Passive Income is a great way to earn extra money while sleeping and there are more than a hundred passive income ideas. But the concept of passive income is highly misunderstood. Why?
Passive Income requires upfront hard work and investment to achieve a financial goal in the future. As it will grow itself within time and does not require a consistent investment of time and hard work.
Let’s understand the concept with an example. You have invested $1000 in stocks and the investment is giving you 10% returns annually which means that you are earning $100 every year without doing anything. But what if I ask about the source of $1000?
You must have worked to get that first $1000. Right? So, in order to make passive money, you have to do hard work for $1000 and active involvement while investing $1000 safely.
Today I will explain to you 7+ Passive Income Ideas to build your portfolio in 2022.
1. Offer Membership
The membership program is currently a booming industry as people all over the world are more interested in quality products even if they have to pay a few bucks. Do you have a Netflix membership? Yes, Right.
So, you got the answer. Even if you are not able to watch that piece of content that you subscribe for but still you will be ready to pay $20 per month. Similarly, you are a blogger or YouTuber who provides some amazing piece of content with a monthly reader of 20000 monthly unique visitors. Don’t you think at least 100 readers are ready to pay $30 per month?
Yes, they will be more than happy to pay to be a part of your circle. According to different data provided by top bloggers and e-commerce websites, Membership is a great way to connect with your audience plus it also increases your website revenue.
2. Royalties
Royalties are payments made to the real owner of the property by giving them credits in terms of money if someone is using that product. Royalties can be paid on a variety of products like Franchise, Books, Videos, Music, Property and Apps.
For example, if you want to open a Starbucks or Tim Hortons Coffee shop, you have to pay some amount to get the franchise plus a fraction of the amount earned each month as Royalty.
So, How can you leverage this idea? Let’s say you are an expert in web development who can make a great theme for marketing companies. You can leverage your expertise by selling these themes on a different website.
This is a great way to make money as you just need to upload the theme file on the website and people who like your theme will automatically buy it. Here the website will take a particular commission but the return can be huge with a one-time effort.
Also Read: How Do The Wealthy Invest?
3. Start A YouTube Channel
Do you love travelling, cooking or sharing information? Why don’t you start your YouTube channel? Don’t worry, it’s not too late to start. As per Statista, 240 million people are using YouTube with over 126 million unique monthly visitors.
You can use leverage your passion into a passive money stream. You can choose any niche that you are good at or want to be an expert in. It does require a lot of work in the initial days with minimum or no returns. But it does have a very high-income potential through Google Adsense and Affiliate Marketing.
The cost to start a YouTube channel is extremely low as it requires a smartphone with a good camera and mic.
4. Start Podcast
Starting a podcast business is a highly demanding startup in the last ten years. As many people are moving toward the audio world which is also the main reason behind making it the fastest-growing media audience.
You can use many online platforms like Spotify and Apple podcasts to reach globally to make a good living. There are multiple ways to make passive money from podcasts like affiliate marketing, selling merchandise, hosting a live podcast and collecting tips and many more.
5. Sell Digital Products
Digital products are a great source of passive income because it is simple to make and inexpensive too. The most unique part of digital products is you don’t need to create multiple products every day plus no expenses for inventory.
You can sell the same product multiple times through your website or maybe youtube channel. For example, You have created a YouTube growing course. You don’t need a warehouse to store it and this course can be sold multiple times.
Some most popular digital products or assets are e-books, Tutorials, Courses, Printable, templates, Scripts and so on. You can sell this product through YouTube, Blog, Amazon, Shopify and the Sales funnel.
6. Investment
Investment is everyone’s all-time favourite method of generating passive money. People who are new to investing world might feel scared if they heard the term “Stocks or Shares” but this is the best option if you are looking for a good return. If you go through the past 2 years’ data of S&P 500 then the return from this is between 16 to 26 percent.
You can also choose a different stock which provides a good dividend and show great growth potential. There are multiple ways to invest such as REITs, ETFs, Stock and Shares but it is only safe when you have some idea about the company you want to invest in.
Also Read: 7 Ways To Invest In Real Estate
You can invest in one company’s stock that you like but I personally recommend you diversify your portfolio by investing in multiple companies. Investing in multiple companies will lower the risk of loss and help you to generate passive wealth.
There are multiple platforms you can use to invest in US and Canadian markets such as WealthSimple and Questrade as the commission charged by them are very minimum and sometimes nothing.
Also Read: How To Invest In Gold?
7. Become A Content Creator On Instagram
You must have heard about Instagrammers getting paid for the post they share. Well, if you are still unsure then I can confirm that it’s 100% true. Some Instagram Influencers charge over $1000 – $1,000,000 which totally depends on their account reach.
Do you love cooking or exploring new dishes? If yes, then you should make a food blogging Instagram page. Do you know? On average, Instagram Food Blogger makes around $1000 – $15000 per month.
You can also leverage this tactic by increasing your followers through sharing posts and stories daily. There are multiple ways you can use to make money. For example, sponsored posts, monetizing video ads, affiliate marketing, selling your merchandise and so on.
Also Read: 7 Ways To Make Money From Affiliate Marketing
8. Sell Photographs
Whether you are an awesome photographer or do it as time pass, you can easily make some extra money by selling these pictures online. You can also offer free service during the initial days to make a portfolio and then charge handsome money for your work.
Selling Photographs is a great passive income source and an awesome business idea but it also requires you to stick to one niche and explore all the options there. For example, Wedding Photographers make the most by offering service because the references they are getting are strong.
There are multiple websites which allow you to sell photographs through their platform by charging a small commission for every sale. Some of the most famous are Shutterstock, istock photo, Etsy, Getty Images and so on.
Also Read: How Do Photographers Make Money On Pixabay?
Conclusion
I believe you have got the concept of Passive Income and how you can leverage these 7+ Passive Income Ideas To Build Portfolio. Passive Income can surely help you to make a good living but it required hard work and some investment initially.
And if you have plans to strengthen your future then you can follow these ways to evaluate your finance and invest accordingly. The interesting part of passive income is that it wants you to start doing that.
All The Best! Wish You Luck.
