the proposed conditions for this service. After choosing a bank, get acquainted with information about it, read customer reviews.
When making your choice, it is important to focus on one of such indicators of the stability of a financial institution, such as the level of interest rates. In the case when they are very high, this indicates a low liquidity of the bank, respectively, its ability to pay bills is very low. Low rates are an indicator that the bank has no problems with paying payments on mandatory accounts.
2 way. Own property for rent
If you have a sufficiently large amount of money and there is no desire to put it on a deposit in a bank, you can purchase residential or commercial real estate in order to receive income from renting it out. Profit with this option can be 50% more than the deposit, and the risks are minimal.
To make the right choice, you need to carefully study the real estate market. If you plan to buy a primary property, you can already earn money by investing money at the stage of building a house. Thus, the cost of the apartment, when the building is put into operation, will already be 25% higher than it was invested in.
By renting out an apartment, the owner will receive monthly income in the form of passive income, as payment from tenants.
An effective option for such an investment is to invest in foreign real estate, especially in resort countries. Here you can get higher profits without putting much effort into it.
3 way. Securities
This way of investing today is rapidly developing. The passive income of this idea consists in the fact that having a certain amount of money, shares of a particular company are bought, which will pay dividends to its shareholders depending on the number of shares. As a rule, dividends are paid once a year.
It is most effective to invest in the foreign stock market in order to find the most profitable offers. To work in such a market, you need the services of stock brokers.
The main disadvantage of such a passive income on securities is the high level of stock market volatility, which distinguishes it from the two methods listed above. You also need to take into account the fact that if the company’s activities do not make a profit, it will not be able to pay dividends to its shareholders.
It is for this reason that you need to carefully study all the companies in which you plan to invest, read various articles about them, as well as reviews. This is the only way to invest your money in a truly reliable business that will give passive profit every month.
4 way. Copyright
A good option for passive income, which is suitable for creative people. To start making a profit, you must first create something: paint a picture, invent an innovation, write music or a book. In other words, you need to invent something that did not exist before.
After a unique invention is created, you need to register your copyright on it. If this invention is in demand, when it is sold, the creator will receive a percentage. For example, the use of digital sound during a movie screening in a cinema will bring passive income to the developer company.
This method has an important advantage: copyright can be inherited. You can also increase your income if a large number of organizations use these rights at the same time.
5 way. Mobile app
Today it is difficult to imagine a modern person without the use of progressive technologies. Almost everyone has a mobile device with various applications that make life much easier. It is for this reason that creating and offering your mobile application to other users is a real way to earn passive income on the Internet. This requires:
- Come up with an interesting idea that will be different from all the others that exist today. The competition in this area is very high, so only something bright, attractive, interesting and useful can bring success.
- Create an application. If there are no specific skills, you can turn to specialists who can implement even the most complex mobile application project.
- Place the finished application on special platforms. To attract attention, you do not need to set an initially exorbitant cost. The product must be either free (paid advertising and add-ons) or affordable. As popularity grows, the cost can be gradually raised.
Making money on creating a mobile application is quite simple. As a rule, this does not require large investments. You will only have to pay for the work of specialists to create it, if you cannot do it yourself. After a few years of passive income on the Internet, profits can please you.
6 way. YouTube channel
Youtube videos are probably watched by every Internet user. The resource is very convenient and its popularity is growing rapidly. Here everyone can find the information that he needs at a particular moment in time: funny videos, training videos, master classes, etc. This service is visited every day by a huge number of users from different parts of the world. But few people know that this resource can become a platform for generating passive income.
A resource for making money will be your own channel, in which you just need to post interesting and useful videos. It can be some kind of master class, for example, on knitting a hat or laying tiles, sewing a bed or arranging a garden. It all depends on the skills and knowledge that you would like to transfer to other users. Funny videos about pets are also popular.
Earnings depend on the number of views, the number of subscribers to the channel and the number of likes. By posting a video once, you can get money for it for a long time, of course, if other users of the resource like it.
