Great ways to generate passive income

February 2013 00:00 NONSO NDUMANYA

Earning income passively is a dream for most people, since it essentially means you make money without putting in a significant time investment. Most sources of passive income will require time and some money to get started, but if successful, these opportunities can generate income for you long-term and without your direct involvement.

Here are some great ways to generate passive income.

Create a product

You can earn passive income by creating a product might include writing a physical book and getting it published ongoing sales of your book are earned passively. Some people become television writers, and when their series is picked up for reruns, royalties earned are considered passive income.

Sell advertising

As a website owner or publisher of a popular magazine, blog, or newsletter, you can sell advertising space. While you will have to do the initial legwork to create a successful website with a large following, once established, advertising revenue is a passive income opportunity where other business owners will pay you to include an advertisement on your website or in your newsletter.

Own a business

When people think of passive income, chances are they will immediately think about an online business of some type. The internet makes it possible to start and run a business with low start-up costs and low overhead expenses which means more profit in your pocket. It also creates opportunities for automation, and anything you can automate provides a potential passive income stream. While it’s often easier to break into the world of passive income online, passive income is not limited to the internet. Any business you own can generate passive income for you if it is established the right way. If you hire people to fulfill the day-to-day activities of your business, your business should generate a profit after all the expenses are paid. The profit you receive as the owner of the business is passive if you aren’t directly involved in the daily operations.

Investing

When saving your money in a bank, take some time to compare savings accounts to earn as much interest on your money as you can. If you meet minimum balance requirements, you can also earn interest on money saved in a checking account. Earning interest on your money is a passive way to increase your income, so you may as well take some time to discover your highest earning potential. You can also build an income investing portfolio to create passive income while growing long-term investments. You may include a variety of investments from dividend stocks, bonds, and annuities, with the goal of earning money quarterly, semi-annually, or annually without having to sell the investment.