Passive Income is defined as a money-generated stream/investment that doesn’t actively involve you in the process.
Or in the layman’s understanding, it can simply be said as; “The money you earn without your presence in the process”.
But this doesn’t actually eliminate work totally, as there will be some active work at the beginning of launching into such streams of income.
And some passive income sources include more work at the beginning than others.
For instance, I create content both on my blog and on my new Youtube Channel. The only time I get engaged with work is when I’m creating these contents and updating them from time to time if need be.
And as long as my “contents are relevant” to today’s world, I keep making money even in my sleep —That is Passive Income!
By “content that is relevant”; I mean contents that provide solutions to people’s need aka evergreen content.
You can also make passive investments in stocks and properties.
Though, a lot of people engage in active income and leave out passive income (which is totally not wise in today’s economy).
Because it has been proven that passive income drives in more money than most active income.
While on the other end; “Active income is defined as the income earned for providing a service; Salaries, wages, tips, commissions are all examples of active income”
And you need to keep working to keep earning that is the disadvantage or should I say the bad side of active income.
Now, you can see why passive income is better!
8 Best sources of Passive income examples:
1. Write an E-book and sell it on Amazon (Amazon Kdp)
Gone at the days when the only way you can be a writer is by authoring hard-copy books.
Now there are platforms that accept soft copy books. And some of these platforms also print out hard copies to readers who want the hard copy with no expenses from your pocket, in return you get royalties of about 70%.
One of the top platforms that offer this exceptional service is Amazon and they do it through Amazon Kindel Direct Publishing (Kdp).
Though there are guidelines that must be adhered to before your book is accepted, yet, they make it really easy and even allow low-content books with a minimum of 24 pages.
Amazon pays you in your preferred currency, with no location restriction on the visibility of your book (except if you decided to) and 70% royalties — That you can’t find anywhere else!
This side income can guarantee you 7 figures monthly.
Read More: How to Create and Sell eBooks Online Like a Pro: Step-by-Step Guide
2. Youtube
Youtube is another great source of passive income idea that can earn you thousands of dollars.
You can venture into this high-income-generated business using your phone.
And there are 3 great apps that can be used in your video editing that is absolutely free
- VN Video Editor
- CapCut
- InShot
They happen to be the best 3 mobile video editor app in the market and it is absolutely free. Make sure you give it a try.
3. Blogging
Blogging is just like YouTube. It is another way to multiply your passive income stream. Something you shouldn’t let slide without giving it a second thought.
It doesn’t take too much cash to start a blog, unlike YouTube which is absolutely free.
In Blogging the necessities are; Domain Name, Hosting, and a good website design.
If you don’t have money to launch your blog on WordPress (which costs more and offers the best interface), you can launch it on Google Blog (Blogger.com) which is 100% free but with one condition, your domain name must carry “blogger.com” as a suffix.
But it is advisable to have a domain name that doesn’t carry blogger.com if you want a good SEO score.
And to get a domain name doesn’t cost more than 1$.
The amazing thing about using Blogger is; “they offer free templates, so there is no need to pay a web designer to help with your website outlook”.
Read More: How to start a blogging business
4. Invest in stock or property
This source of passive income is what I call the lazy man way of making money.
This is what Robert Kiyosaki calls; “Making your money work hard for you”
Most rich and influential men you know all invest in this source of passive income.
All that is required is that you buy a property or Stock and sit back while the income roll in without doing any additional work.
And these days, there are many passive income apps that help with such investments, such as; Risevest, Bamboo, Chaka, and so on.
On Property Investment Read these article;
- How to Start Real Estate Business in Nigeria
- Real Estate Investment in Nigeria
- How to Become a Successful Realtor
5. Affiliate Marketing
Affiliate marketing is no longer a new term nor a new example of a passive income idea except for beginners.
It is all about selling other people’s products while you get to receive commissions per product sale.
Most of the time when new entrepreneurs or old entrepreneurs are advised to diversify their income by adding affiliate marketing to their portfolio, their first question is always;
“How am I going to promote these items when I don’t have a blog or YouTube channel? Even my social media followers are not many”
That question is essential, as having a youtube channel and a blog is the fastest and easiest way to promote affiliate products.
But I have seen someone who has neither but she makes huge sales on her affiliate product through her Facebook page, which I believe she built and did not buy because her post engagement is very high.
And many others use WhatsApp for this affiliate marketing and they make it big on a steady.
Having a blog and Youtube can be a great addition, but never limit yourself to both as there are many others who don’t even make “Shishi” from their blog and YouTube through their affiliate link.
Read More: How to Become an Affiliate Marketer: Step-by-Step Guide for Success
6. Creation of Digital Courses
This is just like the number one passive income idea I mentioned: “Amazon Kdp”.
The differences between creating digital courses and creating e-books on amazon Kdp are;
- The course can contain videos,
- Can also contain a means to access a one-on-one mentorship
- A certificate will be given to you at the end of the course.
- And sometimes a guarantee of startup funds to go try out the knowledge you’ve learned
- E-books don’t contain any of the prementioned 4.
Selling your digital course is also easy to do, as there are many platforms on which you can do that.
If you’ve noticed, all the digital course links I have been sharing in this article, are all from Expertnaire. That is because they are the number one (1) platform currently in Nigeria where you can publish your digital course.
But there are still other popular online platforms where you can sell your digital courses such as; Udemy, Skillshare, Teachable, Coursera, etc
You can sell a course for as high as $220 or more. But make sure the value is commensurate or else your access as a publisher will be blacklisted and revoked!
I guarantee you, it is not a waste of money to get that course. It is a life-changing course!
Read More: How to Become an Online Course Creator: A Step-by-Step Guide to Success!
7. Create an app
I know this will require some tech know-how. But the truth is, you can also get people who can help with app creation.
What is most important here is that you have an idea of the kind of app you intend to create.
It is very easy to come up with ideas for App creation by using other apps.
For example, Twitter, Instagram, Facebook, and other social media apps, all have one objective; “connecting people together”.
But if you go through all of them, you will notice some additional features in each that make them unique and desirable enough for one person to be in all at a time
The only thing that can be demanding in this type of passive income idea is cash. Definitely, it consumes money but the return is always mouth-watering.
One benefit of this “App creation” is that you are the one making your own passive income.
8. Help people run ads on Facebook.
This source of passive income stream requires a bit of work but pays very well.
When I say very well I mean very well. It is a goldmine!
One peculiar advantage of running this passive income idea is that; “You get to access some secrets on how to run ads with as low as 1$”.
All the prementioned Passive income sources are a few among so many available online, which I will be writing about in subsequent articles.
But the most important thing is that you don’t just have the knowledge, you must put the knowledge to work. That is what the bible calls; “being a hearer and a doer”
And another beautiful thing about these multiple streams of income Ideas is that none has passive income tax attached to it. Meaning they are free of tax!
Recommended Articles:
- 11 most demanding and lucrative skills for 2022
- Cab Taxi Business in Nigeria
- Logistics business in Nigeria
- 16 Lucrative Business Ideas in Nigeria you must not be Ignorance of
Conclusion
I hope you have benefited from this article: “8 Best Online Passive Income ideas that guarantee you 7-figures Monthly”
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