Have you ever heard of the possibility of generating passive income?
If you are up to date on digital marketing and business issues, you may have come across this proposal at some point.
We routinely take it for granted that the idea of living on this type of income is a panacea.
However, it is not so.
Obtaining passive and profitable sources of income requires technical or business knowledge, a large amount of time and work invested in it, and the need to monitor the results obtained to implement possible improvements.
In this article, we will delve into what is considered passive income and talk about its pros and cons.
But, before we get into the flour, let’s start with the most basic: what is passive income?
What is Meant by Passive Income?
Passive income is that which comes from assets that generate money automatically.
In other words, once they have been launched they are capable of generating income automatically.
For example, the recurring income that you receive through investment in cryptocurrencies, in shares, or through real estate rentals.
These options require a high investment and are not models that can be launched without the Internet.
However, passive income can also be generated online with little or little investment.
For example, creating an online course, a book in different formats, or a template to create a web page.
And it is precisely these that we are going to focus on in this article.
Later, we will give you a few examples of products or services that allow you to generate passive income on a recurring basis.
Eye! The fact that this income is generated automatically does not mean that it does not entail a great deal of work until the moment of its launch and its subsequent commercialization.
In addition, once they are launched, they will require certain maintenance and improvement tasks so that they continue to be profitable.
What are the Advantages of Generating Passive Income?
This way of obtaining an extra source of income is very attractive, especially for those who have greater knowledge in terms of business and digital marketing.
Among the main benefits associated with assets or services that provide passive income, it stands out:
- They are additional sources of income, perfectly compatible with another job.
- They provide greater financial freedom.
- As they do not require a physical location or schedules, they are perfect for not having ties and, for example, working while traveling.
- Once launched, they run pretty much on autopilot.
However, they also have a less beneficial side:
- They do not usually report short-term income, it is a long-distance race. In fact, it can take months – and even years – before we start to see a return on our work.
- They generally require a large initial investment of time.
- There are highly exploited market niches, so it is sometimes difficult to find a less crowded one.
Profitable Ways to Generate Passive Income Through the Internet
Next, we are going to see 11 ideas to create sources of passive income from home on a recurring basis and how to generate them.
Let’s go there!
Write a Book, e-Book, or Audiobook
Currently, in addition, you can choose between three different formats: printed book, e-book, and audiobook.
In addition, to publish a book you can choose between 2 different options:
- Go to a publisher that handles the process.
- Self-publish your book, taking charge of the printing and dissemination process.
Currently, anyone can self-publish their book.
In other words, without having the support of a publisher you can perfectly distribute your publication.
It is true that, if you do not have a previous community, it is more difficult to reach a mass audience without the diffusion provided by a publishing label.
However, you will be able to write your content and promote it on your own.
In addition, your profit margin from the sale will be higher.
In any case, you should bear in mind that writing a book requires advanced writing skills and meticulous and constant work.
Write, read and reread, edit and read again…
The main advantage is that in case the content does not become obsolete, you will be able to obtain recurring income for years after it has been published.
However, you should keep in mind that the income level is not too high.
Create an Online Course
If you are a specialist in a certain subject or field, why not create an online course that can help your clients?
It is true that the market for online courses is a bit saturated, especially after the health crisis caused by COVID-19.
However, if your niche is yet to explode or you think that the existing formations do not add much value, go for it!
Choose a theme, research your sector, develop a training plan, and choose the format of your course.
Will it be in the video, or in PDF or will it combine both resources?
In addition, when selling an online course you can opt for two different options:
- Sell it from your own web page, in which case it is necessary to create a customer area, upload the content, etc. But, in exchange, you will have full control of the platform and the database, and you will avoid commissions from third parties.
- Using a third-party platform like Hotmart or Udemy. In this case, you do not need to carry out any development but, in exchange, you do not have contact with the users and you have to deduct the commission from your profits
Join Affiliate Marketing
These strategies seek to promote the sale of a specific product or service through an affiliate program.
Thus, the brand that develops it increases its notoriety and improves the results obtained.
In turn, affiliates earn a commission for every sale made through their channels.
