What Is Passive Income?
Hey there 🌟
Imagine this: you’re chilling at home, sipping on your favorite coffee (or tea, I don’t discriminate), and money magically starts flowing into your bank account.
Sounds like a mom’s dream, right? Well, that dream has a name, and it’s called passive income.
So, what’s the scoop on passive income? It’s like the VIP of earnings because you’re not trading time for money like in a regular 9-to-5 gig. Instead, you set up intelligent money-making systems that do the heavy lifting for you.
For example, you start a blog, write some excellent content during nap time or when the kiddos are at school, and voila! People start reading, and companies want to pay you for advertising or recommending their cool stuff. That’s passive income in action.
Or, say you’re a crafty person. You create some stunning handmade goodies and set up an online store, and whenever someone swoons over your creations and hits that “Buy Now” button, you’re making money without breaking a sweat right that moment.
Passive income is like planting seeds that turn into money trees. You nurture your ideas, give them a little love and attention, and you’ve got a steady flow of extra cash before you know it.
And let’s be honest, extra cash means more opportunities for family fun or treating yourself to a well-deserved spa day.
But this is not a “get rich quick” scheme. You need to put some work up front before the system starts running.
Here are some of the most profitable passive income ideas I tried and succeeded in.
Let’s do this thing!
1. Start a Blog
It might be obvious to some, but I’d like to tell you why.
Blogging will bring so many opportunities to you, and if you are procrastinating like I was in the past, I can tell you now: start your blog today!
Because the best time to start was yesterday, and the second best time is today!
It may seem tedious at first, but it is gratifying to create a community while you write things you are passionate about. As your blog expands, so do opportunities to monetize.
A blog can be monetized by
- Google Adsense
- Affiliate Programs
- Sponsorship
- Selling Your Own Products
- Selling a Course
The possibilities are endless!
If you don’t know where to start, read my post, A Beginner Guide To Start A Blog.
2. Start a YouTube Channel
If you are a person who thinks talking is easier than writing, then, YouTube is the right fit for you.
Monetization for the YouTube channel is 1000 subscribers and 4000 watch hours. However, since YouTube shorts came around, there is another chance to be monetized. If you reach 1000 subscribers plus 10 million short video views within 90 90-day period, you will get your channel monetized.
I know! It seems to be a huge number! However, I did it in 3 months for one of my channels. Sometimes, it is easier than getting 4000 watch hours.
There are certain niches work better than the others. However, this is going to be your community. Unless you run multiple channels for different purposes, choose the niches you feel passionate about.
That’s because you need to be working on it for a long time before you can leave it running by itself. Might as well choose something you are interested in!
You can check how other channels doing on Social Blade.
Although it isn’t all accurate (since short-form videos don’t make much money, but count as views) you’ll get some idea how much people are making by doing YouTube channels.
3. Create a Course
Everyone is a teacher these days. This is the ongoing trend for most online creators.
You may think, “But I don’t know anything! I can’t teach anything!”
Most of the time, that’s not true.
Everyone has something naturally good at. You make a class around it. It doesn’t have to be a business course. Someone may want to know how you make your delicious lemon loaf.
The easiest way to start is to use a platform such as Skillshare. (this is a good class for blogging)
Skillshare is a community of online classes where you can sign up as a teacher and create a class. The course can be about anything. While you make a class, you can also take other people’s classes! Use the link to get the first month free!
4. Rent Out Your Space
If you have a vacation home or even extra room, renting out can be a good source of income. It may cost you a little upfront, but if you live in an area with many travelers, this gig is perfect for you.
You can even hire someone else to manage the place. Once you get to that point, it will be completely passive income!
5. Amazon KDP
Do you know some people make 6 figures on Amazon KDP by selling coloring books, journals, notebooks, password books, and kids’ activity books?
Since AI-generated illustrations are easily accessible, more people are trying to publish coloring book niches on Amazon KDP.
Yes, the market is saturated. That is true. Can you make any sales?
Maybe. Maybe not. There is a strategy for it.
If you publish one or two books on KDP, hoping someone might buy them, it will take longer to make any sales or not make any sales. Trust me. I’ve done this.
• First, you must find a sub-niche that might be up and coming.
