They say that on average, a typical millionaire has seven streams of income. The wealthiest among us say that to grow your wealth, you must be able to make money while you sleep. In other words, you should be earning passive income.
Passive income is income that grows even after your initial work is done. It is cash flow that requires a minimal amount of effort to maintain on a day to day basis.
As an online entrepreneur, you should have multiple streams of passive income. The good news about passive income is that there are countless ways to bring money in, and you can make money online without having to leave your house.
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1. Peer to Peer Lending
Just like banks, you too can lend money out to make a profit. This is where peer to peer lending (P2P) comes in. It matches individuals that need to borrow money with individuals who have money to lend.
Programs like these benefit both the borrower and the lender. For borrowers, this system helps because they are often people who do not qualify for traditional bank loans and this is one way for them to acquire the money they need. Lenders in this situation will benefit because you are paid interest on the loan, sometimes averaging over 10%.
If doing this interests you, some companies you can look at include Lending Club and Prosper. Lending Club is good for lenders because the lender receives a higher portion of the interest rate early on. Prosper works similarly to Lending Club, but borrowers typically need a credit score of 640 or higher to join.
2. Create an App
You may be thinking that creating an app will be too technical if you aren’t familiar with programming, but the good news is that anyone can have an app created. It will require some money upfront though.
If you feel like you have a great idea for an app, such as a game or something that people can use every day to make their lives easier, you can take your idea to a programmer and sell it in an app store for residual income.
The good thing about creating an app is that you can literally make money while you sleep. However, there are other aspects to consider before going this route, such as the maintenance of your app, and providing customer support.
3. List Your Property on Airbnb
This is a good option for anyone who is not utilizing a room in their home or even people who have an unoccupied or underutilized property.
There will be an initial amount of work to do which includes cleaning the space, taking pictures for the listing, and getting supplies to make it rent-ready, but after that making money through Airbnb can become mostly passive.
Finding a price point includes considering what other Airbnb properties near you get rented out for, as well as figuring out how much you will have to pay in booking fees, cleaning fees, and taxes.
The good thing about Airbnb is that the guests pay through the app so you generally will not have to worry about someone renting your space and leaving without paying because Airbnb will collect the fee and release the money to you within 24 hours.
4. Make Money with Your Car
Take advantage of the time you do not use your vehicle by renting it out. This is a good option for people who are taking a vacation or people that leave town on business trips.
If this is something that interests you, you can list your car for free on Getaround. Many people report that they make thousands each year by renting their cars out.
The benefits of using Getaround include dedicated parking spots around your city, a $50 credit to rent a vehicle, and up to$1 million in primary insurance coverage.
Another way to make money by using your vehicle is to get paid for advertising with Wrapify. Wrapify will pay to have your vehicle wrapped with advertisements so there are no upfront costs to you. They approximate that individuals can make between $196-$452 each month.
5. Vending Machines
The vending industry is a good venture for both experienced entrepreneurs and beginners. This can become a lucrative investment for relatively low starting costs. Many can get started for as low as $2,000 with consistent profits between $600-$800 a month.
This venture does require some maintenance such as collecting the cash each week but experts say that a typical cycle for bulk food items will be between 4 to 8 weeks. This may require a little more work than the options mentioned above but many say that profits are consistent and reliable.
6. Affiliate Marketing
Affiliate marketing is a great way to make money online. Affiliate marketing is the process of earning commissions by promoting products. If you have a blog, you should definitely consider adding affiliate marketing as one of your income streams.
The key to being a successful affiliate marketer is to build an audience that trusts your opinion, and promote products that you are knowledgeable about and truly enjoy.
An easy way most beginners get started is to work through Amazon Associates. Amazon’s affiliate program is easy to join and allows you to choose from over one million products to advertise.
To learn more about affiliate marketing, I recommend reading my article about the Making Sense of Affiliate Marketing course by my friend Michelle Schroeder-Gardner. She earns $50,000 a month in affiliate income alone. After taking her online course, my affiliate income more than doubled! I can’t recommend her course highly enough.
7. Dividend-Paying Stocks
While investing in dividend stocks does require some initial cash on hand, it can be extremely profitable for you and requires virtually no maintenance. Owning a dividend means that you are a shareholder of a business, they differ from traditional stocks that go up and down in value depending on the day.
Since as a shareholder, you a part-owner of the business, you are entitled to the earnings that the business produces over time. Some investors say their dividends net them around $1,000 a month, which makes it a great way to boost your income and make money online.
Building passive income that grows over time can be extremely beneficial. Perhaps you could pay your mortgage off earlier, or even take early retirement. Creating passive income streams is the key to taking your net worth to the next level. With all of the advancements in online technology, creating passive income is easier than ever before.