One of the many ways to achieve financial freedom is done through passive income. In this article, I am going to reveal 4 passive incomes that you can build in 2020.
Most passive incomes require a massive amount of upfront work but when you started seeing results, that’s when you can earn money while sleeping. Thus you need to look for ways to get that passive income while you have an active income.
It is recommended to first get an active income(a job) before you decided to entirely rely on passive income. Once your passive income exceeds your job’s salary, then you can start considering to quit your job and focus on getting more sources of passive income.
One of the most common passive incomes that people are getting nowadays is through affiliate marketing which is essentially promoting a product and get a commission from the product if your viewers buy it. However, there are a lot of different ways to promote an item.
Getting traffic is the key here which is why people pay tons of money to Facebook and Instagram for ads. But this is not feasible in the long term because not everyone on Facebook will buy from ads. Think about when is the last time you buy something from an advertisement. Therefore, instead of forcing people to view your advertisement, you need to let people come to your product.
Organic traffic is what are we talking about here. The best way to attract organic traffic is through search engine optimization(SEO). There are 40,000 search queries on Google every second. If you know how to put your advertisement on the first page of Google result, you can become RICH.
Over the past ten years, Wealth Affiliate(WA) has been helping bloggers to improve their website and get more organic traffic. They teach you how to build a website from scratch and optimize it to be rank high on Google step by step for FREE. If you are interested, you can use this affiliate link to sign up for a free account and review their training material.
Drop shipping has been really popular nowadays with the help of YouTubers showing their massive revenue generated from their drop shipping stores.
However, it is not realistic by looking only at the revenue because what we really care about is the net profit. 20 – 30% of the revenue is considered as high-profit margin in the market. Therefore, most YouTubers are risking tons of money buying Facebook ads to generate these insane amounts of revenue.
Obviously, this is not feasible in the long run because eventually, the store’s conversion rate will come down if you keep spamming ads on Facebook because people get tired of it.
To be profitable consistently, it goes back to our topic in ‘Affiliate marketing’ which is about organic traffic. Drop shipping is definitely a stable business model that can generate a decent passive income if properly done. Therefore SEO is what we really need to learn to do to get that passive income instead of relying on paid ads.
The general idea is to buy a house and rent it to multiple tenants and you earn from the rental. For example, you buy a house for $100,000. You pay the down payment of 20% and you have to borrow money from the bank and pay the rest for 30 years.
Divide $80,000 by 30 years and it is equivalent to $230 per month. You offer the house with a rental for $500/month. Then you just wait for the house to appreciate in value and sell it for a higher price and at the meantime you earn an extra $270 for every month. Please note that there are other fees like renovation fee, closing fee, and bank interest that you have to consider before purchasing a house.
Although stock trading is not really ‘passive’, it is considered a way to make money without spending 8 hours a day in a workplace that you hate. In our stock related blog, we often talked about how experienced traders make consistent gains in the first 2-3 hours at market open.
Once you understand the setup and know to spot a great risk/reward opportunity, you can make a decent gain within a few minutes. Especially in the penny stock sector, it is proven that most volatility comes in the first 2 hours. Therefore, it is important to prepare yourself before stepping into the stock market.
We have compiled the best strategies in 2019 that will make you consistent profit by trading stocks. Please visit our ‘Best Penny Stock Strategy‘ blog to learn about how to recognize the perfect chart setup.
Have you thought of creating side hustles that will become your passive income sometime in the future?
This is the No.1 Recommended method that requires no start-up fee but it requires a good amount of time and effort for building the business up.
Click here to learn how to create 4-figure passive income every month with minimal risk.
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