keep this in mind
First of all, let’s understand What is passive income? You must have heard this quote by warren buffet that if you don’t find a way to make money while you sleep you will work until you die. This quote is specifically said keeping in mind the concept of passive income.
Passive income is the money you earn that doesn’t require too much attention of yours and there is no need for you to put efforts on a daily basis to maintain the workflow and in some cases, you don’t even need to do any work to generate money (e.g., rental income). But to create one passive income stream like starting your own business, in the beginning, you have to hustle a lot and you have to invest your time, money & efforts to make your business thrive so that it can reach a certain level where you don’t need to pay much attention to it and your business will make money for you even when you’re no longer able to work.
Passive income generally won’t make you wealthy overnight but it will definitely help you a lot in wealth creation. So forget about any get-rich-quick schemes you’ve heard of. No matter what, you have to work hard to get success and earn money while sleeping. And you also have to learn about personal finance to get better results.
Now the question that arises what you will be thinking right now is how to earn passive income. So, don’t worry I’ve got your back. Today, I will tell you how to earn passive income.
5 ways to earn passive income:
1. Real Estate: buy-to-let
Renting out your property is one of the most common ways to earn passive income. You can see around yourself that there are people who use their spare properties to get extra income. This rental income can help you in many ways like paying off bills, loan EMI’s or even buying your monthly groceries. But you make sure to buy a property in an area of which you are aware of so that you can keep an eye on the property and having a property in an adequate area can attract a lot of potential tenants.
Before you purchase a property be certain to pay off your own house first and purchase your investment property with cash. Don’t ever go into debt to buy rental property and even if you have to take a loan, I will recommend that you should check that your monthly rental income is more than your loan EMI, and that’s how your rental income will pay off your loan EMI.
2. Affiliate Marketing
Affiliate Marketing is one of the best modern-day methods to earn passive income. If you don’t have your own product then affiliate marketing can help you effectively earn money. So the thing is you earn a commission by promoting other people’s product. The process goes like you show an ad or link of an XYZ product on your website, blog or social media network. Now, suppose a person visits your website and clicks your affiliate link and make a purchase after that affiliate network records the purchase and details of the transaction and confirm the purchase by the official website and in the end, you get paid your commission.
3. Dividend Stocks
When you look at the world’s richest people, it’s pretty safe to say that stocks have played a big role in their deep, endless bank accounts. Investing in stocks that pay you quarterly dividend is the oldest and true way to earn passive income. Before investing money you have to invest your time means you have to do plenty of research to find out fine stocks and invest a significant amount of money to get large dividend checks. Stocks that pay a dividend and provide a stable and growing income stream. You will get paid on the basis of how many shares you own. If you want to improve your stock analysis skills, you can learn excel here.
4. Create an Audiobook
This one idea can make you a lot of money if you properly do this. See, we are in the age of podcasts, radio apps and audiobook and now couldn’t be a better time to convert your ebook into an audiobook. And self-publishing an audiobook is now as easy as Making a Youtube Video. It has become cost-effective and there is a range of options depending on the budget you want to spend on it.
Steps for how to make an audiobook:
- Prepare your ebook content for the audiobook recording. You can’t just pick up your book and start reading it as it is and record it. You have to make a script you can read as you record the audio version of your book. So that, the person who is listening to your audiobook should feel like you are a story-teller, not a story reader.
- Decide who will record your audiobook. This step contains 70% work of your audiobook because this is the voice that everybody is going to hear so it has to be up to the mark because this step can either make your audiobook a success or a failure. Having a good narrator for your audiobook can bring your ebook to life.
Here are your choices when deciding who will record your audiobook;
I) Hire someone to report it for you.
II) Record the book yourself in a studio.
III) Work with an audiobook producer.
IV) Do it yourself at home.
V) Hire an ACX narrator.
Now, the choice is yours and how much you can spend on it.
3. Editing and Upload your audiobook to Audiobook Creation Exchange.
In the last, you will edit and upload your audiobook. Make sure you use good editing software like Adobe audition, logic Pro X or audacity because Genuine editing can bring wonders to your audiobook. And without uploading your audiobook you cannot make any money. Now, upload your audiobook to the audiobook creation exchange also known as ACX, When you publish on the ACX, your audiobook will be made available on Amazon, Audible and the Apple audiobook Store.
Passive earning from audiobook royalties on ACX – You will earn between 20% to 40% of the title royalties. This totally depends on how you recorded your book. If you will work with a producer then you’ll have to share royalties with them. If you work all by yourself you keep the whole Royalty share.
5. Start a youtube channel
Starting a youtube channel will cost you nothing. You only need a Google account and you are done. The next thing you do is research and create content for your channel that will entertain or provide some knowledge & value to your audience. As you know YouTubers are today’s self-made celebrities they have earned an audience by creating content geared towards teaching, entertaining, reviewing and being awesome on the internet.
Most of the YouTubers don’t do any kind of special things. They do what they would have been doing anyway and this makes them real and attracts the audience. As long as your videos are being watched, you will continuously be getting income and that is passive income. Keeping track of which videos performed the best and creating videos with a similar topic will get you more clicks & views and eventually your income will grow.
Below is the table that shows you approximate youtube earnings in India for 1 million views.
|Channel Category||Earning (approx)|
|1. Comedy Channel||$300- $400|
|2. Music Channel||$100- $150|
|3. Tech Channel||$200- $300|
|4. Roasting Channel||$250- $400|
|5. Food channel||$100- $150|
|6. Gaming channel||$100- $200|
The ways I have shared above to earn passive income are not get-rich-quick schemes. Every method will take its own time you just need to invest your efforts, time and money in the best possible way. Have patience, be consistent with your work and have a determined mind. Do let me know in the comments what you think about passive income and share your views on this article.