Looking for ways to earn money while you sleep? You've come to the right place! In this article, we're going to explore 10 passive income streams that can generate over $20,000 in profit per month. These income streams are based on how easy or difficult it is to start and make $100 per month, so you can find the perfect fit for your lifestyle and goals.
Passive income is money that you earn without actively working for it. It's a great way to supplement your income, pay off debt, or even replace your full-time job. The best part? Once you set up your passive income streams, they can continue to generate money for you for years to come. By the end of this article, you'll have a variety of new passive income ideas to pursue. Whether you're looking for a side hustle or a way to replace your day job, these income streams can help you achieve your financial goals.
A full-service storage company. This type of company picks up, stores, and delivers items for customers, providing a passive income stream. However, it's important to note that starting such a business is not as straightforward as it may seem.
To get off the ground, you'll need a significant amount of money to buy or lease a facility. If you choose to provide moving services as well, you'll have to deal with physical labor, trucks, equipment, employee schedules, and other headaches. However, the rewards can be great.
Many people believe that passive income can be easily made with little to no effort. This is a myth. The true definition of passive income is income that is made passively but only after a good amount of upfront work and ongoing maintenance.
To make $100 per month, you'll need to do some marketing to fill up the facility. But once you have your first few customers, it'll be pretty quick to hit that number. Storage isn’t cheap to maintain, as storing items requires significant resources. However, most items aren't stored forever, so there is work to be done to continuously acquire new customers.
The good news is that you can implement various systems and processes to automate marketing and reduce the amount of moving the company has to do. With the right approach, you can build a successful business that generates steady income and requires minimal effort.
If you're interested in starting a full-service storage company, make sure to do your research and plan carefully. Look for ways to differentiate yourself from competitors and provide exceptional service to your customers. With hard work and dedication, you can build a business that provides a reliable source of passive income for years to come.
Open a high-interest savings account (HISA). Unlike traditional savings accounts that offer a meager interest rate of 0.5%, HISAs can offer four, five, or even six percent interest rates. This means that you can earn guaranteed money on your short-term savings that you can withdraw at any time.
Opening a HISA is incredibly easy and can be done through many financial institutions, including your current bank. However, to access the highest interest rates available, you may need to join another financial institution.
While it's true that you need money to make money, the potential passive income is worth it. For example, to earn $100 per month in passive income at a 5% annual interest rate, you would need to save up to $24,000. That may seem like a lot, but it's a great way to make your money work for you.
Once your money is in the account, there's not much else you need to do. You can choose to transfer your savings to another financial institution to take advantage of higher interest rates or promotions, but that's entirely up to you.
YouTube Content Creator. As a content creator on YouTube, you have the potential to earn thousands of dollars in passive income each month from Google AdSense. YouTube's advertising program pays you a certain amount of Ad Revenue every time a viewer views an ad on one of your videos. Starting a YouTube channel is incredibly easy, but earning money from Google AdSense takes a bit more effort.
To be eligible for monetization, your channel needs to have at least 1,000 subscribers and 4,000 watch hours in the last 12 months, or 10 million views with shorts in the last 90 days. While this may seem daunting, once you meet these requirements, you can start earning money from your views.
However, getting monetized is just the first step. To make $100 per month, for example, you'll need to consistently get a lot of views. If we use the average RPM of $2, you get paid $2 for every 1000 views. That means you'll need about 50,000 views per month. The good news is that the more videos you publish, the easier it will be to reach this goal, as more videos expose your channel to more views.
Once your videos are up on YouTube, you can sit back and relax. Google AdSense will do its thing, and you'll passively earn money for as long as you get views. However, keep in mind that views on videos typically die down over time, so it's essential to continue posting videos to maintain your passive income stream.
But there's even more money to be made! Brands are eager to promote their products and services through YouTube, Instagram, and TikTok, and creators can make tens of thousands of dollars a month doing so. While brand sponsorships do require some work, they can be seen as a form of passive income. If your content has an audience that is desired by many sponsors, you could earn a lot of money without much additional effort.
