To build a passive income, we need to own properties that generate a regular income for us with minimal involvement after they have been created. This can be contrasted with working at a job or working for someone for pay, where, at the end of the transaction, we do not or own any income-generating property. There are advantages to working at a job, including stability and growth in your career, so it should not be thought that a passive income is always better than working at a job.
However, the magic of passive income is that you can create passive income-generating properties while you work at a regular job or while you do other projects. Here are some of my top ideas for passive income, whether you work, or just want to be free from work.
Royalties from your work such as Books and Music
It has been calculated that Seinfeld, the popular 90s TV show about nothing, has earned its creators and producers more than a billion dollars after its last episode was aired in the late 90s. How is that possible, one may ask? The answer is: royalties. Since the creators of the show own the rights to that show, they can ask for commission, or a royalty, every time any episode is telecast on any channel around the world.
Not all of us will earn a billion dollars in royalties; in fact, I doubt all of use combined can earn that much money in royalties! But it still does bring to our notice the importance of royalties as a source of passive income. If you are a writer, or a musician, you should strive to create a passive income stream based through the work you create. With the emergence of digital media such as Amazon Singles and YouTube, it has become a lot easier to monetize your talents.
Passive Income through Web Properties
The interesting thing about the web is that everything on it runs on computers, and computers lend themselves very easily to automatic processes. Therefore, it is easier to create a passive income on the Internet than in the real world. Once you own a web property that generates an income, you will not need to do much work to keep it going, because most of its services can be made fully automatic.
The question is: what kind of web properties can generate a passive income for you? The answer depends on what kind of effort and risk you want with your endeavor. If you want a low-risk and low-effort income stream, you can create sites and promote them using SEO, so that you can monetize them using AdSense and other advertising networks. A project that requires more effort is to earn affiliate income by selling different types of products on the Internet. You can become an affiliate marketer for sites such as Amazon and Ebay, or can promote other projects. If you want to take bigger challenges, you can try to create a new service such as Pinterest or Twitter.
It should be noted that these income streams are not fully passive. The nature of the Internet is such that it changes almost every day, so if one of your web properties generates an income today, it may not do so in a year, or even in a few months. You need to review your properties regularly to make sure that they do not start to slip in the charts.
These are my top passive income ideas, and I have even started working on some of them. As a writer, I have stopped writing for others, and have published a few books on Amazon Singles. Their sales haven’t been much till now, but over the long run, I am sure they will continue to see a few copies every month. As a web businessman, I have a few properties that generate an income stream for me as I continue to work on other projects. I hope this review of my top ideas will nudge you towards creating your own passive income streams.