Has generating passive income been on your mind lately?
The idea of starting a business and having mechanisms in place that could help you generate money even when you are asleep sounds like a crazy idea. Doesn’t it?
Passive income is one of the hottest topics you hear these days but what exactly is it? Does it even matter?
In this article, we’ll take a look at all there is to know about generating passive income.
What Is Passive Income?
Passive income is any income you earn on an activity that you do take an active part in. So, as I hinted earlier, this is a way of making money even when you’re sleeping.
Why is passive income even important?
If there’s one thing I know, it’s that little drops of coins make a mighty account balance. To many people, wealth can mean a lot of things but in our case, we are referring to wealth as having enough money to buy your way to freedom.
Freedom is of most importance for those who pursue this quest. Passive income allows you a lot of freedom from conventional work models which are notorious for taking your time and on top of that, adding a lot of stress.
It allows you to focus on the things that matter most to you without causing yourself financial constraints.
How to Generate Passive Income
You really don’t have to be a pro or some guru to generate a passive income. There are many ways of generating passive income. Below, I have listed the most popular ones.
Investing is the oldest and most common way to generate passive income. People will often purchase ownership in a business in the hope to reap the rewards of their enterprise. However, investing comes with its own risks. First of all, you can’t guarantee that a business venture you invest in will be successful plus you need a substantial amount of money in order to go this route but this is not the end. Remember our definition of wealth? We are not trying to get “too big, too fast”.
You can actually do investments on a smaller scale. All you will need to do is identify someone in your circles you trust who is already into a venture of some sort and make an offer to sell some of their products on your behalf. Here’s an example for you. (Your friend Taylor is into sneakers and is doing pretty well in sales. All you will have to do is offer him some money to buy sneakers to sell on your behalf. You would need to work out some form of motivation like a commission on the profit in order for this to work). If you are able to do this with multiple people, survival should start getting easy on you
Start an online business
Online business is no doubt the best way to generate passive income. With an online business, you don’t necessarily need to sell physical products as you can create and sell digital products repeatedly without hassle.
One way to do this is to leverage your knowledge in a specific industry or niche and create an eLearning course that people will be willing to pay for in that field and offering it to the market.
This idea is simple, all you need is a number of loyal buyers and you will start seeing massive results. You might be asking if people really buy that much online.
Well, YES! People really do buy online. In fact, according to a study conducted by statista.com, online sales are expected to increase from 1.3 trillion in 2014 to 4.5 trillion in 2021.
Your limits in going this route almost do not exist given how much there is to make out there.
You might also be asking, “So how do I get started?”.
I’ve got you big time.
- You first of all need to set up an online store. There are two ways of doing this, however. You could either sign up for pre-existing e-commerce platforms like Shopify, Amazon or get yourself a custom-designed web site by a professional. If you ever need to use the latter option, you could check our professional website services at Airban.
- Get your social media accounts setup.
- Gather some following on social media either through ads or organically.
- Get your pages up to date with links to your course integrated.
- Automate your processes. This might sound technical but it could simply mean taking advantage of the multiple online tools available today that allow you to automatically make social media posts, collect payments, etc.
The ability to build a business that sells the products or services you’ve developed on auto-pilot is phenomenal. It is also a venture that requires the substantial following in order to stay afloat but once you capture your market, you will find yourself on the couch reading transaction alerts as if it was some sort of a morning news digest.