To become an affiliate or affiliate, you have several options:
- Create a website or a blog, position its contents properly, and recommend a certain product. For example, create a pet blog and create articles in which you recommend products for dogs -always with an associated affiliate link-. A widely used platform in this case, since it is widespread in user purchases, is Amazon.
- Join the affiliate program of a company in your niche. Thus, you will be able to make recommendations for the said brand in a social network in which you have a large community. For example, include an affiliate link in your YouTube videos or give your followers a discount code through Instagram.
Monetize Your Blog Content
In addition to affiliate programs or hosting online courses, you can monetize your blog thanks to advertising.
Adsense ads are another of the most common sources to generate passive income through your blog.
Depending on the theme of your content and the user profile, Google will include the ads within your publications.
As a blogger, you will earn income every time a user clicks on one of the ad banners.
In other words, they are actions that are paid at CPC -cost per click-.
In this case, to obtain an acceptable volume of income it is necessary to have a large volume of visits.
In addition, the income that you receive will also depend on the clicks that these advertising banners receive and on how the theme of your blog is rewarded -not all of them receive the same advertising formats or are paid the same.
The advantage is that if you have a theme that is well-paid and you publish content that does not become obsolete, you will be able to obtain passive income on a recurring basis.
Earn Money with Youtube
If you have a YouTube channel, you can also generate passive income thanks to advertising.
To do this, in addition to having a Google Adsense account linked, you must meet certain requirements of the Youtube partner program :
- More than 4,000 hours of playback of the videos on your channel in the last 12 months.
- A channel with at least 1,000 subscribers.
- Make content suitable for potential advertisers.
The income you get will depend on both the type of ad played on your videos and the length of time your videos are played.
In addition, you must take into account the level of competition that exists in your niche.
As with blog content, YouTube videos can bring you recurring income as long as you have a large and loyal audience on your channel.
And, of course, as long as they are well positioned for the keyword they attack.
Develop a Dropshipping Model
Dropshipping is a business model that consists of selling third-party products on an online platform.
In this case, the seller is solely responsible for the sale of the product.
The wholesale company will be responsible for its manufacture, storage, and distribution.
In this way, the seller obtains a profit margin for each sale made through its platform.
This model is tremendously advantageous, since it does not require incurring manufacturing, storage and shipping costs. It works as a mere transmitter of the data of the orders placed.
However, it is true that the creator of the online sales platform has no control over the efficiency when processing orders and making shipments.
It is true that this strategy is not a completely passive way of generating income.
However, it requires simple maintenance once it is well positioned and you have a high number of visits.
Banks of Images, Music or Graphic Resources
If you make videos, and photographs, you are a musician or musician or you dedicate yourself to the world of illustration or graphic design, why not live off copyright?
Currently there are a large number of banks of graphic and audiovisual resources in which creators can obtain an economic benefit through their works.
Thus, for each download or sale that is made in this Marketplace, its author or author obtains an economic remuneration.
Create Downloadable Templates
If you work in the field of graphic design, and even if you are an Excel specialist, you can develop downloadable templates that solve a certain theme for users.
For example, a template is useful when making a budget or designing a calendar for a brand.
Once launched, you will have to promote them to obtain recurring income in exchange for their downloads.
Develop Web Templates
If you are a web developer, why don’t you dare to create a template?
Bet on a simple, clear and attractive interface that draws the attention of users. And of course, maximize its usability.
Thus, you will be able to obtain financial compensation each time a user wants to download it to install it on their website.
Buying and Selling Domains
Registering a free domain that may be in high demand in the future is a way to generate an income passively.
To do this, it is enough to find the right domain and register it at the right time.
If it’s in high demand over time, you may be able to sell it for a high price simply by registering it on time.
Do you Already Know how to Generate Your First Passive Income Without Practically Investing Money?
As you can see, there are many ways to earn recurring income through the Internet, without requiring a constant effort of time or an exorbitant financial investment.
In addition to Internet businesses, digital products, and investments in online platforms, there are many other ways to generate sources of passive income.
For example, renting an asset, investing in the stock market, or through cryptocurrencies.
Analyze your profile, take into account how much time you can dedicate to the project, and get to work!
Do you already know what your next project will be to generate passive income?
Thanks for Reading.