10 Passive Income Ideas to Build Wealth in 2022

here's the thing there's no such thing as purely passive income and anyone who tells you any differently is well lying to you but wait don't click away from this video just yet because the truth is that it is possible to create streams of income that continue to pay you back over time with just a little work up front and some ongoing maintenance now is it totally passive well no but these options can be a whole lot better than continuing to trade your time for money forever if you have the patience creating sources of passive income is an amazing way of investing in your future freedom in today's video i'm going to be sharing the 10 most accessible forms of passive income that you could start building as of today we're going to be judging each of these options based on three key factors number one how much time you'll need to invest up front for this strategy to pay off number two how much money you'll need to invest up front to get started and number three just how much potential this option actually has when it comes to generating real money for you in the future let's take a look at these 10 strategies that i think could work for anyone and if 10 options isn't quite enough for you head on over to our blog post to see our top 30 ideas for growing your wealth by building passive income streams or you can check out our free download the big list of business ideas which has over a hundred great ideas for in-demand businesses popular in the market right now both of those will be linked in the description box below so if you're looking for even more inspiration to help you start your business or find new ways of generating income go check them out as ali abdul says the only way to make money is to provide value and if you want that money to be passively earned you need to make sure you're providing enough value in exchange okay so with all of that out of the way here are my 10 favorite ways to generate passive income in your business number one sell digital products the easiest and most accessible way to generate passive income in your business is to turn your existing knowledge and skill set into an asset that people can pay you for especially if that asset is digital and evergreen meaning that the content will be relevant and useful for years to come now this asset could be anything an ebook full of delicious plant-based recipes or a spreadsheet template for tracking your daily habits or a workshop recording about website design best practices it's pretty easy to get started with this income stream if you don't already have an online store on a platform like shopify you can quickly add a digital product to a service like gumroad or send owl both of which are pretty affordable if you're just starting out i'm rating this a two out of five for upfront financial investment because these days it's easy to create beautiful digital ebooks and templates using simple free tools like canva or pages the time investment is also a two out of five because it's very possible you've already created this asset either to use with your existing clients or because you use it yourself but even if you haven't created it yet since you already have all the skills it's usually pretty straightforward to turn your information into an attractive product and this is actually a great option for generating passive income i would give it a four out of five for income potential because once you've created the product all the income you earn from it is almost entirely passive so depending on what you're selling this could mean a solid income stream for years to come pat flynn of smart passive income is the king of this strategy he's created several niche sites over the years including foodtrucker.com and securityguardtraininghq.com where he sells unique digital guides to professionals in these fields these sites have great seo so he continues to earn steady passive income from these products to this day even while working on other businesses number two create and sell online courses if you have an awesome digital product but want to take things up a notch the next step is to look into creating an online course that teaches your own framework or skills through video audio or written content i love this strategy because the barrier to entry is pretty low these days you can film quality video on your phone and course hosting sites like teachable podia or teachery all offer relatively affordable monthly plans or you always have the option to diy your own course platform by putting your content onto a private password-protected website or sending it out by email so in terms of an upfront cost we're gonna rate this a one out of five because there are definitely ways to do it cheaply unfortunately the upfront time investment here is more like a four or even a five out of five because figuring out your curriculum and then creating quality content and then packaging it all up into a genuinely helpful course is going to take a lot of effort if you want it to be good but luckily all that effort is worth it because i'm reading this income stream a four out of five when it comes to its potential for generating income over time all you need to get started is your own expertise and a little creativity and with the right marketing or an existing audience or really good seo it can turn into a very lucrative income stream for you as it has for so many business owners around the world there are countless examples in this category of course but some successful course creators include marie poulin of notion mastery matt diabella of the slow growth academy and k he of supercharge your productivity number three create a drop shipping store moving into the world of physical products let's start with an option that is pretty accessible for the beginner entrepreneur drop shipping with this kind of store you're curating interesting products from third-party sellers who are then responsible for manufacturing and delivering them to your end customer since you don't have to pay upfront for your products or store your inventory or ship anything out yourself this can be pretty low stakes only about a one out of five in terms of the upfront financial investment the time investment here comes mostly from doing your research so that you fully understand your ideal customer and the products that will most appeal to their needs and desires you'll also need to devote some time to creating a compelling and attractive online store on a platform like shopify and then integrating it to play nicely with your chosen drop shipping app not to mention it's probably a good idea to do a bit of quality control on your chosen products so i'm going to give this one a 3 out of 5 for the time required up front that said i'm only rating the passive income potential here a three out of five because the truth is that it is pretty hard to stand out with this kind of store since the upfront costs are so minimal anyone can hang up their shingle and get started so the market is pretty saturated unless you have a clearly targeted niche with well-chosen products and really good branding there's actually no guarantee that you're gonna make much money the risk is low but you should expect to put in some sweat equity up front to make this income stream truly passive make sure to click through to the blog post linked in our description box below for our complete