Do you dream of generating income without dedicating yourself to a job exclusively? Would you like the money to flow in your favor without performing recurring tasks? This is possible through passive income and you can take advantage of it to build wealth.
I think we all dream of generating residual income that allows us to improve our finances and live the life we have always dreamed of without meeting schedules, much less depending on a fixed salary.
The best of all is that generating passive income, or residual income that is the same, is not complicated, rather you need to research and have at hand a series of strategies (which I will share with you in this article) that allow you to automate your income generation.
Is it possible to generate passive income?
In a previous, I explain how passive income plays a fundamental role in building wealth, and in achieving long-awaited financial freedom.
However, I must be clear with you: Although it is possible to live on your passive income, this does not mean that money will knock on your door without you doing your part.
The residual income requires that you invest time, money, and effort to put into operation strategies, which once developed, will enter master the game of wealth.
So in this article, I am going to explain not only what passive income consists of, but I am going to share with you effective ways to create them, both on and off the internet, and that allows you to obtain your financial freedom.
I’m also going to share with you some active income, which meets the criteria you are looking for: not depending on a fixed schedule and position to get income.
What is passive income?
Let’s start with its definition. The key point of passive income is that they seek money to work for you so that you have time to invest in your personal growth and dedicate it to the aspects that are important to you.
So, passive income is those that add digits to your bank accounts without the need to be working 24 hours a day, or doing recurring jobs.
In simple words: passive income is those amounts of money that you receive regularly, but without having recently worked for them.
For example, buying shares, starting your own business, and even leasing your real estates, such as your house or office, are some of the mechanisms that will help you periodically generate passive or residual income.
Is it possible to live on residual income?
Yes, in fact, today many people enjoy the lifestyle that passive income and their jobs from home allow them to live.
What does it take to do it? Be consistent and make smart decisions with your money that allow you to be financially free. And for this, the first thing is to understand how money works, know how to put it to work for you, and finally act.
In fact, passive income is not a new thing, it has been around for a long time and has allowed millions of people who have invested in their financial education to take advantage of its benefits.
The good news is that you can also access them, because no matter where you are, or what you do, if you make good decisions with your money, in the near future you may be receiving very interesting residual income.
Effective ways to generate passive income from scratch:
We have reached the most important point of this article. However, before sharing with you the ways to generate residual income, it seems important to me to make the caveat that none of these business ideas will make you a millionaire overnight.
Passive income, financial freedom, and having money working for you automatically is possible, however, this does not mean that it is a process that is achieved in a matter of days or that it does not require your effort and dedication, and above all, of your intelligence.
To achieve your goal of being a millionaire, it is important that you research the different options you have, identify the ones that best suit your financial goals and capabilities, and finally invest your money with confidence.
Remember that adding new sources of income is not the same as accumulating more assets, or making more investments without any type of control. On the contrary, diversifying your money inflows is about making more money in a consistent and effective way.
Once this is clear, here are the most effective ways to invest your money and create residual income.
1. Create, manage and monetize a niche blog
Personally, I think this strategy is one of the best ways to create passive income.
Without a doubt, a digital publication is one of the best ways to earn money online. In fact, this is one of the ways that I currently generate passive income.
In recent years the blogging market has dramatically rebounded, to the point of becoming one of the most lucrative businesses you can imagine.
In fact, there are hundreds of thousands of people who through their content are not only generating residual income but are billing up to six figures per year in the process.
Free Webinar: Create a Website You Can Live Off
If you want to learn how to create a website from scratch that generates recurring and passive income, I want to invite you to the free training in which I teach you how to create a profitable website from scratch.
I’m going to show you the methodology I used to create a digital publication that had a turnover of more than $ 10,000 in just 6 months.
And best of all, you don’t need previous experience, technical knowledge, or a business idea. In other words, you will learn step by step, how to create a blog that you can live on.
How to create a blog?
