Everyone wants financial stability, yet they aren’t familiar with how to earn passive income. Many people are certain that the American Dream implies that if people work hard in life, study hard, graduate and get a job, they would ensure success in their future. These days, many Americans work two to three jobs during weekdays, with a side job on weekends. However, they still struggle to make ends meet.
We co-exist in a world of competition where most ideas are fresh, unique and promising. Most people fail to see the real attributes that one needs for success. Everyone wants to think outside the box. What you need is broad knowledge, understanding, strategies and resources. This also involves stepping out of your comfort zone. To help you get started with saving up for your future, here are effective passive income ideas. Let’s talk about guaranteed returns and low-risk businesses.
What Is Passive Income?
First, we have to define the component of passive income. This business idea is also considered a residual business venture or residual income. This entails that the business is able to generate profit without active supervision. The business gradually and continuously makes money on its own. Passive income businesses are simple and don’t require much promotion, marketing, and administrative efforts. Next, let’s define the sharing economy. Also known as crown economy, the sharing economy is all about the socio-economic aspect where products and services are shared by private individuals or groups. These types of businesses work on the principle of demand and supply.
Here are some ways that you can earn passive income from sharing what you already have:
Passive Income Idea #1: Rent out your home
Vacations these days don’t simply mean going to a water park in the city or a picnic in the park. Most people these days are looking for leisure time outside the country. Some Americans want to see the beautiful paradise coast of Gold Coast, Australia while Australians look for an amazing weekend at the Big Apple and maybe catch a Broadway show.
The cost is no longer reasonable. You have to cover the round trip plane tickets, hotel accommodation, plus souvenirs for family and friends. As such, many people these days enter the rent-my-home business. This is where homeowners offer their houses to vacationers or visitors for rent. Others provide room rentals. These are cheaper compared to hotels. This is a great way to earn passive income. If you want your space advertised, you can get in touch with travel companies like Airbnb. Just make sure to offer clean and well-maintained rooms or home properties.
Passive Income Idea #2: Give someone a ride
Do you have a car? Do you drive to and from work every day? If you have all of these, then you’re good to go. Why not give people a ride? More and more people are gaining awareness on the effects of gas emissions on the environment. As their contribution, they would rather commute to work. So why not be the transportation service they need? You can charge them with reasonable fares enough for gas and a few dollars for you. Since you’re going to work anyway, you might as well earn a few bucks, too–a simple and easy way to make money.
Passive Income Idea #3: Hold an art garage sale
Did you fancy the craft of the canvass some time in your life? If you have some amazing work just sitting around the attic or the storage room, why not sell them? There are people who will give good money for authentic paintings. You don’t have to be a Van Gogh or Monet to sell your art. If you are good in this field, someone will eventually purchase your work. If you want the original piece for yourself, then make a copy of it, and sell that one instead.
Passive Income Idea #4: Hold a fashion garage sale
This idea is great for residual income and for decluttering your home. Have you heard of eco fashion? This idea was introduced to the world in order to enjoy fashion and at the same time, promote the environment’s sustainability. More and more people are interested in buying second hand clothes. So take out all the sweaters, shirts, pants, jackets, and shoes that you don’t use anymore. You can either open up a garage sale or sell your stuff online.
Passive Income Idea #5: Sell Your Photos
Do you like photography, and do you have a lot of amazing images in your memory card? If you want to, you can sell these photos. There are a lot of stock photography websites that make use of hundreds of pictures for their products and services everyday. You can sell yours to Shutterstock or Big Stock. Most photos are sold to advertising and design companies.
Passive Income Idea #6: Sell your own E-Book
Because of the advancements in technology and gadgets, most people these days have smartphones or tablets. This makes almost everything easier, including reading a book. You no longer have to buy a printed copy at the bookstore; all you have to do is buy an E-book online. If you have a novel or a collection of poems in your computer, why not turn it into a book, and offer it online? According to Andrew Perrin, a researcher for the Pew Research Center, 79% of people in the USA would read a book in any format.
Passive Income Idea #7: Sell your virtual designs
If you like editing images or drawing them on your computer, then you’re already one step closer to a great passive income idea. Selling your own designed images, logos, backgrounds and even fonts is a productive idea for profit. You can sell these images, and the buyer can add their own touches to make it their own.
