Passive income is the dream of any person, because it allows you to be confident in the future, do what you love and have enough time for self-development and self-improvement. However, not everything is as simple as it might seem at first glance. After all, passive income requires preliminary preparation in the form of accumulation of initial capital, which is necessary to create a source of passive income. On the other hand, modern tools make this process much easier than it was ten years ago.
This article provides a detailed guide to what passive income is, how to start receiving it, and how to properly prepare for it.
- What is passive income
- Types of passive income
- How to create passive income from scratch
- Sources of passive income: 15 ideas for a quick and easy start in 2021 Bonds
- Real estate
- Bank deposit
- Mutual funds
- Own website or blog
- YouTube channel
- Personal brand on Instagram
- Works of art
- Patent for technology or device
- Courses
- Earnings from referrals
- Purchasing an existing business
- Renting out equipment or transport
- Advertising on LED screens
- Earning money on stocks
- Stock
Try index funds
Index funds allow you to earn income from investing in the stock market completely passively. For example, if you invest in a fund based on the S&P 500 index, your money will be invested in the overall market, and you won't have to worry about how to manage your money or whether to sell or buy shares of certain companies. All these points will be managed by the fund, which forms its investment portfolio depending on the state of a particular index.
You can also choose a fund that covers any index. There are funds involved in various business sectors - energy, precious metals, banking, emerging markets and others. All you have to do is decide for yourself that this is what you want to do, then invest the money and relax. From now on, your stock portfolio will run on autopilot.
No. 17. Dry fog as an odor remover
Dry fog is so named because the device that is used to eliminate odors splashes out a special air suspension that looks exactly like fog. In fact, the mixture has a special composition that is sprayed in the form of microscopic crystals. They are able to penetrate even the smallest holes and gaps, simultaneously absorbing any odors.
The dry fog sprayer is not bulky at all. Like a vacuum cleaner, it can be carried with one hand. The cost of such a unit varies between 20-30 thousand rubles.
In addition to the device itself, as a consumable, you will need to purchase the liquid itself, from which the “miracle machine” will generate fog. The cost of one bottle is about 100 rubles. It is enough for about 1 whole car, if you need to remove the smell from the car.
The odor removal procedure takes about forty minutes. In experienced hands – even less. Dry mist can deal with many odors. For example, it calmly removes the old smell of tobacco in the cabin. According to statistics, you don’t have to think about the appearance of this smell after the procedure for at least a whole month.
When building a business, you don’t need to inflate the price tag for the procedure, this way you will get more clients. 500 rubles at a time will be quite enough. The main thing to remember is that in order to achieve the effect, you must first remove the object that is the source of the smell. So, if it is a spoiled, rotten product, then you first need to remove it, and then begin the cleaning procedure.
Another important detail is the plaque. It can form when a mist suspension settles. Therefore, you should remember safety precautions when covering important elements with film.
Prices for services are usually based on area. The larger the room where you want to remove the smell, the higher the price tag for the procedure.
Advantages – Low competition Disadvantages – Difficult search for clients
Make videos for YouTube
This area is developing very quickly. You can make videos of absolutely any category - music, educational, comedy, movie reviews - anything... and then post it on YouTube. Then you can connect Google AdSense to these videos, and automatic advertising will appear in them. When viewers click on these ads, you will earn money from Google AdSense.
Your main task is to create decent videos, promote them on social networks and maintain a sufficient number of them to provide yourself with income from several clips. Shooting and editing a video is not that easy, but once done, you will have a source of completely passive income that can last for a very long time.
Not sure you'll succeed on YouTube? Michelle Phan combined her love of makeup and drawing with video production, gained more than 8 million subscribers, and now launched her own company with a capitalization of $800 million.
Photo: Michelle Phan
Professional reviews
Today, many projects have a “Bounty program”, according to which any user can receive a monetary reward for leaving feedback in the form of a review, video, comment, etc.
Most often, such opportunities are provided by HYIP (hype projects) and casinos. In some of them, the payment for a quality review reaches $70-80. You can use this program and invest the proceeds in a project that interests you.
Remember that this is income with some risk. You may lose money immediately after investing and not earn anything. Remember that this is a type of financial pyramid and there are many scammers in this niche.
Provided by SendPulse
Try Affiliate Marketing and Start Selling
This is a passive income technique that is more suitable for owners of blogs and active Internet sites. You can start promoting any products on your website and receive a fixed fee or a percentage of sales.
Making money this way is not as difficult as you might think because many companies are interested in selling their products in as many places as possible.
