In our previous post we shared seven passive income ideas for your life or business, from creating software to network marketing, and even writing a book. In this second post we’ll look at more ways you can create a passive income and get money in your bank while you sleep… and while you’re awake too after a little bit of work and investment!
1. Develop an app
Just like the software example from our first post, an app is a great passive income generator and a really modern way to use a traditional method of income. Find a problem, create the solution, and then commission a company to create the app for you. You’ll need to make sure there’s a need for it before you create and market the app, but then you’ll have something you can continually sell to people.
You could also create the app and then sell it on as an add-on to another business. If we use the accountancy example from the first edition of this series, then you could create an app that helps accountants help their clients, build it as a white label product, and take a cut each time they sell it on.
Large accountancy firms will have a good portfolio of clients, and if your app solves a common problem well, then it will sell itself. Then you just need to go out and find more accountants!
2. Create digital products
Digital products are great as they can be sold over and over again with no shipping costs and few updating issues. Building a product is much like a book in that you create it once and sell it over and over again.
A digital product can be easily marketed online as it doesn’t physically exist anywhere. A good example of this is an app, or in-app purchases. Many apps will be free with upgrade options or with an in-app purchase option. In-app purchases are a great passive income for a developer as the sale of digital upsells in the app cost nothing to ship and are available 24/7 at the touch or tap of a button.
Other digital products could include, eBooks, music, photos, or graphic design. Sites like fiverr.com have made some creatives a good income. Sites like iStock can help photographers earn a cut whenever their images are downloaded. One shot, many sales.
3. Affiliate marketing
Affiliate marketing is simple to set up and very lucrative if you have a good blog or a highly popular social media stream. If you’re an affiliate then you’ll have unique URLs for products found online, or a simple code for discount works too – although the link is often easier to share in a blog or on social media and as it just needs a click to work.
The main idea is that you market and promote products on a site like Amazon via an affiliate link and when someone buys the product directly from your product, you get a commission. It’s simple and very effective if you have a very popular post on your website that gains a lot of traffic for example.
The bonus to this is that on Amazon, any sale made after the clicker visits Amazon will be attributed to you too. So, even if they don’t buy the product that you were promoting, but buy something else (even something of a higher price) you’ll get a commission from the sale just for enticing them there.
4. Online training
If you’re an expert in what you do then training is an obvious route. But live training and even some webinar training can require you to keep training and keep delivering the content. Not very passive, is it?
Online training course can be created once and sold time and time again. The value can sit online forever and whenever you get a sale, you get some cash. This will need some investment of time and cash upfront, but if you already have the content then it’s really a no-brainer.
Webinar training with a sales funnel pushing traffic to it can all be automated too. Just create the content once, set the webinar and online ads in place and automate the whole process and the ads sell the webinar, the webinar up-sells to your product and the products can cross-sell into other areas of your business once dropped into an email series.
Work upfront, rewards later.
Again, you could create this content for someone else as well and build in a commission for the after sales of the content.
5. Build a business and employ a CEO
A really effective way to build true passive income is to create a business, build solid systems and processes, and then employ someone capable to run it. It will need systems and processes to make it a saleable commodity and of course a good brand, reputation, client/customer list and proven track record – but it’s all possible.
The other option would be to franchise your business and earn from others running a business with your systems, processes and branding – giving you a cut of the profits or license. A successful example of this is Starbucks as many of the stores you see in the UK are in fact a franchise running their own business.
6. Renting property
If you’re a property bod then getting a portfolio of property and then renting them via a letting agent is a good solid passive income stream.
Mortgaging the purchases to then rent out and make money with the difference could be one aim, as you’ll get a stream of income to pay off the mortgage payments and then profit left over if you’ve planned and forecasted well.
The extra bonus here is that property usually goes up in price unless you buy badly or at the wrong time so you’ll be creating a pension pot, too!
7. Become a YouTube star
YouTube is the world’s second largest search engine but with almost 5 billion videos watched every single day, it’s a phenomenal tool for business, marketing and passive income.
300 hours of video are uploaded to YouTube every minute and in an average month, eight out of ten 18-49 year-olds watch YouTube. See how easy it would be to not only create content but get eyeballs for it?
But how do you make money from it? In 2017, YouTube star PewdiePie earned around $12,000,000 by simply creating and uploading content to YouTube. The star earns money by mostly reviewing video games and vlogging on affairs in the media and marketplace. He’s not for everyone, but the high number of views he gets earn him a tidy sum of ad revenue due to the way YouTube is funded.
So, it’s not easy, but you could monetise your channel by gaining views and getting ad revenue.
Simple, not easy
Passive income isn’t a pipe dream or a lie, but it does require a lot of work. Many of these ideas will take months if not years to set-up and you should be aware of the people who tell you otherwise.
Like anything, they take hard work, effort, cash and some brainpower coupled with inspiring ideas.
Passive income is a good model to build into your business though, and hopefully with these two posts we’ve given you some solid ideas and inspiration as well as somewhere you can start.
Good luck and if you need a system to track and monitor all those new leads or manage the project with other people then check out our CRM, SalesRadar.