While you may be enjoying your 9-5 job and income earned from it, don’t you long for something more permanent?
If you do, then you are at the right place. In 2021, especially (after the pandemic), passive income has become more important than ever. We need more money, flexibility, and freedom to live freely and maintain our lifestyle.
In this article, we have discussed 10 ways to make passive income. You can use these ideas alongside your 9-5 job initially and slowly venture on passive income fully. Let’s see how:
Before we jump to the method of making passive income, let’s first understand what is passive income.
When you are working a 9-5 job, you are getting active income. This means that you will only get this money till you work. Once you stop, you start digging into your savings, and your active income stops.
Passive income means making money even when sleeping. This is basically your money making you more money. For example, creating a fixed deposit in the bank and letting it grow. It is the least profitable, but still passive. Other profitable methods are writing a blog, affiliate marketing, dropshipping, etc.
Starting a business in 2021 for passive income may turn out to be the best decision for you. This is because we have experienced years’ worth of digital transformation in a few weeks. Everyone is online and engaging, which gives you a window of opportunity to make the most of it. Here are some ways to earn a passive income.
Not everybody needs to buy a property or start a blog to earn passive income. There are many other methods, we have explained them below:
Dropshipping is our favorite form of passive income, which is why it is the first one on our list.
Dropshipping means purchasing products from a seller or a retailer and shipping them to the customer directly. You are just in the middle and advertising the product. For example, using AliExpress sellers and their products to market your business and directly shipping orders to your customers. You don’t need a warehouse or inventory for this, just good management skills.
DSers is the best dropshipping tool for your business. Whether you want to find the right seller on AliExpress or manage your shipments, DSers dashboard assists you with valuable insights. Here’s how:
- DSers help you integrate various suppliers, which allows its AI tool to find the best supplier for you. On AliExpress, you can get multiple listings for one product on different pricing. To find the optimum listing, DSers offer an AI-powered tool for supplier optimization.
- When you have more than one order in your list from different customers, you can place it all at once using the DSers tool. No need to go through the hassle of creating different orders.
- On your DSers dashboard, you can track every order from confirmation to delivery. You can sort and check which orders are placed, which are in transit, and which are delivered. This helps in quick customer service.
- Once you place the order, it automatically updates your dashboard according to the order’s movement in the supply chain.
Using this tool, you can set up a dropshipping AliExpress business and earn a passive income.
Buying properties and putting them on rentals is the best way of earning a passive income. You should understand the market enough to sell out the property at the right time and buy-in at the right time as well.
For example, when the pandemic first hit at the end of 2019, buying a property would have been the best decision. It was at its lowest. In the coming years, the economy will rise and so will property rates, which will help you earn a profit on the sale. Furthermore, since you may be putting the property on rental till this time, it will earn you consistent income throughout.
Affiliate marketing is promoting products on a third-party website to followers. The simplest method is to create a blog, promote it, and then start affiliate marketing. You will earn money every time your users purchase something after taking references from your blog.
This is a passive income because every time your users visit and use the link to make a purchase, you get some commission. You have written this blog once and you can keep earning from it for the long term.
When you are just starting out this type of business, focus on creating a community or fan following first. If people don’t know you, they won’t open and read your content.
Today, the entire world is online and so it seems logical to use your knowledge in certain domains to educate people. You can create a video, audio, and textbook courses for a range of students. Put up these courses on your own website or other marketplaces like Udemy, Coursera, etc.
Initially, adding free courses will help you earn an audience. Once you have built that audience, try putting up paid courses and earn till the course stays relevant. For example, a course for the English grammar is always going to stay relevant. You can keep earning passive income from it.
We have a huge, huge market for digital art. People now use graphics and visuals all over their digital presence. From social media to blogs and websites, every aspect of online presence contains visuals. If you are good at using tools like Canva, Photoshop, Adobe Illustrator, Coral Draw, etc., you can easily earn a passive income from this business.
Start creating digital art and make money out of it. Put a minimal charge on your art and earn every time someone purchases it. Create your art once and keep earning passive income from it for the long term.
A fairly old but newly explored model of lending is peer-to-peer lending that creates a connection between the lender and the borrower. The borrower pays a charge for taking money and you can earn a constant income.
In this type of lending, you can lend your saved money and earn higher interest than what the bank is offering. There are many platforms that help you with P2P lending and make it more secure for you. This way you decrease the risk of losing your money and earn better interest on your income – hence, passive income!
This type of passive income has some risks, so don’t put all your eggs in one basket. Diversify your finance and lending portfolio to mitigate risks.
7.A YouTube Channel
If you are good at creating video content, then use your talent to make popular content in different domains. You can use the free YouTube channel and earn passive income in multiple ways. For example, creating content for brands and marketing a brand to your followers to get paid. You can also earn income through YouTube ads.
This way whenever someone checks your videos, clicks on ads, or makes a purchase from the brand you promoted, you get paid.
In this type of passive income too, you need to put in a lot of hard work to create a community of followers.
Similar to YouTube marketing, you can market and advertise your content on Instagram to become an influencer. For example, a beauty influencer talks about beauty products, creates a community, and helps brands advertise their products.
Once you have more than 10 thousand followers, you will get call-outs from brands to promote their products. You need to add a post for the brand and earn a payment. The brand receives the trust of your followers in return.
The reason why this is a passive income is that you are able to earn consistently once you have a following.
If you are a software developer, then you can create an app that your users want. The time and investment are too great in this case initially, it generates your income every time someone download’s the app.
So, if you have the skills to create an app and market it, then use your unique idea to attract customers. Since we are living in a digital era, it is best to understand customer views on your idea before giving it a try. Run a survey to understand if there’s a need for your product or not.
If you are investing in properties, then eventually you can set up Airbnb too. When you have enough space to spare for the interior and a unique experience, buy a property, design it, and put it on Airbnb. This will earn you more than rentals, especially right now when people are looking for a safe getaway.
Earning passive income is the best decision you can make for your future and financial stability. Of course, it is going to take some time and you need to initially work hard and manage your job alongside to make things better. But, once you are past that initial burden, you will gain a life you have dreamt of.
Our best choice for passive income is a dropshipping business. If you want to set up your dropshipping business and earn regular money out of it, use the DSers tool. Visit our website and understand how it works.