How can you generate passive income? It may surprise you, but there are plenty of ways to do that!
Even if you don’t already have a few million euros in the bank, you can build up passive income. After all, this is not only about investing money but often also about investing time or having a good idea.
I can tell you all about it and that is partly because I now have more than € 3000,- passive income per month. These come in through various channels which I have built up without or with minimal investment.
In this article, you will find all the ways to generate passive income that work with my own experiences.
What is a passive income?
A passive income is an income for which you do not have to do anything at that moment. So you don’t have to work one hour to get paid for one hour. The well-known hourly bill.
When you immediately receive money for work that you do, it is an active income. This often pays for itself in the form of a pay slip and has a major disadvantage that if you do not work, you do not earn anything. To some people, this seems like the only form of income there is. But if you look at the rich of the earth, you will see that none of them deserve this with (only) a payslip. There is a limit to a salary ;).
The situation is different for passive income. You make no effort when you earn money. In fact, you earn money without working for it. So you also earn money when you sleep!
“I myself have been living as a bloger 4 years now . That means that I combine work and travel. I spend about 8 months a year abroad . At the moment 10% of my income is active and 90% passive. That passive income continues to grow every month.”
The biggest fallacy with passive income
Just because you can earn money while sleeping doesn’t mean you don’t have to do anything for it. We would all have had a passive income ;).
So before it comes to that and you become rich overnight, it will also have to be worked for. When I look at how that went for me, I must confess that in the first 6 months I didn’t earn a cent passively, but I did work a lot. Now that is the other way around and I only work if I really feel like it, the passive income is now coming in every month!
Depending on the passive income method you use, it can take up to a year to live on. But even then you are in a situation that you might enjoy for a lifetime!
Why so many people don’t have passive income
Passive income is not for lazy people, but for people who want to roll up their sleeves now to reap the benefits in the long run.
This is also the reason why many people do not have a passive income. They have trouble working without immediate reward. And that while the reward in the long run can be many times greater!
So be careful with the ways below that you don’t start hard, but give up after a month because you haven’t earned anything yet. Know that the reward will take some time and always think about what a full-time passive income can mean for you.
In short, passive income is financial freedom without having to be a millionaire.
Alright, let’s take a look at how you can earn money passively!
Ways to generate passive income
Below I describe the different ways in which people generate passive income. Most of the ways I have experienced myself.
In those ways, I will describe how this went for me and how you can make a success of it.
1. START A BLOG
Now there are plenty of items on this list that will help you make money on Pinterest, but blogging has the highest earning potential of them all (and it’s not really close).
Over the years, Pinterest has become a massive platform that allows bloggers to reach millions of people on the internet every year. Now there’s a common misconception that Pinterest is just another social media platform like Instagram, TikTok, and the rest – but that simply isn’t true. It’s much more powerful in terms of helping bloggers make money with their content.
Just like you likely found this article by typing in “how to make money on Pinterest” in Google – the same thing happens on Pinterest. It’s a search engine, but it’s based on images instead of text.
This is why bloggers in many different niches become extremely successful with Pinterest marketing, from food bloggers to personal finance bloggers and more.
Here’s the quick and dirty version of how making money with a blog on Pinterest works:
- Choose a blogging niche (food, personal finance, fashion, etc.)
- Create content and post it on your blog, and monetize it with ads, affiliate products, or even sponsored placements
- Create a Pinterest account
- Create a Pin (i.e. an interesting image that shows what your blog post is about – see below)
- Post the image on Pinterest
Now there’s more to it than that, of course, but that’s essentially how it works. When a Pinterest user searches for something that matches your blog post, they’ll be able to see your Pin, click on it, and ultimately see your ads or buy products from you.
And the great thing is that it’s scalable – there are plenty of bloggers out there that make anywhere from a few thousand dollars per month to hundreds of thousands per month!
If blogging sounds fun and interesting to you and you’d like to know more, you can check out our free guide on starting your own blog here.
2. Your own online product
Your own online product is an ideal way to generate passive income. When you sell an online product, you often don’t have to worry about sales and handling, because you can automate all of this.
Think of an online video training or your own e-book. With such a product you have an automated distribution process and you can therefore earn money without having to worry about it. You obviously need some skills for such an online knowledge product. After all, enough rubbish is already sold on the internet.
So don’t be the umpteenth person who starts with online training about ‘get rich quick’ if you are not rich yourself. That’s annoying and doesn’t do your name any good.
But if you do understand something, feel free to make an online knowledge product and ensure a good sales channel such as a website or social media. you got this!
“I myself free a training course on my website . This has already been included and therefore concerns passive income. The idea behind it is that I have a lot of knowledge that is valuable to someone else. In addition, training, online or offline, is just great fun.”
A very lucrative business model if you consider that such a course quickly yields 997 euros per participant. However, since this is a video training course, that process is also automated, making it a legitimate way to generate passive income. What is interesting about their story is how they promote the online training. They do this not only through their own channel but also through affiliate marketing. But you can read more about that under the next heading.
3. Affiliate marketing als publisher
For people who generate passive income without having millions in the bank upfront, affiliate marketing is probably what they started with. Why? Because affiliate marketing is very simple to set up without needing a product or service yourself.
