6 Best Passive Income Ideas You Can Start Without Money
They say that the average millionaire has seven different streams of income for everybody.
But, most millionaires don’t have seven different jobs — in many cases, they’ve leveraged the power of passive income to accelerate their wealth building. And even though it sounds great to kick your feet up on a beach somewhere and watch the money roll in, the reality is that building a steady flow of passive income will usually require a fair bit of effort.
What is Passive Income?
Passive income is earnings derived from a rental property, limited partnership, Online business or other enterprise in which a person is not actively involved. In simple words passive income is something that puts money in your pocket even if we stop working or work for a minimum time frame.
What’s the difference between passive and active income?
Active income involves earning money in exchange for a service. It could be a salary, an hourly wage, commissions, or tips. It’s essentially a trade of your time for a fixed dollar amount. Most people choose to earn their living this way, and there’s nothing inherently wrong with that, as long as you understand that there will be a limit to how much money you can realistically earn.
1. Affiliate Marketing
Affiliate Marketing is basically selling someone else’s product for a commission.
That commission could range anywhere from 5% all the way up to 75% per product you sell. Then there comes the monthly subscription affiliate product which are actually the gold mine. If you manage to get someone on a monthly or yearly membership program you will get a commission every time the person renews their subscription, that could be every month or every year. Most famous affiliate marketing market place is amazon associates.
Best feature about this program is that if the person comes to amazon through your link and didn’t bought your recommended product but bought something else within a day you will get the commission of that product.
Or better yet if the person bought your recommended product and also added 5 other things to the total you will get commission on all the product the person bought in a day. The only downside of amazon affiliate is their commission rate is very low it ranges from 5% to 15% which isn’t the best.
Another very popular affiliate marketplace is Clickbank. They only deal with digital products like eBooks, Video courses etc. but their commission rate is mind blowing, we could earn from 50% all the way up to 75% which is a hell lot. But at the end it all comes down to choosing the right product and doing some research and find different product. Not all the products you promote will sell.
2. Get paid for things that you already do
We all buy stuff. Whether that is groceries, clothes, gas, or anything else.
Getting money for these activities qualifies as passive income, right?
In my books it does! I mean, you literally are doing nothing (or almost nothing) extra once you sign up. As a byproduct, you make some money just shopping like usual, which you are then paid in real cash. You’re simply missing out on free money if you aren’t utilizing every cash back avenue possible.
Cash Back Credit Cards
Cash back credit cards are a big way to get some cash back on your everyday purchases. The amount you can earn varies, but you can usually expect to get anywhere from 1-5% cash back with rewards credit cards.
Trying to get the best rewards card is a challenge, especially since you want to avoid high fees and bad terms all while navigating your credit score. But once you find the right card, it’s worth it.
Think about this: with a cash back credit card, you’ll not only get cash back on all qualifying purchases from your credit card company, but you’ll also be able to stack cash back and rebate offers from these other ways to get money back just from shopping.
Cash Back Apps & Websites
Maybe you want to stack as many cash back opportunities as possible. Or maybe you simply don’t want to commit to a new credit card (or already have one), that’s fair enough. Thankfully, there are so many cash back apps and websites around that can get you up to 40% cash back on purchases!
Ebates – Ebates has been around for awhile, and for good reason.
They have cash back deals through their portal that range anywhere from 1% all the way up to 40%.
Plus, you can use it alongside a cash back credit card to really stack the amount of money you get back on every purchase you make.
It’s simple to use, just sign up on their website or their app, get their browser extension, and make sure to purchase with Ebates whenever shopping on a store they are partnered with.
Dosh App – the Dosh app allows you to connect your credit and debit cards, including your cash rewards credit card, and works in the background to get you cash back when you shop with one of their partners.
The app works automatically, and requires zero effort on your part. Just shop like usual and you’ll get an alert every time you earned some cash back.
Paribus – Paribus won’t get you money back on the spot when you purchase something like the above services do, but Paribus offers something powerful: it gets you refunds for purchases you’ve made when something you bought becomes cheaper.
Paribus partners with websites (like Amazon, Macy’s, and more) to get you money back if the price of something you bought with them ever goes down or arrives late.
It works for you 24/7. Once you are signed up and connect your email, you do nothing but collect a check every time a price drops or your order arrives late.
It’s 100% free. No catch. You even get to keep the entire refund amount.
