Content of the article
- Starting a dropshipping business
- Creating and selling digital products
- Rental investment: a passive income classic
- Start a blog
- Sell your photos online
- Invest in high dividend stocks (passive income)
- Earn passive income with affiliate marketing
- Buy and sell domain names at a profit
- Make passive income selling printables on Etsy.com
- Put advertising on your car
- Get cash back for your shopping
- Rent out your apartment or house in your absence
- Offer to carpool on your way to work
Those who have achieved some financial success almost all have one thing in common: they have multiple sources of income.
But that doesn't mean they have multiple jobs either. On the contrary: they know how to take advantage of what is called "passive income". That is, they earn money all the time... even in their sleep!
On the other hand, I'm sorry to disappoint you: you're bound to have to work a little at some point.
Creating a passive income doesn't mean "earning money without doing anything": it's more about setting up an activity that will allow you to keep earning money even when you don't make any particular effort.
In any case, a starting effort will often be necessary on your part. This may be more or less important depending on the activity you choose.
But as with many things, the advantage is in the long run. Passive income is an excellent solution to leave yourself time for more fulfilling projects or to enjoy life and the things you love. It's a concrete form of freedom, and financial independence.
Books like The 4-Hour Workweek and Rich Dad Poor (of which you can find a complete summary in this article) made me realize that there were concrete ways to earn a significant passive income... and sometimes even enough to live on.
But the hardest part is often knowing where to start: which 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's a lot of talk about passive income. And one of the reasons it's a frequent topic of conversation is because it's one of the most important.
Passive income is when you continue to get paid for a job after it's done.
To take classic examples, think of book sales or film and song rights, real estate rentals... All of these systems allow you to earn money "automatically" over time.
Some passive income ideas require some work up front (like writing a book), while others will require less effort to set up (for example, dividends from your stock market shares). In any case, the ideal is to find an activity that really interests you.
The benefits of passive income are numerous. For example, if you lose your job, you can 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 sources
Choosing the right sources of passive income allows you to use your time the way you want to. You don't have to spend dozens of hours a week running your business. The goal will be to get the most out of your business for the least amount of time spent.
Of course, we are not talking about scams, multi-level sales or other suspicious businesses. The ideas presented in this article are indeed legitimate ways to make money while you sleep by creating something you are passionate about and use your experience and skills.
1
Start your dropshipping business
With the explosion of e-commerce, dropshipping, also known as drop shipping, has become very popular.
This passive income system works in a fairly simple way. You create an online business site where you offer for sale products from certain manufacturers and suppliers that you will work with.
Then, when someone visits your site and places an order, it is sent to the supplier in question. They will then send the order directly to the customer - which means you make money on the sale without ever having to manage inventory!
The customer pays for the product, you collect the profit, and the manufacturer stores and ships the products to the customer. No need for investment or storage space.
If you're considering starting your own online dropshipping business, I recommend the Shopify platform which makes it easy to create your online store without having to develop a site from scratch.
Be careful though: dropshipping often suffers from a bad reputation, which is partly legitimate.
Many dropshipping sites are simply about buying poor quality products on markets (especially Asian ones) and reselling them for a huge profit... at the expense 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 that your client wins as much as you do.
(Discover here a complete review on dropshipping)
2
Create and sell digital products
Nowadays, selling your own digital products is a great way to make a passive income.
And among digital sales, anything related to training, education or expertise sharing can be very interesting to exploit.
For example, if you are specialized in a particular field, you can create and sell online courses (by becoming a Udemy trainer for example), an e-book, a podcast... It's up to you to find what you are passionate about!
Once again, creating these products will necessarily require some work up front. But the advantage of creating digital products and not physical is that you will not have to worry about inventory, shipping or delivery: everything is done directly online.
3
Rental investment: a passive income classic
Real estate is one of the most popular sources of passive income. In fact, the majority of today's millionaires have built their wealth by investing at least some of their money in real estate.
And for good reason: rental investing can be a great way to make money... even in your sleep!
The main disadvantage 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 a classic financing is too complicated for you, you can on the other hand use a platform of participative financing.
These crowdfunding platforms allow you to invest in real estate for a much smaller amount than what it would cost to buy a property, and therefore to invest collectively in real estate development projects to benefit from a rate of return.
One example is the IWIMO website, which allows you to invest from 500 euros in projects that you can select according to the duration of the investment, the type of construction and the precise location. They succeed perfectly in their objective of making real estate investment accessible to all.
4
Launching your blog
Having your own blog can of course be a passion. But often, you'll want to earn at least enough money to cover the costs of putting it online. In any case, you should know that it is possible to go even further and offer yourself a real source of passive income thanks to your blog!
To do this, you must of course provide added value to your readers 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 start their own site: you don't need to be a world-renowned expert to share your expertise in a field. The key is to start a blog on a topic that you are really passionate about, but that also interests others and helps them solve a problem.
To launch your blog and start creating a passive income, you will first need a domain name, a hosting solution and a content generation system (or CMS).
