7 Passive Income Ideas You Can Start Today with Little to No Money
How to start, the tools you need, and how much to expect
Welcome back to another edition of the busythomas newsletter! In this issue, we'll dive into 7 practical passive income ideas that you can begin today, regardless of whether you're a seasoned entrepreneur or just starting your journey towards financial independence. It's crucial to remember that while passive income can be incredibly rewarding, it does require time, effort, and dedication. You won't become a millionaire overnight, but with persistent effort, these ideas can lead you to financial freedom down the road. So, let's get right into it! 🚀💰
1. Dropshipping
What it is: Dropshipping involves selling products online without holding inventory. You partner with suppliers who handle shipping, leaving you to focus on marketing and customer service.
How to start:
Select a niche and research profitable products.
Choose a reliable eCommerce platform (e.g., Shopify).
Find reputable suppliers (e.g., AliExpress).
Create an online store and list products.
Promote your store through social media and SEO.
Tools and skills needed: E-commerce platform, digital marketing skills, SEO knowledge.
Expect to make: In the initial stages, you might make very little or nothing at all as you invest in setting up your online store and marketing. With time and effort, some dropshippers earn several hundred to several thousand dollars per month.
2. Affiliate Marketing
What it is: Affiliate marketing involves promoting products or services and earning a commission for each sale or lead generated through your referral.
How to start:
Choose a niche and identify affiliate programs.
Build a website or blog.
Create high-quality, informative content.
Join affiliate programs and incorporate affiliate links.
Promote your content through social media and email marketing.
Tools and skills needed: Website/blog, content creation, digital marketing skills.
Resources:
Expect to make: Early on, earnings may be minimal, but as your website or blog gains traffic and trust, you can start earning commissions. Beginners might earn $100 to $500 per month, while experienced affiliate marketers can make $1,000 or more monthly.
3. Write an eBook
What it is: Write and publish an eBook on platforms like Amazon Kindle or Apple iBooks, earning royalties from sales.
How to start:
Pick a topic you're passionate about.
Write and format your eBook.
Create an attractive cover.
Publish on eBook platforms.
Promote through social media and email lists.
Tools and skills needed: Writing skills, eBook formatting software.
Resource: Ebook Your Ticket to Freedom; How Anyone Can Write an Ebook That Sells, Earn a Passive Income, and Escape the 9-5 Forever
Expect to make: Earnings from eBook sales can vary greatly. On average, if you price your eBook between $2.99 and $9.99, you can earn royalties of around 35% to 70% per sale. Successful authors may make $500 to $5,000 or more per month.
4. Create an Online Course
What it is: Share your expertise by creating and selling online courses on platforms like Udemy or Teachable.
How to start:
Choose a topic you're knowledgeable about.
Plan your course content.
Create video lessons and materials.
Set a price and publish on course platforms.
Market your course to your target audience.
Tools and skills needed: An amazing Camera, Video editing software, course creation platform, expertise in your chosen field.
To create videos, I personally prefer this specific camera, Canon EOS Rebel T4i. Another great starter camera I would recommend is Canon EOS Rebel T7 DSLR
However, if you are new to video content creation, I would recommend getting the full bundle with Canon Cameras EOS 2000D. This will enable you to immediately start your journey in creating an online course.
Expect to make: Course income depends on factors like course quality, demand, and marketing. Beginners might make $100 to $500 per month, while established course creators can earn $1,000 or more monthly.
5. Rent Out Your Space on Airbnb
What it is: If you have extra space, consider renting it out on Airbnb for travelers seeking short-term accommodation.
How to start:
Create an Airbnb account.
List your space with appealing photos and descriptions.
Set pricing and availability.
Provide excellent hospitality and service.
Tools and skills needed: Airbnb account, hospitality skills.
Expect to make: Income from renting out a room or property on Airbnb varies by location, size, and amenities. In some cities, hosts can earn $1,000 or more per month, while others might make a few hundred dollars.
6. Peer-to-Peer Lending
What it is: Invest your money through peer-to-peer lending platforms like LendingClub, where you earn interest on loans made to borrowers.
How to start:
Sign up with a P2P lending platform.
Deposit funds into your account.
Browse and select loans to invest in.
Earn interest as borrowers repay.
Tools and skills needed: P2P lending account, financial literacy.
Resources:
Peer-to-Peer Lending and Equity Crowdfunding: A Guide to the New Capital Markets for Job Creators, Investors, and Entrepreneurs
Financial Literacy for Young Adults Simplified: Discover How to Manage, Save, and Invest Money to Build a Secure & Independent Future
Expect to make: Returns from P2P lending can range from 3% to 8% or more annually, depending on the loans you invest in and the platform. If you invest $10,000 at an average return of 5%, you could earn around $500 per year.
7. Dividend Stocks
What it is: Invest in dividend-paying stocks, where you receive regular dividend payments from companies you own shares in.
How to start:
Open a brokerage account.
Research and select dividend stocks.
Purchase shares and hold them long-term.
Reinvest dividends to grow your holdings.
Tools and skills needed: Brokerage account, investment knowledge.
Resources:
Buffett’s 2-Step Stock Market Strategy: Know When to Buy A Stock, Become a Millionaire, Get The Highest Returns
Expect to make: Dividend income can grow over time, with potential for substantial earnings as your portfolio grows.
These are general estimates, and individual results may differ. Success in passive income ventures often requires patience, ongoing effort, and a willingness to adapt your strategies as you gain experience.
Remember that passive income requires time and effort upfront. Your earnings will also depend on your dedication, skills, and market conditions. Start small, learn, and gradually scale your efforts to achieve financial success.
Stay tuned for more tips, insights, and opportunities in future editions of busythomas. Wishing you a prosperous journey towards financial freedom!