Creating Passive income in 2021
Creating passive income doesn’t actually mean ” making money doing nothing ” it’s more about setting up an activity that will allow you to keep earning money even when you don’t make the effort particular .
In any case, an initial effort will often be necessary on your part. This can be larger or smaller depending on the activity chosen.
But like many things, the benefit is long term . Passive income is a great solution to allow yourself time for more fulfilling projects or to enjoy life and the things you love. It is a concrete form of freedom, and financial independence .
But the hardest part is often knowing where to start: what projects to launch to make passive income a reality? There are dozens if not hundreds of solutions, and here are our 13 favorites.
What is passive income?
In the world of personal finance, there is a lot of talk about passive income. And if it is a frequent topic of conversation, it is among other things because it is one of the most important.
Passive income is when you continue to get paid for a job after it is finished.
To take classic examples, think of the sale of books or rights to films and songs, the rental of real estate . All these systems allow you to receive money “automatically” over the years.
Some passive income ideas require some upfront work (like writing a book), while others will take less effort to set up (like dividends from your stocks on the stock market). Either way, it’s best to find an activity that really interests you.
The benefits of passive income are numerous. For example, if you lose your job, you may be able to limit the damage by having another source of income than just your salary. It is also an ideal solution to accelerate your path to financial freedom .
The best passive income (ideas to make money in 2021)
Choosing the right sources of passive income allows you to use your time however you want. You don’t have to devote dozens of hours a week to keep your business running smoothly. The goal will be to get the best return on your business for the least amount of time spent.
We are of course not talking about scams, multilevel sales or other suspicious businesses. The ideas presented in this article are many legitimate ways to make money while you sleep by creating something that excites you and puts your experience and skills to good use.
1 Start your drop-shipping business
With the explosion of e-commerce, drop-shipping, also known as drop shipping , has become very popular .
This passive income system works quite simply. You create an e-commerce site where you offer for sale the products of certain manufacturers and suppliers with whom you will work.
Then when someone visits your site and places an order, it is sent to the supplier in question. He is then the one who will send the order directly to the customer, this actually means that you earn money on the sale without ever having to manage inventory!
The customer pays for the product, you collect the profits, and the manufacturer stores and ships the products to the customer. No need for investments or storage space.
If you are thinking of starting your own online drop-shipping business, I personally recommend the shopify because they makes it easy to create your online store without having to develop a site from scratch.
Be careful though: drop-shipping often suffers from a bad reputation, which is partly legitimate.
Many drop-shipping sites simply aim to buy poor quality products in markets (particularly Asian) and resell them for a huge profit to the detriment of the customer .
If this is the type of business you have in mind, we can only advise against it. Having an ethical, honest and transparent attitude in your business is the key to success. And the goal is for your customer to gain just as much as you.
2 Create and sell digital products (Creating Passive income)
Nowadays, selling your own digital products is a great way to be able to afford passive income .
And among digital sales, anything related to training, education or the sharing of expertise can be very interesting to exploit.
For example, if you are specialized in a particular field, you can create and sell online courses (for example by becoming a Udemy trainer ), an e-book, a podcast . It’s up to you to find what excites you!
Once again, creating these products will inevitably require some upstream work. But the great thing about creating digital, not physical, products is that you won’t have to worry about inventory, shipping, or delivery – it’s all done right online.
Real estate is one of the popular sources of passive income. Moreover, the majority of current millionaires have succeeded in creating their wealth by investing at least part of their money in real estate .
And for good reason: rental investment can be a great way to earn money … even while sleeping!
The main drawback of this solution is of course that the purchase of a house or an apartment is very expensive, even if the goal is necessarily to make it profitable in the long term. If going through traditional financing is too complicated for you, you can however use a crowdfunding platform .
These crowdfunding platforms allow you to invest in real estate for a much lower sum than what the purchase of a property would cost, and therefore to invest collectively in real estate development projects to benefit from a rate of yield.
We can for example cite the lymo site , This site allows you to invest from 1,000 euros in projects that you can select according to the duration of the investment, the type of construction and the precise location. They are therefore perfectly successful in their objective of making real estate investment accessible to all.
Having your own blog can of course be a passion. But often times, you’ll want to make at least enough money that you can cover the costs of getting it live. In any case, know that it is possible to go even further and afford a real source of passive income thanks to your blog!
To do this, of course, you need to provide your readers with added value and quality content. Then, once you have a certain level of traffic to your site, it becomes quite easy to monetize it through several solutions: advertising, affiliate links, brand partnerships .
Know that anyone can launch their site: you don’t have to be a world-renowned expert to share your expertise in a field. The trick is to start a blog on a topic that you are really passionate about, but also that interests others and helps them solve a problem .
To launch your blog and start creating passive income, you will first need a domain name, a hosting solution, and a content generation system (or CMS).
If you are not familiar with development, I highly recommend wordpress, which is the platform that I have used for this blog for several years.
Once your content is live and monetization solutions implemented, you can make money on a regular basis whether you spend the extra time there or not. Hour after hour, day after day, your blog is working for you .
