What is passive income?
Passive income is a steady stream of money you earn daily with minimal effort or time once those income streams are established. The bottom line is that passive income makes you money while you sleep. Passive income streams may be difficult to set up and require lots of time and hard work, but the rewards are enormous. People Usually confuse passive income with active income, which is earned by direct working or providing services (a regular job). On the other hand, passive income derives from investments, business ventures, or assets constituted to bring income without nonstop active involvement.
Passive income streams can range from various forms and levels of involvement. Back in the day, passive income required vast capital and thus was limited mainly to high-net-worth individuals, but thanks to the internet, anyone could achieve it if hard work is involved. For the most part, passive income requires upfront effort and investment but can bring cash flow with minimal maintenance, while others may require periodic overlooking and management. Remember, there is no such thing as attaining passive income with no effort.
What passive income could do for you:
Flexibility and Financial Freedom: Passive income can give you the freedom and flexibility that a job may have taken from you by having to trade your time for money. With Active income, you must earn money by trading your time and efforts to get paid. Making money passively allows you to spend your time as you please, from pursuing fulfillment/other interest, spending more time with loved ones, and traveling (to name a few)
Financial Security and Diversification: It’s important to remember that most jobs, even good ones, could replace you in a heartbeat; thus, having additional cash flow sources may be vital. Now more than ever, the environment of our economy is uncertain, and inflation on an all-time high, causing people to struggle to make ends meet. Extra income could help cover expenses, expand your bank account, and grow your wealth by allowing you to invest.
Scalability and Growth: Most passive income streams have the potential to expand into bigger and broader markets. Thus, allowing you to increase profits or expand into more income streams over time. For example, if your e-commerce business gains a customer base and traction, you can reach a larger audience by increasing your product offering, which generates more income.
Below are the most suitable streams of passive income that you could start in 2023:
YouTube: Creating a channel about a topic that interests you can be the best way of getting passive income. A successful YouTube channel lets you monetize your videos by getting ad revenue, sponsors, and channel memberships. Creating a YouTube channel establishes a brand, allowing you to build extra streams by selling merchandise such as accessories and clothing.
Affiliate Marketing: This marketing strategy allows you to be the middleman between businesses, known as affiliates that sell products or services to customers, and you then earn a commission. These Promotions occur by attaining audiences through blogs, websites, social media, or email marketing through unique affiliate links. The Affiliate marketing model creates a win-win situation where sellers benefit from more sales while the affiliate earns passive income by recommending products they believe in.
Etsy Shop: Assembling a shop on Etsy provides the opportunity for passive income by selling unique physical or digital products while having the chance to scale. Etsy allows tools such as Print On Demand, where you create a unique design for clothing or accessories to be produced and delivered when someone purchases that item. Applications such as Midjorney make the design process accessible to anyone.
Creating and selling an online course: If you have expertise in a specific subject, creating a guide to learning that topic or skill can earn you passive income. By outlining and structuring helpful knowledge through an understandable learning experience, a course can be sold at a suitable price on sites such as Skillshare, Udemy, Teachable, etc.
Airbnb: You don’t need to invest in a new property to have passive income with real estate. If you have a big house, you can make money by renting out that extra room through Airbnb. These rentals are not like typical leases; they are short-term at a few months max that you could rent at or above market price.
Stock photos/clips: When you think of photography, you think of a business based on services. However, if you have a good camera and are skilled at photography or short-term video making, you could sell those as photos or clips. Stock media allows people to use pictures or clips for whatever use they desire after they pay you using sites like Pexels and Shutterstock.
Buy and sell websites: There are Websites for every topic out there, having a vast demand for them. However, many don’t know or want to learn how to create their website. Sites like BizBuySell allow the purchase and sale of online stores. Increasing the value by expanding the website traffic, revenue, and reputation could make passive income and a considerable profit once sold at an increased value.
Dropshipping: this business model is based on creating an e-commerce store that allows buyers to browse and buy products. Finding trends, looking for suitable suppliers, and selling at a reasonable price is vital for your profits since; you want to promote a product that is in demand and that margins are profitable. A benefit of drop shipping is that you don’t need to hold on to or manage any physical merchandise