Once you have your content online and monetization solutions for your blog in place, you can earn money on a regular basis, whether you spend extra time or not. Hour after hour, day after day, your blog is working for you.
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5
Sell your photos online
Did you know that you can get paid to take pictures? It's actually quite simple.
There are hundreds of online platforms that offer "royalty-free" images, meaning that Internet users pay (either per download or per package) to be able to download a photo and use it freely. These sites are often used by companies looking for images for their communication materials.
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, regardless of your level of experience - although you will need to know the basics of photography and have the right equipment.
6
Invest in high dividend stocks (passive income)
Many investors, when they decide to invest in the stock market, are particularly interested in yielding stocks. That is, they select particular stocks to receive dividends (an income paid by the company to its shareholders once or several times a year).
Investing in stocks that pay regular dividends is actually one of the best ways to generate passive income without a lot of work.
For example, let's say you buy Apple stock. Not only is the stock price likely to rise over time, which means your investment is increasing in value, but you'll also be paid a dividend for each share you own. Depending on your long-term investment strategy, you can either reinvest these dividends or collect them.
Beware: not all investments offer dividends or even attractive dividends.
In addition, you'll need to do a minimum of research, and don't hesitate to contact a financial advisor before jumping in to find out if this strategy really suits your needs.
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7
Earn passive income with affiliate marketing
Even if you've never heard the term "affiliate marketing", you've probably come across it while browsing the web.
This partnership system consists of earning a commission by promoting the products or services of a company. In concrete terms, each time a person buys from your partner thanks to your recommendation, you get some money.
Let's say you have a website or blog on a particular topic, such as DIY & interior design. You published an article about a coffee table you built yourself. And for this creation, you used a can of paint from a particular merchant.
If this merchant offers an affiliate program, then you can put a link in your article to their website and earn a commission on any sales that come through that link.
Affiliate marketing can be a great source of passive income... but it can also be a very big trap when it is misused. And even if some bad online practices have certainly tarnished its image, it is still very interesting to exploit.
Because affiliation does not consist in promoting 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 a real added value to your audience, not to trick them.
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8
Buy and resell domain names at a profit
The idea is simple: to buy domain names that could be valuable for companies in the future at a low price, in order to resell them later at a profit.
And while this does require a bit of luck, on one hand, a lot of it is strategic. You'll need to do your own research and make sure you choose keywords that have the potential to make you money in the future. To begin with, it's ideal to select a specific business area and determine which domain names might sell well in that industry.
Then, once someone wants to buy one of the domain names you own, it's your negotiation skills that will make the difference between a small and large profit.
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9
Passive income selling printables on Etsy.com
If you love the design or have an artistic soul, selling printables or digital products can be a great way to provide yourself with a reliable passive income.
Digital products require little maintenance: all you need is an online storefront on a site like Etsy and a download link to make a sale. No need for inventory management or shipping issues. All you have to do is spend some time, in the beginning, to get your designs right.
Printables (as the name implies, virtual documents that users will be able to download and then print) can bring a lot of passive income success. The most popular ones are generally :
Greeting cards
Wall art, posters, and signs
Calendars, planners, organizers...
Decorations
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.
10
Advertising on your car
Want to make money just by driving your car?
By allowing brands to place ads on the windows or body of your car, you have the opportunity to earn a few hundred dollars each month while driving as usual.
Check out sites like Itsmycar.fr or Jeroulefute.com to find out how you can earn a passive income simply by placing ads on your car.
11
Get cash back for your shopping
If you're already in the habit of doing some of your shopping online, you may be missing out on an easy passive income by not taking advantage of cashback sites.
These platforms pay you a cash amount (usually a "refund" of a certain percentage of the purchase) every time you buy from an e-merchant.
All you have to do is click on a link on the cashback site or download a browser extension. Then, just shop online at your favorite site, as usual! Some of the most popular cashback platforms include iGraal.com and eBuyClub .
Again, this strategy only works if you buy things you really need.
But it is a "false friend" of passive income: it is not a real business, far from it. And it's almost impossible to earn several hundred euros every month through cashback.
12
Renting your apartment or house while you are away
We presented you above the solution of investing in real estate to be able to offer you a regular passive income.
If you are interested in this field but are looking for a more practical and less expensive approach, renting out your apartment/house, your vacation home or even a single room in your home on online platforms can be an excellent way to earn money passively.
Airbnb is the best known solution. It allows people to travel around the world and stay in accommodations that are much cheaper than traditional hotels.
You can therefore offer your accommodation on a regular or occasional basis depending on your preferences. A similar alternative is the Smartrenting platform.
13
Propose a carpool on your way to work
The mobile application Klaxit puts you in touch with people who are looking for a carpool for their daily commute.
All you have to do is enter your daily commute into the application, and Klaxit automatically suggests people you could pick up and drop off on your way, limiting detours. You share the costs of travel with them, all directly in the application.
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