At one point or another you may have pondered about the possibility of a hands-off income stream. I have myself, severally. Now this is where passive income ideas in 2021 comes in to lead you to this end.
A passive income is generally defined as a monetary gain that involves no effort in earning. Or if any, very minimal. Think of stock dividends.
This is in contrast to wages or a salary for which you have to work actively to earn. Employment income or freelancing as a consultant, developer or otherwise all fall into this category.
There are a number of avenues you can explore, read on below
- YouTube channels
- Affiliate programs
- Informational products
- Peer to peer loans
I’ll only highlight ideas you can pursue online from the comfort of your home and laptop. Of course there are other forms that do not rely on the internet.
Create a YouTube channel and monetize it
A few days rarely pass by before I view a video on YouTube. Presumably this is the same with everyone else unless you are on a self-imposed digital hibernation (which is a good thing once in a while). That translates to millions of views round the world. Inevitably creating a fertile ground for advertisers.
By partnering with YouTube you as a content creator get a share of the advertising revenue.
And you get paid by pulling views into YouTube by creating relevant, captivating and incisive content. This can be a tutorial, a skit, music among many more.
Of course, I wish it was as simple as I’ve made it sound. There are guidelines to be followed from the kind of content you can publish to the threshold of subscribers to be met. Therefore, one cannot open a channel now and join the program right away.
Other methods available, mostly exclusive to advanced YouTubers and celebrities are;
- Influencer marketing
- Paying channel memberships
- Sell of merchandise
Earn from Amazon affiliate programs
The Amazon Associates Program, not necessarily the largest, is better known because of the e-commerce giant, Amazon, and of course it’s association with Jeff Bezos who’s always in the media. Many other programs exist that together form the affiliate marketing world – CJ Affiliate, Clickbank, ShareASale etc.
In my opinion affiliate marketing is more straightforward to a layman than the other channels of making passive income.
It basically involves driving traffic to a business’s website by creating reviews and promotional content for it’s good and services. When a user follows the affiliate link in the content to make a purchase then you get a commission.
Pretty simple right?
This is passive in nature that once you create the content you can earn from it for a long time after it was published, as long as it is accessible by search engines. In essence making money while you sleep!
Creating and selling online courses
Over the course of my employment I used spreadsheets every working day, specifically MS Excel. Data entry, manipulation, reporting and visual presentation were all accomplished in Excel. I can therefore confidently say I’m adept at using this product.
Going by this, creating a tutorial on how to utilize the different features and functions is fairly effortless.
Consider there’s someone out there who is just starting out on its use and getting frustrated. Some of these people are willing to pay for appropriate informational material as a guide and to learn from.
This is just a depiction of a single case, now think of all the possibilities of all the different categorization of knowledge in demand out there. Health and nutrition, dating, pets, graphic design, self-improvement etc. It’s infinite!
You as well can create an informational product on any topic that you understand the ins and outs intimately. Be sure though to carry out some research into needs that users have been struggling with that your product can solve.
All these can be shared in e-books, webinars, membership sites among many other forms of packaging.
After the initial effort of putting this material together passive income can be earned from it for years to come provided the topic remains relevant.
Distribution can be done via established e-learning platforms like Udemy and Skillshare. The downside is that you share the revenue with the platform but benefit from existing traffic. The alternate is to go solo and market the product yourself, keep all the revenue but carry out all the marketing.
Why not become a bank? Peer to peer lending
The old adage ‘Don’t work for money, make it work for you’ is very apt here. Just as there’s crowdfunding there’s also crowdlending.
Somewhere on the globe there’s a person or business in need of capital. With a stash of cash you can lend these entities and benefit from passive interest income. No effort on your part at all.
Just as in a traditional bank setup, many investors’ funds are pooled and handed to a loan seeker who will start repaying monthly with interest.
Platforms in this field that connect the loan applicant and lender are Prosper, Upstart, Funding Circle etc. It is advisable to contrast and compare the different offerings to get one that suits your risk profile.
Other notable mentions.
Other passive income sources worth mentioning are;
- Real estate and REITs
- Dividends from stocks