The entrepreneur’s ultimate goal is to get to the point where he can sit back, revel in his success, and earn money without really doing much work at all. Sound like a pipe dream? Well, this can be your reality if you learn to channel the power of passive income streams. You may need to put in some legwork in the beginning, but if you keep your eye on the finish line, you can be among those lucky business owners who watch their income grow long after they stop actively working. Here are five passive income streams for you to consider.
1. Real estate:
You’ve heard that the country is in a recession, and that property values have plummeted. For many areas, this is true. For those willing to be patient and put in some extra work, though, investing in real estate is still a great way to eventually earn passive income. Face it: today’s lower property values are not going to last forever. Throughout history, home prices have risen and fallen, and this current situation is no different. Now is a great time to snap up some investment property. Many properties have been foreclosed upon and will need some basic landscaping and fix-up work. Do this yourself or hire it out, but get it done so your new property looks great. Rent it out for a few years, and when property values rise, sell it for a hefty profit.
2. Write an eBook:
What do you know a lot about? Write up some information about it and publish it as an eBook. Unlike traditional books, eBooks involve very little startup cost. Ask others to advertise your book for a commission, and voila, you will begin earning income. How much time and effort your eBook takes to write is up to you – try to fill a niche and give people information that they can’t get easily elsewhere.
3. Affiliate marketing:
You can be one of the people advertising others’ e-books or various other products for a commission. All you need is a blog or website, and every time your readers click on the link to the advertised website, you will earn a few cents. This type of income is not a lot in itself, but if you have many websites with many links, dollars will begin to pour in, with no effort from you past the initial setup.
4. Set up vending machines:
While this requires some start-up money and effort, soon you will see income that you are not working hard for, if at all. You will need to persuade business-owners to allow you to set up vending machines in their buildings. Sell coffee, soft drinks, snack foods or gumballs. Once you fill the machines, whatever money they bring in is yours.
5. Run websites:
If you have a popular web-based community, you can charge membership fees and allow it to pay for itself, and then some. You can also place some of your affiliate links on the site, preferably on the pages that non-members can see. If you have knowledge about a particular industry, consider gearing your site toward others who work in that field. Or you may prefer to set up a social site. Once you get one site running well, open up others; you may have some overlap in clientele, which can be a good thing for bringing in even more people to your sites.
Remember, passive income does not mean that you don’t work at all for your money, but it does mean that with time, soon your money will be working for you. The more time that goes by, the more passive you can become, and the more income you can expect to see.
Andy is the co-founder of Credit Card Compare, one of the leading independent websites for the comparison of Australian credit cards. On their blog, he enjoys helping readers to better manage their personal finances and investments. To keep up with his work or to get in contact follow @Boydster on Twitter.