Print-on-Demand. Print-on-demand is a highly profitable business model that can help you earn money without having to invest a lot of time, money, or effort. It is a process where you get a company to print custom products for you only when you make a sale. There's no need to handle the inventory, printing, packaging, or shipping. They do it all for you, which means it is very passive.
There are all kinds of products you can sell using print-on-demand. You can sell custom t-shirts, hoodies, wall art, mugs, ornaments, and plenty more. To start, print on demand, all you need to do is pick a print-on-demand service like Pointful. Select a product from their catalog and add a design. Creating designs will be the bulk of your work to do. You can use Pointful's built-in design maker, Photoshop, Canvas, and AI art generators. Once you have a design ready, you just paste it onto your product and connect that product to a marketplace like Etsy or your website, and you're set to sell.
To make $100 per month with print on demand, it'll depend on what product you're selling. Some products like t-shirts and wall art have higher profit margins than others like stickers. The higher the profit margin, the fewer sales you'll need every month to reach $100. No matter what product you're selling, though, success with print-on-demand boils down to having good designs. You'll need to target profitable niches with designs that stand out if you want to make sales.
To maintain print-on-demand once your custom product is up for sale, your print-on-demand service will take care of everything. From here on out, the only maintenance work you'll need to do is marketing and making more designs to serve more customers and boost sales.
Marketing Agency. Starting a marketing agency can be a great way to create an active income stream. But, if you want to turn it into a passive income stream, you need to implement two crucial changes. The first change is outsourcing, which involves hiring workers for daily operations so that you can spend less time on it. The second change is AI, which can automate all your copywriting tasks. You can use chat GPT and HubSpot’s campaign assistant, a free tool specially designed to generate copy for social media ads, landing pages, and emails.
To start a marketing agency, you need a website and an email address. However, creating a passive income stream is not easy unless you start with outsourcing. Outsourcing can be a daunting task, especially if you don't have expertise in the area. Therefore, it's essential to establish your agency first, and then you can gradually outsource your work to make it passive.
The process of establishing your agency requires hard work. You will need to cold call, email, and network to find clients. You will also need to hold sales calls to close deals and deliver results to your clients. As you grow your agency, you will gain enough knowledge and money to outsource your work. That's when it can become passive.
To make $100 per month, you should offer competitive services and charge reasonable prices. With only one or two clients, you can hit that target. However, it's crucial to ensure that your revenue covers your outsourcing expenses to maintain your marketing agency.
While outsourcing can take the day-to-day tasks off your plate, you still need to manage your workers and review their work from time to time. If you want to expand your agency, you will need to continue bringing in new clients while keeping your existing ones happy.
Affiliate marketing. This is a process where you promote a product or service using a special link and earn a commission every time someone clicks on that link and makes a purchase or signs up for a service.
There are many ways to share these affiliate links, including paid ads, blog posts, websites, and social media. One popular method is to use your YouTube channel for affiliate marketing. By simply including affiliate links in your YouTube video descriptions, you can earn hundreds of dollars every month from conversions.
To get started with affiliate marketing, there are thousands of affiliate programs out there that you can sign up for free. Amazon and Shopify are just a few examples. They'll provide you with a unique link to share, and then it's up to you to promote it and make money. The ease of earning with affiliate marketing depends on what you're promoting. Every affiliate program is different, with some paying per sign-up, per purchase, or click. The commission can range from a few dollars to a few hundred dollars.
To increase your chances of earning $100 per month or more, you may want to focus on promoting products or services that are more lucrative. For example, anything related to business and finance can be more profitable. However, it's important to note that while the affiliate links themselves are maintenance-free, generating consistent traffic can be a challenge. To maintain your affiliate marketing income stream, you'll need to consistently bring traffic to your link through ads or posting content. One effective strategy is to promote affiliate links through Evergreen content such as tutorials, guides, and reviews. These can bring in traffic consistently over the long run, helping you to maintain this passive income stream.
Selling digital products. Digital products, such as PDF templates, eBooks, online courses, art media, and more, are easy to create and manage, have a high profit margin, and require minimal maintenance.