You can find partnership offers either by contacting manufacturers directly or on specialized websites. It is best if the advertised product or service is interesting to you or matches the theme of the site.
Vending
Vending is suitable for those who want to make maximum profit with a minimum of effort. Starting such a business is quite simple and quick, with a starting capital of 100 thousand rubles. With this money you buy a vending machine for a specific product, install it in a crowded place and start earning money. Your participation in the business is minimal: it is enough to come 2-3 times a week to replenish goods or consumables and collect the proceeds.
The most popular vending machines brew coffee and dispense snacks. But today the vending format is relevant for a wide variety of goods and services. A vending machine for jewelry, lenses, flowers, accessories for smartphones, a vending machine for printing photos from social networks and photo booths - all this can be classified as a vending business. Guides to starting a business using a variety of vending machines can be found here. And here is a selection of 90 unusual vending machines.
The essence of this format is the possibility of a quick start with small investments and minimal participation in the business.
Make your photos profitable online
Do you like photography? If so, you may be able to turn this into a source of passive income. Stock photo sites like Shutterstock and iStockphoto can provide you with a platform to sell your photos. You will receive a percentage or flat rate for each photo sold to a website client.
In this case, each photo represents a separate source of income that can work over and over again. All you need to do is create a portfolio, upload it to one or more platforms, and that's where your active work will end. All technical issues of photo sales are resolved using the web platform.
What is passive income
The concept of passive income
Passive income
is a way to earn a stable income that requires a minimal investment of time. The source of income in this case is an asset for the creation of which money or time resources were previously spent. At the same time, the flow of money that the owner of the asset receives does not depend on the state of health, active earnings or the presence of a business. In simple terms, passive income is money that is earned without the direct participation of a person.
Anyone who makes passive income and lives on the funds received is called a rentier.
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Read the full article: Who is a rentier and how to become one. How to invest correctly
There are at least five important differences
:
- With active earnings, profit comes for completed tasks and, as a rule, after the successful completion of a certain amount of work; passive income comes to the account, regardless of whether you worked or not in the current month;
- To earn money with active income, you do not need any assets or sources - the only asset in this case is knowledge and skills; with passive income, an asset or start-up capital is required;
- Active earnings require serious time investments; with passive income, a very small amount of time is devoted to work and this is often not required;
- If you lose your job, the cash flow while actively earning money is immediately interrupted; with passive income, it is continuous, however, in order to insure yourself against risks, it is recommended to invest money in several projects simultaneously;
- With an active income, it is impossible to achieve financial stability and independence, since the demand for you as a specialist depends on many factors; Passive income provides financial stability and is much less dependent on external factors.
Buy high-yield stocks
By creating a portfolio of high-yield stocks, you will receive a source of regular passive income with an annual interest rate that is much higher than the interest on bank deposits.
Don't forget that high-yielding stocks are still stocks, so there's always the possibility of capital overvaluation. In this case, you will receive profit from two sources - from dividends and return on invested capital. To purchase these shares and complete the appropriate forms, you will need to create a brokerage account.
Selling old things and junk
In times of crisis and limited resources, these areas can become profitable. There are many successful ways to implement the idea of earning money from old things. For example, here are a few such ideas:
- Second-hand bookshop
- Renting decor in vintage and retro style
- Museum of Old Things
- Recycling collection point
- Second-hand and consignment stores.
Read more about how to make money on old and unnecessary things here.
Write a real book and get royalties
Just like writing an e-book, there's a lot of work involved at first. But when the work is completed and the book goes on sale, it will become a completely passive source of income.
This is especially true if you manage to sell your book to a publisher who will pay you a royalty on the sales. You will receive a percentage of each copy sold, and if the book is popular, these percentages can add up to significant amounts. Moreover, these payments can last for years.
Mike Piper of ObviousInvestor.com recently did just that. He wrote a book, Investing Plain, which was sold only on Amazon. The first book became so profitable that he created a whole series. These books collectively bring him six figures annually.
Sell your own products online
The possibilities in this area are endless: you can sell almost any product or service. It could be something you created and made yourself, or it could be a digital product (software, DVDs, or instructional videos)
For trading, you can use a specialized resource, if suddenly you do not have your own website or blog. In addition, you can enter into a partnership agreement by offering goods to sites on relevant topics or using platforms like ClickBank (an American marketplace for selling digital information products - editor's note).
You can learn how to sell products online and earn quite a lot from it. This may not be completely passive income, but it is certainly more passive than a regular job that you have to go to every morning.
That's not all
There are many more ways that I don’t know or guess about yet. Communicating with different people, I constantly learn about new methods of generating passive income.
