HOW TO GENERATE PASSIVE INCOME?

Passive income is nothing but, an income source which generates cash flow without your direct involvement. Creating multiple passive income sources can help you to generate more cash flow. Multiple sources of passive income will lead you to the path of financial freedom.

5 Passive income ideas.

We are going to discuss 5 major passive income sources.

Selling an e-book or a course

If you are a skillful person in any particular field, you can release a course or an e-book related to that. It is a popular strategy to generate passive income by selling such courses and books online. Products can be sold out through various platforms like Udemy, Skillshare, Coursera and Amazon.

It is just a one time effort to create a product and further it can be an excellent income stream. However, the content of the course or e-book should be worth to buy. And once a course is successfully launched, you need to create more excellent products.

Buying highest dividend yield shares

Usually good companies pay cash dividends out of their profit in every quarter.?Buying the shares?of such companies is one of the most promising source to generate passive income.

This involves an initial investment to buy the shares. However equivalent amount of shares to the capital deployed will be always an asset. This can be sold at any point of time, mostly with a good capital gain.

The amount of effort required is minimum or zero, after the initial purchase of the shares. Dividend will be credited to your brokerage account time to time.

The trickiest thing is to?choose the right stock. Hence, it is always better to consult a stock advisor, if you are not an expert. Novice people simply jump into the market without doing proper analysis. As a result, 90% of them will be out of the market with in no time.

Try to?pick a stock?which can beat the return from a?fixed instrument. And be very careful to pick a segment leading company.

Rent out a real estate property

Investing in a rental property is a common method to grow side income. But this requires more effort and time to learn to make it a profitable venture.

Capital required will be higher in rental investments. Moreover, you need to do a thorough calculation on how much you can invest and what is the return you can generate from the property. You must be well aware about the taxation from governmental agencies.

Once you overcome all these initial hurdles, it can fuel your journey towards financial freedom.

Creating a blog or a YouTube channel for passive income

Are you passionate about something? Will you be able to talk hours together about that subject? Then this is a great way of generating passive income. Create a blog or a?YouTube channel?and share your ideas and contents.

Once you start drawing the audience, you can monetize it in multiple ways like ads and sponsors. Most attractive thing is that you need very less initial investment. But the effort behind consistently creating beautiful and informative contents will be huge.

Be very sure that you are super interested in the niche you are selecting. Initially go for a free platform like?Blogger?and YouTube. Once you are confident about your niche, you can think of an own website and a good hosting partner.

Affiliate marketing

Affiliate marketing is nothing but promoting third party products through your website or social media accounts. There are many companies like Amazon paying good commissions for affiliate partners. Now a days Instagram, Facebook and TikTok have become the greatest platforms for affiliate marketers.

Initially you need to have a social media account or website with a decent number of visitors. You can introduce multiple products or services to yours visitors, which are related to your content. For this your partner company will provide you a product link, which you can share on your platform.

Whenever a visitor to your page click the product link, he will be directed to the partner company’s website. You will be paid commission for every purchase visitor does through that link.

All among the 5 ideas, which one do you think is the most promising?