The best of all is that the creation of a blog is quite simple, here I explain how to create a blog in its technical part.
In this step by step, you do not need to have knowledge in programming or design, just the initiative, and a few dollars.
All you have to do is use a trusted provider to buy your domain and hosting, in my case I recommend Hostinger or Bluehost, they not only give you a domain for the first year but also have good support and their configuration is quite simple.
Now, in order to generate passive income, the first thing you should do is identify your audience very well so that you can successfully build loyalty, which will be reflected in the positive balance of your bank account in a matter of months.
Residual income with your blog:
Although there are many ways to generate income with your blog, among the most common ways we have:
- Google Adsense: Advertising on your website in the form of ads.
- Affiliate Marketing: Recommending third-party products and services in exchange for a commission (point).
- Sponsored content: Create sponsored articles for brands seeking visibility in your community.
- Sale of info products: Sell your products, such as books, courses, and seminars on your website (period).
2. Trade online with the stock market
Different media and specialized sites consider the stock market to be a very interesting source for creating profitable assets.
It is also true that you not only need to have a good amount of money, but you require knowledge to be able to operate and negotiate online.
How can you get started with this strategy?
The first thing you can do is access demo accounts of trading platforms, where you can trade online with shares of Apple, Google, or any other company, on time and with play money.
In this way you will know how the market works, you will be able to test your trading strategies and you will learn about different instruments such as stocks, raw materials, options, indices, currencies, among others.
It is important to make it clear that you need to understand how this market works, and thus avoid wrong decisions with your money, in the same way, make sure to use money that you will need in the short term.
The good news is that there are trading platforms that allow you to trade from $ 100, so the amount is not that high at first.
If you want to know a little more about these platforms, here we explain how Plus500 works.
The most important advice when exploring this strategy is that you know very well what your financial objectives are, understand what your risk profile is and know if you are willing to endure in a market that is constantly changing.
If you are interested in these topics, you can also learn to invest in the online stock market in a sensible and consistent way so that your experience is 100% satisfactory.
3. Create effective sales funnels
A funnel, or sales funnel, is another great strategy for generating residual income today.
These have revolutionized the Digital Marketing industry because they allow you to capture leads – potential customers or consumers – for a specific product or service.
In this sense, the big brands, companies, and ventures, or in short, all those people who want to sell online, rely on this service to boost their sales.
How to take advantage of this opportunity?
Now, the most effective way to create passive income from this business opportunity is to create sales funnels that help your customers sell online, through platforms such as Shopify.
In the event that you have a virtual store, you should rely on these funnels to achieve your business objectives, which will translate into higher sales and more money flowing to your accounts.
Not only do you need to have your own products to sell, because if you have the knowledge you can create a profitable business through consultancies or sales of ready-to-sell web pages.
Simple instead of discarding those things that no longer serve you or you no longer need, you can sell them online. With the certainty that you will be able to find someone who wants your object almost instantly, and you will earn money without much effort or time consumed.
If you are interested in this possibility of generating income, we created an article where we tell you how to create an online store, even if you do not have experience on the subject.
4. Create and sell ebooks:
This is another way to generate income in trend, since info products, such as ebooks, programs and virtual training have become a very interesting source of practical learning.
Personally, I currently have a personal finance ebook (I’ll tell you later how you can earn money with it) that generates sales every month and was created a few years ago.
I will launch an online course soon, so I believe a lot in this way of generating residual income. Meanwhile, you can read my friend Ray Payne’s blog on how to make money online by selling e-books.
Examples of ebooks you can sell:
Surely you are thinking about how you can generate this type of passive income. Moreover, many believe that it is something complex, or that you need to have advanced knowledge in programming to be able to sell your products on the Internet.
However, you can create a book or digital guide on a topic that you are perfectly proficient in, or in which you have authority, and then promote it on your own page, blog, or online store and start earning residual income from this work for the internet.
