An income which generated with little or no effort after one-time work is called Passive income. It may be your alternate source of income or even main source of income.
Book publishing is a better example, This is a one time work you spend several months to build a book and once it is published in market,
You are done. All the money coming to you is either with little effort or no effort at all.
You reap the benefit even when you are sleeping. This kind of revenue making model is called passive income.
The money will come to you whenever someone buys the book. It is not necessary that you need to work actively.
Ok, Why do you need to make passive income? This is a fair question.
passive income will only let you do whatever you want to do in your life. Passive income may be an additional income or main source of income which basically keep coming to your pocket recurrently even when you are not spending too much of your time and effort.
One of the greatest investors in the world Warren Buffett remind us about the importance of making passive income.
Image courtesy: AzQuotes
“If you don’t find a way to make money while you sleep, you will work until you die” – Warren Buffett
Generating passive income is not an option in your life, it is an essential part of your life.
There are several ways you can make money online passively, but the amount of time it takes and the amount investment you need to make changes depends on the path you are traveling. You are supposed to identify the right path to generate passive income.
Let me show you some passive money making paths which I know,
- Website/blog – Sell ads (Google Adsense is perfect example)
- Affiliate marketing
- Teaching- sell course online
- Sell products online (Amazon/Flipkart/Snapdeal)
- Sell ebooks/books/themes
- Investments(Stock/Real estate/Business)
Your turn to choose the right path.
Initially start with one path, once you started gaining knowledge to make passive money. You can explore other different options to make passive money,
I always suggest you start with one option and stay consistent on the path as long you succeed in it and never give up.(Secret of success)
Making money online is may be difficult initially but it is not impossible task. Believe in yourself and start progressing.
This is my cup of tea. I am excited to share my knowledge through the blog because it easy to set up a blog and it is easy to create and publish a content.
Create a website or blog on your favorite subject and create valuable content around the topic.
- Identify one core idea
- Create content around the core idea, do not divert
- Create valuable content to your audience
- Create informative and engaging content
- Display ads(Google Adsense)/sell products/Affiliate marketing
- Get feedback from your audience
- Repeat the process.
In my case, I mostly write about blogging, affiliate marketing and how to generate passive income? as you can see all these topics are closely related to each other,
so it is easy to find the ideas and inspiration for my content.
Starting and being consistent is the secret to succeed in blogging.
Check out my exclusive article specially designed to help people succeed in blogging
[link to How to start a blog – Complete Guide – In Progress]
#2 Affiliate Marketing
Affiliate marketing is a technique were you recommend some best products to your audience that will help your audience.
- Recommend a product on your blog
- Audience follow the affiliate link
- Buy the product or service
- Your audience gets a great product (Win for audience)
- You will receive commission from your product owners (Win for you)
Top bloggers prefer to use affiliate marketing strategy than displaying advertisement in their blogs because they do not want to leave their audience out of the blog for just a few dollars instead they recommend a valuable product for the audience.
The audience gets the benefit from the product and the bloggers get the affiliate commission revenue.
[Link to How to Start Affiliate Marketing – Complete Guide – In Progress]
Teaching is a great way to make passive income, you are excited about something which you love, it can be anything like reducing weight, speed reading, blogging, making passive income.
If you are good at the particular topic. You share your experience and thoughts with other people around the world.
Teaching is exciting and self-satisfying and more importantly teaching online is best passive income path.
So many people making so much of passive income through online teaching, How do they do it?
- Identify a subject
- Create course (include video,audio,pdf,quiz)
- Publish (see the below top-rated platforms)
- Promote – share with social media, blog, advertise
Some of the top-rated platforms help you publishing your courses as quickly as possible and they help all the ways to promote and make a sale.
Scott Allen is a guy who inspired more than anyone in terms of passive income because he creates a lot of content for the blog and online teaching (with Pluralsight).
Is this awesome right?. He is good at something and he is excited to do it again and again. So he shares his knowledge with rest of the world through online teaching and rest is the history.
In Less than Five Years, Scott Allen has Earned More than $1.8 million in Teaching Fees and Royalties as a Computer Programming Teacher for Pluralsight, a Leading Online Training Resource for Web and IT Pros – Pluralsight 2013 newsletter
Just start your journey as soon as possible.
[Link to How to Start Online Teaching – Complete Guide – In Progress]
#4 Selling Products online
E-Commerce is multi-billion dollar business all across the world, companies like Amazon, Flipkart making huge investments to take advantage of the E-Commerce revolution.
In India, the biggest competition is between and Amazon and Flipkart. So selling your products in any one of the platform or in both can give you reach throughout India to obtain the customer.
Why you have to choose Amazon or Flipkart?
- Brand- Flipkart and Amazon spend several millions of dollars for advertisement
- Trust – They build customer trust on quality, delivery, customer support and etc
- They are technically strong to reach the customer and retain them.
In the Initial stage of your online selling career, it is always best to go with anyone of the e-commerce giant, because you take all the advantages from them.
Amazon is a global company which spreads all across the world, you can literally sell all your products across the world just sitting on your dining table.
Step by Step procedure for complete product selling automation on Amazon.
- Identify a product that sells on Amazon
- Buy it from wholesaler/manufacturer
- List the product in Amazon – Set price/Images/Description
- Send your products to Amazon FBA(Fulfillment by Amazon)
- Amazon handles packing, shipment and customer support.
- Repeat the process
For more information about online selling check out the following links
[link to How to Sell product Online – Complete Guide – In Progress]
#5 Selling Ebook/Book/Themes
Publishing a book or developing a theme will be a hell lot of work (one time) for you but once you did it. The asset you created will generate passive income as long as it has values to sell in the market.
Take an example of book publishing,
Earlier days book publishing was a tedious process, you send scripts to various publishers and wait for them to contact you. You get very little amount of money as royalty from your publisher.
Nowadays things got changed a lot, consider the platform like Amazon KDP(Kindle Direct Publishing),lulu.com which lets you publish your content as quickly as possible.
Publishing a book Amazon KDP will take less than 5 minutes and it will be available in Amazon Kindle store within 24 – 48 hours.
You will get readers around the globe once it started appearing in the Kindle store.
Some of the self-publishing platforms which you can consider
Benefits of selling ebook:
- Fast – You can get it started as quickly as possible. Publish in less than 5 minutes.
- Free – Self-publish an eBook is free.
- Global readers – you will get global readers, and you make a global impact.
- Get more royalty than regular publishers.
One more best option for passive income is selling WordPress themes/plugins online.
WordPress is one of the most popular platforms when comes to blogging/website content management.
Around 28% of the total website in the world is made up of WordPress. WordPress was developed to manage content for blogs but the scope has been expanded to a website.
What you need to know for WordPress theme development?
You can learn a lot as you progressing in the theme development, trust me a ton of resources and support available for WordPress development. WordPress has a huge community to support you.
Some of the marketplaces for WordPress themes and plugins
Invest money intelligently & buy income generating assets will generate passive income. Rich people used to invest in a portfolio which generate passive income.
Even if you are in a full-time job, you have to think of making passive income through sensible investments.
- Start saving money in recurring deposits
- Start SIP(invest mutual funds)
- Buy valuable stocks
- Invest in Real estate property
- Invest in gold
- Learn handling finance
Look at the below diagram which clearly explains the process of getting rich.
Image Courtesy: Get Money Rich
Get Money Rich is an excellent website helps you understand finance and investment strategies.
Passive income is not just an option for life, it is an essential component of your life. Think wisely and move forward.