Now that you have some money tucked away, you may decide to continue with your income project that you used to start your Emergency Fund. We talked about several options; a garage sale, buying and selling stuff on eBay and opening up a craft store on Etsy.
But there are many other ways to create a passive income. In this article, we will start off looking at some options which need little or no money to set up. OK? Let’s go!
If you have your own website or even an email account, you can start to earn money by promoting somebody else’s product through a link on your site. When somebody clicks on the link, they are directed to the third party website and, if they make a purchase, you receive a commission.
The cost to set up an affiliate marketing stream of income is very small. If you have a website, you only need to join an affiliate network and direct your site traffic to the links. Sounds simple but the trade off is that you will need to spend a lot of time building up your traffic. If you have nobody to market to, who are you going to get to click on the links?
Building traffic for your website or email marketing campaign is a whole topic in itself. I will publish a series of articles to cover this. For now, we will assume that you have some traffic to your website or email. So, which affiliate networks are best for beginners?
The Blue Book Top 20, an annual list of the best CPS (Cost-Per-Sale) Affiliate Networks, ranks the following sites within the top 10. And, they are reasonably straightforward for beginners:
- CJ Affiliate (a little more complex to register than the others)
- Amazon Associates
- eBay Partner Network
For further information on any of these affiliate networks, go to the Blue Book website.
Selling information products
Creating and selling information products is another low-cost way to start earning a passive income. But, what are information products?
There are a wide variety of information products you can sell online:
- Audio recordings
- Online courses,
- Membership sites,
- Mobile phone apps, and many others.
There are several key benefits to selling information online. The startup costs are low. You do not have to manage an inventory or store physical products. They are easy to create and you can sell them internationally. The negative aspect of selling information products is that they take a lot of time to create. And, they generally have a low selling price, meaning that you need to sell a lot to produce a good income.
But they are definitely a great source of passive income.
You may also want to consider combining the two strategies and sell digital information products as an affiliate. That way, somebody else will do all the product creation upfront. You just focus on marketing the product on their behalf!
Stock photography is an online source of photographs, vectors and illustrations that are available to be downloaded. The photographer (you) uploads the images to a stock photography agency. The agency then sells them to individuals or companies on your behalf.
They pay a fee to use the images, rather than having to create the images themselves. You receive a commission on the sale while still keeping ownership of the image to sell again.
Who are the main stock photography agencies? The following 4 agencies are regarded as the major players in the stock photography industry:
- Getty Images
- Adobe Stock
There are specific requirements for registering and uploading photographs to each agency’s website. They also have different pricing schemes but you can expect to earn around 25c to 99c per image sold.
You also need to understand that only the best of the best images will sell consistently. So, for every 100 photographs you snap, there may only be one that is worth submitting. To create a portfolio of excellent photographs that will provide a passive income stream may require you to take 10,000+ photographs. Then, only choose the very best of them for publishing on the agency website.
The cost of setting up a stock photography business is almost zero if you already own a digital camera. Or, a mobile phone with a good inbuilt camera. The only cost to you will be the time needed to build your portfolio. But, if you enjoy photography, this is more like fun than a time cost!
Focus on acquiring the most sought after images on a month by month basis and sales of your photographs should be ongoing.
Dropshipping is an eCommerce business where your store sells a product on behalf of someone else. You do not need to keep the product in stock. You merely send the sales order to the supplier, who then ships the product to the customer.
This strategy has several advantages over a conventional eCommerce store.
- Your cost to set up a dropshipping business is minimal.
- You don’t have the expense of purchasing the products.
- You don’t have the expense of storing and shipping the product.
But, dropshipping also has some negative features.
- Your profit margins will be low so you will have to sell a lot of products.
- The low-cost entry to dropshipping results in a lot of competition.
- You have no control over product quality and only limited ability to act on behalf of your customer.
However, if done properly, dropshipping can be an effective way to build a passive income stream. Dropshipping allows you to learn the basics of online marketing without having to fork out a huge chunk of money. It will provide a solid grounding in eCommerce if you decide to go to the next level and set up your own eCommerce store.
So, what are you going to do? Are you going to make the decision to start creating some extra income and begin the journey to financial freedom? I hope you can now see that building up multiple passive income streams is not only easy, it can be done with minimal expense.
Start small and build your business as you gain experience. Learn from what others have already done. There is no need to re-invent the wheel.
Can you really generate extra income, even when you sleep? Of course you can. People around the world are already doing it. Tell me about what you are doing and how you have built extra income streams. I can’t wait to hear from you.
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