If you are in the Internet business, then I am sure that you are aware of the concept of passive income or residual income. Most probably, you have already been searching the Internet for best passive residual income ideas.
You might have thought about creating one or several streams of passive income to live a comfortable life or create good savings. Whatever is the goal or the reason but you have not been really very successful so far at creating a regular source of passive income. The reason could be that you do not believe it is true. It is possible that you have not come across a solid idea about the Internet business so far.
Whatever is the real reason in the background, the good news is that this blog gives you a few practical and well tried methods of generating passive residual income.
Best Passive Residual Income Ideas
These ideas have worked for others and can work for you too. Choose one or two or more which suit your interest, experience and background. Once you have decided to work on them, then there should not be any looking back.
It is quite possible if you are consistent and persistent then over a period of time you may build a substantial residual income. Don’t be surprised is this passive income amount exceeds your main income from your regular job or business.
1. Create a blog
This is perhaps one of the most recommended methods of earning a passive income. Having a blog which has good readership of regular as new readers can give access 2 more than one source of passive income.
To begin with you can tie up with ad consolidators such as Google Adsense, Bing, and Yahoo. These companies run the advertisements on behalf of their clients on your website and pay per click or per 1000 views.
These advertisements can be interest based according to the genre of your blog to attract customers of a particular geographical region, gender, age and individual interests and tastes.
These days it is very easy to create your own blog. All you need is free domain name, some hosting space and packages like Wardress to create a blog. Use a field or the subject you are passionate about and write regularly something which is unique, interesting and useful to the internet community.
Initially, your earnings maybe a few cents only but as your blog becomes popular and the number of visits increases, you may earn in double or may be in triple digit income everyday in dollars.
2. Write eBooks
The popularity of Internet combined with several apps on smart phones, tablets and the PCs, the world is experiencing boom in a new segment which is eBooks. It really does not matter if you are writing fiction or nonfiction; you are an experienced author or a first time writer there is a room for everyone and there is an audience for every kind of eBook.
All you have to do is to think of an idea for or a project for which there is a demand in the community of readers. For example, it could be how to lose weight without too much exercise or how to boost your memory in 10 days by devoting 5 minutes every day.
There is a big platform provided by Kindle which is a part of Amazon. You can self publish your book or a series of books and if they click well with the audience then the earning potential is huge.
For example, Steve Scott has made more than $100,000 in a quarter from a few Kindle eBooks. Even if he does not write eBooks on a consistent basis anymore they’ll continue to bring in money for months or perhaps years.
Once you have established yourself as an author and have gained sufficient confidence, you may choose not to share your passive income with anyone and sell your eBooks directly to the readers. This could be through your own website, social media platforms and or emails.
If you become sufficiently popular and come to be seen as an expert on a subject matter, you are likely to be approached by reputed publishers. This could earn you substantial residual income on a regular basis and establish you as a celebrity author.
In a nutshell, one door will open to lead you to another door of opportunities. Is this not an interesting and attractive residual income idea worth pursuing?
3. Affiliate Marketing – an Important Passive Income Technique
Affiliate Marketing as a passive income technique has a huge potential to generate substantial income for the associate. It is best suited to individuals who have popular websites or blogs. Alternatively you should have very good fan following on Social Media.
This is a two way or three way arrangement where the Seller – producer of goods / services is available to get sales by advertising on the popular websites of the Publishers. The third party is the aggregators who are the link between the Seller and the Publisher such as Click Bank.
You can either sign up with the aggregator who will provide affiliate marketing opportunities from various sellers or you may sign up directly with the Sellers such as Blue Host or Amazon to promote their services or products on your site, for which you are paid either a flat fee or a percentage of the amount of the sale generated.
Of course, it takes a long time to build up the business before it becomes a good source of passive income.
However, this is not as difficult to be successful as an affiliate as you might think, since there are hundreds of companies in the world who want to sell their products through this effective channel. It is always best to select the product or services in the domain you are either very interested or is highly relevant to your blog / website.
4. Upload Videos and Monetize
This idea has already gained a lot of popularity. Both type of people who have less content (such as DIY projects) or have a lot of content (comedy, education, tutorials) and others who fall in between can create a successful YouTube channel by posting interesting videos regularly. You may decide to shoot or use computer graphics to communicate your message. This can be a handsome source of passive income.
