Today, we are going to learn about 10 legit ways to make passive income online. Now, let’s begin.
- Renting Property
Do you have a spare room in your house? Or an empty building on your property? This method of passive income is increasingly more common in the world today. More and more people are renting their homes, apartments, condos, and even backyard to strangers. Sites like Airbnb allow homeowners to advertise their property to travellers and businesspeople around the world.
This is especially lucrative if you live near a big city, a national park, or an important landmark. People travel far and wide to see these places with their own two eyes. But many people are looking for hotel alternatives, where they can stay closer to action in a clean, homey environment.
Many homeowners make so much money renting their properties, they don’t pay a dime on their mortgages, taxes, and utilities. This form of passive income requires little work and ever less preparation, but it can be unreliable. Not every location is popular year-round. And not everyone lives in a desirable place to visit. But if you live in a popular place, and you have some room to spare, renting your property can turn your unused space into cash.
Are you interested in the stock market? Many people want to invest in stocks and mutual funds but entering the stock market can be tricky and overwhelming. If you’re new to investing, you may be struggling to make sense of all the information at your disposal.
Luckily, there’s an easy way to make money in the stock market without investing hours into research. Many companies use robot financial advisors to create optimal portfolios based on your investment preferences. For example, if you want to play it safe, a robotic investor will automatically invest your money into reliable funds with steady returns over time.
On the other hand, if you choose a riskier approach, your advisor can track market trends and pinpoint rewarding investments. If you’re interested in stocks, but don’t know where to start, work with a robo-advisor to get started. You’ll be surprised how easy it can be to break into the market… and start making money.
- Marketing Your Hobbies
Can you turn your hobbies into reliable income? There are many different tools available for creative people to market their hobbies. Online, you can find paying markets for almost any profession, from writers to painters to basket-weavers. Many platforms allow creative people to publish their work and sell their products for a profit. Photography is a good example.
Many photographers earn a passive income by selling stock photos. On a variety of sights, third party consumers can buy their photos. When they do, the photographer earns a small commission.
Unfortunately, marketing your hobbies isn’t always lucrative. Some people turn their hobbies into full time, online careers. Others have a hard time getting off the ground. But if you use the wide variety of platforms at your disposal, you can always find a money-making niche that’s right for you.
- Real Estate Partnering
Let’s talk about a tried-and-true avenue for passive income. One of the best ways to invest your money… is to buy property. Buying a home at the right time can yield a massive profit over time. If you do research, and pay attention to trends in the housing market, you can snag and flip a great property for a huge profit.
But not everyone wants to invest hundreds of thousands of dollars into a new home or a piece of land. Can you invest in real estate without buying or managing an entire property?
Websites like Equity Multiple allow investors to become partners in a larger development. Instead of buying your own property, you invest a smaller amount of money in a shared property. You’re not responsible for managing or upkeeping the property, but you do earn a percentage of the profit when that property sells.
But like any form of real estate, a partnership comes with a risk. There’s no guarantee you’re going to make a profit on the property you buy. You need to do your research and wait patiently. But if you pull the trigger at the right time, you can earn a lot of money without lifting a finger.
- High Yield Accounts
High yield savings accounts are perfect for people looking to earn money without financial risk. There are a wide range of savings accounts available. Each one has its own specifications, but they all operate the same way.
High yield accounts have higher annual interest rates than standard savings accounts. Depending on the account you choose, you may also be exempt from taxes and fees. In other words, all you need to do is make an account… and start earning money. You’d be surprised how quickly your savings can stack up with a good interest rate. Of course, there are some downsides to putting your money in a high yield savings account.
Of all the income strategies on this list, high yield savings accounts are one of the least lucrative. You’re not going to make millions of dollars through annual interest. So, if you’re looking to make a fortune, you may be interested in something a bit riskier.
But what this method lacks in production, it makes up for in safety. High yield accounts are almost always FDIC insured, guaranteeing your money is always secure. Unlike other investments, you can also withdraw money from your savings account without any significant financial punishment. If you’re running low on cash, you have the option to dip into savings. If not, you can keep building your account… and earning money in your sleep.
- Affiliate Marketing
Are you a content creator? Do you interact with large numbers of people? If you have a popular media platform, affiliate marketing is a reliable and lucrative form of passive income. Savvy content creators use affiliate marketing to not only share products that they endorse but significantly increase the amount of money they earn.
So, what is affiliate marketing? Affiliate marketing works like this.
First, a content creator partners with a company they support. Then, the content creator uses their media platform to advertise that company’s product. If people see their advertisements and buy products from that company, the content creator earns a small percentage of that sale. In other words, you get paid every time someone sees your ad and makes a purchase.
This is a perfect money-making technique for content creators, influences, and even entrepreneurs, but it’s not accessible for everyone. If you don’t have a popular platform, partnering with a company isn’t going to earn you much money. But if your posts, videos, or articles reach thousands or even millions of people, affiliate marketing is exactly what you’re looking for.
- P2P Lending
This stream of income appeals to people with money to spare and no good place to put it. A (peer to peer) to P2P loan is a personal loan you give to a borrower that may not qualify for loans at established banks. Through platforms like PeerStreet, you can find borrowers looking to start businesses, pay off debts, or chase creative dreams. If you find someone you believe in, you can satisfy their loan and charge principal and interest on your investment.
P2P lending can be surprisingly lucrative. The median return rate is around 4%, which is significantly higher than any high yield savings account. But it’s also risky. There’s no guarantee your borrower is going to pay back their loan. If your loan falls through, you could lose your investment.
Experienced lends find ways to mitigate the risk of P2P lending. For example, they don’t lend all their money to one person. Instead, they spread their investments across multiple borrowers. That way, one unreliable person doesn’t tank their investment.
If P2P lending appeals to you, check out of many websites created to connect with lenders and borrowers. Not only can you help someone achieve a dream, but you can make money while you’re at it.
- Business Investment
What if you’re looking for a riskier investment with a higher return? You may consider investing money into a fledgling business. New businesses are always looking for private investors to get their ideas off the ground. It can be expensive. And there’s no guarantee a business will succeed. But there are countless success stories, in which investors make millions off the start-ups they endorse.
If you’re willing to risk your money, or you believe strongly in a small business, invest in their long-term growth. The business may fall flat. Your investment may go south. But if their company takes off… you just might make a fortune.
- Cashback Rewards
Let’s talk about passive income on the other end of the spectrum. Cashback rewards have zero risk and require zero work. All you need to do to earn a passive income… is spend money.
Several companies offer credit cards that yield cash rewards for spending money at certain places. For example, your card may return 2% of your spending each time you spend money at a restaurant or grocery store. As long as you pay your balance each month, you can make a little extra money on every one of your purchases.
- Selling Data
Selling data is another risk-free opportunity, which requires little work and little research. All you need to do is install a data collecting application on your phone.
This application collects and stores data from the services you use and the websites you enjoy. The application then sells your data to other companies, who use your data to create better products and moderate their existing services.
That may sound complicated, but you don’t have to worry about a thing. Play games. Use applications. Browse the internet. Do what you normally do… and make money while you’re at it.