You have probably hear it often enough to make you believe that it takes money to make money and this is partially true, but some businesses require less money than others.
For instance, online business are particularly known for a small initial investment of money but as it’s often the case a higher investment of time.
Passive income does not mean ‘making money without any work whatsoever’ but usually means and initial investment in work or money that will provide regular income over a period of time. According to investopedia.com “Passive income is earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved (all the time).” Now this is the dictionary definition but as technology disrupted more markets, passive income got a bit more diversified.
Before listing them I just want to add that this is not another article praising the get rich passive income schemes. These are just some ways to make some extra money not your shortcut to wealth.
E-Commerce – Ebay, Amazon or OLX can be a great way to use marketplaces to sell stuff. The arbitrage selling is the most promoted passive income activity. it requires an initial product development, investment in software that will intermediate the business process and initial investment for products. But bare in mind, all those Gurus out there selling get rich schemes are hoax. They are becoming millionaires by selling courses not by e-commerce. The only proven and real way to become millionaire by e-comm is having a very succesfull marketplace or an online shop.
Marketplace renting – Airbnb is probably the most popular service out there and needs no introduction. Your investment requires a property that you can rent as a hotelier.
Sharing Economy applications – Other marketplaces are enabling the individuals to share or rent their cars. This is not to be confused to UBER or LYFT, because this is a different market, the rent-a-car market.
Blogging – Blogging not new but remains still a great way to build your own ‘billboard’ and monetize it by using Adsense from google, display ads and advertorials sales.
Affiliate marketing – Affiliate means referral sales from your online activities. Readers are reading your post, social media content and are redirected to businesses in order to make a purchase. You get paid a percentage when the sale is finalised. Be aware of fake gurus… they are everywhere on social media.
Stock market – Online platforms are more than happy to invest for you or intermediate as a broker for you to buy stocks all over the world. Stock market is just one investment solution using the mutual funds.
SaaS – Stands for Software As A Service, and basically it means that you charge people per access to a proprietary software. This fee could be one time, monthly, yearly. If you don’t have a product at all then, you have two options, Either come up with a new idea or improve an existing SaaS product.