8 Passive Income Streams
- The Millennial Millionaire
- Jan 30, 2018
- 4 min read
Passive income is vital for ensuring financial security and eventually financial freedom.
More and more ask by the day, how can they set up streams of passive income?
I'll go through 8 of the ways in which you could do this.
1) Drop Shipping
What is it?
Drop shipping is when you sell a product to a consumer without holding any inventory.
This means low start-up costs, as you don't require a warehouse to store your products.
Normally, you'd set up an account, so that when a product is ordered, it requests one of that item from the supplier, usually a business like Ali Express.
The best part is, all you have to do when an order comes in, is press the fulfill button.
It will then automatically order that item using your billing details/address and the customers' shipping information.
Many say that drop shipping is dead or over-saturated. However, if you're a good marketer, you'll be able to make huge amounts via this method.
2) FBA
FBA stands for Fulfillment By Amazon.
With this method, you don't have to market, as customers already trust amazon and will search on their for your product.
You want to pick something that is rather niche, yet has a steady amount of orders coming in.
You can use softwares like JungleScout to find products that are perfect for FBA.
The idea is that you send your products to amazon, who then ship out the product to customers as they order it.
This allows the 'prime' symbol to appear next to it, which by itself leads to the customer trusting your product.
Amazon then take a commission from each sale.
This is rather similar to drop shipping, apart from the costs may be a little higher, as you essentially pay for shipping twice, once to amazon and once from amazon to the consumer.
However the fact that you don't have to do the hard marketing work is huge, as you already have a multi-billion pound company attracting the customers for you.
3) Youtube
We are moving towards a period in time where video entertainment is becoming more and more popular.
Youtube is the replacement for TV for many teenagers today.
People can search for anything and there'll be a video, 300 hours are uploaded every minute!
The best thing about it is, if you become popular or you get some views, you can profit from just this.
The Youtube partner programme enables users to profit off of the views they obtain.
Not only this, you can further monetize your video-making by things like affiliate marketing which I'll cover more of later.
Once you have an established fanbase, you can then make sponsored videos, which are basically ads. Companies are willing to pay huge amounts for this.
4) Your Own Business
This is a little more broad and maybe a little more difficult.
In fact, any of the previous steps could have counted as a business, however if you can provide a valuable product/service, why not try and make this option available for everyone?
The fact of the matter is, if you don't try, you don't succeed.
A business can be the one way to make your passion and your grind work together in perfect harmony, allowing you to live a very fulfilling life.
Let's assume you're a plumber, and you establish a decent client base.
You've upped your prices and still have too much work on.
You can charge the £30 an hour still, and pay someone else £20 to do the work for you.
That's £10 an hour profit simply from networking. You can go on to employ 10-15 people and build up a business like this.
The best part? You won't have to do anything.
If you have a less laborious job, maybe you could use your earnings other assets that produce passive income, which we'll expand on now...
5) Real Estate
This is one of the best methods of creating passive income, however, the starting capital required is rather large.
You can rent out places for a 20-30% return on your investment, by using strategies I talk about in HMOs - What They Are and How They Can Make You a Lot of Money.
This can lead to you accumulating money to buy another property in 4 years, and then the next in 2, and so on.
This compounding effect will be the best way to build up your net worth, re-investing the profits made.
If you're thinking about investing in with cash and no mortgage, I recommend you read my article on How To Double Your Return Using Debt | The Millennial Millionaire.
6) Write a Blog
Blogs can be a very powerful income tool too when used properly.
The most important thing is to build an email list, so be sure to subscribe to mine here.
Blogs can be used to create sponsored posts advertising a product.
They can also generate money via Google Adsense, where advertisements are displayed on your website, and google pay you to place them there.
Furthermore, you can link various products where you get a cut of the commission, be it products on amazon, courses or services that are tailored to your niche.
When these three are combined, maybe in additional to social media accounts and a youtube account, it can prove to be very profitable!
7) Write an Ebook
An ebook can be written in a day, and provide income for a very long time.
You don't even have to write the book yourself, nor design the cover.
It's got to the point now where you can go on the website Fiver, pay someone to write your ebook, and pay someone else to make your book cover.
You can then sell the book for £1.99, promoting it to friends and colleagues, and who knows what the book could achieve!
8) Social Media
We live in a generation where everyone uses Facebook, Instagram, Twitter and Snapchat.
Everyone!
Once you have a good following on one of these platforms, it can be monetized.
All you have to do is leave an affiliate link in your bio for the income to start coming in.
Post a sponsored product on instagram or facebook.
Do a video review on snapchat.
So long as you provide affiliate links, you'll get a cut of the commission from sales via your link, and you'll profit.
This can be made entirely passive by leaving these links on your profile!
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