Last year, while wintering in Asia on the island of Bali, I met Nikita. He has been traveling non-stop for several years and selling goods through Amazon.
I can’t tell you exactly the whole earning algorithm, but its essence is that Nikita takes an ordinary product that is already on the market, fully packages it, brands it, looks for a manufacturer-supplier in China or somewhere else, and puts the product on Amazon . All this is done completely remotely via the Internet.
Next, he only orders the production of the product, sends it to Amazon warehouses and makes sure that the product is in stock. Everything else: advertising, sales, delivery is handled by Amazon, paying Nikita most of the profits.
Invest in real estate
This method falls more into the category of semi-passive income, since investing in real estate involves at least a small level of activity. However, if you have a property that you're already renting out, it's mostly just a matter of maintaining it.
Additionally, there are professional property managers who can manage your property for a commission of approximately 10% of the rent. Such professional managers help make the process of receiving profits from such investments more passive, but they will take part of it.
Another way to invest in real estate is to pay off a loan. If you take out a loan to buy a property that you will rent out, your tenants will pay off that debt a little each month. When the full amount is paid, your profits will increase dramatically, and your relatively small investment will turn into a full-fledged program for quitting your day job.
Sources of passive income: 15 ideas for a quick and easy start in 2021
Simple ways to generate passive income
As mentioned above, to create a source of passive income you need starting capital
. In some cases, you can get by with just a temporary investment, but even here you will need minimal savings, such as purchasing a domain and hosting when starting your own blog, or high-quality professional photos when creating your own blog.
This section describes sources of passive income that are available to users of any level of investment knowledge, as they are less risky and easier to start.
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However, remember that even if you choose one of the simple methods below, before investing money, you need to study the information in detail and assess the possible risks.
Bonds
Generating passive income with bonds
Bond
is a debt security in which the issuer undertakes to return the borrowed money and interest on it within a specified period. Both companies and the state can issue bonds, but the latter are considered more reliable.
Bonds are the choice of conservative investors and are one of the lowest risk instruments. When choosing, you need to pay attention to two important factors:
- Net profit;
- The share of equity in assets (the best indicator is considered above 50%)
.
You can earn about 6% per annum on bonds by purchasing government debt securities, and 15-20% on high-yield bonds. For investment you will need at least 1,000 rubles, but you won’t be able to earn much with such starting capital.
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Read the full article: Bonds as a type of investment
Real estate
Earning passive income from real estate
The real estate market is a popular source of creating passive income, which even now, in the era of mass virtualization, has not lost its relevance. There is room to expand here, because this area is not new and there are a sufficient number of ways to make money in it.
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The only negative is the high entry threshold, it is at least 1.5 million rubles when purchasing real estate.
Ways to make real estate a source of passive income:
- Short-term and long-term rental of an apartment
makes sense only in big cities, otherwise supply will exceed demand, and the price will have to be significantly reduced to find tenants. The minimum required amount is 1.5 million rubles, but it greatly depends on the city. You can rent an apartment long-term through Avito, short-term - through Avito, Booking or AirBnb. The yield is about 5-7% for long-term rentals and about 10% for short-term rentals; - Leasing commercial real estate
- there is already a higher entry threshold, which is at least 5 million rubles, but in general you need to focus on 10 million rubles. However, you can earn above 10% (a good result). 10% is an average figure, but if the profitability is below 10%, then such a business is considered unprofitable; - Real estate abroad
can provide a yield of 20% per annum (average value 10-15%), but this business is associated with certain difficulties. In particular, both rental and resale (if you buy an apartment at the foundation pit stage) will have to be carried out through intermediaries. The entry threshold is from 2.5 million rubles; - Creating a hostel
- you can buy a spacious apartment on the ground floor, divide it into rooms and rent it out through Booking or AirBnb. If you don’t want to spend personal time communicating with guests and organizing arrival and departure, you can hire a management company. The required starting capital is from 10 million, and the profitability can reach up to 15-16% per year; - Apart-hotel room
- you can purchase a separate hotel room and rent it out through the hotel management company. The entry threshold is 2.5 million rubles, income is about 15% per annum. However, this method has one very serious drawback, which is that if the hotel’s rating on Booking or another service falls, then the income will also fall, and it will be very difficult to sell such real estate, because no one wants an unprofitable business; - New buildings at the foundation pit stage
- the purchase of a future apartment for the purpose of subsequent resale. Entry starts from 1.5 million rubles, and you can earn about 30-50% one-time; - Sublease of real estate
- the essence is to rent a premises for a long period (the price is more favorable than when renting for a couple of months), after which individual rooms are rented out. This can be either commercial or residential real estate. The entry threshold is about 200,000 rubles, and the income is about 15% per annum. However, keep in mind that responsibility to the owner of the apartment falls not on the subtenants, but on the tenant, so the choice of tenants must be taken very seriously.
