Passive Income is a way of generating cash continuously for the effort you put once instead of getting fixed wages for your work. In an active income, an individual gets paid only for his work and if he stops working, his payment stops then and there. But, with passive income, an individual can enjoy the benefit of continuous workflow even if they are not working or putting only minimal efforts in work.
Three most common forms of Passive income are- Business, Trading and Rental Service. All of these require an initial investment to give you continuous cash flow. So, if you are dreaming of achieving the greatest financial freedom in life, consider these 5 best ways to earn passive income.
1. By real estate crowdfunding
If you have your own property whether home or office, you can remodel it and sell it at a higher price or even rent it to generate income monthly. However, if you don’t own any property, then crowdfunding is the ideal choice. Here you invest in any third-party property with a pool of available investors and earn either from its monthly tenants or from its selling price. Some of the famous crowdfunding websites are-
Rich Uncles: – Minimum Investment- $5
Fundrise: – Minimum Investment- $500
Reality Mogul: – Minimum Investment- $1000
Equity Multiple: – Minimum Investment-$5,000
There are two categories of crowdfunding:-
- In Equity Crowdfunding, dividends are based on rental income where you can earn from rental profits as well as when the property is sold, by holding a share of it.
- In Debt crowdfunding, dividends are based on the interest rates earned from the mortgage payments. Here you don’t hold a share of any property neither you earn anything from their sold value.
2. By p2p lending
P2P lending is the process when borrowers take a loan from investors through online websites without the involvement of any financial institution or bank in between. One of the effective ways to generate passive income by P2P lending is through Fast Invest website. At first, you need to register into the website which is a free process and create your user account. Next, you need to deposit the investment amount into the user account. Once done, you can browse through the financial loans to suit your investment or use the auto tool feature of the site to select the best loan for you to invest as per your deposited amount. Once you invest in the loan, both your principal and interest profits will be transferred to your monthly.
3. By affiliate marketing
This is the process of making passive income by promoting other companies/affiliates products and services. If you are doing affiliate marketing for Amazon, you need to have a website or blog of your own that will promote the products of Amazon from whichever niche you choose along with the product link. Once the customers click on the click and they purchase the product, the sales will be made from Amazon’s platform but you will earn a commission for the profits generated from the sale. Not just products you can also offer services of other organization and make money from it.
4. By blogging
If you have good writing skills, go for blogging. You have to select any particular niche like Finance, Healthcare, Relationships, Fashion, etc and publish informative quality contents that can help your audience learn something from it. Also, you need to apply SEO marketing strategies to make your blog have better online visibility and eventually monetize from it with the hundreds and thousands of web traffic generated weekly and monthly.
5. From Youtube
Vlogging on Youtube is a great way to monetize huge profits. Create your own Youtube channel and start recording interesting or informative videos from any niche. You can upload tutorials, cooking recipes, travel vlogs, technical informative contents or anything that can benefit users and start monetizing from it following Youtube’s monetizing terms and conditions. The more no. of organic views, likes and comments you will be having more will be your income. You can also use it as an affiliate platform to promote other company’s products or earn by display ads.