Hello hustlers, I hope you all are doing well. In this blog, we will gonna cover the best passive income streams, their pros, and cons and which can be the best suited for you. Hence continue with this blog till the end you will have to look no further over the same.
First thing first, you may ask “What exactly is passive income?”, answering it in a simple language, ‘passive income is the income which can be earned without your active presence in making it, in other words, one doesn’t have to trade his/her time actively to make money’.
Passive income is not a native way of making money, like doing a job, freelancing, running a shop, native business, etc.
Now you may ask, “Ok Suraj, we got it but why exactly, passive income is better than any other form of money-making?”. I understand this concern very well and the answer for this is again pretty same, with the passive income we don’t trade our time with money and as time is the most valuable asset than any other, thus passive income is considered superior to any other type of income stream.
I also want to throw some light on, whether earning through a passive income stream is easier or harder than other income streams. As we had seen many YouTubers flexing their passively earned money, sayings it easy and selling their courses based on it. Then, my friend, it may look easier from the outside and can seem like you just have to relax on the beach and chill with your money, but that’s not the case at all. To start earning decent from passive income one have to invest a good amount of time, money, and expertise in it and it may vary depending on which passive income stream you are focusing on.
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With all that said, now let’s directly jump onto our list of best passive income streams to make money while you sleep.
1) Passive Income Through Selling Digital Products
Creating a digital product, promoting, and distributing it, all this can be done passively and you will earn whenever someone makes a purchase, whether you are awake or sleeping. Creating a digital product like an e-book, online courses, software, etc, doesn’t cost a lot and is easy to distribute. Setting up an automated system for digital product distribution is also pretty easy to do, you just need to have the expertise and knowledge of in and out related to that product.
Though it proves to be a great passive income but it requires a good amount of time to get involved in creating and promoting that product.
All the factors discussed above does vary from product to product also, but looking at the ease with coming up with such products, selling digital products is recommended for anyone who is having good knowledge in their field and some amount to spend on the creation and promotion of that product.
If you already have an audience, in that case, it is much easier and cost-effective to promote such digital products.
If you don’t want to get into creating your own products and diving into its complexities then you can consider this next best passive income stream.
2) Passive Income Through Affiliate Marketing
Many of you may already know about affiliate marketing if you regularly check out my articles. It is one of the best ways to make online passive income. With this passive income model, you just have to promote affiliate products of others and in return, you will get a good commission (based on which affiliate program you partnered with).
Talking about the actual commission and how much you can earn from promoting affiliate products:
If you partnered with the Amazon affiliate program, you can make anywhere between 4% – 12% per product sale.
If you promote digital services like hosting service or any online tool, you can earn somewhere about 40% of commission per sale (Depending on the program it may vary hugely) and it is not limited to only 40% for a product sale, as you will also get a recurring commission for the same product sale every month or year depending subscription renewals schedule.
In some programs which involve selling online courses, you can earn up to 80%-100% of the commission, crazy isn’t it (Although I don’t promote such products due to my own personal reasons).
Hence overall affiliate marketing is best suited for any kind of person, no matter what you do, you will definitely find affiliate products in your niche.
There are no solid downsides of earning passively through affiliate marketing but it is not recommended to do hard selling or cold pitching the affiliate products. Hence one must always consider building some audience in their niche, the type of audience who looks at you as an expert in that niche.
Talking about the audience, let’s move to our next best passive income stream, which is over the same.
3) Passive Income Through Content Creation (Blogging, Podcast, YouTube)
Making money by creating content like video, article, audio is by far the best and clean way of making money while you sleep (By clean I mean, the creator just had to focus on creating content without getting into technicalities). And it can be best suited for the person who is looking for the best online passive income stream.
With this passive income stream if one is able to create a good and reliable audience by providing valuable content, then one can get much more flexibility with monetizing and making a good chunk passively.
Hence all different types of content monetization options such as advertisement, sponsorship, merchandise, membership programs, affiliate marketing, etc, fall under it.
I can go on and on describing the pros of making passive money through content creation but I just want to deliver you some of the main points, which is considered the most:
Flexibility with time, and as we are talking about the passive income it is a must to have.
Flexibility with locations, as this work can be done from anywhere in the world. One just needs a laptop, mobile, and a good internet connection and he/she is good to go.
Good for personal branding, if you want to build yourself as an authority, it is your way to go.
Gives you fame, if you consider it.
Develops deep relationships with people and the best for building professional networks.
The best way for lead generation, if you want it for your business.
Gives you internal peace and satisfaction, as Dalai Lama said, “Share your knowledge. It is a way to achieve immortality”.
With all those goddesses of making a passive income via content creation, there are some downfalls too which is:
It takes a good amount of time to build a good audience and a decent passive income. For some, it may take years to get to the point where they can say that ‘they are earning well through content creation’.
It is not easy to do. Here I am being honest with you, creating decent content consumes a lot of effort and hard work. Coming up with a blog can take up to 4 hr of work and in the case of videos, it can consume your 2 to 3 working days (can vary from person to person). If you ask me, it takes me around 3 hr for a blog, and a full working day for coming up with a video.
It’s hard to be consistent & continue with it. Although it is pretty easy to start, people start facing issues with being consistent with it, as you will not make a penny for several months after consistently putting up the hard work.
Although with all that said, it is my recommended way to make passive money.
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What if you are not a technical person and don’t want to get into digital stuff, then this next best passive income stream is for you.
4) Passive Income Through Real Estate
If you ask ‘the best passive income stream which makes tons of money’, the answer is here, it’s real estate. People like Donald Trump, Warren Buffett, Robert Kiyosaki (Author of rich dad poor dad), and many more had made millions of dollars just through real estate investment.
I had even seen people earning millions just in margins, sound cool isn’t it.
Whether you buy a house or any property just to sell as soon as you get a good potential buyer or just planning to lend it on rent, all of this will let you earn a huge passive income.
Though there is a lot to consider before investing in real estate and one should only consider investing after having a good knowledge of the market and a manager/consultant to help you with the legal process and choosing the right property, seller, and buyer.
Also, this type of income stream is not for all, especially if one is just starting out with their career. Although I suggest one must start learning its basics from the beginning and make themself financially educated rather depending on school or college for it, as it is well said by Robert Kiyosaki “The financial education taught in school is funded and taught by the big banks and corporations. It’s like having the cat train the mice”.
Wrapping up my words. In this blog, we had covered the best passive income streams to make money while you sleep. As discussed depending on individuals some passive streams may be better from another. My advice is to try all these streams and look for what works best for you and then focusing on that particular passive income stream only, to develop a decent income.
I hope this article helped you in some way, do let me know your feedback in the comment section below.
Till then, keep learning…
Suraj Mishra is a Digital Marketer, Brand Consultant, Blogger, founder of Genrk, and owner of this website. He always has a motive for sharing what he knows. Through these blogs he tries to help entrepreneurs, letting them know all the things that are needed to grow business online in this digital era.