Passive Income Ideas
A Few Passive Income Ideas
What Exactly Is Passive Income?
Most probably, you have a job now. Every month, your boss pays you a fixed amount of money known as the salary. This is called active income.
The reason why it is called an active income is because you have to be actively working in order to get paid. The moment you stop working, you no longer receive a salary. In other words, you are trading your time for money. This is the nature of all the regular jobs in the world.
Passive income is the complete opposite of active income. You don’t have to trade your time for money. If you have a stream of passive income, money will roll into your bank account on auto pilot.
Obviously, you do need to put in the initial effort in order to build a stream of passive income.
Some examples of passive income are royalties from book sales, rent and profit from your business.
Why Is Passive Income Important?
If you want to become rich and financially free, passive income is not optional. It is compulsory. If you only depend on a source of active income, there is a limit on how much you can earn.
Even if you are a high income earner such as a doctor or a lawyer, the amount of money you earn is still tied to the number of hours you spent working.
To break free of this income ceiling, you must start to learn how to build passive income streams. In this article, you are going to learn a few passive income ideas.
- Write A Book
People simply love reading. Look at the number of books that are being sold every year. Why not consider writing a book.
You may think it is impossible for you to earn a passive income by writing a book. After all, why would people want to read a book written by you. You are just a nobody.
There are so many authors in the world that are still struggling. Only a few people are lucky enough to become a best seller.
Well, you don’t have to become a number one best seller in order to start earning a passive income from royalties.
You can simply write a book and publish it on Kindle. A lot of people are earning thousands of dollars from Kindle books sales every month. If so many ordinary people can do it, you can do it too.
- Join An MLM Company
You can also consider joining an MLM company in order to build a stream of passive income. In fact, this is probably one of the best passive income ideas in the world.
MLM is also known as network marketing. The advantage of network marketing is that you don’t have to rely on your own effort to make money. You can leverage on the effort of your downline.
When the people in your downline generate sales, a percentage of the proceeds will be pass up to you. In other words, the more people you have in your organization, the more money you are going to make on auto pilot.
Start A Membership Sites
Do you need more passive income ideas? If you do, why not consider starting a membership site.
No, you don’t have to be humble. You don’t have to doubt your own capabilities and knowledge. Most probably, you have some knowledge that people would be willing to pay money for.
For example, do you know how to trade stocks? If you know how to make money with stock trading, people will be willing to pay you money in order to learn from you.
Therefore, you can consider starting a membership site. A membership site is where you charge people a fix sum of money every month.
You can consider charging $47 per month. If there are 100 people joining your membership site, you will be making $4700 per month.
$4700 per month may not make you rich. But it is definitely a nice sum of money. In fact, it is already considered a full time income for many people.
And nobody says you need to stop at 100 members or 1 membership site.
If you have valuable knowledge in multiple fields, you can always set up multiple membership sites in order to generate multiple streams of income.
There are many passive income ideas in this world. You just need to take action in order to begin your journey towards financial freedom.