By definition, passive income is money earned from a partnership, business, or rental property in which you are not actively involved.
However, over time, the meaning has evolved to include money generated online with little or no labor.
Dividends and interest (portfolio income) are examples of passive income.
In its looser definition, passive income could also be something like affiliate marketing income earned through this blog – while I put in a lot of work upfront, I don’t have to actively do anything anymore to make it.
What Are the Best Passive Income Ideas?
Many people today think of digital entrepreneurship when they think of passive income: selling digital products, affiliate marketing, online courses, Google AdSense, selling eBooks, and so on.
Traditional methods of passive income include real estate investment, licencing, and stock market dividends.
In this article, we’ll go over both of them.
1. Start a Blog (or Online Business) the Right Way.
I’m starting this guide with blogging because I believe from experience that it is the #1 way to make passive income.
It’s the most passive type of online business because the revenue comes in from three passive income streams:
Affiliate revenue: commissions I generate when readers click one of my affiliate links and purchase a product from a company.
Ad revenue: Mediavine ads that pay out monthly.
Digital product sales: paid products that are downloaded and don’t require any shipping.
So how do you get started?
When you think about starting a blog, you could be tempted to pick a passion of yours and start writing content.
However, modern-day blogging isn’t necessarily all about writing – it’s about running your blog like a business.
Allow me to explain.
To turn blogging into a full-time passive income, you must psychologically shift from being a blogger to being a business owner.
This mental shift allows you to see things from a different perspective: you’re not just blogging for fun; you’re building mechanisms to scale your blog into an online business.
To begin, you must first comprehend the proper methods for monetizing a site based on its lifecycle and age.
Why Are Bloggers Failing?
Approximately 95% of bloggers fail.
Many “experts” believe that bloggers fail because they aren’t enthusiastic enough or can’t keep their writing constant.
This isn’t correct.
The truth is that 95% of bloggers fail because they are unable to generate a profit.
I’m passionate about a number of subjects – running, astronomy, fantasy football, Breaking Bad, personal growth – but if I had to write about these topics for years and never make a penny, I’d quit every time.
So, how can you make a money-making blog?
Choose Your Blog’s Niche with Revenue in Mind.
Most bloggers begin with a passion in mind, write for years with zeal, but have no idea how to convert from blogger to successful blogger. Revenue is pushed to the side, to be figured out “someday.”
Instead, it must be designed from the start.
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