Passive income strategies have been a growing trend in recent years and serve as a way for individuals to supplement their main source of income. With inflation skyrocketing, passive income could be your ticket to having emergency funds to prepare for a rainy day.
However, part of earning money from a passive income strategy involves knowing which strategies you can implement. Here are seven passive income-earning ideas that could help you gain financial freedom in the new year.
1. Learn to Invest in Mutual Funds and Dividend Stocks
Investing can be a great way to earn passive income. Among the types of investments out there, dividend stocks and mutual funds are your best friends.
Dividend stocks are a great way to earn a passive income because you receive regular payouts through profit distributions. All it takes is an upfront purchase for the stock, and then you’ll receive cash payouts from there.
Additionally, prices per share tend to increase annually. This means you can generate more money in the future.
But, of course, investing can be risky and complex. It’s important to be prepared for the storms that the companies you invest in weather, meaning there could also be periods of losses. Make sure to fully research the market and look at successful shares before settling on making a purchase.
2. License Your Photos and Music
If you’re passionate about music or photography, why not turn it into a potential income strategy? Licensing your photos and music is a great way to generate money without having to be out there in the spotlight all the time.
You can partner with well-known sites like Shutterstock and Getty Images to sell your images. Or, if you write or produce music, license them, so you get paid when a third party uses them for projects.
Just remember that you’ll have to be patient with this strategy. The revenue you earn won’t be significant at the start. That means you may have to upload a fair amount of content before you start to see the work pay off.
3. Try Affiliate Marketing
Affiliate marketing means creating partnerships with brands which entitles you to commissions every time a product you advertise is purchased. This passive income strategy might be most effective if you are a blogger or own a website.
One essential consideration is that you’ll need to have a fan base or large following for promotions. Otherwise, you won’t make much money from an affiliate program.
The main benefit of affiliating marketing is that it’s free to set it up. There are no upfront costs; you can freely promote products using links on your social media or website.
Affiliate marketing can also help boost traffic to your site and grow your visitors. As a result, you can not only earn some extra money but can actually increase your own visibility in the process.
4. Run Ads on a Blog or Website
Another passive income strategy you can use if you have a successful blog or website is to run ads on your site. With this strategy, companies pay you to display ads for their goods and services on your site.
You may also make a small commission when someone clicks on their ad.
Just note that for this type of passive income strategy, you’ll need a relatively large following. Otherwise, it’s unlikely that businesses will want to place ads on your site since it wouldn’t be profitable for them.
5. Create Your Own App
If you’re an IT specialist with the skills to create a new mobile application, you can use this to your advantage and earn income passively.
Nowadays, individuals constantly search for apps that can make their lives better. Find a common problem and generate an app people can use to solve it.
When individuals download the app, you can charge a small fee. Alternatively, you can offer in-app purchases for special upgrades or run ads in your app. All these are methods for you to earn passive income from the app that you’ve already created.
6. Create A Course Online
Online courses, whether they’re audio or video, are also on the rise today. One way to earn passive income is to develop your own course and distribute it to individuals for a price.
You can push your courses to be sold and distributed on famous course sites, such as SkillShare, Udemy, or Coursera.
Alternatively, you can start with a “freemium” model by giving out small amounts of free content and then getting your audience to pay to gain full access to your course. The free content can make your audience determine whether your course can help them.
The only trouble with this method is that you’ll need to put quite a bit of work into developing your online course initially. Once you’ve developed it, however, you can upload it and simply earn cash from those who choose to use the course.
7. Sell NFTs
If you’re knowledgeable about the world of NFTs, you can use that to your advantage. NFTs are tokens of digital file ownership. They can range from digital art to paintings, songs, and even tweets.
NFTs are like any digital goods. You can create one and sell it a couple of times. It’s also possible to rent it out or collect royalties.
Now that more individuals are leaning toward NFTs, finding a reliable platform to sell them is easier. There are also more niches you can look into.
Final Words
Employing passive income strategies can help you set aside money for a rainy day. Better yet, it’s a way to grow money without having to take extra time out of your already busy schedule.
Find a passion, grow it, and use it to your advantage. By earning passively, you could be on the road to achieving financial freedom.