All you have to do is attach Google Adsense to the videos and your You Tube channel videos are automatically monetized. When viewers click on those ads or just watch those ads, you will earn money.
In addition to YouTube there are other sites like VIMEO you pay you for uploading your videos.
The key thing here is to create a series of videos that others would love to watch. If your videos are popular and the subject matter is relevant over a long period of time then you earn a passive income for a very long time. Some people have made it a full time profession now.
5. Create Online Courses
If you are skilled at something like photography, website making, graphic design, carpentry, computer programming etc. or you have some hobby (cooking, painting, singing, yoga, etc.). Then why not create an online course about something you are expert at. There are hundreds of thousands of students online who are eager to learn. You don’t have to be a ‘guru’ or ‘expert’ to teach. Just share your knowledge with people who know less than you.
You don’t even have to have to be an experienced teacher. People have made enormous amount of money selling their lessons online.
Select one of several ways to produce and host your own online courses. One very simple way is to use a website like Teachable.com. Teachable has over three million students and is a great way to get your content across to them others for a price.
Once you create an online course, it can work for you 24 x 7! All you have to do is spend a few hours creating video lessons, small eBooks to supplement the lessons, audio files and a few more things like these.
The beauty of passive income through online courses is that it has huge scalability potential and you earn no extra expenses for more students enrolling. Online courses are conducted through digital study material. Students simply pay to access and view. So whether you sell a course to 5 students or 500 students, it doesn’t cost you extra (aside from the time spent promoting your course).
6. Make a Mobile App
Apps can be an unbelievably rewarding source of passive income. There may be hundreds or thousands of similar apps already available. Just offer something extra or different – may be the UI (looks)!
You need not a super app creator or a great app maker. Also you should not worry if you are not a good seller. In the beginning distribute the app for free. It doesn’t hurt anyone’s pocket to try a free app. and you can earn through advertisements.
If you are an engineer or a techie you can learn to make android apps faster. To make your app popular and look professional you will need to create some videos, some screenshots, website etc.
Once your app gains momentum and has good downloads you can start generating handsome passive income day after day, week after week for a long time.
In case you are not good at developing the mobile app yourself, you can outsource the building of the app to an app creator or app maker. He can build your app based on your idea.
The idea is to go for an app that has the potential to make you some good passive income. Don’t delay the idea to build an app – it’s a good one!
7. Invest in Index Funds
AT one point of time or the other, you must have thought of making money from the stock market. But probably you got scared due to the risks involved or the lack of knowledge of trading in stocks or both. In either case, for consistent, competitive and safe returns you can regularly invest in index funds.
Index funds are a type of mutual funds that provide you with a way to invest in the stock market that is based on the S&P 500 Index. This allows you to stay completely passive for generating income. Your money will be invested in the stock market, without having to concern yourself with choosing investment options, rebalancing your portfolio, or knowing when to sell or buy shares of individual companies. All that will be handled by the fund which will base the fund portfolio on the makeup of the underlying index.
This is the beauty of investing in index funds as it allows you to easily and without any financial expertise to create a well-balanced portfolio for retirement savings or money for other goals of life. No more learning, looking up and analyzing individual companies’ income statement, balance sheet, financial ratios, share prices and more.
Index investing may not be as attractive as choosing your own stocks and watching them go up and down but it will get you a good and consistent return over a period of time. A thousand dollars invested in a stock market index fund that earns 11% on average per year will grow to $13,585 in 25 years. Similarly, just $500 invested every year will grow to $8,400 in 10 years, $57,200 in 25 years. Over the years that you invest, the average annual return might be 9% or 13%.
Watch Video – “How to Earn Money From Internet”
Here are some good ideas to watch on this short video also:
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- Five Steps to Investing in Stock Market
About the Author
Sundeep Kataria is the CEO of ACS Consultants – a Management Consulting Firm. He holds multiple qualifications: MBA, PGDIT (IIFT), MS in Counselling & Psychotherapy and Diploma in Company Law. He has also formally learnt Digital Marketing and Website Making.
In 1995 he pioneered the concept of professional Career Counselling, Executive Coaching and Mentoring. Over the years he has mentored many professionals, like CAs, Engineers, Sales & Marketing Professionals, IT Experts etc.
The unique style of Sundeep Kataria is that he connects with each and every individual personally, holds in depth discussion before undertaking the assignment.