If you’re a YouTube personality, this is how you generate your income. An amazing example of this how Antonio Centeno got 1 million YouTube subscribers. If you’re a blogger who gets a lot of traffic to your site and uses advertising or sponsorships, then you’re also following the AA Model. Got a podcast with sponsorships? Same deal. I talk about successful podcast sponsorships and other ways to make money podcasting here:
It is very important to understand that contacting a “professional” to learn how to do this only results in them trying to sell me crap properties (whether high end or low end). I’ve tried contacting realtors out of state, and they attempt to sell me crap or someone else’s problem. No one has a vested interest in actually helping someone or teaching them about how to get an out of state rental. very frustrating. I could go out tomorrow and buy a rental in my city, but that is the last place I want to own one. Anyone? Are there an real people on here?
Investing in coins and collectibles: Buffalo nickels and Spiderman comic books are good examples of coins and collectibles that can rise in value, and thus offer opportunity for passive income investors. You'll need to get up to speed on the value of any coin or collectible under consideration, but once you do so, you're on the way to price appreciation on a commodity you'll be paying a lower price to buy, and will garner a higher price when you sell.
I have only dabbled in drop-shipping before when I had an eCommerce platform 6 years ago or so. I think it is something that you could do on the side, but you would want to do in depth research on the industry you want to get into before setting up shop. It may be a little less passive up front, but over time you could take your hands off the wheel.
1. In-post reviews and recommendations: This is often the first passive income opportunity that comes to mind. You write a review about a product or service you love and hope your readers decide they need that too. You probably have the opportunity to recommend at least one relevant product within most of your posts. For example, when you are sharing your favorite pressure cooker dinner recipe you can also include an affiliate link to the pressure cooker you use.
The U.S. Internal Revenue Service categorizes income into three broad types, active income, passive income, and portfolio income. It defines passive income as only coming from two sources: rental activity or "trade or business activities in which you do not materially participate." Other financial and government institutions also recognize it as an income obtained as a result of capital growth or in relation to negative gearing. Passive income is usually taxable.
This is a touchy subject amongst some groups, but I want to share my take on it. I have been involved full time in the home business industry for 10+ years. Some of that time has been spent in MLM where the idea of working 3-5 years and creating a walk away residual income is promoted and sold. I have been very fortunate to have tremendous success in that arena, working in that type of compensation model for 7 of my 10 years. During that time frame I’ve had enough time to see trends and see that this promotion of walk away income doesn’t exist.
2. eBooks: As bloggers, we solve problems. Think about some of your most popular posts or the questions your readers are always asking you about. Could you expand on those posts to create a short eBook you could make available for sale? Could you do the same with answers to those FAQs? eBooks are inexpensive offerings and a great way to dip your toes into the world of product creation. You can not only offer them for sale on your own site, but also on Amazon Kindle.
Truebill is an app that helps you save money by identifying recurring subscriptions and other bills and helping you cut costs by negotiating better rates and fees. One of their partnerships is with Acradia Power, which has the potential to save you up to 30% on your electric bill. It searches for better power rates in areas where competition is allowed, and it locks in the better prices for you.
Investing in rental properties: Another form of real estate investment, rental investments (i.e. becoming a landlord) could steer you down the passive income path of steady monthly rent checks that you can use to pay off a mortgage loan on the rental property. After the mortgage is paid off, those monthly checks go right into your bank account -- potentially for years to come.
I’m a 45 year old business owner who also has focussed on diversifying my income streams. I have a short term vacation rental in Florida that I bought for $390k in 2012 and net rental income for the last three years has been growing steadily. 2015 I am at $70k gross right now but should end up at $80-85k with net around $45k plus we use the place about 35 nights a year.
Thus, the residual income approach is better than the return on investment approach, since it accepts any investment proposal that exceeds the minimum required return on investment. Conversely, the return on investment approach tends to result in the rejection of any project whose projected return is less than the average rate of return of the profit center, even if the projected return is greater than the minimum required rate of return.
While this does seem like sound logic on the surface, it is pretty obvious only a moron would put $50,000.00 into a business and not quantify the risks/rewards. If Ethan is worth 5 billion dollars and puts $50,000.00 into a losing business do you think he would just walk away? Obviously he would. If Ethan takes out a loan for $50,000.00 and his business is hemorrhaging money daily to the point he is losing more money trying to run the business than to simply pay back the loan, do you think he would just walk away? Again, obviously he would! These stupid analogies with less than a moment of critical thought being put in is what makes MLMers look incredibly stupid and proves they are not real “business owners”.
