Almost everyone would love the chance to make more money. Having a passive income allows you to do just that, without putting in extra work every day. However, passive income does require work to set up and maintain, but this work is minimal. Below are six of the best passive income ideas you can use to bring in some extra cash.
If you already post on social media regularly and have a community online, consider affiliate or influencer marketing. Anyone can get affiliate links from large companies simply by creating an account. You then share products you love, alongside your affiliate link to earn a commission on any sales using your link. Amazon even has an affiliate program, making it super easy to start earning passive income. Better yet, when someone follows your affiliate link, they don’t have to buy the item you linked for you to get a commission. Instead, they just have to make a purchase in that browser session.
Influencer marketing can be affiliate marketing, or companies may pay you to make a post about their product. These are sponsored posts and are usually also shared by the company paying you. This helps you to grow your community while making some additional income. Companies usually look for larger followings, and high engagement rates before working with an influencer. Therefore, focus on your online community to get these benefits.
Perhaps you have an empty bedroom or two in your home now that the kids are off to college, or while you start planning a family. Consider renting bedrooms out to students, or young professionals to generate some passive income. Better yet, if you have a basement suite, consider renting that out to a family or couple. Used space can be a great way to earn some extra money. If you live close to the city you could even consider offering parking rentals to commuters.
Investing in stocks or mutual funds is an easy way to earn passive income if you have the funds to invest. However, if you opt to invest in stocks, ensure you do your research beforehand. It can be easy to invest in the wrong company and lose all your money. But, smart investments can ensure you earn a significant amount of money.
Mutual funds, on the other hand, allow you to build your funds with as little, or as much risk as you like. Discuss your goals and risk tolerances with your financial advisor to learn more. They’ll be able to help you create the ideal mutual fund portfolio for your needs.
If you frequently travel or have a second property, consider becoming an AirBnB host. This will allow you to rent out your home when you are not there, to people traveling in the area. Have a look at other AirBnB homes in your area to work out pricing, then fill in the hosting form, and set your availability. Then start seeing the passive income roll in. You will have to ensure that the property is cleaned between guests and that you follow up on requests or complaints. AirBnB takes its policies very seriously, thus, you want to be a good host and deal with any issues as soon as possible. However, AirBnB also offers a significant host protection policy that will cover damages if there is an issue.
Dropshipping can be one of the easiest and most profitable passive income sources right now. Essentially, whenever a customer purchases from you, your supplier will fulfill the order, not you. This means you can run an eCommerce store without having to hold inventory on-site. First, you need to set up a website, then find trending products on wholesale websites, like AliExpress that you can sell to people around the world. Fill your online store with these products, and ensure you optimize keywords, and descriptions. Set your prices to be competitive yet profitable, and start advertising your store.
If you like to take photos, consider listing them on a stock image website to generate passive income. Each time someone purchases a license to use your image, you will get a percentage of the sale. These royalties can generate a significant amount of passive income, especially as you build your portfolio.
The passive income ideas above can help you to generate extra money without much effort. This income can help strengthen your financial future, or just give you some extra spending money.