7 way. Own site
For many Internet users, owning a website provides an opportunity to earn a good income. People have constantly searched, searched and will search the Internet for information that is required at a given time. An interesting article that is written once will bring many visitors to the site from search engines. It will be read constantly, respectively, passive income will come from this, because efforts will be spent only one-time to write this content.
It is not enough just to choose an interesting topic and create a website. It needs to be filled with useful and interesting information (articles, photos, videos, graphics, etc.) in order to attract the attention of readers.
Having received the target audience, contextual advertising is placed on the resource. And passive income comes from clicks on it.
Promoted sites, where users can find the information they need, get to the top positions of search engines, bringing their owners passive income, the size of which is constantly growing. It remains only to periodically publish articles and update the content. You can do it yourself or hire an editor.
8 way. Own blog
Many users of the World Wide Web agree that blogging is not just a profession or occupation, it is a way of life. But in order to receive passive income on the Internet, this lifestyle must bring money. And not just pleasure.
Having decided to create your own blog, you must first determine the niche: sports, show business, art, personal life. In other words, the niche should be such as to interest other people as much as possible. Therefore, you need to choose what a person is well versed in.
The next step is to choose a platform for your blog, and be sure to consider your target audience. The most massive audience can be obtained in the popular social networks Instagram and Facebook. If this is a business line, and the resource is aimed at a Western audience, it is advisable to choose the appropriate platforms. Youtube is perfect for vlogging.
After the choice of platform is made, you can start generating content. This is the hardest and longest job. The creator will have to take photos and videos, write texts and edit videos. To make the content of the blog as attractive as possible for users.
Particular attention should be paid to the quality of filling your resource. So that it is not the same as that of competitors, stands out favorably. You need to publish articles, photos, videos regularly. So that users constantly show interest in the blog, actively share text, photos or videos through social networks.
When the number of block subscribers reaches 5 thousand, you can offer advertising services, but, as practice shows, advertisers find the owners of such blogs themselves. In addition, you can register on special platforms to find advertisers for your page.
Passive income on your own blog is the best solution for active youth. Today, even children under 10 years old have their own resources, where they publish their own content, which allows them to earn money.
9 way. affiliate marketing
This method can be considered conditional only passively, because it is necessary to make certain efforts constantly. But there is less work here than when creating videos for YouTube.
The bottom line is to sell certain products on the server of free ads, receiving a reward for this. This method is similar to dropshipping, but there is no need to create your own online store.
The scheme of earning on affiliate marketing looks like this:
- you need to register on partner sites;
- select the desired product;
- place an advertisement for the sale of this product on the free ads service;
- when the buyer calls or writes, answer him and transfer the data to the partner by placing an order on the site.
In the future, work with the client will be carried out by a partner platform, from which a reward will be received.
This type of income can be considered passive. Because one ad can attract a large number of buyers. Accordingly, the more ads you place, the more profit you will make.
10 way. Rental
By renting out equipment, you can also receive a stable passive income. Companies that provide such services are called rentals. As a rule, this activity is connected with the film industry. When an advertisement or a film is being shot, and the equipment that is not enough is rented. Such equipment includes lighting devices, cameras, cameras, vehicles (cars, bicycles, etc.).
To launch a rental, a thorough study of the market is required. Monitoring is carried out in order to determine the level of competition, to study the demand for a particular equipment. Also check prices.
The next step is to purchase the equipment and rent a room to store it. Well, if you don’t own one.
You also need to invest in an advertising company to make yourself known in the market. Practice has shown that word of mouth is the most effective. At the initial stage, in order to save costs, you can not create a website to promote services. But it is advisable to create pages in popular social networks, where there are all the necessary tools. And their competent use will allow you to establish and conduct commercial activities.
Don’t wait for applications to arrive immediately. But with the right approach, the service will begin to be used, it will begin to generate income.
However, the launch of rental cannot be called completely passive income. Both before and after the launch of the project, you will have to take part in it.
Passive income is financial stability and constant profit for many years. Its size directly depends on the volume of the available asset, as well as the desire to earn. But to ensure passive profit, you first have to work hard. To get the result that is planned, and even higher.