Return on investment is not the same as profit margin. ROI looks at the revenue invested in the company and the returns gained or lost on that investment based on the department's net profit. ROI can be used to evaluate the functionality of a company's pricing policies, inventory management and investment in capital assets. ROI is also a useful metric when a company must make a decision about major asset purchases, project funding and changes in the investment portfolio.
With a passive income stream, it’s not only about financial freedom. Instead, you have created something that matters. Yes, you will have to step out of your comfort zone in the beginning and take a risk. The most important aspect of obtaining passive income is a positive mindset. If you truly feel you can accomplish your dream, believe me, you can. The committed positive mindset will help you get there and reach the potential you know you’re capable of.
5. Resource pages: Regardless of your niche, your readers are likely interested in the products and services you use to do whatever it is you are trying to teach them to do. Let’s say you share amateur photography tips. Your readers probably want to know what kind of camera and lenses you use, your preferred editing software, where you learn new skills, products you have created, and more.
Quick story: Remember that $1.18 I found in the couch? Even when that increased to $30 to $50 a day, it still wasn’t enough to live on. So I looked for other options. In August 2008, after people started to know who I was and how I could help them pass the LEED certification exam through my blog, I wrote an ebook. It included all the information I knew about passing this exam, and I sold it on my blog for $19.95.
Pinterest is a great source of traffic for many bloggers, but not everyone has the time (or skills) needed to create beautiful pins and get them posted. Mandi Holmes and her team over at She Can Coteire offer Pinterest Management Services, among other offerings. When you check out their packages on this site, you’ll notice there are links to Tailwind. This popular Pinterest VA course teaches you how to use Tailwind.
Here’s the truth: a successful business is something that successfully solves a problem. And that business can make more money in two ways: solving more people’s problems, or solving bigger problems. The cool thing about the EP Model is that sometimes these products don’t even have to be yours. You can generate income by recommending other people’s or companies’ services or products. This is called affiliate marketing. It’s actually how I’ve made most of my money since I started in 2008.
Hi there. I am new here, I live in Norway, and I am working my way to FI. I am 43 years now and started way to late….. It just came to my mind for real 2,5years ago after having read Mr Moneymoustache`s blog. Fortunately I have been good with money before also so my starting point has been good. I was smart enough to buy a rental apartment 18years ago, with only 12000$ in my pocket to invest which was 1/10 of the price of the property. I actually just sold it as the ROI (I think its the right word for it) was coming down to nothing really. If I took the rent, subtracted the monthly costs and also subtracted what a loan would cost me, and after that subtracted tax the following numbers appeared: The sales value of the apartment after tax was around 300000$ and the sum I would have left every year on the rent was 3750$……..Ok it was payed down so the real numbers were higher, but that is incredibly low returns. It was located in Oslo the capital of Norway, so the price rise have been tremendous the late 18 years. I am all for stocks now. I know they also are priced high at the moment which my 53% return since December 2016 also shows……..The only reason this apartment was the right decision 18 years ago, was the big leverage and the tremendous price growth. It was right then, but it does not have to be right now to do the same. For the stocks I run a very easy in / out of the marked rule, which would give you better sleep, and also historically better rates of return, but more important lower volatility on you portfolio. Try out for yourself the following: Sell the S&P 500 when it is performing under its 365days average, and buy when it crosses over. I do not use the s&P 500 but the obx index in Norway. Even if you calculate in the cost of selling and buying including the spread of the product I am using the results are amazing. I have run through all the data thoroughly since 1983, and the result was that the index gave 44x the investment and the investment in the index gives 77x the investment in this timeframe. The most important findings though is what it means to you when you start withdrawing principal, as you will not experience all the big dips and therefore do not destroy your principal withdrawing through those dips. I hav all the graphs and statistics for it and it really works. The “drawbacks” is that during good times like from 2009 til today you will fall a little short of the index because of some “false” out indications, but who cares when your portfolio return in 2008 was 0% instead of -55%…….To give a little during good times costs so little in comparison to the return you get in the bad times. All is of course done from an account where you do not get taxed for selling and buying as long as you dont withdraw anything.
Real estate is the obvious choice if you are going to make money on your money. I personally am not at the point where I can do any of this in a meaningful way BUT my parents are and they now own a couple homes outright and are collecting income from them to power their retirement income. It makes a lot more sense for anyone that has a chunk of cash sitting in the bank and are planning on slowly drawing from it because you technically still have all that money in a property (or multiple properties) and can sell them if you really need the lump sum of cash but you’ll earn great interest payments until you do that.