For many people, retiring at an early age would be a dream come true. There is nothing more satisfactory than being in full control of your time and spending more time with your loved ones. Yet the vast majority of people don’t even know where to begin their journey to financial independence. Here are some ways in which mostly anyone depending on what you know and your talents can start to develop a passive income.
One of the best ways of creating a passive income is by writing online in sites that share revenue or ad impressions such as this one. The best thing about writing is that you don’t have to pay anything to start creating money generating articles. You just need ideas and a little inspiration. While the passive income from revenue generating sites may appear small at first it can be built over time into a significant cash flow. What makes it worthwhile is that articles that you create and post may generate income for years and even decades. The key here is volume. The more
Another way that you can make money writing online is by building your own blogs and writing for them. You can use free blog platforms but I would recommend setting up self-hosted blogs because you have full control over them including your own domain name that can be the perfect branding tool. Setting a self-hosted blog is not as hard as you might think and there are thousands of free tutorials out there that teach you what to do step by step. A shared hosting account costs about $120 a year and domains cost around $10 a year. The downside is that to get the most out of your blog you need to do some linking and learn at least some basic SEO. Remember that there is no ad revenue if there are no eye balls looking at your site.
Investing is one of my passions and is a great way to develop a passive income over the years. If chosen correctly your investments can literarily make you rich. One the downside you need to have money saved in order to invest or you have to develop an investment discipline and send some of your income to a brokerage account periodically. Investments that produce passive income include: dividend paying stocks, preferred stocks, bonds, some mutual funds, dividend ETFs, some Closed End funds, REITS and mortgage REITs. There are others but these are the basic ones. Like with any source of passive income the money received starts out small especially if you start out investing a small amount. Don’t feel discouraged, if you reinvest proceeds the power of interest compounding will do the rest.
If writing or investing is not your thing you may give video blogging a try. Youtube is owned by Google and the company uses the same monetization platform to make money from Youtube that Google uses to make its money from the search engine. In the case of webmasters and writers what they use to make money online is the Google Adsense program for you tube it’s the Youtube partners program which is an extension of Adsense. If you are an expert on something you can create a Youtube channel and start uploading your own videos. There are many video bloggers making money from everything ranging from comedy videos to uploading tutorials to reviews. Some of them are getting rich uploading videos they made on Youtube.
Perhaps you know something that a lot of people would like to know. Or maybe, you write your own poetry, fiction or informational products. The internet is a wonderful place and if you can’t get your book published on paper you might give the internet a try. Sites like Clickbank give you the opportunity to sell your eBook in their market place if its and informational product. What is really great about this approach is that this site is really an affiliate network crowded with marketers wanting to sell your book for a share of the revenue. Other sites allow you to sell mostly anything your can write on different formats including the amazon kindle format.
Selling Music Online
Are you a musician? If you are and you or your band are having trouble getting a record deal there are sites online where you can upload your music and sell it. Combine this with some Youtube promotion and your music may be the hottest internet hit of the year. There are many who are doing this and are getting famous by the minute. Some of them have already scored the record deal that they were dreaming of.
Buying Sites that are Already Making Money
Don’t like to write and don’t want to create a site from scratch? Buy one that is already making money and move it to your own hosting account. It is not unusual to find sites at website auctions selling for cheap. A lot of them sell for ten times what they make in a month which means that after ten months it’s all profits. And the good thing is that if you learn some SEO you can make the site even more profitable. What most people do is that they add more content to the site and build more links to double or triple the income in a few months.
These are only some of the ways in which you can start to develop a passive income stream. There are many more like developing a multilevel marketing network, affiliate marketing and renting real estate. Still, I personally believe that the ones I mentioned are the most accessible ones for the average Joe. Remember these are only some ideas to get you thinking about possibilities. Personally I write on revenue sharing sites, invest, build my own blogs and in the future I might sell music online because I make electronic music as a hobby.
Photo credit: Salvatore Vuono.