Bank deposit
Passive income on a bank deposit
Bank deposit
- a standard and time-tested source of passive income. All banks offer to put money on deposit and receive income in the form of interest. Most banks offer deposits in both rubles and dollars. For ruble deposits, the annual rate usually does not exceed 7%, and the minimum initial amount is 1,000 rubles. On dollar deposits, on average, you can earn 2% per annum with a minimum deposit of $100.
Despite the fact that a bank deposit is one of the easiest ways to earn passive income, there is a big drawback that in the event of bankruptcy, the bank has the right not to return deposits and earned interest.
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Also, given the current situation with the crisis and rapidly growing inflation, bank deposits are not the best source of passive income. Moreover, some banks introduce negative rates, this is when the client must pay the bank for storing funds on deposit.
Mutual funds
Mutual investment funds as a source of passive income
Mutual investment fund (UIF)
) is an association of investors without creating a legal entity, in which each participant owns a certain share of the fund’s property. Management is carried out by a management company - an accredited stock market investor.
The company charges a commission for managing the fund, which usually ranges from 2% to 5, which is quite a lot.
For example, with a difference in commission of only 2.5%, about 58% of the mutual fund’s income is “eaten up” in 20 years.
In addition, profitability is highly dependent on the choice of the management company in which securities to invest.
Own website or blog
Passive income on your own blog
Earning money on websites is one of the very first ways to generate passive income since the time when the Internet became a mass product. There are several ways to make money, but each of them will require either investing money or a lot of personal time.
In the first case, we are talking about buying an already promoted website on a certain topic or starting a website from scratch with the involvement of professional authors, who, naturally, will have to pay for the content, as well as an SEO optimizer, which will attract traffic to the site. The average entry fee into such a business is 100,000 rubles, and the profitability is up to 65% per year.
In the second case, you can save money if you are well versed in a certain topic and know how to clearly and competently express your thoughts in writing. In addition, you will have to gain knowledge in the field of SEO optimization if you are not willing to pay a specialist. However, keep in mind that promoting a website created by the efforts of one person, with proper organization, can take from several months to several years.
There are two ways to monetize websites:
- Search advertising by Google and Yandex. Passive income comes from impressions, clicks and leads. Payment is calculated daily and can range from 5,000 to 300,000 rubles per month. In most cases, one person owns 10 websites, each of which brings in about 30,000 rubles per month;
- Direct advertisers - at the initial stage, while the site is not yet particularly popular, you will also have to search for advertisers in a certain field. Earnings vary depending on the area and specific case, so it is impossible to give specific figures.
There is another way to make money on sites. To do this, you create a landing page on a specific topic, for example, that your company allegedly creates custom fireplaces. Next, you optimize the site and attract traffic to it. True, it’s worth saying here that promoting a landing page organically is very difficult, if not impossible, so there will be additional costs for contextual or targeted advertising.
After attracting leads, you need to find a company that provides these services and agree to rent out the landing page. Both monthly payment and payment for each lead are possible. On average, you can earn about 20,000 rubles per month this way.
YouTube channel
Passive income on YouTube
YouTube is an open platform, and everyone can present their creativity and earn real money from it. If you have acting talent and are knowledgeable about a particular topic, starting a YouTube channel can be a good source of earning passive income. True, before this you will have to actively work on promoting the channel.
There are three ways to make money on YouTube:
- Google AdSense Affiliate Program;
- Direct advertising from companies and brands;
- Donations from subscribers and sponsorship.
In 2021, in order to monetize your YouTube channel, you need to achieve certain results:
- More than 1,000 people must be subscribed to the channel;
- Watching time must be at least 4,000 hours within the last year.
- As for the amount of income, it very much depends on the subject of the channel and the content produced.
For each 1 owner receives from $20 to $50.
And as already mentioned, you can additionally earn money through direct advertising or donations.
Personal brand on Instagram
Creating a personal brand on Instagram
With the advent of Instagram, a new way to earn passive income has appeared - creating a personal brand and cooperation with companies and brands. However, here, as in the case of a YouTube channel, you will first have to work on promotion and reputation. And this will require funds and a lot of personal time.