dropshipping playbook for 2022 and to see some examples of successful drop shipping sites number four create a print on demand store in this type of business you're developing interesting product designs that will appeal to your ideal customer but you don't have to handle the sale itself similar to drop shipping you won't be responsible for the manufacturing or shipping of your products since a printing company will take care of all of that for you the biggest time investment here is going to be designing your products if you want to find success you'll need to create beautiful designs or catchy slogans that customers will want to purchase and that involves a lot of good market research to make sure you understand your customer inside and out you'll also need to set up your store and make sure it's attractive and easy to use and choose your print-on-demand supplier carefully two that we like are printful and teespring let's rate this a three out of five for the upfront time investment financially it's going to be a one out of five because the beauty of these kinds of businesses is that you only pay for the inventory after you make the sale so while you will need to pay a little to host your online store and you might want to invest in things like branding or marketing materials the actual upfront cost of a print-on-demand store is pretty minimal but you should be aware that the passive income potential is also relatively low maybe a three out of five because unless you have really creative print-on-demand products or an existing large audience it can be difficult to generate sales if you hit upon a formula that works it can be very lucrative and is very passive but getting to that point can be tricky for some beginner entrepreneurs number five start a youtube channel there are lots of ways to make money on youtube including brand partnerships and sponsorship but if we're talking about passive income then it's going to be based on youtube's partner program which works with adsense to give creators money based on their number of video views youtube can be a great income stream but it is important to know that the upfront time investment here is steep to qualify for the partner program you'll need a thousand subscribers and 4 000 hours of watch time which means that you'll need tons of high quality content that people want to watch for most people that's going to be between 50 to 100 videos and it often takes up to two years to qualify for the program so this option is not for the faint of heart i'm calling it a 5 out of 5 for the time and effort required up front financially though it is a prettier picture i'm rating the upfront financial investment here just one out of five because similar to creating an online course these days it's very possible to film high quality video content using only your smartphone and of course hosting your videos on youtube itself is totally free plus there is also good potential for passive income here if you're able to attract enough of an audience to your channel to qualify for the program it probably means that your content is pretty good and interesting which means that people will continue watching your older videos and earning you money with each new view theoretically this means that even if you stopped making new videos your older videos could still generate income for you for years to come it would take a while to get to that point but it's definitely not impossible so i'll rate the passive earning potential here a three out of five number six sell your photos or creative designs if you're a photographer illustrator or designer you always have the option to put your creations up for sale on an online marketplace and generate some passive income for your work if you're already a working photographer or designer the upfront time and financial investments here would be pretty low maybe a one out of five since you would already have all the equipment you need and in many cases you might have already taken these photos or created these designs now if you're just getting started these investments would be higher maybe more like a three out of five since you'd have to buy or borrow a camera or get your hands on some tools for digital design but in either case it's super simple and inexpensive to actually list your work on a site like shutterstock for photographers or creative market for designers and illustrators the income potential here is modest maybe a two out of five since these kinds of marketplaces are already pretty saturated with high quality work which can make it kind of hard for you to stand out but that being said it is a great option to combine with one of the previous income streams i mentioned and create print on demand products but using your own designs or photography this could lead to a lot more passive income depending on your audience size and your marketing either way this is another option where there is really very little risk to trying it out for yourself and out of all the strategies on this list it is probably one of the most passive once you've uploaded your beautiful font or your collection of photos the process of earning income from there on out is almost totally hands off number seven become an affiliate marketer just like with print on demand and drop shipping the beauty of affiliate marketing is that you don't need to hold on to any expensive inventory of your own instead you'll promote products you believe in and if your audience makes a purchase you get a commission for referring that sale financially this is a great option you aren't buying storing or shipping inventory and most of these programs are totally free to join let's rate it a one out of five for the financial investment the time investment is another story while technically you could sign up for an affiliate marketing program in less than a minute the truth is that in order to have any kind of success as an affiliate marketer you're going to need to invest a good amount of time affiliate marketing is totally based on trust and it takes a while to build that connection with an engaged audience by creating high quality content that provides value over time so i'm giving this one a 4 out of 5 for the upfront time commitment lastly there is a good amount of passive income potential here statista estimated that the affiliate marketing industry will reach 8.2 billion dollars collectively

