So, you have heard or read the term “passive income” somewhere and want to know what is it actually and what are the examples of passive income so that you can give a try by yourself. Well, in that case, you are reading the right article!
For most of us, our income comes from jobs. These jobs require hard work and we may even need to sacrifice something in order to earn that paycheck. But what if you don’t want to work for someone else all day? What if you could have your own business or side hustle and do it from anywhere? Passive income is exactly what it sounds like: income that comes in while you sleep, not the other way around.
With passive income, you can set your own hours and make your own schedule. The only thing that requires your attention is your income, and it will continue to come in, whether you’re there to receive it or not.
What’s the Difference Between Passive and Active Income?
In addition to the above, passive income can be seen as a return on your investment, while active income is the actual investment.
Active income is what you do for a living, and it requires hard work and sacrifice. This means that you need to be available for work, be prepared for emergencies, and be prepared to give up time with your family. It also means that you are responsible for your own income.
On the other hand, passive income is what you earn for doing something that you enjoy. It’s what you get when you sell a product, invest your money, or earn interest on your money. Passive income requires less work, and can come in while you sleep.
Undeniably, passive income is more lucrative than active income, but it does require more work. To be sure, there are many ways to earn passive income. Some of them are easier than others, but all of them require the same amount of work.
If you’re looking to create multiple income streams and make more money without sacrificing your time, you’ve come to the right place. In this article, we will share some of the best and common examples of passive income that anybody can start today.
What Are the Examples of Passive Income?
There are many different types of passive income, and they’re all great options.
Here are five examples of passive income that you can start building today!
EXAMPLE #1: Real Estate
Real estate is one of the most popular types of passive income, and it’s a great choice for many reasons.
Take the case of a home-based business, for example. If you live in an area with high demand for real estate agents, you can make a good living as a real estate agent. And if you want to take it one step further, you can turn your home into a rental property and use that to generate additional income.
For those who want to invest in real estate, there are many different types of real estate that you can invest in. You can invest in residential real estate, commercial real estate, or even investment properties.
EXAMPLE #2: Affiliate Marketing
Affiliate marketing is another great way to make passive income. This is where you promote someone else’s products and make a commission on the sales you bring in.
You can start by setting up a blog or website, and then use affiliate marketing to promote other people’s products. Usually, you would be promoting products from different marketplaces. Such as Amazon or eBay. When someone purchases a product through your affiliate link, you get a commission for that sale.
EXAMPLE #3: Flipping Retail Products
If you have a knack for sales, you can flip retail products, and then make a profit by reselling them. You can buy items that are being sold online for a lower price and sell them for a higher price.
For example, if anyone or in any marketplace a product is sale for $10, you could buy that product and sell that product to another marketplace for $15. You are profiting from the price difference, and that is what makes it passive income.
The great thing about flipping retail products is that you can sell almost anything. Such as clothing, furniture, electronics, toys, and so much more. You can sell these eBay, Amazon, and other marketplaces.
There are a few things you need to know before you can start flipping retail products. You need to have a great sales technique and you need to know how to price items.
EXAMPLE #4: Selling Photographs Online
One of the best ways to make passive income is to sell photographs online. This is a type of photography that is often referred to as “stock photography.”
The great thing about stock photography is that it’s a very popular way to make money. If you are passionate or professional photographer, you could sell your best photos to different marketplaces, such as Getty Images, Shutterstock, and more.
EXAMPLE #5: Blogging or YouTube Channel
If you have a blog or YouTube channel, you can start making passive income from that. You can monetize your blog or YouTube channel by selling advertising space, or by selling affiliate products.
Most of the time you can earn a good amount by sponsoring other businesses.
The great thing about blogging is that it is a very flexible type of income. You can set your own hours, you can work when you want, and you can work from anywhere.
EXAMPLE #6: Freelancing
Freelancing is another way to make passive income. You can do this from home or from anywhere you want.
If you are a creative person, you can use your creativity to make money online by doing freelance jobs. Such as writing articles, web design, marketing services, creating videos, and more.
The great thing about freelancing is that you can work from anywhere, set your own hours, and choose the type of projects you want to work on.
If you have a good skill set, you can start freelancing. Freelancing is a great way to make passive income, and it can be a great way to earn more money.
Conclusion On Passive Income Examples
Hope these examples of passive income was helpful for you to get started with passive income. The secret to earning passive income is to first identify the source of your income. If you work at a full-time job, then consider your current income sources to see what you can eliminate or change.
From there, try to determine how much you need to earn before you can begin to generate passive income. Once you know how much you need to earn, you can decide which strategies will work best for you to make this happen.
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