How much you can earn in this way is a very difficult question, because it depends, not least of all, on luck, which companies will pay attention to you. But in general, prices are approximately the following in 2021 (the price is indicated for one advertising campaign):
- 4,000 - 10,000 subscribers - 500–1,000 rubles;
- 20,000 - 13,000 subscribers - 2,000 - 5,000 rubles;
- 50,000 – 100,000 subscribers – 10,000–30,000 rubles.
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Interesting fact! Dwayne Johnson, before signing a contract to star in a new film, takes an additional $1 million for advertising it on his Instagram account.
There is also data on advertising on Instagram of famous personalities of Russian show business:
- Olga Buzova’s one advertising campaign costs 250,000 - 300,000 rubles;
- Sergei Shnurov has 1.5 million rubles.
Works of art
Passive income from a work of art
If you have well-developed creative abilities, you can provide yourself (and in case of phenomenal success, also your children and grandchildren) with passive income by creating a work of art. It could be a book, a song, a painting, etc.
For example, if you wrote a book, you can publish it on the Internet and earn income from each download by users. You can also try to contact a real publishing house and receive passive income from the sale of copies. However, there is a risk of being rejected due to high competition among authors.
In the case of a song, everything is even simpler, since the video clip can be posted on YouTube, ensure good promotion and, if the result is good, receive payment for views and receive orders for performances. You can also upload your songs to iTunes, Spotify and similar platforms.
Patent for technology or device
Passive income from patents
One of the oldest sources of passive income, which however is available to few, is receiving income from the use of patented technology by manufacturers. If you do not have a sufficient budget for the development or presentation of technology, funds can be raised through crowdfunding.
Courses
The second name for this activity is information business. If you are an expert in a certain field, develop a course or webinar and earn passive income from downloads. Webinars can be conducted via YouTube or Zoom. And the well-known educational platform Udemy is suitable for selling courses.
Earnings from referrals
How to earn passive income from referrals
Referrals
— these are users who followed your link within a specific program. The bottom line is that the more a referral uses the service (the greater his turnover), the more you earn. Referral programs are offered by stores, cryptocurrency exchanges, sites for making money on the Internet, etc.
You can attract referrals by placing referral links on various resources: websites, blogs, social networks, through email newsletters and instant messengers.
Earnings range on average from 1% to 50% of the amount spent/earned by the referral.
This method does not require investment of money, but you will have to spend a lot of time to make it a truly profitable source of passive income.
Purchasing an existing business
Passive income from a ready-made business
Everything is simple here - you need to find profitable offers for the sale of an already established business, conduct a thorough audit of it to identify all the shortcomings, remove bottlenecks and receive income from work.
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However, you need to be very careful when buying, since usually no one will sell a successful and profitable business.
To make business income truly passive, you need to transfer control to a responsible person, but this should only be done at the stage when. In addition, you should very carefully choose the person to whom you are going to delegate your responsibilities. But remember, transferring control to a trusted person is always a risk.
In addition, according to a recent study, companies run by founders, rather than hired executives, earn more.
Renting out equipment or transport
Passive income from renting out equipment
This method brings good passive income and requires minimal activity. As a rule, the cost of short-term rental is quite high, so the costs of equipment or transport will pay off very quickly. However, on the other hand, you need to be prepared for the fact that tenants can damage or even completely render the property unusable.
You can rent out different types of equipment: commercial, industrial, production, construction tools.
If renting a vehicle is of greater interest to you, then you can start by renting bicycles, scooters or modern electric modes of transport. The initial capital in this case will be significantly lower than for organizing car rental. However, this type of activity is only suitable for large cities where transport rental is a popular service.
Advertising on LED screens
Passive income from LED screens
An LED screen can become a source of stable passive income.
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However, first you need to find a profitable advertising space and agree on a lease with the owner - exactly where the LED screen is located ensures 60% of success.
You also need to find clients, preferably for long-term rentals.
The initial investment is from 1 million rubles, which will pay off within one to two years.
You can earn up to 50% of your investment monthly with constant screen operation. 1,000 seconds of broadcast (100 impressions/day for 10 seconds) costs approximately 25,000-30,000 rubles per month. When the screen operates 18 hours a day, the maximum number of impressions will be 550-860.
For example, if you enter into a long-term lease with five companies, then you can earn 150,000 rubles per month, with 10 - already 250,000 rubles, excluding expenses. If you organize your work competently and take a responsible approach to finding clients, then you can earn 750,000 - 900,000 rubles per month.