5 Sell your photos online (Creating Passive income)
Did you know you can get paid to take photos? It’s even quite simple.
There are hundreds of online platforms that offer “copyright free” images, that is to say that Internet users pay (either to download or to a flat rate) to be able to download a photo and use it freely. These are often companies looking for images for their communication media.
Among the most famous sites are Getty Images , Shutterstock or Adobe Stock . Thanks to their great popularity, these sites can be a real source of passive income, no matter your level of experience – although you will of course need to know the basics of photography and have the right equipment.
Many investors, when placing their money in stocks, are particularly interested in yield stocks . That is to say, they select certain stocks in particular in order to receive dividends (income paid by the company to its shareholders once or several times a year).
Investing in stocks that pay regular dividends is indeed one of the best ways to generate passive income without too much work.
For example, let’s say you buy Apple shares. Not only is the stock price likely to rise over time, which means your investment grows in value, but you will also be paid a dividend for every stock you own. Depending on your long-term investment strategy, you can either reinvest these dividends or get them back.
Please note : not all investments offer dividends, or even attractive dividends. You will need to do a minimum of research and not hesitate to contact a financial advisor before you start to find out if this strategy really meets your needs.
7 Earn Passive Income Through Affiliate Marketing
Even if you’ve never heard of the term “ affiliate marketing ,” you’ve probably come across it while browsing the web.
This partnership system consists of earning a commission by promoting a company’s products or services . Concretely, each time someone buys from your partner thanks to your recommendation, you get a little money.
Let’s say you have a website or blog on a particular topic, such as DIY & interior design. You published an article there about a coffee table that you built yourself. And for this creation, you used a spray paint from a particular merchant.
If that merchant has an affiliate program, then you can put a link in your article that will take you to their website and earn a commission on all sales that go through that link.
Affiliate marketing can be a great source of passive income. but also a very big trap when misused. And even if some bad online practices have certainly tarnished its image, it is still very interesting to exploit.
Because the affiliation does not consist in promoting at all costs products that you do not know or have never tested only because the remuneration is interesting.
The product you offer must be of quality, but also relevant to your content and your audience. Your goal is to offer real added value to your audience, not to trap them.
8 Buy and resell domain names for profit (Creating Passive income)
The idea is very simple just buy domain names at low cost that could be valuable to businesses in the future , only to sell them later at a profit.
And while it takes a bit of luck on the one hand, much of this activity remains strategic. You will need to do your own research and make sure you choose keywords that have the potential to make you money in the future. For starters, the ideal is to select a specific area of activity and determine which domain names could sell well in that industry.
Then, once someone wants to buy back one of the domain names you own, it’s your negotiating skills that will make the difference between a small profit and a big profit.
If you love design or have an artistic soul, selling printables or digital products can be a great way to provide yourself with reliable passive income.
Digital products are low-maintenance – all it takes is an online storefront on a site like Etsy and a download link to close a sale. No need for inventory management or shipping issues. All you have to do is spend some time at the start to perfect your designs.
Printables (as their name suggests, virtual documents that people can download and then print) can be very successful in passive income. The most popular are in general:
- Greeting cards
- Wall art, posters and posters
- Calendars, planners, organizers .
- Invitations and letters
These are just a few examples: the only limit is your imagination! As long as your printables appeal to your target audience and are of high quality, they will sell.
Want to earn money just by driving your car?
By allowing brands to place advertisements on the windows or body of your vehicle, you have the opportunity to earn a few hundred dollars each month by driving as usual.
Receive cashback money for your shopping
If you are already used to doing some of your purchases online, you may be missing out on easy passive income by not taking advantage of cashback sites .
These platforms pay you a cash amount (usually a “refund” corresponding to a certain percentage of the purchase) each time you buy from an e-merchant.
For that, all you have to do is click on a link through the cashback site or download a browser extension. Then all you need to do is shop live on your favorite site, as usual! Among the most well-known cashback platforms are iGraal.com and eBuyClub .
Again, this strategy only works if you buy things that you really need.
But it is on the other hand a “false friend” of passive income : it is not a real business, far from it and Note it is almost impossible to earn several hundred dollars every month thanks to cashback.
12 Rent your apartment or house in your absence
We presented you above the solution to invest in real estate to be able to offer you a regular passive income.
If you are interested in this area but are looking for a more practical and less expensive approach, renting your apartment / house, your vacation home or even a single room of your accommodation on online platforms can be a great way to earn money. money passively.
Airbnb is the best known solution . It allows people to travel all over the world and stay in accommodation much cheaper than traditional hotels.
You can therefore offer your accommodation there on a regular or occasional basis according to your preferences. A similar alternative is the Smartrenting platform .
13 Offer a carpooling on the way to work (Creating Passive income)
The Klaxit mobile application allows you to put you in touch with people who are looking for a carpooling for their daily trip home / work .
You simply have to enter in the application the journey you make on a daily basis, and Klaxit automatically suggests people that you could pick up and drop off on your way while limiting detours. You therefore divide the related travel costs with them, all directly in the application.
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