Here at Capitalist Cabin, I’ve talked all about Personal Finance, Creating a Budget, Investment, Financial Planning, and Management. In short, many aspects of managing, saving, and investing your income have been shared already. But let’s get you to the point of Passive Income so that you can have more.
But I never told you about the sources or methods from where you can generate more income. Won’t it be better if you had more money to manage, save, and invest? Up until now, in my previous articles, all I had taken into account was an active income. In this article, we will be talking about some of the most popular passive income sources. Income ideas that are comparatively easy to get into. The mentioned ideas have a great potential to be turned into a full-time income.
Through this article, I aspire for you to have an income option that can grow manifolds and can provide you financial independence in the near future.
Table of Contents :-
What is Passive Income?
The income that doesn’t require you to work continuously is called Passive Income. It gives you freedom. Freedom of money and time. There is a famous notion concerning Passive Income – “When you make money while you sleep is when you earn a true Passive Income.”
In the words of Investopedia – “The earning derived from automated enterprises, rental properties, limited partnerships, business ownerships, or side hustles. Passive Income Sources require minimum or no active involvement.”
One thing to know is that passive income is also taxable, like an active income.
What Passive Income is Not –
There is a notion among those who do not completely understand this idea of passive income. Some people often think that a job that you do after working hours or in your free time gives you passive income. The other majority think that for passive income, you do not need to work at all.
You see, both ideologies state extreme cases. One where you have to earn by exchanging your time, which becomes active income instead of passive. The other where you do not work at all, which becomes free money. And no one in this world can earn free money.
Passive income is something in between.
You work for a certain time and automate your income source. It then earns you a regular income. Let us understand this with an example –
Say you start a YouTube channel. You post one to two videos per week, and you do so for a year. Understand this it is very unlikely for you to earn in the first year. Eventually, when your following and views grow, you can put ads and have sponsors. Now your videos are online, and you can earn every time someone watches your videos or clicks on ads.
You can even stop uploading videos or working for it. Your already online videos will keep earning. This is what “Earn while you Sleep” means.
Passive Income Sources for You
- Information Products
- Application and Websites
- Digital/Online Presence
- Blog or a YouTube channel
- Rental and Investments
In general, there are numerous passive income ideas and sources from which you can opt. You can find thousands of articles mentioning thousands of passive income ideas. I do not want to repeat the same.
In this article, I’ll be mentioning some of the most scalable and future-friendly ideas that will earn you a decent passive income. You can opt to make them your primary income and business too. Also, the ones I’ll be mentioning will require some serious skills for you to learn. Nothing here is going to be any Quick Rich Scheme.
Let’s get down to scalable passive income sources –
Create and Sell Information Products
What are Information Products? Any product that provides information to the masses is considered as an information product. Courses (can be audio, video, or even textual), eBooks, short PDFS, etc., are termed information products.
You can host these products on different platforms, websites, etc.
Online Course –
Let us say you created a course on Personal Finance. You can host this course on sites like Udemy. This is one-time work. You created a course, and you published it online. Now every time someone buys it, one month or even ten years down the lane, you will be getting a royalty.
eBooks & PDFs –
Let us take another example – Say you created an eBook on Investments and Personal Finance like the one I have created. Check it out here!
Suppose you take a few weeks or a few months to create this book. You can now publish it on Amazon Kindle or even self-publish on your own website. There are numerous ways to publish an eBook and make money out of it.
Once you have published it on some platform, you now have to deal only with a little marketing, or you can hire someone. Sit back, let people buy your book, and you will earn money. This royalty will keep coming a year or ten years down the lane, as long as people keep buying it.
The Free giveaway Strategy
I know it is a bit hard to get considerable sales on your first product. But you never know! It may take you ten failed products before your 11th takes off. Or your first product may become an evergreen means for you to earn money. You never actually know.
Hence, one good strategy can be providing free resources. Say your ultimate product is going to be an eBook. Then start off by providing a few free eBooks and PDFs. The logic is – When you provide the readers some insightful knowledge for free, you prove that you are a person worth listening to. You build your own name and brand. Now, when you launch your ultimate product, people are going to buy it because they loved your free content.