Earning money on stocks
Passive income from photo stocks
You can use this source of passive income if you create a database of images (photos or illustrations) and upload them to special sites (microstocks). Some sites also allow you to upload videos and 3D models. Payment is charged for each download, and the site takes a portion of the earnings in the amount of 40-80%. You can also sell image rights. in this case, you can earn more, but the picture will no longer be able to generate passive income.
The amount of earnings depends very much on the site, specific works, the author’s ability to “feel the trend” and profile rating. On average, you can earn the following amounts per month from stocks:
- 100-500 works - $50-100
- 500-800 works – $200-1000
- More than 800 works - $1000-5000.
The most popular and largest microstocks:
- Shutterstock;
- Stock Adobe;
- DepositPhotos;
- DreamsTime.
10 more ways to earn passive income are described in the video below:
10 ways to make passive money
Buy a blog
Thousands of blogs are created every year, and many of them end up abandoned after some time. If you can acquire a blog with enough visitors—and therefore enough cash flow—it can be a great source of passive income.
Most blogs use Google AdSense, which pays once a month for advertising placed on the site. To provide additional income, you can also enter into partnership agreements. Both of these income streams will be yours if you own a blog.
From a financial perspective, blogs typically sell for 24 times the monthly income the blog can generate. That is, if a site can earn $250 per month, most likely you can buy it for $3,000. This means that by investing $3,000, you can receive $1,500 annually.
You may be able to buy the site for less money if the owner really wants to get rid of this asset. Some sites contain “eternal” materials that will not lose relevance and will generate income years after publication.
Bonus tip : If you buy such a site and then fill it with fresh content, you will be able to increase your monthly income, and you will be able to sell the site again after some time for significantly more than what you paid when you bought it.
Finally, instead of purchasing a blog, you can create your own. This is also a good way to earn money.
Develop a useful service or program
I have to use dozens of paid services, different programs and applications on my phone every day. Every month I pay a subscription fee for them. Surely you, too, have paid at least once for similar tools that help solve some problems.
Passive income consists of the fact that the developer, having created such a service, sells monthly access to it.
Or it could even be completely free, but contain ads. Here's an example of the LightShot screenshot program that I and millions of people use every day. It's free, but when you upload a screenshot to the cloud, it appears with ads. I think developers make good money this way.
Invest in real estate investment trusts (REITs)
Let's say you decide to invest in real estate, but you don't want to devote any attention or time to it. Investment trusts can help you with this. They are something like a fund that owns various real estate projects. The funds are managed by professionals, so you don't have to interfere with their work at all.
One of the main advantages of investing in REITs is that they typically pay higher dividends than stocks, bonds and bank deposits. You can also sell your interest in the trust at any time, making such assets more liquid than owning real estate on your own.
File hosting services
These are special sites where you can store your files indefinitely, and for each download you get paid. Here are a few resources with adequate payment:
- File-Seven.ru,
- Ska4ay.com,
- CostAction.com
- FileSpace.com.
This method is suitable even for students. You can upload files with lectures, textbooks and other materials and distribute the link among your fellow students. The more people come and download the document, the higher your income will be. However, keep in mind that those who come through your link will see rather aggressive advertising, which not everyone likes.
Become a source of recommendations
Every small business needs a source of referrals to support sales. Make a list of entrepreneurs whose services you use regularly and whom you can recommend for cooperation. Contact them and find out if they have a system for paying for referrals.
The list could include acquaintances: accountants, landscape designers, electricians, plumbers, carpet cleaners—anyone. Be prepared to recommend the services of these people to your friends, relatives and colleagues. You can earn a commission on every referral just by talking to people.
Don’t underestimate referral programs in the professional sphere either. If the company you work for offers bonuses for referring new employees or new clients, take advantage of it. This is very easy money.
Websites for daily earnings without investments - with payments every day
Above I told you how much you can earn, now I will tell you on which sites you can earn money daily and without investment.
I will tell you about proven sites for making money that I personally worked on at the beginning of my journey.
I also looked at all the newest and most current sites that work without fraud and pay money to their users.
Let's start with simpler sites that do not require special knowledge; such sites are very suitable for beginners.
Rent out your unused property on Airbnb
The concept of Airbnb appeared only a few years ago, but very quickly spread throughout the world. Airbnb allows people to travel the world and pay much less to stay than in regular hotels. By participating in Airbnb, you can use your home to host guests and earn extra money just from renting.
The amount of income will depend on the size and condition of your home and its location. Naturally, if your home is located in an expensive city or near a popular resort, the income will be much higher. This is a way to make money from free spaces in your home that would otherwise be empty.
