11 passive income ideas to build long-term wealth: Work less, make more

While passive income is often portrayed as easy money, it’s actually hard work. This includes building an audience, optimizing paid advertisements, and providing a great experience. You can be a business owner or an aspiring one, so you don’t have to worry about putting in the work.

Passive income streams can be added to an existing business to create a new revenue source that has a different economic basis. These income streams are more likely to have higher profit margins than physical products and scale faster, giving you greater flexibility in your business.

If you are just starting out, a high profit-margin product is a great way for you to grow your business and make money to invest in the next phase. However, you must be aware that it will require work, even though passive income is what it is called.

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• 11 best passive ways to make money
• 4 passive income strategies for extra cash
• The road to financial freedom
• Passive Income FAQ

11 Best passive income strategies to build wealth

You can leverage the brand and reach you have built to create passive income streams for your service provider or product business, no matter if you want to stop selling hours of dollars per hour.

• Open a dropshipping shop
• Create an HTML0-on-demand shop
• Sell digital goods
• Teach Online Courses
• Be a blogger
• Handmade goods
• Run an affiliate marketing business
• Buy stock photos online
• Be an Instagram influencer
• Rent a property
• Invest in stock markets

Dropshipping is a great way to start a business

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Learn more: 

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MSI

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Dropshipping can be a great way to earn money from anywhere you live, even if your cash flow is limited. Dropshippers can earn up to $100,000 per annum. Dropshipping isn’t a quick way to make money, but it does require some upfront investment.

This business model involves the creation of an online store for customers to browse and purchase products. Dropshipping is unique because you don’t need to physically see the products that you sell.

Dropshipping allows your supplier to handle everything, from manufacturing to packing to fulfillment. Dropshipping is a great option because you don’t have to send money to your supplier until customers pay. This reduces the risk of losing cash.

 

You can avoid the risk of investing in products that don’t exist. To find the most popular products in various niches and sell them in your store, you can use platforms like the Oberlo Marketplace.

Depending on which product you choose, and the pricing you set, you can make a solid passive income or learn how to start an ecommerce company.

Resources:

• A Complete Guide for Starting a Dropshipping Company: The Ultimate Playbook for 2021
• Dropshipping is a Success: Tips and Stories to Motivate Your Dropshipping Business

 

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Make a print-on demand store

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Print on demand is a great way to make passive income and monetize creativity if you are an artist, designer or entrepreneur. This involves working with suppliers to customize white-label products such as t-shirts and posters or backpacks, and then selling them on an individual basis.

Dropshipping is similar to dropshipping. You only pay for the product once you have sold it. You don’t need to buy in bulk nor inventory. Print-on-demand shops are a great passive income stream, because:

• It is possible to quickly create products and have them available for sale within minutes
• Your supplier takes care of shipping and fulfillment
• Once you have your store set up, automation can be used to automate many of the marketing and sales processes

You can quickly create products for your Shopify store by using a print-on demand company such as Printful. Print on Demand is an easy business idea that you can quickly get up and running.

 

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Sell digital products

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Digital products are media assets that consumers cannot touch or use physically. These files can be downloaded or streamable, such as Kindle books and templates, plug-ins or PDFs.

Because of their high profit margins, digital products make great passive income streams. The asset can be made once and then you can easily sell it online. You don’t need to keep the asset in inventory.

You can sell as many digital products you like. Many creators make passive income selling templates, printables, files and other assets that professionals can use. UX Kits sells flowcharts and personas to help with the design process.

 

This brand has been able to sell its products to over 10,000 customers in more than 100 countries. The brand continues to offer these lucrative products online.

Resources:

• How to sell them and the most profitable digital product ideas in 2021

Online courses for teachers

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Online selling of courses is easier than ever. You can create courses, and sell them online with very few restrictions, regardless of your background in marketing, illustration, entrepreneurship or other areas. You can also sell your courses online repeatedly, just like digital products.

Online teaching requires a time investment. It is necessary to plan your course and record it. You can also create templates or other downloadable resources for students.

