A passive income stream will enable you to keep earning a significant amount of money to supplement your monthly income. It’s called a passive income stream because you don’t need to undertake any additional effort to sustain it. Here are ways on how to start creating multiple streams of passive income.
You can invest in stocks that offer their shareholders payouts called dividends. If you own enough shares in different companies, you can regularly earn a passive income through dividend securities. You should invest in brands that have a reputation of paying dividends consistently without fail.
Become A Silent Business Partner
There’s a good earning potential in becoming an inactive investor in someone else’s business. You’ll only contribute to the business’s funding and leave the management or decision making processes to the active partners.
In return, you’ll keep earning a portion of the profits. You’ll also be liable for the business’s losses up to the original amount you invested.
Earn Rental Income
Buying and renting out properties is a popular passive income stream. You can invest in residential or commercial buildings in urban settings. However, for the investment to be a passive source of income, you need to hire a building manager or caretaker to manage your rental properties.
Purchase Rights To Royalties
People make money online by purchasing the right to royalties. Products such as songs and books are intellectual properties.
So, if you buy the royalty rights of someone else’s book or write your own book, you can start earning royalties. In other words, you invest in the lump sum rights and keep receiving steady royalty payments. There are several sites that hold auctions for such rights on the web such as SongVest and TheRoyaltyExchange.
Create A Blog Or Website
Create a good blog and build it to drive high-quality traffic. Once the site starts ranking highly on search engine result pages, you can easily monetize it.
By writing informative content consistently, your site will gradually grow and become an authority site in your niche. At this point, there are several ways you can monetize your site such as doing affiliate marketing.
Become An Affiliate
Affiliate marketing is one of the most lucrative online business models for smart digital marketers. Online retailers and brands will pay you a commission to promote their products or services through your site or social media accounts. You simply insert their affiliate product links in your content and earn when your readers click on the links to place orders.
If you’re a creative writer, you can start self-publishing your own books through the Amazon KDP program. Alternatively, you can sell the eBook on your website or through social media.
Remember, since an eBook is a digital product, you’ll keep selling the eBook over and over without replenishing your inventory. You can only choose to write more and more eBooks to grow your author library. To increase your sales even further, consider creating an affiliate program to allow other bloggers to promote your eBook on their blogs.
Final Thoughts On Creating Multiple Streams Of Passive Income
A passive income stream is low risky, inexpensive and easy to replicate in order to make more money. While you can invest in properties that you rent out to earn passive income, many people prefer creating passive income streams online. So, depending on your needs and skill set, you can invest in any of the aforementioned passive income streams.