Creation of an intellectual product
It’s hard to believe, but it doesn’t happen that a person doesn’t think about anything. Thought processes in the head do not stop even during sleep. It is convenient to express your ideas and thoughts in the form of text, drawings, videos, texts, and indeed any type of creativity that is known to the world. The most striking examples are that you can write an interesting book, paint a picture or compose a musical composition that will become a worldwide hit, and those who like to delve into the computer can find themselves creating unique programs or games.
Having worked on creating an intellectual product once, you can sell it an unlimited number of times as long as it remains in demand. The main thing is to declare copyright on the created product so that no one else can receive income from your idea, or pay you a certain percentage of your earnings for it.
Write an application
Apps can be an incredibly lucrative source of income. Think about how many people have smartphones today. Yes, almost everything! People are downloading apps like crazy—and for good reason.
Apps make people's lives easier. Whether it's helping you post pretty pictures or keeping track of tasks, there's always an app that's useful to someone.
You might ask: If there are so many apps out there, why would you try to create another one. Is there too much competition? This is all true, but fresh, creative ideas can benefit. If you can come up with something unique, you can make money from it.
Don't know how to program? No problem, you can learn. There are a lot of different courses on the Internet, including free ones. Alternatively, you can hire a developer to create an app based on your idea.
The end result is an application that will potentially generate relatively passive income.
How to get high passive income: the most profitable ways in 2021
Risky ways of obtaining passive income
The methods of obtaining passive income described above were simple and relatively risk-free, i.e. they are theoretically suitable for anyone.
Below we will describe sources of passive income that require knowledge of the stock market and how financial instruments work. In addition, these methods involve high risk, so diversification of investments is mandatory in this case.
Stock
How to invest in stocks to earn passive income
Stocks
- This is one of the most popular and profitable ways to generate passive income, but it is also the most risky. To start making money on securities, you need to at least master the basics of technical analysis and study how the stock market works. To start working with shares, you need to open a brokerage account.
On average, stocks earn 20% per year.
There are two ways to earn income in the stock market:
- Dividends
- the average income is only 3% per annum, but you don’t need to do anything; - Participation in trading
- here you can earn the above-mentioned 20% per year, and with active daily trading with an understanding of the processes, much more, however, in this case, passive income turns into active.
The most risk-free stocks that are suitable for beginners - “blue chips”
(securities of well-known companies) - they provide a stable, relatively small income. You can earn significantly more by investing in undervalued stocks, but this method is more suitable for advanced users, as it involves a higher risk.
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Read the full article: Stocks: how to buy them and how to make money on them
REIT
Passive income from
real estate investment trusts (REIT)
are real estate funds on the American stock market. on which you can invest through brokers. They can be hired from both American and Russian specialists, but if you choose the latter, the choice will be very small.
REITs engage in a variety of real estate transactions, including construction, buying and selling, and leasing. Those. When you invest in a REIT, you are investing in a real estate business.
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These funds direct 90% of their profits to dividend payments, so you can earn here on average up to 75% per annum.
However, there is one drawback to this type of passive income: in times of crisis, REIT quotes fall in the same way as stocks. That is why we included this method of passive income in the section for experienced users.
Trust management
Passive income on trust management
Trust management
- This is a very simple way to organize passive income, but it is very risky in the sense that finding a professional and responsible trader is not an easy task.
The only plus is that you don’t need to waste your time at all, since trading is completely handled by a hired specialist. However, he has more advantages than you, since in the case of successful trading he receives a profit, and in the case of unsuccessful trading, all losses fall only on you.
Therefore, you need to approach the choice of a trader as responsibly as possible. To do this, you need to pay attention to three important points:
- Checking the brokerage report - the ratio of successful and failed transactions;
- Account monitoring;
- Only you should have access to depositing and withdrawing money; the trader will only have enough rights to conduct trading operations.
Cryptocurrencies
Passive income on cryptocurrencies
Cryptocurrencies
is a new financial instrument, so by default it has an increased risk. Bitcoin and alcoins provide very wide opportunities for earning money. The cryptosphere can offer the following ways of income:
- Trading - Unlike stocks or REITs, you don't need a broker to trade cryptocurrencies. All transactions take place on cryptocurrency exchanges, where anyone can register. However, trading takes time;
- Mining is the extraction of cryptocurrencies using powerful computing equipment. The most popular cryptocurrency for mining is Bitcoin, but creating such a mining farm requires serious investments;
- Staking - participation in the network as a validator to confirm transactions. No special equipment is required, but investments are required to purchase a deposit for staking;
- Participation in IEO means buying a coin at the pre-sale on the exchange, after which it can be sold at a much higher price;
- Creating your own cryptocurrency will require serious investments in the development of truly unique technology, promotion and marketing of the coin, as well as legal issues related to regulators.
