What is Passive Income and How to get it?

Passive income is the most popular but easily misunderstood concept of money making. Some people assume that there is hardly any effort in creating a passive income, but that is far from true.

Every money-making jobs and businesses require an upfront investment of money and time. So, what makes passive income different from your 9 to 5 job? Here, we are going to understand what passive income is and what makes it different from your regular job.

Passive income is the earning that comes from an already completed task or project. Once the business is established, it requires minimal or no effort to bring constant flow of income.

In the beginning, you will have to put all the effort and investment into settling the business and once it reaches a successful stage, it would be your constant source of income. Most passive income ideas require constant dedication for a few years and after that, they keep yielding a good ROI. Taking an example of a YouTuber, it takes approximately 1-2 years to grow the number of subscribers. After that, the income will stay constant with only one weekly video.

Wondering how to make passive income? These are the five best passive income opportunities:

Buy a Rental Property

Real estate investment might be the oldest investing technique, but it still promises long-term returns. If you have money sitting in your bank, invest it in a property, probably an apartment. You can rent this property and receive a constant income. Hire property managers who can take care of the tenants and collect the money on time. You can rent the property as long as you want and when the property rates are high, you can sell the apartment at a good profit.

Informational Courses

People want to stay updated on the latest trends and technology and that is why they are in constant search of informational courses. If you can provide informational courses that can educate people, you can make some good money out of it. It is completely up to you whether you want to create an eBook, audio course, or a video course. Reach out to potential customers directly or take help from platforms like Udemy.

Affiliate Marketing

If you are on social media platforms, affiliate marketing is a nice way to earn some good income. All you have to do is introduce the product that you have been using to your audience. When someone buys the product mentioned on your platform, you will earn a small percentage of its value.

Create an App

Creating an app might require huge upfront investments of skill, time, and money, but later on, it can leap some great rewards. You will have to do some work on popularizing the app and once it reaches popularity, there is no looking back. Along with receiving money from every download, you can also earn money from small ads in between the app. Some of the most selling apps are game and management apps.

Dropshipping

Almost everyone can start a dropshipping business. The reason being it neither requires inventory purchase nor designated space. The only thing you need here is a website and marketing skills. It is best suited for those who want to try something in e-commerce. Just start dropshipping and the rest of the job will be much easier.