Passive Income Ideas to Help You Make Money in 2021
Passive income can be a great way to help you generate additional cash flow, and the economic turmoil largely caused by the COVID-19 crisis is a testament to the value of having multiple streams of income. With the pandemic disconcerting the job situation of many Americans, passive income is helping you bridge the gap if you suddenly lose your job or even volunteer to take a break from work.
With passive income, you can make money even if you do your main job, or if you can create a steady stream of passive income, you can pay back a little. In any case, passive income gives you additional security.
And if you’re worried about saving enough of your earnings to meet your retirement goals, building wealth through passive income is a strategy you might like.
Passive income ideas for wealth creation
If you are thinking of creating a passive income stream, check out these strategies and find out what it takes to use them successfully and understand the risks associated with each idea.
Selling information products
One popular passive income strategy is to create an informational product such as an e-book, audio or video course, and then get back the money that comes from selling your product. Courses can be distributed and sold through sites such as Udemy, SkillShare, and Coursera.
Alternatively, you can consider the freemium model – building subscribers with free content and then charging for more details or for those looking to learn more. For example, language teachers and stock picking advice can use this model. Free content showcases your expertise and can attract those looking to take it to the next level.
As a third alternative on this topic, you can use ads (or sponsors) to generate income while serving information or content to a growing audience on a free platform like YouTube. For example, turn your love of video games or music into content.
Investing in rental properties is an effective way to generate passive income. But it often takes more work than people expect.
If you don’t take the time to learn how to make it a profitable venture, you could lose your investment and then some, says John H. Graves, an accredited investment fiduciary (AIF) in the Los Angeles area and author of The 7% Solution: You Can Afford A Comfortable Retirement.
Through affiliate marketing, website owners, social media influencers, or bloggers promote a third party product by posting a link to the product on their website or social media account. Amazon may be the most famous affiliate partner, but eBay, Awin, and ShareASale are also among the larger names. And Instagram and TikTok have become huge platforms for those looking to attract followers and promote products.
You might also consider expanding your email list to draw attention to your blog or otherwise direct people to the products and services they might need.
Flip retail products
Take advantage of online selling platforms like eBay or Amazon and sell the items you find at discounted prices elsewhere. You will be arbitrating the difference between your purchase and sale prices and may be able to grab the attention of the people who are tracking your trades.
A peer-to-peer (P2P) loan is a personal loan made between you and the borrower through a third party intermediary such as Prosper or LendingClub. Other players include Funding Circle, which is focused on enterprises and has higher borrowing limits, and Payoff, which targets higher credit risks.
Shareholders of companies whose shares bring dividends receive regular payments from the company. Companies pay out quarterly cash dividends from their profits, and all you have to do is own the stock. Dividends are paid on a per share basis, so the more shares you have, the higher the payout.