Passive income is the true way to wealth. If you want to become financially independent, you need a means of earning an income that doesn’t require your attention all the time. If you only earn money when you’re actively involved in working, then you’re not reaching your true income potential.
Sometimes it’s hard to get started earning passive income. You end up with a little bit of writer’s block and you can’t think of anything to do. For those of you who are in that stage of developing passive income, I’ve composed this list to get you started.
You’ll notice that some ideas actually qualify as leveraged income instead of passive income. Just go with it. All of these ideas are geared towards helping you earn the most money you can without requiring you to work like a dog. So without further ado, here’s a list of 25 ways to earn passive income:
1. Network Marketing- Network marketing is a classic example of earning passive income. Unfortunately it has a negative image with a lot of the population due to the internet scammers that call themselves network marketing companies. But there are reputable companies that use network marketing such as Mary Kay, Amway, and The Traveling Vineyard.
In order to be successful in network marketing you have to be a good leader. The real money isn’t in selling the products yourself, but in recruiting and training others to sell them for you.
2. Affiliate Marketing- Here’s another great way to earn passive income. Find a product or service you like online, market it, and take a cut of the profits for your efforts. In order to be an effective affiliate marketer you need a good understanding of the various ways to advertise online including how to run an effective pay-per-click campaign. You’ll also need a good understanding of how to build web pages and SEO techniques. But above all you need to be creative. Affiliate marketing is a crowded field. You need to carve out your niche and advertise in ways other people miss in order to stand out. If you need an example, check out my ebay affiliate site at www.buynintendovideogames.com.
3. Web Store- This one is a favorite of mine. Find a product you think will sell well, do your research to make sure there’s enough demand and not too much competition, then open your store. You can even find drop shippers so you don’t have to carry any inventory or do any shipping. All you have to do is promote your store. You can even have your own affiliate sales force! To learn more read Online Stores: The Real Cash Machines.
4. Inventing- Is there some product on the market that you claim you thought of first? Almost everyone has an “I thought of it first” story. The next time you have an idea, patent it. There are a bunch of companies that will help you. If your product turns out to be a hit, you could earn royalties for life.
5. Writing- Are you a decent wordsmith? Try your hand at writing a book or a song. You might end up with a best seller that’ll put money in your bank account for a loooong time.
6. Newsletters- Do you have some valuable information to share? Start a newsletter. You can make money by charging a subscription, selling ad space, or both!
7. Ebooks- Ebooks are another good way to get information out there. If you have valuable information to share, you can write and ebook and place it for sale on ClickBank. Affiliates could end up marketing your ebook for you if it’s a good product.
8. Blogs- Many people will argue that blogs aren’t really passive income because of all the work they require, but once a blog is established it can earn money 24/7. All you have to do is keep posting quality content
9. Forex Market- The foreign exchange market can be a great way to earn passive income. Lots of people day trade this market (active income) but I like to look at the 1 hour and 3 hour chart patterns then place my limit orders with stop losses and take profits. After that I just check back in every once and a while to make sure the technicals are still favorable. If you’re looking to get into the forex market, try Oanda. They have tight spreads and interactive charting.
10. Video Game Vending- Sure you could do the usual gumball vending, but video games are so much cooler and more profitable too! I’ve had machines clear $500 in a week. Anybody ever have a gumball machine do that?
11. Foosball/Pool Table Vending- Also a great way to earn passive income without resorting to the usual gumball route. Foosball machines are good for an easy $50 a week in the right location.
12. Billboard Advertising- I haven’t quite figured out how to get in on this one yet without buying into a franchise, but it seems like a great idea. You buy or lease a small plot of land and put up a billboard, get advertisers and pay a company to put the advertisements up and take them down. This could be an excellent source of passive income!
13. Internet Kiosks- These things are in airports everywhere. The idea is that you pay for internet time. It sounds like a good idea now, but with the growing number of laptops and wi-fi hotspots I think the profitability of internet kiosks might decrease.
14. Laundry Mats- Laundry mats are great sources of passive income and they have the added benefit of offering other revenue streams. Laundry mats can also make use of video game vending, folding service, and concierge laundry services.
15. Mortgagee- Do you have a lot of money sitting in a low interest account? Why not underwrite a private mortgage and earn a higher rate of return? Your investment is also secured by real estate.
16. Loan Money- You can also loan smaller amounts of money. A good site to get started is Prosper.com where you can loan money at rates that you choose. You could also do a little bit of arbitrage by borrowing at low rates and lending at higher rates. Just make sure you learn a little bit about underwriting risk before you start loaning your money to strangers.
17. Self Car Washes- I’m not quite sure how much money it would take to open one of these, but I had to include it on the list after seeing cars lined up at the vacuums and the wash bays.
18. Web Hosting- Are you computer savvy? Can you get a lot of bandwidth from your ISP? Why not give web hosting a try? The field is highly competitive, but if you can offer a superior service you could flourish.
19. Franchise and Idea- Do you have a great idea for a business? You can charge a fee to franchise your business plan. You could also offer ongoing support and take a percentage of profits for your services.
20. Parking Lots- There’s a reason they paved paradise and put up a parking lot. With cities growing and space at a premium, parking lots can bring in big money. Does your city have a plot of land that looks like nothing more than torn up concrete? Why not buy it, pave it, and put up one of those signs with slots in them charging $5 or more per space? All you have to do is drop by and collect your cash.
21. Credit Card Rewards- A lot of credit cards offer cash back or points that you can use towards travel, appliances, cash, and gift certificates. This idea won’t make you rich, but it is income from doing nothing but buying things you’d buy anyway.
22. Photography- If you’re good with a camera, why not put some of your pictures on a website that sells them for you? You collect royalties every time on of your pictures sells.
23. Throw Raves or put on Concerts or Carnivals- If you’re a good event planner you could put together a rave, concert, or carnival (a favorite of non-profit fundraisers). There’s a lot of work involved in setting the event up and staffing it, but once it’s up you can sit back and watch your bank account grow.
24. Membership Sites- Set up a website with valuable information and charge a monthly membership fee!
25. Text Alerts- You see these advertised on TV all the time. Send a text to whatever number and you’re enrolled in a service that gives you a joke a day, or information on your favorite sports team, or whatever else you can think of. The fee is charged directly to your customer’s phone bill. Check out TextMarks for more information.
If you want to be truly wealthy, you’re going to have to manage multiple streams of passive income. Working harder is an antiquated idea in these modern times. Today its working smarter that’ll lead you down the road of financial independence. Take a couple of these ideas and run with them! Who knows? One of these ideas could be the reason you can quit your day job. 
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