7 Best Ways To Earn Passive Income

What is passive income? Passive income is the flow of cash that doesn’t require you to do anything actively. However, you need to do quite a lot of work in starting to establish that income stream, and maybe it requires some maintenance from time to time.

Comparing Active And Passive Income

Active income is the money that you earn by doing something active and you do not get that money if you stop doing that work or the money you get by exchanging your time like salaries, hourly wages, etc.

While passive income is the money that you keep getting with little effort.

7 Best Ways To Earn Passive Income

1. Rent Out Your Property To Earn Passive Income

Renting out the property that you don’t use can be a great way to earn passive income. Renting out the property to earn steady cash every month is one of the oldest ways to earn passive income. There are a lot of people who can pay you handsome money for renting your property. It doesn’t require a lot of your time however it does require investment to buy some property if you don’t have one and a little maintenance from time to time.

Rental property can be a house or a room in your house, extra garage space. If you have a plot or excessive parking space in an area where there is a lot of traffic then you can also rent your property for parking.

There may be some risks involved that you need to keep in mind before jumping into renting business.

Keep in mind the property trends in the area where you are going to invest. Always consult a real estate agent to know whether it is a good investment or not.

What if the tenant damages your property or misuses it, in that case always do a proper agreement and other documentation.

2. Write An E-Book To Earn Passive Income

If you are an expert in your field or have a lot of knowledge that can be helpful for other people then writing an e-book can be a great way to earn passive income. You can write an e-book to teach people something you are an expert at and keep in mind that the e-book should help someone so that they buy it.

People tend to buy e-books because they are cheaper than physical books and value for money. Creating an e-book requires a lot of work in the beginning but it’s worth it, you keep making money month after month whenever someone buys your book. Try to create more than one book, by doing so you will look like an authority in that field and people will tend to buy your books.

You can sell your books on platforms like Amazon KDP (Kindle Direct Publishing). Amazon will sell it for you and give you a royalty after deducting their commissions.

E-books can also be used as a lead magnet to help get leads for your other businesses. It can also be used to prove your expertise in the eyes of clients and many professionals send their written e-books to their clients before their first meeting to have a strong first impression.

3. Do Affiliate Marketing To Earn Passive Income

Another way of earning passive income is affiliate marketing. So, what is affiliate marketing? Affiliate marketing is the form of marketing in which you promote someone else’s product or service and in return you get commissions. You can promote these products and services on your blog, Youtube channel, Instagram, Tiktok, and Facebook.

You just need to join an affiliate program like Amazon, eBay, ShareASale, or Awin. Some programs might have minimum traffic or follower requirements to join. They will provide you with a unique link that you have to paste into your blog or the description of other platforms. Whenever someone purchases using your referral link, you will get a commission.

The average commission rate ranges from 5% to 30%. However, niches like software pay up to 50% commissions.

4. Advertise On Your Car To Earn Passive Income

If you are a person who drives a lot daily or you are an Uber driver then you can convert your travel into a passive income. There are a lot of advertising agencies looking for cars to wrap with their ads.

They require some minimum daily mileage, a clean driving record, and certain drive routes to be eligible to wrap your car. You can get paid per mile driven. There are a lot of websites that connect drivers with advertisers like Wrapify, Carvertise, Free Car Media, and StickerRide.

5. Print On Demand

Print-on-demand is another way of earning passive income. If you are a person with a designing background then print on demand is your cup of tea. You can make custom designs on T-shirts, hats, mugs, hoodies, facemasks, etc.

There are a lot of platforms that provide the service of print on demand. You just need to make a design and these platforms will print and deliver for you and take some commission. Websites like RedBubble, Zazzle, TeeSpring, and CafePress provide the service print on demand.

6. Create a Course

Creating an online course can be a good way to earn passive income. If you know some valuable skill that you think people will like to learn then create an online course.

Creating a course requires a lot of work in the beginning but once you have created a fantastic course that benefits people, you will keep making money whenever somebody buys it. Many platforms allow you to sell your course like Udemy, Skillshare, Coursera, etc.

7. Vending Machine

A vending machine is a great way to earn passive income. You can start a vending machine with a few thousand dollars. Just place a vending machine in the street or shopping mall and keep maintaining the stock every week.

Take Away

Earning a passive income can give you financial freedom and help you retire early. However, it requires some initial investment of time and money. All the above-mentioned ideas are amazing if you want to start earning passive income. All you need is a mindset and consistency.