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THE COMPLETE BEGINNER’S GUIDE TO PASSIVE INCOME
Have you ever thought of building a passive income stream but have little or no knowledge of how to go about it? If you do, you are not alone in that struggle.
Many people have been enchanted by the allure of passive income but haven’t been able to put their passion for it into action due to a dearth of valuable information on the topic.
However, to shed light on the issue of passive income and bail you out of your inertia, I will give you comprehensive information that will guide you as you endeavor to create a passive income stream to complement your regular income as a way of ensuring that you are financially independent.
Passive Income: Step-By-Step Beginners Guide To Building A Passive Income Stream
Before venturing into your passive investment (which is of course meant to bring you passive income), there are some basic facts you need to know. These facts will help you break some myths that are associated with generating passive income. They will also help you to make your journey smooth and rewarding. Consider the following:
Understand your skills: Selling your skills is one of the surest ways to create a lucrative passive income business. If you have a good marketing skill, you may perform better at a business that involves some marketing skills before your passive income is guaranteed. Therefore, your chances of success increase with a good understanding of what you are good at. Have you done that? If not, do this before you proceed.
Have a realistic view of passive income: Many people entertain the misconception that passive income businesses mean zero work. That’s wrong, it is a myth. If you want to earn passive income, you still need to put some hours of work into the business. For instance, if you want to promote affiliate products, you need to work to drive traffic to your blog or website. If you want to write an eBook, that will take you some hours of writing too. The only difference is the opportunity to continue earning from your work even while you are no longer working. Your presence at work is not necessary after putting the right machinery in motion.
Understand the type of passive income you want to build: Passive income comes in different ways. Some of the different types of passive income include Interest income, Dividend income, Royalty income, Advertising income, and the rest. An understanding of the different types will help you make the best choice, especially if you want to choose in accordance with your personal skills.
Align your skills: When you understand your skills, and have a good knowledge of the different types of passive income, you need to align your skills with your chosen passive income type.
For instance, if you are a freelance content writer, you may not feel comfortable handling graphics. Therefore, it will be out of place if you decide to write an eBook on graphics. Writing such eBook to guide aspiring freelance writers will be a perfect alignment of his skills and his income target. So, look for the perfect passive income type where you can put your skills to the best use.
Having known the fundamental facts about passive income, here are some online businesses you can invest in to ensure a steady flow of residual income regardless of who you are and what you do.
1. Join an affiliate program
Running an affiliate program is one of the best ways to earn an income passively for a long time without engaging in too much work. With an affiliate program, you have the opportunity of promoting a product or service on your blog or website (I assume you have one). As long as your blog or website enjoys a decent traffic, you will always make sales whether you are on holiday, asleep, attending your friend’s wedding, or on sick leave. That will guarantee you a steady flow of passive income as you earn commission on each referral purchase through the affiliate link you post on your website or blog.
2. eBook sales
Selling eBook is another way to earn passive income for a lifetime. If you are a good writer, you can put your writing skills to use by writing a very catchy and informative eBook. This is especially lucrative if you have some special skills or information that people need. A comprehensive eBook on such information or skills will make people root for your product. That way, you can continue to receive a royalty on your book for as long as people still buy it.
If you are unsure of where you can sell the book, you have Amazon.com at your disposal. Contact the online store and you will be intimated with the process of selling your product on the platform.
3. Peer-to-peer lending
In peer-to-peer lending, you make your money work for you, rather than work for your money. If you intend earning passive income from this loan lending system, you will provide someone a loan through a third party. On a monthly basis, the borrower repays your money with some interest according to a pre-agreed interest rate. When the borrower eventually completes the repayment of the loan, you already have made some passive income. You can reinvest your money to ensure the continuity of the income.
The online community is filled with many reputable lending clubs you can join. They serve as the intermediary between you and the borrower to ensure that the transaction. Look for a credible one and earn your income passively.
4. Create and sell an online course
If you are skilled in a specific field and have the right qualification, you can create an online course with practical tips and a wealth of useful information. As people find your professional advice invaluable, the more they will patronize you. In no time, you may become an authority in that field. That will ensure that you get residual income from your online course as long as people find it valuable and helpful. The most important thing here is that your online course must give people value for their hard-earned money. That’s the only way you can gain their confidence and sustain their patronage.
