Following the financial crisis that hit a decade ago, people started exploring different ways to earn income. Not everyone can take on a second job, so the focus became how to create passive income streams.
Passive income is often confused with residual income. The two are quite different. The first is ways to make additional income without putting in a lot of work. The other income earned beyond the monies required to cover your living expenses.
Are you looking to give your income a boost without having to disrupt your current lifestyle? Keep reading for five passive income sources that will earn you money while you sleep.
1. Affiliate Marketing Creates Passive Income Streams
If you spend any time on social media you’ve most likely experienced a form of affiliate marketing. It could be the person doing a work-out video who’s actually hawking a waste-trainer. Or, it’s your favorite celebrity telling you about an amazing tool they discovered.
Affiliate marketing is a great passive income source because you don’t have to invest any money. You can create a few videos or social media posts, include a link to buy the product, and when someone makes a purchase you earn a commission.
2. Peer-to-Peer Lending
Technology has led to business automation tools that make life easier for entrepreneurs and small business start-ups.
Oftentimes individuals can’t get capital from traditional lenders, so they seek other options. With these passive income ideas, you sign-up with an app that matches lenders to borrowers. You invest in a start-up or lend to an existing business and earn income through interest on the loan.
3. Use Your Car for Mobile Advertising
Do you commute to work or use the interstate to get around? A local business could be in need of your vehicle. Vehicle wraps have proven to be a great marketing tool for local businesses.
You can use your vehicle as a mobile advertising billboard. The company pays for the wrap, the miles you drive, and/or a commission on sales generated from the ad.
4. Offer Short-term Rentals
Airbnb has become profitable passive income sources. You can rent a room or an entire property. Your space is listed on an app that does most of the work for you.
All you need to do is prepare the rental for your next guest.
5. Create an Online Course
Put your expertise to work for you. People are always looking for information on various topics. Put your knowledge into an eBook or video and offer it online.
Depending on its success, you can remarket with updated versions using questions from past customers.
It’s Time to Cultivate Your Income Streams
There’s no reason you can’t have multiple active and passive income streams. Quality vs. quantity is always ideal. Find the things you can do well and make it work for you.
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