2. Applications and Websites – Highly Technical
We are in the era where almost everyone needs an application and a website. If not need, with everything going online, it is high time that people indulge in such skills. Therefore, the demand for application developers and web developers is increasing day by day. Be it full-time jobs, internship roles, or even freelancing, there are thousands of jobs available. However, these won’t be counted into passive income.
As for earning some passive income, you may opt for owning a website or application. You can also design website templates and sell them. Suppose you create five web templates and uploaded the code along with the design for sale. It is one-time work. The moment you make it online, every time someone buys your template, you will get money. This is passive!
Another example – Say you create a mobile application, be it for android, iOS, or both. Once you put up your application on Play Store or App Store, it’s done. You can now earn as per your number of downloads, and you can also run ads within your app and money from that.
Passive, Active, Full-Time –
The skill of designing websites and applications can be taken as active income when you have an internship or a full-time job. Freelancing when you take up independent projects and provide clients with the result.
And passive income when you create independently and put up online for sale.
3. Digital/Online Presence
Nowadays, there are more online influencers and personal brands than ever. Why should you be lagging behind? With numerous social media platforms and everything going online, it is the easiest time to create a personal brand for yourself.
Now why have a personal brand? Suppose a scenario, and you have a total of 100K audience on your social media platforms. Say your niche is Personal Finance and Investment.
Since you have this much audience, you can join an affiliate program. An affiliate program is a program where you promote a product. When the product gets sold, you get a definite commission, from 10% to 90%.
Since you are from the finance niche, you can join affiliate programs for financial services, courses, etc. The more audience you have, the better you can promote and the more revenue you can generate.
Anything is possible through Personal Brand.
Remember the first point? Where we talked about selling information products? Suppose how easily you can sell your own products – eBooks, courses, pdfs, etc. You can also get sponsorships from various brands. You can start your own venture or business with already an audience of 100k.
You can literally make money from thousand sources if you have an audience and people know you. The more audience you have, the more your options are to earn.
And the best part is, its all passive. You only have to work for your personal brand, and the rest will follow with minimum or no effort at all.
4. Personal Blog or a YouTube Channel
Every second person in the world is now a blogger and a YouTuber. But one fact that is for sure – 95% of the beginner bloggers and vloggers fail. The reason being inconsistency and the urge to get rich quickly.
It is simple, but not many people understand it. Websites and YouTube channels take time to grow and bring considerable revenue. We often see successful channels generating thousands of dollars in revenue, but we neglect the time it took to get there.
Having a personal blog or YouTube channel is more or less like having a personal brand that we talked about. For example – take into account the Alex Costa YouTube channel. Well, no sponsorship here, just a random channel I picked up. There are thousands of channels with a huge following.
So, as for Alex Costa, he is into fashion and posts videos on fashion tips for men. He has over three million subscribers. This helped him launch his own clothing line and hair product series. As soon as he launched his business, he had millions of people aware of it. Apart from that, say he stops making more videos, he will still get paid as people watch his videos.
5. Rentals and Investments
These two are fairly difficult to put up but prove to be massive sources of passive income. Difficult because setting up these two sources to get revenue to require earning some capital. That can’t be done by people who have no source of income.
In general, people get into these after they buy a rental unit or build one. To get passive income from investments, you need to have fair capital and the sense to make a smart investment. These options are fairly hard to start with but can help you retire and earn a huge corpus too.
Investments can be made into Dividend Paying stocks that yield money in the form of dividends. But to earn a considerable amount of money from dividends, you need to have a large amount invested. You can also start investing in funds via SIP. You won’t be getting a regular income out of it. But it compounds your money, and years after, you may get such corpus that you wouldn’t have thought of.
Download our free eBook on investment here – Become an Investor
There are hundreds and thousands of sources from which one can earn passive income. But the ones mentioned in this article are my personal suggestions. Because these are such fields which have to potential to earn you fortune and fame. There is no limit as to how far these can be scaled. You can also quit your full-time job and work on them partially.
However, don’t trust cent percent on me. Because these are my personal picks, and there are many more out there. Choose the one you love and think is possible for you to pull off.
Till then, if you invest – Happy Investing!
If you don’t – Start Today!