If you read any book or listen to any podcast that talks about the career of a self-made millionaire, I guarantee you that it will outline how the entrepreneur generates multiple revenue streams. These streams often encompass some active – like a day job or new business – and others passive income.- like selling online courses and doing affiliate marketing.
Let’s break down a few forms of passive income that can help build up the bucks.
Asset sharing is where you charge a loan for your assets on a part time basis. Subletting your flat while you’re working in Paris for two weeks is a great example. Write a list of what you have that other people might want to rent and then list that asset on a platform where people are searching for access to that item. For example, you can rent your car using Turo, your apartment for meetings or photo shoots using Peerspace, your garage for storage using Neighbor, and even your baby’s stroller using BabyQuip. One mom made $5,000 a month renting out the baby items she no longer needed to people who wanted to rent them temporarily.
Did you know that if you have savings you can lend it out? Depending on the platform you use, you can make loans as small as $25. One guy even made 2,200 euros a month doing this. It must be noted that this passive-income stream does come with more risk if the person doesn’t pay back the loan, so be sure to look at the terms offered by the lending platform to see what coverage you get in case of a situation like this. If you have a lawyer, this is also beneficial.
Have you heard of dropshipping? It’s basically a form of retail business where the seller accepts customer orders without keeping stock on hand. To find products that have a higher chance of success, you can research top-selling items on Amazon using sites like AMZ Insight or Jungle Scout. Once someone purchases the item on your website, it’s pulled from those platforms and shipped directly to them, requiring little effort on your part. One entrepreneur made $1.7 million doing this in 2021.
We will flag, however, that dropshipping does require a lot of up-front development, from creating the website to marketing, to build an audience.
We all know how real estate is one of the best forms of passive income and this is easier for those who already own a property. For those who don’t have the capital to invest in a second property, there are other ways you can earn passive income through real estate. Instead of owning an entire property, you can simply invest in the real estate market. You can get started using Fundrise, where with just $500 you can invest in a starter portfolio of real-estate-investment trusts, or REITs. You can also use RealtyShares, which requires a minimum investment of $5,000.
Monetising your social media following is also a great way to make cash. Brands and advertisers are looking to showcase products and services to specific audiences, so even if you don’t have tens of thousands of followers, you can still work to make advertising or affiliate money, especially if you have a niche demographic that’s appealing to these businesses.
It helps to know the most helpful platforms to encourage such connections. Swapstack works for newsletters and podcasts, RewardStyle for general products and AspireIQ for brand deals to promote products on social media. A lot of the partnerships works via affiliate link percentages. When those links are clicked, you receive a percentage of the revenue, which is typically anywhere from 3% to more than 30%, depending on the offering. Some months, I’m able to make a few thousands dollars with this passive-revenue stream.