Simply put, affiliate marketing is promoting other people’s products based on a pre-agreed commission. As a publisher, you put links to products between your posts, on your Instagram, Youtube, Facebook, e-mail, or other channels. When someone clicks on one of those links and buys the product, you receive a commission.
Many products will not have such a high commission. For example, if you look in the catalog of Amazon.com, products will not give more than 8% commission of the sales price (usually only 3%). Logical too, because these are products with relatively small margins.
But when you find an affiliate program with digital products, those commissions can quickly reach 50% and that’s when things get interesting. For example, if you recommend an online training of 100 euros, you will receive 50 euros for this when someone buys it via your link. And that is without having to make a product yourself. You just need to have a channel where you can post the link and where a lot of people come through.
“I now earn a full-time income (> €3000) with affiliate marketing as a publisher. This is great for generating passive income. Mainly because I don’t care much about it.
I recommend a product but don’t have to do the customer service or handling it. I simply receive commissions for simply linking to someone. My favorite affiliate network (where I find affiliate programs) is Awin . If you already have a blog , you can sign up right here . ”
If you want to get started with affiliate marketing yourself as a publisher, you would do well to read up on it. Randomly posting links will not have much effect. It is therefore important to only refer to relevant products to a relevant target group. Only in this way can you successfully earn money as a publisher with affiliate marketing.
Before I started earning my monthly 3000, – euros I was a long time further. This was because I just did something at the beginning. I placed links to low-value products with a bad sales funnel. So I could send people what I wanted, but it didn’t yield any sales. If you know which programs you should and shouldn’t use and how to recognize opportunities, it all becomes a lot easier.
4. Affiliate Marketing as a Seller
You can also generate passive income in another way. Continuing in a previous way, you can also use affiliate marketing the other way around. Suppose, for example, that you have created a product yourself, such as a video training or e-book. Then you can also choose to sell it yourself through an affiliate network. You then offer your product so that others can promote it for you in exchange for a commission.
You can imagine that if you do this right and hundreds of websites sell your products, it goes quickly. You then have a huge potential to sell your product and selling in massive numbers is not unique.
So this is what I did myself. I sold my book through an affiliate network and thus dozens of other websites. They then receive a commission for each sale :). In this way, the publishers and I as an affiliate generate a passive income.
5. Generating passive income as an author or musician
Besides an e-book on a specific subject, you can of course also become a writer of a real book. You can imagine that this is not just done. The average novel has 55,000 words and that’s quite some work I can tell you. But no matter how much time this goes into, when it’s published it’s a form of passive income when you sell it.
If music is more your thing, it can also be a form of passive income. When you put music online, you earn money through many different channels. The most famous channel is selling your music. But that is certainly not the only one. You can also earn with your streams on Spotify. And you can even earn from the rights of your music… And now I hear you think, I’m not a well-known musician at all, so that won’t work. Then, when you’re on the producer/DJ side, you could even start ghost producing for bigger DJs. You then always earn money from the rights of that music when it is played. But yes, that for the musicians among us, when it comes to generating passive income this may be a bit far-fetched.
6. Make money with blogging, vlogging, or as an influencer
If you want to earn money with blogging, vlogging, or as an influencer, this can be passive in many cases. Although it is important that you stay up to date with your followers, so every now and then some work will have to be done to stay interesting.
So it is in any case possible to generate passive income in this way. You do this by, for example, allowing sponsorship. Companies then pay you monthly to promote them. Other examples of passive income in this corner are selling merchandise, running Google Adsense or Youtube ads on your content, and allowing advertorials for a fee.
In addition, if you reach a lot of people through your medium, whether this is Instagram, Youtube, Facebook, or a blog, this is interesting for many revenue models. You can imagine that if you have a lot of followers, they are worth money in one way or another. Suddenly you are also able to launch and sell your own products. Do you understand? So many options!
7. Generating Passive Income With Investing and Investing
Money makes money. So if you already have a savings account, generating passive income is actually quite easy. For example, consider investing in real estate. A good return can be earned with this.
An average return on investment quickly amounts to 6% to 8% per year. It is therefore always better to let money move than to leave it cold in your bank where the interest is nil or minimal.
In addition to these forms of investing, you can also use your money to support start-ups in exchange for buying shares or websites that will generate a profit over the years.
Generating passive income conclusion
It is possible for everyone to generate passive income. Even if you don’t have a cent to invest yet, you can already start with the above (except for the last) ways.
My own experience teaches me that generating passive income takes time, a lot of time. And that makes sense in a way, you invest time before your work yields anything. But in retrospect, I dare to say out loud that the investment is worth it anyway. There’s nothing like an email that my book has been sold while I’m drinking coffee with my grandmother at that moment (or a cocktail on the beach of Cambodia, I am and remain a digital nomad ). It is therefore a good idea to start building your own passive income as early as possible. In the best possible situation, you do this in addition to a stable income that you already have.
When building a passive income, many people give up after a few weeks or months. They see no immediate results and lose motivation. In fact, anyone could generate a passive income, but it is good to check with yourself whether you have that entrepreneurial instinct. Otherwise, it is simply a waste of your time. ?
Anyway. Wishing you every success!