by 2022. still though i'm only giving this one a 3 out of 5 because affiliate commissions on individual sales are generally pretty small meaning that it takes a lot of successful referrals to generate a decent profit but if you can build up a large audience and create a lot of great evergreen content you could definitely be earning passive income for potentially years to come investopedia reported that nine percent of affiliate marketers make over 50 000 american per year so there's really no reason not to try out this income stream for yourself and see what you can build number eight create a rentals business for your assets we've all heard of airbnb but there are so many other great marketplaces popping up to help you generate passive income for other assets too this includes sites like churro for renting out your car neighbor for renting out your extra storage space or even sniff spot for offering your backyard to local duckies now obviously the upfront financial investment here is high because you need to first invest in the asset itself which if we're talking about a car or a home can be really expensive i'm giving this one a four out of five because we all know these things ain't cheap but you might be surprised at the market that exists for other items too like baby quip for baby equipment kit split for camera rentals or even style lend for your clothing the time investment here is pretty low maybe a two out of five because by creating a profile and uploading a few photos you can be up and running in just a few minutes that being said if you want to stand out on these platforms it's a good idea to invest a bit more time in making sure that you create quality listings that answer frequently asked questions respond quickly to any inquiries you get and keep the assets you're lending clean and in good shape still there is a lot of passive income potential here because after that initial investment you're not really that involved in the use of the item think of someone renting out construction equipment or owning a laundromat once they establish the business and buy their inventory the rest is up to their customers so this can be a relatively efficient and low effort way for you to generate income for assets that you already own i'm going to rate it a 3.5 out of 5 for the passive income potential meaning it's definitely worth a shot number 9 record audiobooks one surprising option for generating passive income is to become an audiobook narrator typically narrators are paid based on royalties when the book sells or is selected on a platform like audible and the more successful a book is the more money you can be paid for narrating it now the upfront time investment here is obviously pretty intense let's call it a five out of five that's because not only is the process of reading and recording an audio book fairly time intensive but you also have to factor in all the time that you spend searching for titles on a platform like acx and auditioning for book contracts that you might not even receive this is a really high barrier to entry and might be a lot of work to even land a single contract that said the upfront financial investment is low about one out of five all you'll really need to get started is a good quality microphone a quiet closet in your house to record in and a computer for editing the book you record if you can borrow any of this equipment even better and the passive income potential here is pretty decent i would give it a 3 out of 5. once you've finished recording the book any income you generate will be completely passive and hands-off which is really convenient if you pick good book projects that are likely to become good sellers that could turn into good income because as a narrator you can charge 50 of an author's royalties for their audiobook sales and once you're in the industry the time investment goes way down so this could turn into a great career if you have the right combination of skills for it number 10 invest in real estate or the stock market okay i know what you're thinking steph i do not have enough money to invest in the stock market or buy real estate and i hear you but the fact is that you actually can invest in both the stock market and the real estate market with whatever capital you currently have and it's one of the best ways to generate truly passive income even if you can't afford to buy a property all on your own you can use the money you do have to invest in real estate investment trusts which are companies that manage real estate properties owned by multiple investors and it's actually easier than ever to do so nowadays thanks to new platforms like willow in canada and fundrise in the united states whether we're talking about the stock market or real estate i'm going to rate the upfront financial investment a three out of five because well yes you do need some money to get started the capital that you choose to invest can be totally customized to your budget and your circumstances these days you can easily start investing for less than a hundred dollars the upfront time investment is going to be the same a three out of five you will want to devote some time to doing your research into the best stock market portfolio or which properties you want to invest in but actually getting set up on these kinds of platforms is not that hard especially if you're using a robo advisor like wealthsimple you could be investing in the stock market in just a few clicks and the onboarding process at a platform like willow is similarly super easy and intuitive but the passive income potential here is really good probably a four out of five the income you earn is almost completely passive since many of these investment options are as close to set it and forget it as you can get and both the stock market and the real estate market have good rates of return over time the more you can invest the more passive income you can make and the sooner you can start the better now if your chosen passive income strategy involves ecommerce you're going to want a platform that can keep up with and support you as your business grows over time whether you're deciding to try your hand at drop shipping or print on demand or selling digital products shopify is going to be your one stop shop for building a business that works for you shopify has so many built-in options to make the e-commerce experience seamless for both you and your customers and if you ever need to take your store even further you can add on literally hundreds of useful apps and services within the platform itself it's easy and fast to set up your store not to mention totally free for the first 14 days you won't even have to enter your credit card details to get full access to every single shopify feature so there's literally no risk to trying it out click the link in our description box below to start your free trial and start building your online store right away the last thing that i'll say on this topic is that it's so important to be patient as you're building these businesses nothing good happens overnight and that's even more true when it comes to creating truly passive income the good news is that the best passive income strategies will grow in compound over time so stick with it and you might be surprised at how much success you can find if you keep on going now as i said before this is literally the tip of the iceberg when it comes to ideas for generating passive income so i would love to hear from you what are your favorite ways to build passive income streams into your business which ones did i miss let me know in the comments down below so that we can do a deep dive into your favorites in a future video speaking of future videos if you are not already subscribed to the channel scroll on down and hit that subscribe button we are bringing you new videos every single week to help you start or grow your online business and we have got a lot of great content heading your way soon that you will not want to miss but in the meantime there is also so much to explore here already on the channel including an entire playlist of great business ideas and another one full of product ideas to inspire you even further so check those out they'll be linked down below for now i'm going to sign off and thank you so much for watching i'm stephanie pellet and i'll see you next time you

2022-09-05 07:01

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