Unlike physical products, digital products don't require manufacturing fees, won't take up space in real life, and have no shipping fees. You can sell digital products to anyone around the world, at any time of the day, without having to worry about inventory or shipping logistics.
Starting to sell digital products is easy and cheap, but you should keep in mind that high competition can affect your sales and pricing. However, with effective marketing and by providing value to your customers, you can succeed.
You can sell digital products on marketplaces like Etsy or your website. To make $100 per month, you need to continuously promote your digital products to generate sales. You may also need to update your digital products once in a while, but other than that, maintenance work is minimal.
ETFs or exchange-traded funds. ETFs are a large basket of individual stocks or bonds that you can invest in, with one example being an ETF that tracks the S&P 500 index, which is made up of the 500 largest publicly traded companies in the US.
While the average S&P 500 return is around 10% per year, it's important to note that this is just an average, and it's not guaranteed every year. Until you sell your shares, the money you make with ETFs only exists on paper, so it can't be counted as passive income. However, if your ETF pays dividends, that's a different story.
Dividends are regular payments made to shareholders, and many companies pay out dividends from their profits every quarter. You can touch and spend these payments, so they don't solely exist on paper. If you want to earn passive income from ETFs, dividends are where it's at. And the best part is, it's incredibly easy to invest in an ETF.
All you need to do is open a trading account, deposit money into it, and invest in the ETF. However, it's important to note that ETFs face the same catch as HISAs in that you need money to make money. The average dividend yield of the S&P 500 is about 3%, so to make $100 per month in passive income, you need $40,000 invested. This is more than what you need for HISAs.
But keep in mind that we're only considering dividend returns here and not capital gains, which is where most of the rewards from ETFs come from. Also, interest rates are currently at their peak, so we shouldn't expect these current HISAs returns to last forever. To maintain your ETF investments, you simply invest and forget. This is as passive as it gets.
Real estate. Real estate offers two main avenues for generating income: appreciation and renting out properties. While the former can result in great profits when it's time to sell, it does not guarantee real passive income until the gains are realized. Therefore, renting out a property is the most effective way to earn passive income through real estate.
To get started, you need a significant amount of money to purchase a rental property, particularly if it is in a prime location. It is crucial to analyze the property and its neighborhood, crunch some numbers, and ensure it is a worthwhile investment. Once you obtain a mortgage and purchase the property, you may need to fix it up, depending on its condition. However, after that, you can start renting it out to tenants.
To earn $100 per month, your rental income should exceed your mortgage payments and expenses by $100. If not, you may have bought the wrong property or did not put down a large enough down payment. In expensive cities, positive cash flow properties are scarce without a substantial down payment.
Having a peaceful tenant who pays rent on time makes it easy to manage the property, requiring some handiwork and a few phone calls. However, a bad tenant can be a nightmare, so it is crucial to do your due diligence beforehand. Alternatively, you can hire a property manager to handle everything for you, albeit at a cost that cuts into your profits.
Licensing intellectual property. Licensing fees are a great way to earn money by granting someone permission to use your created intellectual property, such as stock photos, stock footage, music designs, ideas, products, and much more. However, the first step is to have something original to license out.
Once you have that, setting the right prices and terms is important. However, finding people who are interested in licensing your work can be challenging. The best way to reach potential licensees will depend on what you have to offer. If you have media like stock photos or music, there are many licensing companies out there that can help you submit your work. On the other hand, if you're licensing out an idea, you will likely have to pitch it directly to companies.
Making $100 per month through licensing fees is easy if you have something valuable and unique to offer. However, convincing someone to license your work can be challenging. Your work needs to be so valuable and unique that people are willing to pay to use it instead of using other alternatives. This can be rare, but if you're lucky, you might get a licensing request, and earning $100 should be no problem.
Maintaining your licensing agreement is simple. After you've licensed your work, you can passively earn money until your license expires according to the terms of your contract. Remember, licensing fees can be an excellent source of income, so be sure to create something unique and valuable that people are willing to pay for, and you'll be on your way to earning passive income in no time!
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