Passive income is simply money that we earn from projects we've set up in the past. In other words, something that we've already set in motion is still bringing money in to us. It requires little-to-no additional effort on our part to keep going. Here are a few ways that you can earn passive income:
- Use your website. If you don't have one, here are a few reasons why you need one. A website is more than just a business beacon for whatever goods or services you're trying to sell. While you're working hard to make money directly, let the website do some work, as well.
For instance, sign up for an affiliate program or two. Look for businesses that offer compatible products for sale but are not in direct competition with you, then partner with them by allowing their advertisements to be seen on your website to drive more traffic to their sites (and, hopefully, generate more sales). One very popular program is Google AdWords. The ads placed on your website will be compatible to the theme of your site. When people click on these ads you make money. If they actually take advantage of the offer, you stand to make even more.
- Discover your talents and skills. They could very well lead to the ideas that will make you money. For example, you might write a book. After the book is published, the revenue that immediately comes is due to initial marketing performed by yourself and the publisher. However, ongoing sales proceeds are a form of passive income. A popular book might have paperback- and possibly even movie rights.
- Invest in stocks and bonds. With the unpredictability of the stock markets, look for long-term investments. Over time, stocks will go up and down. As is the case in this current economy, they drop but they'll also eventually recover, and they could turn into a tidy sum over ten or more years. And, whether you're self-employed or work for a company, don't neglect your own retirement plan.
- Write content. Everyone wants good information and the Internet has become one of the first places that they look. But, good content also needs a way for people to find it. Joining content sites that pay based on page views is another way of earning passive income. So, while you're writing, optimize your work. To get your content noticed more readily, research popular keywords and use them in appropriate densities throughout your articles. Then, promote the content on your site and through friends and family. Now, all that you have to do is wait for the traffic to do the rest. This type of effort can make you money for years to come if the topic is one that will stand the test of time.
There are many more ways to make money passively. Although the market is sour right now, don't forget about real estate, which is the most widely recognized source of passive income. Check out the Internet for other ideas that can get you started.