What is the Most Passive Form of Income?
Passive income is income that you earn while you sleep and while you travel. Essentially, it means that you are no longer trading ‘time for money’. In conventional employment, you need to work a set number of hours in order to earn a set amount of money. This means that you can’t earn money unless you’re putting in the hours. But passive income means that you do the work upfront and then the money trickles in steadily. This then means that you’re able to decide when and how you work — and if you’re really good at it, it may mean you don’t have to work at all…
How is this possible? Read on and you’ll see some examples. Moreover though, we’re going to look at what the most passive form of income is and why some options aren’t quite as passive as they may at first seem.
Earning Money From a Blog
One of the most popular options when it comes to earning money passively is to earn from a blog. Most blogs are monetized either through advertising or selling digital products. This means that you earn money either when someone clicks on your ads, or when someone buys the product you made/recommended. Once you have built your blog up to enough prominence, you should have a steady influx of traffic without having to do much to keep it that way. The only problem is that you also need to keep adding new content, to keep promoting your site and to keep managing the comments/responding to fans. So you’ll have a lot of flexibility here but there are some ways in which it isn’t quite as passive as it might at first appear.
Perhaps a better option is something called dropshipping. This means that you’re selling physical products through an ecommerce store but the twist is that these aren’t products you actually have around your warehouse. Instead, you’re selling products that another company manufactured and stored but they’re letting you put your name on them. They even send the products out but your customers never know that it’s not you who’s doing it.
In many ways this is an ideal business model but it does still require some management on your part to keep the website updated, to promote your store and to handle complaints and queries.
Selling a Digital Product
We’ve seen that selling a digital product can be a good way to monetize a blog for somewhat passive income. But if you can find a big distribution platform, then you can actually sell even more products without having to put the work in yourself. For example, put an ebook on the Kindle store and it will sell copies even while you’re sleeping once you’ve done the initial marketing (learn how here). An app can also be an overnight sensation and keep a steady influx of cash coming in for years.
The only problem here? You of course need to think of that great idea in the first place to crack the market!