For example, if you are a financial expert you can develop an eBook on a topic related to the world of finance that is useful to your potential audience.
If you are a nutritionist, you could develop a guide to eating and healthy habits that helps your clients improve their quality of life.
If you are a coach, you can create a virtual training where you teach people to overcome difficult moments and reinvent themselves
5. Online courses
Due to the quarantine, and the changes we have had to face, online learning has become the best option to continue training.
So much so that large universities like Harvard are offering more than 200 free courses to take online.
What does this mean? That if you create your own online course you can reach millions of people who are eager to study from home and acquire new knowledge.
To sell your courses you have different alternatives and web pages. One of them is Udemy, a platform with more than 20 million students online, where you can register and start selling your courses.
First steps in the creation and sale of your info product (ebooks and courses):
In this article we will not talk in-depth about this topic, as it is quite extensive, however, to begin you will have to research, write, edit, diagram the information, record and finally upload your information to the sales platform.
One of the fastest-growing platforms in Latin America and Spain is Hotmart, where you have a suite of tools to sell your info products.
Now, the work does not end there, since promotion is essential to be successful when generating passive income with your digital product. Remember, residual income requires a smart start-up job.
Finally, make sure your content is of quality and avoid copying information from other media, as duplicate content beyond helping you earn quick money, will put you in a difficult position.
6. Residual Income with Affiliate Marketing
Without a doubt, affiliate marketing is one of the strategies to create passive income with the highest growth, and which is currently in trend.
As I have told you throughout this article, residual income is not generated from passivity, that is, you need to take action to create it, and affiliate marketing is no exception.
What does this business model consist of? Basically in recommending third-party products and services, which will pay you a commission for each sale, or conversion that is generated.
Personally, I really like this passive income and it currently represents a very attractive source of income for Emprendiendo Historias.
Steps to become an affiliate marketing
Now, there are different affiliate programs that you can join. To start generating residual income, you must follow the following process:
– Create an online store or blog: In general, these programs require you to have a website, or a blog, where you can recommend your products. Although you can use your social networks, almost most large programs require a website.
– Sign up for affiliate programs: Among the most popular are the Amazon affiliate program, AliExpress, Maxbounty, Linkshare, among others.
– Get your affiliate links: These links are the ones that you will insert in the publications or content of your blog or website to encourage your users to buy the products you are promoting.
– Promotion on your website: Promote the products of a third party on your page and incentivize the desired conversion (most of the time it is usually a sale). For this, you must know very well how Facebook Ads and Google Adwords work, here we leave you a course that teaches you from scratch.
– Receive payment: Receive a commission for each purchase made by your users in the official store of the third party that you promote with your affiliate links.
There are many success stories of people who, starting from scratch, have managed to start very profitable home businesses thanks to the possibilities offered by affiliate marketing.
Today, there are thousands of people around the world billing up to six figures a year as affiliates, and the best thing is that this income is generated passively.
7. Rent properties
Generating residual income by leasing property is not new. On the contrary, this is probably the oldest strategy to earn money while you sleep, or while you dedicate yourself to something else.
For decades, investors, homeowners, and successful entrepreneurs alike have decided to take advantage of those vacant or idle properties to generate monthly profits.
That is if you have an office, a condominium, an apartment, a house, or any other property that you want to rent to constantly earn money, do not hesitate to insert them into the market as soon as possible.
8. Create a channel on Youtube:
A YouTube channel is another way to generate passive income from audiovisual content that you create and then monetize through advertising.
There are several criteria that you must meet in order to earn income with this platform; at least hours and have a channel approved by YouTube, however, one of the fundamental keys is to create quality content.
In this way, you can create an audience, good reproductions, and therefore good income from the advertising that is shown in these.
It is important to clarify that the generation of videos on YouTube is a business that requires dedication, since the platform’s policies have been changing, and monetization is no longer as easy as it was previously.
