Are you interested in earning a passive income? The good news is that the old order has changed!
The old order of children obtaining a good Leaving Certificate, going to college and then getting a job, is changing. That rigid system is changing, and children approaching adulthood are seeing many different ways and means of earning money in their adult life.
For adults too they are seeing many different ways to earn money, and a “passive” or second income stream.
Who doesn’t want to earn money without being actively involved? Or earn money separate to your main source of income?
"Passive” income is income that you earn without being actively involved. That typically means that you continue to make income with little effort on your part to maintain that cash flow.
There are many ways of earning money in a “passive” way, and here are just 10!
1 Stock Trading
Let’s start off with the most common, and probably the toughest. We don’t need to explain the markets, but let’s just say that it is very easy to set up your own trading account. There are many companies that offer stock trading with very low fees. One with an office in Ireland is Degiro.
By far and away the best way to make money on the stock market is by long term investment. That is the investment method promoted by the best investor of all time, Warren Buffet. He recommends that average people should simply invest in exchange traded funds, which just track the average price increases or decreases.
The more difficult ways of making (or losing) money on the stock market are swing trading and day trading. Swing trading involves studying the short term fluctuation in a particular stock, and then seeking to buy it at the low end of the fluctuation and sell it at the higher end, and therefore make a profit. This usually takes place over a few weeks. Day trading is when you try to profit from the short term swing in price, but this is done within a single day and you never own the stock overnight. Day trading cuts out on the risk of overnight news affecting the stock price, so you have more control.
But be very careful, the stock markets can be a very tough place. PRICES CAN GO UP AND DOWN! The markets can churn you up and spit you out, and thy certainly are not for the faint hearted.
2 Create An Online Course
Online courses can be a great source of passive income. In basic terms, you can create a value-packed online course that helps solve a problem or fills a need.
The course can include videos, e-books, and emails with relevant information. Customers sign up to purchase the course, and your system automatically emails them everything they need to access the materials.
You get money for the price of the course that you created and automation does all the heavy lifting for you.
This is a great way of using your expertise in a particular area and earning money while sharing that expertise with others. And the internet makes that sharing very easy, and you can literally share that expertise with anyone with an internet connection.
3 Buy an Existing Website
You can set up your own website, which can be a difficult but very enjoyable process. There are many good websites that help you establish your own website, and it is also possible to hire someone to design and build your website for a low price. Then you need to do is find a product to sell, or develop your own product. This will undoubtedly be the most difficult part, as the worldwide marketplace has so many different and unique products that finding something unique can be challenging.
An easier alternative is to buy an existing online website. The beauty of an online business is that it may allow you to work from anywhere.
Dropshipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer who then sends the goods directly to the consumer. You make a small profit on each sale. In essence, you can sell goods online without ever taking possession or ownership of the goods!
You can set up a dedicated website for this product or service, unless of course you have a website or blog already in place. Alternatively, you can also sell it on an affiliate basis, either by offering it direct to websites and blogs related to your product or service.
The difficult part is to find a company that will supply and shop the goods to customers, and agree a supply arrangement with that company. Once you do that, you can establish your own sales channels and build your own customer base.
5 Multi-Level marketing
There are a number of very interesting multi-level marketing companies, usually in USA. We are a registered wellness advocate for one, doTERRA. These companies sell product through a team of individuals who share the product with their friends, family and other connections.
While these companies are sometimes criticised as being a "scheme", the truth is that a multi-level marketing is just a company that allows individuals to earn commission selling product. This is not that much different to other companies, such as Pepsi, which sells to wholesale companies, who make a commission by selling to further wholesalers who in turn sell to retailers. The point is – that normal sales process has many layers, and multi-level marketing companies just adopt a different method. Instead of pumping millions into marketing and advertisements, they rely on thousands of advocates around the world to share the product and in the process earn commission.
The main advantage of signing up with one such company is that you are given established line of products, that are tried and tested and already popular. Selling these established products is always much easier.
6 YouTube Videos
Everyday regular people like you and me are making money on YouTube.
Each time someone watches one of your videos, ads can appear, and you can make money from those ads. The key to becoming successful with YouTube is building a large enough subscriber and viewer base.
It can take a lot of time up front, but once your videos are live there is potential for you to make passive income from each video indefinitely. Also, you could develop a following and earn money from the following in other ways, such as endorsements.
7 Your Photos
Have you ever wondered how you could make money taking pictures? Do you have an eye when it comes to taking good photographs? Thankfully, there are many ways of earning money from your photos.
These include actually developing a gig as a photographer, for example at weddings or other special events. These often take place at weekends, and you can do these alongside your regular 9-5 job.
Also, you can check out a site like Shutterstock where you can send them your pictures and if approved, each time one of their customers downloads one of your photos you get a paid a royalty.
8 Buy A Blog
Thousands of blogs are created every year, and thousands are either completely abandoned by their owners sometime afterward. If you can buy blogs with a reasonable amount of web traffic, as well as a demonstrated cash flow, it could be a perfect passive income source.
Most blogs employ Google AdSense, which provides a monthly revenue stream based on ads that Google places on the site. There may also be affiliate programs generating additional revenue. Both income sources will be yours once you purchase the blog.
From a financial perspective, blogs usually sell for 12-24 times their monthly income. But if you look hard enough you may pick up a bargain blog!
9 Affiliate Marketing
This is a passive income technique that is better suited to people who have blogs and active websites or YouTube channels.
You can sign up to promote certain products or services on your site, for which you will be paid either a flat monthly fee or a percentage of the amount of the sale completed.
This isn't as hard to do as you might think, since there are thousands of companies in the world who want to sell their products in as many places as they can. If you have a substantial following in any social media outlet, then this is open to you! You can find affiliate offers either by contacting vendors directly, or on dedicated websites for “influencers”.
10 Dividend Income
Back to the stock market!
Dividend income is where dividends are paid to shareholders of shares in the form of cash in your bank account. Dividend-paying stocks are especially enticing for those wanting to make a living with passive income, as they will get pay-outs each quarter. The great investor Warren Buffet historically is a huge fan of dividend-paying stocks and invests in many such companies.
The Irish stock market is relatively light on dividend paying companies, and you will probably need to look to the USA. There are a number of solid dividend paying stocks, and it is not difficult to find a solid company with a dividend yield in the region of 5%.
If you are going to go this route, make sure that you educate yourself and pick solid stocks so that you can depend on your dividend income for years to come. Companies that have paid dividends for years are sometimes known as “dividend aristocrats” and you could explore these.
Each of these require more work upfront and some expenditure at the outset. But the rewards of that upfront work and expenditure could give you a “passive” income stream, or if it goes very well could even significantly bolster your regular earnings.
The trick is to find the income stream and method that best suits your talents. Everyone has difference talents, and if you can find a method that matches these talents and harnesses these talents, then you should be well on the road to earning a “passive” income!
Purity of Earth is dedicated to sharing nutritional, healthy living and essential oil products made by doTERRA. If you are interested in more information on these products, or the fantastic business opportunity of becoming a Wellness Advocate, please get in touch or email us at firstname.lastname@example.org!
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