How to choose the most successful passive income opportunities
In recent years, passive income has become a buzz word. Its definition has become more loosely defined as technology increases and the various ways of creating passive income becomes broader. In its most basic sense, passive income is a method of generating revenue with little to no work involved. What is left out of this definition though is that this can be done with anything if the correct people are put into place to run your business.
Why passive income?
Picture yourself sitting on an exotic beach somewhere, cocktail in hand, and all the while, money is flowing into your bank account just as that ocean in front of you rolls onto the sand. This is the appeal of passive income. Money can be earned without your presence or ever watchful eye and the result is freedom in a whole new sense of the word. You can travel anywhere, you can live remotely, you can delve into artsy passion projects you may have postponed for years, whatever it is you want to do. The point is that money will be consistently coming in. This will help you to escape from the confines of a normal 9-5 job and allow you to do whatever you want with that time now coming back to you.
How do I get there?
This is the tricky part. There are countless ways to generate passive income and most of them fall under digital products or services that can be sold repeatedly without having to create more products or manage staff. A digital product or service only needs to be created once and then can be sold numerous times or by subscription. However, this is not an easy process. Getting to the point of generating enough passive income to get yourself onto that exotic beach can be a long journey.
Common passive income opportunities
Common digital passive income opportunities:
- E-books & Audio Books
- Audio Tracks / Jingles / Songs / Mixes
- Rent & Sell Web-Domains
- Video Tutorials / Online Seminars
- Software Development
- Sell professional photos and videos on photography websites
- Create a Dropshipping Website
Do what you’re passionate about
While all the above named ways of generating passive income are good ideas, they aren’t necessarily good ideas for you as an individual. Blogs that require advertising can take years to start generating income, online seminars require you to know a niche subject or have a substantially large audience in your back pocket. This can be a long and frustrating process. Because of this, when deciding on a passive income stream it is best to do what your passionate about.
Outsourcing, Licensing & Equity
Remember, any successful business, product or service –especially one you enjoy– can be turned into a passive income stream, and it is the world of outsourcing, licensing, and equity that make this possible:
- Outsourcing allows you to create any business imaginable and then have it run by other people from another part of the world. This is especially popular with online businesses where a physical person doesn’t need to be present. You may one day find your entire customer service staff is with people you’ve never even met.
- If you have a good product or business, you can license it out for someone else to run and collect a share of the profit. Licensing is good practice for inventors or those who do not wish to get into the gritty sales and marketing aspect of a business.
- Lastly, equity can help you both to gain a passive income stream and to get one. If you have a really good idea, but don’t have the startup capital you need to hire designers, or programmers, you can offer them equity in your company rather than payment up front. And once you decide to move on from your business and collect that passive income stream, put it in the hands of capable people, but keep your equity in the company and the money will keep coming in.
Because passive income can be anything, dare to set your imagination beyond what is already out there. When you combine your passive income goals with your passions in life, it doesn’t feel so much like work and you’ll be in it for the long haul.