• Make a good content.
• Make eye-catching covers, hiring an artist on Fiverr.
• Publish your book.
• Run Ads.
• Ask friends, families, and your community to leave reviews.
If you do this for a while, being patient, the sales will come in.
Once you have enough reviews, you may not need to run ads.
But most people who make a lot of sales spend half their profit to run ads.
6. Invest In Index Fund
When I was newlywed, my husband and I called the financial advisor to ask about investing. He laughed at us, saying we didn’t make enough money to buy anything and left. We felt terrible, like really bad. It was like “investing” is only available for rich people to get richer” kind of feeling.
But time has changed!
Now, you can invest a fraction of the stock, putting away as little as a dollar! (or even less on Acorn!) As you set up automatic contributions, you save without thinking about it.
I use Acorn just because it’s so easy. But there are many options these days. I recommend doing your research before moving a lot of money! Sometimes, even a savings account has a signup deal. A few hundred dollars can be worth a year of investing.
7. Drop Shipping
Ah, drop shipping!— the business model that’s like online shopping with a sprinkle of entrepreneurial magic!
One of the coolest things about drop shipping is the low-risk factor. Imagine running a store without drowning in inventory or stuffing your garage with products. With drop shipping, you only buy the product from a supplier when you make a sale. So, there are no upfront costs for stuff that might gather dust.
It’s like having your digital storefront without the headache of managing a warehouse. The suppliers store, pack, and ship the goods directly to your customers.
You get to focus on the fun stuff—like curating a killer online store, marketing your products, and building a brand that makes customers go, “Wow!”
Flexibility is another star player in the drop shipping game. Since you’re not tied to a physical inventory, you can experiment with various products without committing to a massive inventory investment and feeling the vibe of a new trend. Test it out without breaking the bank.
Plus, location independence is a big win. You can run your dropshipping empire from the comfort of your favorite coffee shop, living room, or even a tropical beach (if that’s your jam). It’s like having a business that fits your lifestyle, not vice versa.
So, in a nutshell, dropshipping is all about keeping it light, elegant, and low-risk. It’s the digital-age way of doing business, letting you spread your entrepreneurial wings without getting weighed down. Ready to turn that e-commerce dream into a reality?
8. Sell on Etsy
Selling digital products on Etsy for passive income is the easiest of all. That’s like turning creativity into a cash machine! I made a top 1% shop in 3 months last year! If I can do it, you can do it, too!
Here’s the lowdown on why it’s a stellar idea:
Low Maintenance, High Returns: Digital products don’t need restocking or shipping. Once you create them, they can be downloaded repeatedly without you lifting a finger. Just check at your shop once in a while, answering questions from customers, which only takes less than hour a day!
Global Playground: Etsy is like a bustling global market, and your digital goodies can be snatched up by anyone, anywhere. That means your creations can go international without you dealing with the headaches of shipping overseas.
Creative Freedom: Whether it’s stunning printables, e-books, or digital art, you can unleash your creative genius. There is no need to worry about production costs or inventory space. It’s your artistic vision, pure and simple.
Passive Moolah: People can buy your digital treasures at 2 a.m. while you’re deep in beauty sleep. That’s the magic of passive income. Wake up to a notification that your creativity has turned into cold, hard cash all night.
No Inventory Woes: Say goodbye to the nightmares of inventory management. No boxes piling up in your living room, no trips to the post office. It’s all happening in the digital realm.
Repeat Customers, Zero Hassle: Happy customers come back for more, and with digital products, the ‘more’ is just a download away. There is no need to restock or worry about keeping track of physical items.
Etsy’s Trust Factor: Etsy is a trusted platform. People know it; people love it. Setting up shop there gives your digital products an automatic stamp of credibility.
Community Connection: Etsy’s not just a marketplace; it’s a community. Engage with your buyers, get feedback, and build a loyal following. Happy customers can become your biggest cheerleaders.
So, there you have it! Selling digital products on Etsy is like planting seeds of creativity that grow into a lush forest of passive income. It’s time to turn those brilliant ideas into digital gold!
If you are interested in this venture, I have a course about How to open an Etsy shop in the right way coming up. Please sign up for my email list so you will be the first one to be notified!