9. Invest in crowdfunding platforms
Some crowdfunding platforms, such as Briq or Prestadero, offer you the possibility of generating residual income by paying interest.
These lending and collective financing platforms allow you to make investments at a low risk, where you can access the interest generated by providing this money.
On the other hand, the so-called real estate crowdfunding is an excellent way to generate passive income at low risk. In fact, experts consider it to be a great way to make money “while you sleep.”
The reasoning is as follows: real estate crowdfunding platforms offer you the possibility of accessing highly profitable projects and at a minimum amount.
They also offer you attractive rates that will help you protect your savings, and you can even generate more profits after investing in more than one project.
This is known as investment portfolio diversification, and if you master it as an expert, you can design an effective long-term strategy under the compound interest scheme.
10. Develop mobile applications
Finally, although in my personal case I do not know how to develop mobile applications, this sector is very interesting because cell phone use continues to grow.
The good news for people who do not know how to program, like you and me, is that there are tools and software that allow you to develop products or applications efficiently.
How to make money with an app
First of all, you could take a programming course and learn how this market works.
Once you have this knowledge you can use apps builders to create and sell your products. In fact, as far as monetization models are concerned, you have several options such as:
- Make a paid application,
- Receive revenue from advertising in the application,
- Sales within the same or,
- Development of applications tailored to clients.
Your biggest job will be to study the market to identify what you can improve, or how you can satisfy a real need of your audience with the app you plan to develop.
At the moment, health, meditation, exercise, and wellness applications are being highly demanded worldwide, so you should take advantage of this business opportunity offered by the market to create residual income in the future.
Other active sources of income:
While we all want to learn to create passive sources of income, which allow us to enjoy the freedom to enjoy our time, there are other interesting sources of income.
These active sources of income, which are not subject to a place or a time, give you the flexibility that you are looking for so much, here I share a series of recommendations.
– Paid surveys:
Currently, you can generate income by sharing your opinion through platforms on the web. You basically earn money for expressing your ideas around different topics important to brands.
The paid surveys you can generate a few extra income months after month. Everything will depend on the availability of time and dedication that you put to complete them.
LEARN HOW TO EARN MONEY BY FILLING OUT SURVEYS
Next, we will share a series of reliable pages to make money with surveys, the most important thing is that you register, confirm your email and start filling out the first surveys, in this way you will have a good opportunity to receive new opportunities.
These pages are not exclusive, that is, you can subscribe to all of them and earn more money depending on the number of surveys you fill out. The most important thing is that you subscribe in your country of residence, otherwise the page will not work for you.
The perfect example of a way to earn money totally free of investment and that does not take much time.
All you need is to know how to handle yourself in the field of writing and be willing to sacrifice extra time to fulfill the requests that are asked of you.
COURSE MAKE MONEY WRITING
The clients that can touch you are very varied, they can ask you to write about different topics that have to do with their own web pages.
For this, many times you will have to do a little research beforehand on the subject to be well informed at the time of writing. However, it doesn’t take long, and they usually pay well.
We have created an article where we explain how to earn money writing from home in 4 steps.
It may be hard work, but it does pay well. You will need to have a certificate to show that you have a certain level of knowledge in English, and that’s it.
There are many people and companies interested in acquiring this service, since thanks to globalization, these entities need to connect with people around the world.
HOW TO MAKE MONEY TRANSLATING ARTICLES
A freelancer is one who provides services to third-party web pages, usually in assignments such as video editing, web design, programming services, writing, technical support, voice-over, video editor, among other things.
Among the work options that exist, virtual assistance for companies and third parties is one of the most sought-after options, due to the flexibility of time you have and the that you can work for companies anywhere in the world from home.
In conclusion, as you were able to realize in this guide, passive income plays a fundamental role in building your financial freedom.
So identify which are the strategies that are best for you to generate significant residual income, and make sure you do things well so that, in the future, you can enjoy your dream quality of life.