Passive income is money generated from a product or
service that continues to earn income after the job is done. To make passive income you don’t need
continuous active participation. Once you have put in the time and done the
work it can earn monthly payouts for years.
Active income is what you earn as an employee or your
salary. Any job that pays immediate remunerations for services rendered is
active income. Examples of active income are one time payments, gratuity
including wages and salaries.
Passive income sources are commissions, advertisement
earnings, product sales and referrals. Passive income is earned from affiliate
programs, share dividends, bonuses and royalties.
To earn passive income you need to work extra hard to
create the income stream. It takes patience, time, planning and proper
execution to explore the full potential in making such wages.
The revenue slowly grows with time gradually become a
substantial revenue source. Some online entrepreneurs slowly build multiple
income streams. The income stream are passive in nature yet combined become
substantial earnings.
Here are 10 profitable passive income ideas you can try.
Top 10
Profitable Passive Income Ideas
1. Real Estate
Passive income is not limited to online commerce but has
offline applications. A good example of a popular passive income earner is real
estate investment.
1) Acquiring
real estate is capital intensive, tough and rewarding. To earn residual income
in this sector you need to invest in property.
The property could be apartments, landed property or
build a shopping complex. Although it takes a few years to get back your
initial investment you earn passive income for years.
To earn money from landed property you can turn it into a
car park or rent the space.
2. Write an Ebook
A major income generating business is publishing an eBook. Online publishing has greatly evolved with many self publishing
websites.
Ebooks are digital books read on devices like table top
computers, laptops, Smartphone’s, I phones and eBook readers.
To write an eBook choose a topic, write the content,
create a cover and self publish the book. After the initial work the book
generate passive income for years.
The income is through royalties from sales of digital
downloads. Are you interested in earning passive income from eBooks?
Then go to this article How to self publish on kindle direct publishing
3. Stock Photography
There are many stock photography websites that
contributors add photographs or images. Many people need these photographs and
images for commercial and private use.
The Images are used in book covers, advertisements,
articles, magazines and online content. People pay to use certain copyright
images on their publications.
The stock photography websites encourages individuals to
upload images into their data base. When a customer pays and downloads the
image the contributor earns money.
Stock photography is a good passive income source.
4. Mobile Application
Every Smartphone has a number of applications on the
device. The applications include social media APPs, game APPs, News APPs and
Entertainment Apps.
Application developers earn residual income for years
after the work is done. Once someone downloads the APP the developer earns
income.
You will find lots of paid and free applications on
GooglePlay and other APP marketplaces. You can earn more passive incomes from
mobile advertisements displayed on your APP.
5. Web Blogs
Web blogs earn passive income from advertisements,
referral links and affiliate programs. The blog owner monetizes his property
and earns from traffic to his blog.
The more traffic he has the better his earning potential.
The blog needs to have lots of original content, carve a niche and have
engaging content.
It takes hard work to build a profitable blog
6. Affiliate Marketing
The number one sources for passive income are affiliate
programs. Affiliate programs pay a commission on purchase of product or
service. There are lots of companies that offer affiliate programs to webmaster
and individuals.
Related
post:Affiliate Marketing for Small Business
7. Revenue Sharing Websites
There are lots of revenue sharing websites that offer
earnings for contributors. A good example of a revenue sharing website is
hubpages.
The article directory accepts article on various topics
from contributors. They have a revenue sharing arrangement between contributor
and the websites administrators.
Before you join any revenue sharing website understand
the payment system and payment threshold. They have terms of use and rules that
guide their operations.
Related
Reading: Top revenue sharing website
8. Video Sharing Sites
The number one videos sharing platform is YouTube. You
sign up for an account and upload videos.
You earn form views or traffic to your channel. You monetize
your video content with Google adsense advertisement.
9. Web Hosting
A good source for passive income is selling domains and
web hosting. As the need for websites increase so is the need for more
bandwidth.
Top host companies offer webmasters re-seller host plans.
The re-seller buys the plan and sells domains and host plans to other webmasters.
Once the re-sellers website is up and running it earns
passive income through sales of host plans. Apart from promoting your host
website it virtually runs on autopilot.
10.
Trading
Company Shares
Trading company shares can be done online on a trading
platform. You sign up with an asset management company or stock brokerage firm.
It is better to focus on your local stock exchange to
trade share. Learn about trading ordinary shares, studying company profiles and
share price appreciation and depreciation.
Make sure the website you choose to trade is legitimate
and recognized. Open an account and fund the account through credit card or
direct deposit.
Study the trends and buy ordinary shares of potential
earners. Seek professional advice from your stock broker before buying any
shares.
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