How to Build a Passive Income Source

In order to earn passive income, you do not have to work every day. Sometimes, active income can become a passive income, for example, business is an active income source, which can later become a passive income source.

You need to work really hard to build a passive income source. However, once you have built your passive income source, you will start earning money even without working or doing any hard work.

Passive Income Ideas That You Can Try Now

I will try to answer how viable these passive income methods are one by one:

Create a course: You not only need expert-level knowledge on the subject but also skills to create a course

Write an e-book: Even if you are a good writer, you need digital marketing skills to drive sales, or money to run ads.

Affiliate marketing: You need to be a very skilled marketer to become successful with affiliate marketing.

Sell photography online: It is a good method to drive passive income but you need to be a pro photographer and pro marketer.

Peer-to-peer lending: This is risky, your money may never be returned.

Dividend stocks: You need a lot of money to invest in stock.

Blogging is a good passive income source, however, forum posting and freelancing, and micro-jobs are not actually passive income sources.

If you are based in a low-tier country and if you are looking for passive income ideas, here are two ideas that you can try.

Renting your property: If you have a car, a house, land, godown, a flat, music equipment, light equipment, etc, you can rent out these things and make a passive income. Renting an apartment on Airbnb is one of the best ways to make money by renting your property.

Flipping retail products: You can acquire products from suppliers and resell these products to make passive money. This requires expert-level digital marketing skills.

How to Generate Passive Income From Real Estate Investment

There is no doubt that real estate investment brings the best passive money, however, in order to benefit from real estate you need to buy property in a prime location when you can rent it out. For example, you buy office space, shop space, a house in a prime area, or a piece of land in a commercial district. For that purpose, you need a lot of money. Not just hundreds of thousands, but millions. For example, in my place, if you want to buy a house in a prime location you need to spend at least 30 million in local currency. If you want to buy a shop in a commercial building, you need to spend at least 10 million. That's a lot of money. If you already have that kind of money, you can even earn passive income by depositing your money in a fixed deposit bank account. Real estate investment also does not always bring profits, sometimes the market goes down and you are unable to rent out. For example, during this coronavirus pandemic, a lot of shops were closed and the landowners who rented out these shops lost money. If you buy on loan, real estate can be a risky investment.

Making Passive Income Through a Dropshipping Business

Dropshipping can become a good passive income source provided you have a lot of money to spend on ads and you are a good digital marketer and SEO expert or have money to hire experts to do digital marketing and SEO. If you use shopify, Oberlo, and other tools like these you might have to spend just about $1000 to get started with your dropshipping business, yet there is no guarantee that you will actually make money. It is really difficult.  Don't have this impression that the moment, your store is launched people will rush to buy from your store. Dropshipping on your own store is very expensive. If you do dropshipping on third-party marketplaces like ebay or etsy, it might be less expensive because your cost of running a website will be reduced and you might make some money.

3 Platforms to Earn Passive Income on Autopilot

Building passive income on autopilot is very important because that’s how you build your net worth. Passive income o autopilot means you will be earning without doing hard work or without spending a lot of time. Here are three platforms where you can build a passive income on autopilot

Etsy: You can sell handmade items on Etsy. If you are creating physical products to sell on Etsy, you will have to work regularly but if you sell a digital item, you do not have to create products again and again, yet you will generate regular income. You can sell printable and digital downloads on Etsy to make money on autopilot.

Amazon: Amazon allows you to make money in many ways and interestingly, most of these methods are passive. For instance, you can promote Amazon affiliate products and earn commissions, you can do FBA business, you can publish on KDP and earn royalties without working every day or spending a lot of time.

First published on Trendri, in the author's name