How nice would it be to have a few extra bucks in the bank every month? You wouldn’t have to work a second job just to make ends meet, right?
The bills would get paid on-time, your credit score would go up, and you could actually buy something nice for yourself without feeling guilty! That can actually happen when you know how to generate a passive income successfully.
It’s all about having diversity in your income and knowing how you can best generate funds. To make money, you’re going to have to spend money, which means you’ll need to invest some time and cash up front.
The return, however, is that your activities, such as blogging, can start paying off right away.
Some forms of passive income take a lot of work to get off the ground. Other methods are pretty simple and take very little work at all! If you’re willing to put in a little extra sweat equity now and get your passive income rolling, you’ll literally be able to earn money while you sleep in the near future.
Affiliate Marketing Is Often the Best Option to Generate a Passive Income
The best residual income opportunity is found in affiliate marketing. You agree to represent another company’s products or services and then build traffic to your website.
When people purchase that company’s goods through you, then you’ll get paid a sales commission from that sale. Some people build affiliate sites from scratch, but if you’ve got a website that focuses on a specific genre already, you can just add the affiliate programming into your existing content.
It takes a lot of time to be an affiliate marketer, especially in the beginning of the process. To be successful, you’ve got to:
- begin building an email marketing list,
- establish a social media presence, and
- have search engines index your site so you can build traffic to it.
Use Your Own Talents To Create Products
Here’s a fun fact for you: 62% of companies today outsource their content marketing. That means 6 out of every 10 countries around the world are hiring good writers to create customized content for them because 6 out of every 10 customers say this improves the image they have of that company.
Nearly a quarter of the average marketing budget for a company goes to content. What does this mean when it comes to passive income? That you can become a freelancer in your chosen field, work from home directly to create products, and earn extra cash like gangbusters.
You don’t have to be a writer to benefit from the boom in content marketing. Every piece of content needs graphics to maximize traffic. SEO professionals can help build links and do their thing. You can even create customized products that work with the content being written for cross-promotion activities!
If you want to know how to create a passive income, then starting your own business could be the best idea you’ve ever had. Pursue your passion, create fun products, and even consider going to local art festivals, farmer’s markets, and trade shows to show off your stuff.
As the orders come in and you fulfill them each day, you’ll have created a good passive income.
If You Already Have Some Cash, Start Investing
Wouldn’t it be nice to have your money actually start working for you? That can happen if you begin investing.
There are a number of different ways that you can put some of your extra cash to work building up some extra income for you beyond the 0.5% interest rate in your savings account!
There are a number of different investments that you can start making right now:
- stocks and bonds,
- mutual funds,
- annuities, and even
- your 401K.
People tend to stay away from this method of earning a passive income because they feel like they don’t have the right knowledge base. That’s why bringing in a financial advisor to help make the best investments with you is a good idea in these circumstances.
You might not see results next week, but when investing is done right, you might not even need to work in a few years!
Get Involved with the Real Estate Market
Fixing and flipping houses might not seem like the best method of earning a residual income, considering the difficulties of the last few years in many markets. With greater risk, however, comes a greater reward and if you have an IRA, you don’t even need to risk your pocket cash to get involved.
Begin a self-directed IRA and use the funds in the retirement account to begin building wealth. You can even directly purchase properties and become a landlord, although that’s not really a passive form of income.
Utilize an Auto Responder List
This works in conjunction with your affiliate work, blogging, or other online efforts. You collect email addresses from people, start building relationships with them, and then over time you can begin selling products to them here and there.
You’ll need something of value to attract people to your marketing list in the first place, like a free ebook about your talents or your chosen profession.
The work you’ll need to do upfront is a little daunting, but this is one of the proven ways to start a sales funnel with your customers. Best of all, you just send out a few links here and there and never have to deal with the sales process in person.
Create a Membership Company That Provides Value
If you want to take the idea of sending out a few links to the next level, then consider starting a membership community where people will literally pay you to get to have premium access to the knowledge that you have.
Every membership provides you with passive income if your community is able to help people and best of all, if you pay others to create the content for you, there’s no work involved at all.
Be the Middle Man [Or Woman]
This is probably the most effective method of making money today, either actively or passively. When you act as an arbitrage, which basically means you’re a middle man, then you are a bridge between two different worlds.
You’ll get paid by one side for the creation of a product or a service and then you can outsource this order to someone who will do it cheaper for you. All you’ve got to do is pocket the difference… and make sure the quality of the “cheaper” content is up to the standard of your client.
You know how Tiger Woods was worth like a billion dollars? He didn’t win that cash from all his golf tournaments, although a cool $10 million for the Fed Ex Cup doesn’t hurt matters any.
A lot of his cash comes from sponsorship deals that companies agree to so that they can get their branding out to a specific market. Now you might not play golf, but what you do could attract sponsors – like your blog.
Instead of trying to find a blog sponsor, try finding article sponsors. Give them a little nice heading at the start of the article and put their branding throughout the piece.
Use the header, the footer, and the sidebar to further increase the selling potential of a sponsorship. This can also give you different sales levels for the post, which might tempt small companies to get a little extra revenue coming in.
When In Doubt, Sell Advertising!
If you are confident in your traffic levels, then selling advertising space on your site is an excellent self-sustaining method of earning a passive income. You’ve got to create a site that maintains itself pretty well too, which isn’t always super easy, but it can be done.
Even if you start a website from scratch, you can build up enough advertising revenue to be clearing about $20 per day. If you continue building traffic, making $100 a day is pretty common.
That’s about $3,000 per month. All you’ve got to do is make sure your site stays refreshed, cutting edge, and current. You can outsource any needs with this level of revenue and continue to increase the profits that are coming in.
And As a Final Thought…
There’s always the MLM jobs that are out there today. Multi-level marketing that generates passive income means you’ll need to put in some work to build up a downstream so that others sell products for you and you pocket the small commission for recruiting them with each sale.
The only problem is that you won’t have any income at first, so you’ve either got to invest into inventory to start selling products or you’ve got to invest time into the recruiting process.
With the right opportunity, you’ll know how to generate a passive income that will help you take care of all your bills and give your future the financial security you want.
Choose the right method from this list and get to work… so you might not have to get up to go to work at this time next year!