Take Yegi Saryan (founder of Yegi Beauty ), for example. After starting an online beauty company that sold eyelash extensions, she started an educational division called Yegi Academy. She offers both on-site and online training for entrepreneurs looking to jumpstart their beauty careers.

 

Online educators have the freedom to choose class length and size. If you are a mastermind or tutor, you can offer individual or small group coaching or training. You don’t need human interaction. It’s possible. No problem. You can make fully-downloadable courses that students can complete at their own pace.

Whatever way you view it, teaching online can be a passive income stream that is profitable and has low startup costs. It’s a good investment of your time.

Resources:

• 13 Home Business Ideas You Can Use To Work From Home
• Overdraft – When this Self-Made Beauty Boss Risked All

Be a blogger

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Although starting a blog is not an easy task, it’s becoming a more popular passive income stream. To make money online, you don’t have to be a celebrity. You just need to find people you like on one or more platforms and then send them to the website.

Building a blog takes some time. You can build a large audience if you produce quality content and share it on your social media platforms.

Blogs can be a passive source of income.

• Selling affiliate products
• Create sponsored posts
• Sell your products
• Google AdSense – Running ads

The best thing? To start a blog, you don’t have to be a designer or coder. A content management system and a hosting service such as Shopify can be used to quickly get a blog online.

It will take time to create an SEO strategy and promote the content. Your efforts will pay off: depending on how your blog is monetized, the return on investment could be as high as $30,000/month.

Resources:

• How to start a blog that can grow into a business

Sell handmade goods

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Online selling has never been easier. The opportunity to create and scale an online company is huge with over 4.6 million people connected to internet today.

There are many online marketplaces that you can sell your products on. There are hundreds of online marketplaces that allow you to sell anything you like.

Some popular online selling sites include:

• Online store
• Handshake
• Amazon
• eBay
• Ruby Lane
• AliExpress

Two-fold upfront investment. To make and sell DIY goods such as pottery and clothing, you’ll need to invest time and money. To sell your products online, you’ll need to set up an online shop.

Our research shows that the following are the top ten products that consumers will purchase after a pandemic:

 

Selling online reduces the fees you have to pay for each sale and you can also create your own brand. As you grow your audience and connect with more people, the benefits of building a brand will compound over time. This will help you to sell more and make more money online.

Resources:

• How four handmade goods store owners turned their passions into profit
• How I Make and Sell Handmade Products In My Free Time
• One Family’s Journey from Etsy to Shopify: Growing a Handmade brand

Run an affiliate marketing business

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Affiliate marketing is the act of recommending a product to an audience. This is a great way to make passive income as you get a commission every time someone uses your referral link and purchases the product or service.

It is also an expanding industry. Statista predicts that by 2020, the affiliate marketing market will be $8.2 trillion. There are a few reasons why online entrepreneurs become affiliate marketers:

• It is easy to do. You handle the marketing. The brand will create products and fulfill orders.

• There’s little risk. Joining an affiliate program is free. It’s possible to sell existing profits without making any financial investment. To get more people to click on your links, you will need to spend time creating traffic sources. Once you have this set up, commissions can be a relatively passive source of income.

• It is scalable. Most affiliate marketers don’t need additional help. While your previous work is making money, you can still introduce new products to your audience.

Affiliate marketing can bring in new revenue streams for your business and it can be rewarding. It costs nothing other than your time. You can reap the benefits of your time and effort over time.

Resources:

• Affiliate Marketing 2021: How To Find High-Paying Programs And Start Your Affiliate Business

Sell stock photos online

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The biggest problem with running a service-based company like photography is the fact that you don’t get paid for your time. Photography is a service-based business that requires you to be present at events or photoshots in order to make money. This can be exhausting, even if it’s a lucrative venture.

Selling photos online can be a great way to make extra income if you are a professional photographer. High-quality videos and photos will be paid for on stock photo sites such as Shutterstock and Pexels.

You don’t need any inventory other than your camera and your laptop. The websites handle the marketing so you can upload your photos to the platform and get your work out there.

