In today’s video we’re looking at 4 passive income ideas you can use to generate reliable income and how you can get started with all of them. Although there are great case studies on how these passive income strategies work, it is important to note that they are not guaranteed to work for everyone, and certainly are not get rich quick schemes. In order to get started and be successful, they all require a good deal of work from you.
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Setting up passive income streams isn’t as hard as you may think and there are some opportunities waiting for people with a little determination, creativity, and time.
If you’re ready, let’s get started.
Before we race into our 4 passive income ideas, let’s pause and discuss what passive income is and isn’t.
What Passive Income Isn’t
First what is the opposite of passive income… Surprise, surprise, that would be an “active income” and in its most basic form, its where you provide a service that requires your time and effort. In return you are compensated in wages, tips, salaries, commissions — that sort of thing.
The drawback however – you guessed it – you must be active to make the income. Stop turning up for work? Your boss won’t keep paying you to put your feet up at home.
What Passive Income Is
So, what is Passive Income? Well, it’s a recurring source of money that doesn’t require much time or effort to maintain. Notice how we say maintain and not begin — that’s because all these strategies require your investment of time and money to start the process.
The initial set up will require hard work, upkeep and maintenance but consider it an investment because once the hard work of setting up is done, you can relax.
If the business is going well then you have a few options. You can either, enjoy the cash rolling in with minimal effort. Or if things are going really well you could look into ways to scale, streamline and automate the money-making process which will completely remove yourself from any active involvement you may have. This could involve hiring employees or using automated marketing such as Facebook ads.
Passive Income Ideas
Now we have covered the basics, let’s not waste any more of your time – here are 4 practical strategies to earning income passively:
#1 Affiliate Marketing
You have likely never even heard of affiliate marketing before, but I can guarantee you do it all the time without realising it! Essentially you are being an affiliate marketer when you freely share your knowledge and experiences in the form of a recommendation to a friend!
Why are you doing this for free when you could capitalise on something you do so naturally?
The way affiliate marketing works is by giving you your own unique link to an ecommerce website. Then when someone clicks on your unique link based on your recommendation, and buy a product, the seller thanks you for bringing them the business in the form of a small commission on the sale!
If you are kicking yourself for giving your valuable advice away for free, then you could look into companies like Shopify who will pay you an average of $58 USD for each new customer that signs up to their paid plans using your unique link!
You could also look at Amazon Associates, which is one of the biggest online affiliate marketing programs right now. If you have your own website, perhaps you are a blogger, signing up to the program will allow you to create your unique link for products which will direct people to the Amazon shopping portal. If your website visitors purchase products through your unique links within 24 hours – you can earn up to a 10% slice of that sweet passive pie, paid as a commission.
The crazy part is that Amazon Associates will also pay you a commission on any additional purchases made by any person who clicked on your link! For example, imagine you have your own health blog and you recommend “Vital Greens” and provide an affiliate marketing link in the description. Lets just say that someone clicks on that link and is then redirected to Amazon and they buy a bottle of “Vital Greens”, but while they were shopping on Amazon they also purchased some protein powder and a Nutribullet within 24 hours of clicking your shared link. You’ll get commission for those extra items as well! It would be madness not to take advantage of this program!
Okay so maybe affiliate marketing isn’t for you, but you like the idea of ecommerce but want more control over the products. Have you considered dropshipping? Dropshipping allows you to have an online ecommerce store when you don’t have the means to bulk buy products to resell, to manufacture a unique product yourself.
Using apps like Oberlo alongside Shopify you can setup a successful ecommence store at a fraction of the cost if you went with wholesale.
Here is how it works – You find a dropshipping supplier with products you like, add their products to your website, and market them like they were your own. When someone orders from your online store, you place the order with your supplier who packages and delivers the product straight to your customer.
Because you are not handling, storing, packaging, and delivering the product, you can keep costs down and have a low-risk business model. The beauty is anyone can do it, and you can sell anything you like.
We’ve added links in the video description to two great dropshipping stories below that will show how great this model can really be, if you put the effort in.
#3. Print on Demand
Print on demand is a similar business model to dropshipping but with a twist! You start off by creating your own online ecommerce store through Shopify or a similar ecommerce platform, then you find a print on demand supplier. Print on demand suppliers sell a vast array of blank products such as t-shirts, phone cases, mugs, pillowcases, wall art, baseball caps and many more.
So, what is the twist? Creativity! Instead of selling generic products, you work with the supplier to design your own custom prints and when someone places an order through your store, they will print your unique design on their blank product and ship the final product to the customer.
This means you can create original, niche products, and build your own brand! The business model is a great way of allowing you to manufacture and ship your own products without having to deal with that side of things yourself! You can leave that to the professionals, which will give you more time to market your business, build your brand, attract customers, and create new designs!
Print on demand is a hugely popular business model. You probably have purchased t-shirts, or other clothing through it many times without even knowing it. Check out a motivating print on demand story we’ve included in the description below to see how this model can help you.
#4. Influencer Marketing
Our final passive income idea is influencer marketing. Have you heard of it before? If you haven’t you have definitely seen it if you are active on social media but didn’t know the name. Influencer marketing is when a business promotes their brand through working with a person of influence to share a message with their followers. These people of influence are influencers, who are not necessarily celebrities, they just have a lot of active subscribers on their social media accounts who trust their opinion on things like sportswear, makeup, gaming, etc.
Anyone can be an influencer with a bit of work. The question is, how many followers do you need to be a successful Influencer? The answer, which may surprise you, is not as many as you may think!
When we talk about making money on Instagram for instance, you can be considered a nano influencer if you have anywhere between 1,000 – 5,000 followers! That doesn’t sound so impossible right? But it isn’t just about numbers, your followers need to be engaged in your posts, and your account should have reach! It doesn’t matter if you have 10k followers if they are not looking at your posts. This could turn your humble social media account into a veritable gold mine! If you think that you have potential to be an Instagram influencer you can check out websites that calculate how much money your Instagram account would generate if you were to consider becoming an influencer!
You made it to the end! Thanks for stopping by! We hoped you enjoyed today’s video on passive income ideas ! If you’re already on board with passive income, let us know your hot tip in the comments below!
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