Your options for generating passive income in 2020 are greater than ever before. With that said, the options that can actually grow and surpass a simple bank investment are surprisingly few. By generating passive income, you are taking the first step towards a life of freedom where you are no longer dependent on a full-time job to maintain your cost of living. Further, passive income can turn into a lifelong passion, a business, or an estate that stands the test of time.
Creating a passive income stream requires knowing what is out there. As we have seen, the online world has proven to move at a breakneck pace, meaning that there are new models for making money online with each passing year.
In 2020, having a stream of passive income is becoming less of a rarity and more of an expectation for any individual seeking financial security.
What Is Passive Income?
“Passive income” is a catch-all term for personal income that is generated with little to no active involvement from the beneficiary. Traditionally, passive income has come from things like stocks, real estate, or royalties. In the digital era, however, passive income is often produced from the ownership of digital real estate that runs autonomously.
Now, passive income is great and all, but there are major differences between each stream of passive income that exists. While some are guaranteed to return a set percentage, like mutual funds at a bank, they typically offer the lowest rate of return. Similarly, higher-risk forms of passive income, like stocks or real estate, exist in highly turbulent markets that have been prone to booms and busts.
Traditional passive income versus online passive income
With a little bit of time and a small investment, generating passive income online has proven to be a sustainable, fruitful, and fulfilling method of producing passive income with a much higher growth potential when compared to traditional streams of passive income. This leveling of the playing field has meant that more people than ever before are able to have their own piece of the passive income pie.
Why You Should Have a Stream of Passive Income
Regardless of how far you want to take your stream of passive income, time is money and that is why you should always have at least one method of earning an income without active involvement. At the end of the day, your most limited resource is time. If you spend it wisely, then your income can far exceed the number of hours you have each day to make it.
Working for a wage or salary may not be your dream for life leading up to retirement. If you want to break free of the daily grind, beginning your journey through developing passive income streams is your ticket to financial freedom.
Passive Income Investment Ideas
We are certainly partial towards digital passive income streams for all the reasons listed above. That said, there are many more that exist outside of that. Here, we will explain the merits of each and what might lead you to choose one over the other.
Ideas for beginners
If you are new to this world, then you will want a helping hand to guide you along the way. Even if you are experienced, there are definitely new methods for generating passive income that you want to be on top of.
These ideas are for those of you wanting to get their first passive income stream but are not too sure where to get started.
Purchase a piece of digital real estate that is already generating profit This is a super safe method for generating passive income. With digital real estate, you will find a property that has a proven track record of success generating income for its owner. Those profits can be yours, and they can grow substantially over time too! We are experts in this area, so whether you are a technical beginner or master, we will help you succeed.
Invest your money through a bank Naturally, this can take many forms. For most people, investing usually means receiving dividends based on the performance of a stock or mutual fund. There are countless ways to invest your money. Stocks can be a craps shoot where few ever succeed – even Warren Buffet advises against trying to play the stock market, famously winning a bet against a hedge fund manager, claiming that he would make more money over 10 years investing in a low-return index fund. The moral of the story here is that investing can net you a decent return, but the success of your investment is much less predictable than investing in a business you own and grow yourself.
Ideas for generating passive income online
In the digital world, you can create any type of product and find an audience for it. Being able to produce, market, and sell your product becomes much easier when your cost to get started is small and your potential reach is massive. We encourage you to have a mentor guide you through developing a passive income stream online so that it can reach its maximum potential as quickly as possible.
Monetizing a digital property comes in many forms, but they can be broken down into a few major categories
Sell a product
If you have a product that people want, then you can sell it online and reduce the overhead needed to get it to market. Reselling can also be a fruitful method of generating passive income without investing much time. By outsourcing or automating the process of delivering products (whether they are physical or digital), you can reduce your time investment in short order.
What’s more, the product you sell can change over time. Maybe you have great expertise in your field, so you sell an e-book on how to master that one year. The next year you can pivot to marketing a product through the platform you have developed, effectively capitalizing on the traffic you generated over the past year. The options are endless.
Monetize a domain
When you purchase a domain, you can immediately start working towards increasing traffic to that domain, then use ad networks or affiliate marketing to generate income from each visitor. Instead of producing content yourself, consider outsourcing that work to keep the workload at a minimum.
Develop (or purchase) software to sell as a service
Digital tools are quickly becoming a hot commodity. As the owner of a piece of software, you can license out access to the software to generate an ongoing income stream that grows as users recommend it to others. If you don’t want to sell the software as a license, then you can still generate income by offering it for free and monetizing the traffic in other ways. This can take many different forms, but some of the internets largest players are making passive income by selling software as a service, and you can too.
This list will hopefully help you start considering how to make your own passive income stream. There are many websites for sale online that can prove their profits from month to month. By investing in digital real estate, you gain instant access to those profits and the growth that comes along with it.