It is difficult to determine the specific profitability that can be obtained on cryptocurrencies, since this area is still very young and each of the methods described above has its own characteristics and nuances.
ETF
Passive income on ETF
ETF(Exchange Traded Fund)
- another way to receive passive income in the stock market, which is a ready-made set of shares, gold, bonds and other assets. There are also ETFs that represent entire sectors of the economy, such as information technology, medicine, energy, etc.
On the Russian stock market, the choice is limited to only 40 ETFs, since this instrument appeared only in 2013. Features high commissions for providers. However, the entry threshold is from 1,000 rubles, and passive income ranges from 5% to 45% per annum.
In the American stock market, the choice of ETFs is much wider - there are about 2,000 of them. Commissions are much lower than for Russian ETFs. Entry into the tool is only $50 and you can earn from 5% to 50% per year.
Create online courses
Every person is an expert in something. Why not create an online course about your passion?
There are several ways to create and deliver your own online courses. One of the easiest ways is to use sites like Udemy.com. With over 8 million students, Udemy is a great way to get your content in front of others.
Once you create an online course, it can work for you while you sleep.
What will you include in your course? You can add video tutorials, checklists for following the steps recommended in them, small e-books to complement the lessons, audio files for people to listen to while traveling, interviews with experts and like-minded people.
In fact, you can create multiple packages at different prices. Some people will want everything, so you can add an all-inclusive segment at the highest price and two cheaper segments to get the highest volume of orders possible.
No. 12. 4 wheel bike rental
4-wheeled bicycles, or velomobiles as they are called, are an excellent type of family recreation in any park areas equipped with normal paths. Naturally, such units will not be specially purchased. But, as practice shows, renting is a popular idea. Moreover, one velomobile can accommodate up to 6 people. Therefore, the entertainment is interesting both for a family of several people and for a group of friends.
Park areas, embankments in cities, and recreational areas may be suitable for business. As for the price, on average, a Chinese-made velomobile will cost about 50 thousand rubles. However, there is a cheaper way - to find a craftsman who would make custom-made wheels himself. There is nothing complicated about it. But, of course, you have to look.
For those who have very limited funds, the option of installments or a loan may be suitable.
Once you have decided on a place, you need to understand who owns it. If it does not belong to a specific company or individual, then you will need to obtain permission from the city administration.
The rental price should be based on your costs, but you can’t go too far in this case, otherwise clients simply won’t respond even if they have the desire. For example, 100 rubles for a half hour drive is quite an adequate price for a more or less large city.
When organizing, remember that the client is required to take not only a fee, but also a deposit. Usually this is an identification document. Otherwise, you will quickly lose your “vehicle fleet”. If you want to completely protect yourself from theft, install a special device - a tracker that will show the coordinates of each velomobile.
If the rental is large enough, then it will be more profitable to hire additional staff who will work in shifts.
Labor costs - about 4-6 hours a day
Advantages – Wide audience Disadvantages – Large cities already have high competition + seasonality
Create an online guide.
If writing articles or creating videos is not your thing, but you want to make money online, try creating an interactive guide.
A good example is Pat Flynn's website SecurityGuardTrainingHQ.com. The site has a map of the United States that allows you to click on any of them to see the requirements for security officers in that state.
By providing specific information in a guide format, you can make money through the means mentioned earlier: advertising through Google AdSense, affiliate links, and you can even sell subscriptions to your guide.
Profession training
Sometimes the best investment is investing in yourself. The point is simple. You learn a profession that is in demand on the Internet, after which you find customers and complete orders for money. For example, you can train as a designer, layout designer, copywriter, etc.
Many will say that it is impossible to study for free, but in reality this is all nonsense. The Internet is full of information. But if you prefer structured trainings from a specific author, then now there are a lot of different free databases where suitable courses and trainings are uploaded. The main thing is your desire.
Of course, it will be difficult at first, but over time you will get better at it and many more people will turn to you.
Of course, it’s better to go to a really high-quality training, where they will lead you by the hand, check your homework and guide you. In this case, the probability of success becomes much higher. I have posted some of these high-quality trainings, for which I vouch, in the “Recommend” section. Be sure to check it out.
Of course, this is still active income, where you receive money for the service performed. But still, I couldn’t help but mention it. After all, knowledge is the basis of everything. And even in order to receive good money in the future, you first need to learn this.