Shopify allows you to easily link in digital products such as prints and print-of-demand items like shirts, allowing you to create more passive income streams.

Resources:

• Selling Photos Online: Both for Pro and Amateur Photographers
• Find Creative Images on the Best Free Stock Photo Websites in 2021

Continue reading Sidepreneurship: 9 Ideas for Starting a Part-Time Business in Your Free Time

Be an Instagram influencer

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$1,000,000: This is how much Dwayne “The rock” Johnson makes per Instagram post. You don’t have to be a model or have over 200 million followers on Instagram, but you can still make passive income as an influencer.

You will need to create a network of people who share similar interests in order to become an Instagram influencer, someone who can influence another person’s purchasing decisions.

Are you a comics fan? You can start posting regularly about Marvel and DC shows by creating an Instagram account. If you are interested in sports, scuba diving or home decor, the same goes for general culture.

Alex Lange is one example of an influencer who posts sponsored content for brands such as Tinder.

You can make passive income with your audience if you have engaged followers. Partner with small and large businesses to help your followers promote their products. You can also sell your own merchandise to make some extra money.

Rent a property

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One of the best ways to create long-term wealth is through real estate investing.

You can rent out apartments or other real estate if you have the money. You can also hire property managers to manage tenants, collect rent or make monthly payments.

What happens if you don’t have the money to buy entire apartment buildings? You can still make rental income. Yes, you can.

You can invest as little as $500 in a real-estate investment trust (REIT) platform such Fundrise and earn passively as the assets appreciate.

Invest in stocks

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The stock market is a great way for you to create long-lasting wealth. It can have a steep learning curve, and it can be confusing. Stock investments are often viewed as a short-term investment. This is a mistake that many people make.

 

Investing in stocks can help diversify your portfolio while reducing risk. This can be achieved by investing in ETFs and high-dividend stock that will earn you income over time. You will need to fund a brokerage account in order to start investing in stock markets.

Resources:

• A Beginner’s Guide

 

Free: The Big List of Business Idea Ideas

We have compiled a list with 100+ business ideas that are in high demand. These ideas were broken down into categories such as fitness, apparel, gaming, and other related areas.

Get the complete list.

4 passive income options for more cash

These side hustles can help you make quick cash. These side hustles can help you achieve short-term financial goals but they do not build wealth.

Your spare room can be rented

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Are you looking for an additional room in your apartment? Are you planning a three-week road trip? Do you have an extra room in your apartment? To rent your space, you can work with an Airbnb rental company.

Airbnb allows homeowners to connect with others who are searching for their next vacation spot. People love Airbnbs as they are usually less expensive than hotels. This means that there is a high demand to be an Airbnb host.

You can also buy apartments to rent out for additional income through Airbnb. It is important to note that renting out your space requires a lot of work upfront. Before you rent your space, you might need to renovate or furnish it.

You can rent your car

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You can also use your free space to make passive income. A service such as Turo allows you to rent your car. To earn additional money while you travel around the city, sign up for platforms such as Wrapify or Carvertise if you are already using your Uber car.

You can also look for people who need a car for Uber and Lyft. Instead of driving all day, you can watch a Netflix series while your car is working.

Peer-to-peer lending

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Are you a poor borrower with a lot of money? Try Peer-to-peer lending. P2P lending is the lending of money to small businesses or borrowers.

You can sign up for a website such as LendingClub or Prosper that connects borrowers and lenders.

These websites often host loan requests and interest rates that are based on the borrower’s past. These loans usually return between 5% and 6%.

Sites that offer cashback

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You can earn cashback from reward sites such as MyPoint, Swagbucks and Rakuten when you shop online. These sites offer cashback without you having to do anything other than shop online.

You can earn more points by shopping online. The more you shop online, the more money that you can make.

Take care not to exceed your monthly budget or max out your credit cards in order to get a reward.

The road to financial freedom

You have a limited amount of time and can find ways to increase your income more efficiently to help you reach the next level in your business. This level could be “taking a vacation ever”, “hiring more people” or “ordering new stock,” but regardless of what it is, diversifying your income streams can allow you to explore it.