Passive Income Idea #8: Convenient Lending
Many Americans depend on bank for loans so they can start their own business, buy a house, or study in college. If you have the money, why not lend it to your friends with lower interest rates? Talk it out with your friend, and present your terms with no further documentation needed. This results in a more convenient way for a debtor to borrow money. Why borrow money from a bank if you can borrow from a trusted friend, right?
Passive Income Idea #9: Monetize your Online Space
Every day, people put their business ideas into work. They want to promote the services or products they offer to a large target audience. Most of these people surely don’t have the money to afford TV or newspaper advertisement. So why not use social media to make money? Online advertising is on a whole new level with the social network websites. If you have a Facebook page or blog that generates a lot of traffic, you can offer ad space for companies to advertise their products and services online. There are over 1.94 billion users on Facebook alone. You also have Twitter and Instagram.
Passive Income Idea #10: Monetize your own mobile application
Passive Income Idea #11: Be a vlogger
Vlogging or video blogs are an efficient way to advertise products. Companies are hiring or commissioning active vloggers with a wide number of followers or subscribers to promote their products. You can be one of those vloggers and make good money.
Passive Income Idea #12: Publish your own academic materials
The need for academic information is always relevant. Every day, millions of students are looking for references for their research. If you have a collection of your own recent or old research materials, why not upload them on the internet? That way, everyone can benefit from your research, allowing you to also make money. Just make sure to publish authentic and original research. Remember to stay away from plagiarism.
Passive Income Idea #13: Be a YouTube Sensation
I’m sure you’ve heard of plenty of Youtubers such as Pewdiepie, Mr Beast and Jenna Marbles? These people are famous Youtubers with their own respective video ideas. If you have a talent or something unique you want to show people, then record it and upload it on Youtube. For every 1,000 views you get, Youtube pays you $2-$4. Imagine if your video gets a million views. This is not impossible. Many Youtubers have actually done this.
Passive Income Idea #14: Offer Advertisement on wheels
See those buses with banners or posters on the side for advertisement? You can offer your car as an advertisement tool for many companies. This is an easy and good way if you’re thinking of ways on how to make money. All you have to do is hang that poster on the windows and drive as you normally do.
Passive Income Idea #15: Home Sitting
This is like babysitting, minus the baby. Many people want their home to be well secured as they enjoy a vacation or a business trip. You can offer your services by house sitting these properties. Make sure everything is in place and all the locks are secured. The owners are sure to leave some perks for you. You can go about your everyday tasks while earning extra on the side.
Passive Income Idea #16: Make Bulk Transactions
Do you have the resources to purchase on demand products in bulk? Resellers or online stores will always prefer the cheaper sell. So why not buy bulk products and then sell them with a small extra rate? Remember, generating passive income is all about resourcefulness.
Passive Income Idea #17: Write Book Reviews
If you enjoy reading, then you might also find writing book reviews fascinating. There are several book companies out there who would pay money for book reviews. All you have to do is read a book they assign to you, and write a review. Make sure to write an interesting one that will entice people to read that book.
Passive Income Idea #18: Rent out your stuff
If you have a lot of stuff at home that you don’t regularly use, you might want to rent them out. Vacuum cleaners, bicycles, gadgets, cooking materials, and more. You might as well put them to good use rather than have them gather dust, or worse, get damaged by rust.
Passive Income Idea #19: Invest in Real Estate
Investing is a wonderful and well-recognised way to make passive income that’s actually passive, and what’s better – there are now ways to invest in real estate without ‘breaking’ the bank. Many people think the only way to play in the real estate space is to have the finances to purchase an apartment or house. For all of those daydreaming, browsing and comparing real estate websites online, REITs could be the perfect choice for you. An REIT is also known as a Real Estate Investment Trust and is essentially a company that operates, owns finances income-generating real estate. You can then invest in these countries, earning a potential return on your money and getting access to the real estate market with much lower barriers to entry.
Passive Income Idea #20: Be a Silent Partner
This is similar to the stock market but the process is easier to understand. There is no virtual system that binds the financial partners like yourself. All you have to do is provide financial assistance and if the business is successful, then you get a share of the profit. This is what passive income is all about.
Passive Income Idea #21: Rent out your space
Do you have a garage or maybe a locker that you don’t use anymore? You can offer these containers of yours as self-storage for others who need it. The value of land and property is increasing every day. This makes it a lot harder and more expensive for people to buy a property of their own. Many people are in need of extra space at home or for their business. If you have some unused space, why not rent it out to people? There are self-storage companies that host space units and offer them to interested customers. One of the best storage companies in both the USA and Australia is Spacer.