3. Rent out a room in your house
Renting out a room in your house on Airbnb can bring in some solid cash depending on where you live.
It’s not entirely passive, and you’ll have to deal with strangers living in your house, but the additional effort is minuscule. You’re (hopefully) already cleaning the house, now all you need to do is clean up that spare bedroom.
Utilizing what you already have to make money is extremely powerful, and Airbnb is a great way to make money from your house.
4. Affiliate Marketing with a Blog
Affiliate marketing is a way to make money by promoting other people’s (or company’s) products and services and earning a commission for each sale you generate.
Let’s say that you want to earn a commission when someone buys a mattress online. Since most mattress companies pay a 5% commission and the average price of a decent quality bed sold on the Internet is about $1,000, you would make $50 every time someone bought a bed based on your recommendation.
Sounds good in theory, right? But how do you actually get started?
One of the best ways to get started is by having a blog. A blog is your very own website where you can write about whatever you’d like. The most successful bloggers and affiliate marketers usually stick to a specific niche, or topic. Going back to the mattress example above, someone who blogs about sleep (sleep habits, sleep hygiene, tips, tricks, etc.) would be a great affiliate for mattress companies. On the other hand, a sleep blogger would probably not be successful if they tried to sell basketballs on their blog. The best affiliate marketing blogs always have a great product-audience fit.
Having a blog opens you up to all sorts of revenue streams. Not only can you earn passive income online with affiliate commissions, you can make money on advertising, too. One of the most appealing parts about blogging is that it is quite scaleable — it’s not uncommon to earn residual income from posts that are several years old. As long as people are reading your content, there is an opportunity to earn income.
Ready to get started? Check out this comprehensive guide on how to get your blog up and running.
4. Start a YouTube Channel
So, the rules on making money with a YouTube channel changed in January 2018, but this is still an option. You’ll just need to adjust your strategy slightly.
It used to be that almost anyone could monetize their YouTube channels. What this means is that you allow advertisers to place videos (i.e. ads) at the start of your content. When you get a certain number of views, you earn cash.
There are hordes of people who make entire livings doing this. People filming makeup tutorials, travel guides, unboxing videos, anything you can think of, really. Because YouTube is such a popular platform, there are more than enough eyeballs to attract an audience to even the most obscure niche.
You can also make money with affiliate marketing with the help of youtube videos. Just make a review video about a product and link the exact product into the description with your affiliate link and if someone buys the product through your link you will get the commission.
I have been making curated funny youtube videos and have a made over 30 videos so far. All of those videos have been monetized with adsense and they bring in almost 1M combine views per month and somewhere between 700$-1000$.
Ebooks are a an amazing source of passive income. You just have to write the book once and sell it over and over again and make money.
But many people make it complicated by thinking that you have to be an expert to write a book.
The only thing you need to write a book is a skill no matter if you are not the best at it but have atleast tried it and know the basics of how its done.
There are many people on this planet who haven’t ever tried it but you have. You just have to jot down few points on how its done and elaborate on it and make it a 10-20 page Ebook and sell it for 2.99$ on amazon kindle.
Amazon takes 35% of your earnings if your books cost is below 2.99 and takes 70% if you cost it at anything above that.
You could even List your book at Clickbank Marketplace for a 50%-60% commission rate and let the affiliates make sales for you instead of ranking for search terms on amazon kindle.
6. Build an E-Commerce Site
One of the most appealing online passive income ideas is having an e-commerce site that is open for business 24/7 — even when you are sound asleep. This online business model has been a recent trend that has taken the internet by storm, with lots of new people trying it out.
Most e-commerce sites are a lot of work to get properly set up, but once you find system that works, maintaining that system can be relatively passive. Here are the main types of e-commerce sites that are most popular:
Sell your own product: you either manufacture or source your own product(s).
Pros: You have ultimate control and you get the highest profit margin.
Cons: It’s a lot of work and often requires significant capital.
Sell other people’s products: source goods from one or a variety of companies.
Pros: You get a wide variety of products at wholesale prices.
Cons: Lots of work and difficult to compete on price. Also, can be difficult to differentiate yourself.
Dropship: when a customer orders from your site, the manufacturer ships.
Pros: you don’t have to handle physical inventory and there is less work involved than the models discussed above.
Cons: margins aren’t great, you don’t have control over quality, fulfillment, and the customer journey.