Passive Income: Top 5 Sources

How to create passive income? What sources of passive income are possible? Top 5 passive income sources for 2021 from the Money Hunters team.

Passive income is taking advantage of a project without working on it regularly. Operational activities are carried out at the start, the business is launched and begins to bring profit. For a while, the entrepreneur skims the cream, after which the flow of money decreases or stops.

Sometimes the scheme can be revived or maintained, in some cases, restart is not possible. To learn how to create passive income, you need to understand what it consists of and what categories it is divided into.

The concept of "passive income" has gathered around itself a lot of stereotypes and prejudices. In the eyes of the inhabitants, this is a business that makes a profit without investing money and time. In fact, no Klondike exists. For a business based on the principles of passive income to begin to bring benefits, you need to invest a lot of resources in it. In one case it is finance, in another it is time, in the third it is both.

Also, an entrepreneur must be ready to take risks, because no one gives guarantees.

Sources and types of passive income

A business without regular operating activities can be conditionally divided into two types - online and offline. The second type includes leasing residential and commercial real estate, investing in REITs (real estate) and passive equity partnerships. Also here can be attributed the writing of books with the subsequent receipt of a fee for each edition sold by the publishing house. Obviously, offline is not for everyone, since it implies a high entry threshold, primarily in terms of money.

In online business, the situation is more encouraging. There are dozens of answers to the question: how to create passive income on the Internet. Here is just a small selection of the possible options:

• Uploading author's graphics to paid image stocks;
• Sale of advertising on websites;
• Partnership programs;
• Creation of videos that are relevant at any time without reference to a date or event;
• Creation of online courses;
• Software development;
• EBooks;
• Investments in HYIP projects and PAMM accounts.

These are not the only sources of profit available on the Internet. There are "gray" and "black" niches that go beyond the legal field. New legal ways to make a profit regularly appear, while the old ones become ineffective or “die” completely.

How to Create Passive Income: 5 High Profit Business Ideas

Over time, a beginner who is just starting to master the methods of passive income will be able to empirically determine which niches are worth getting into and which are better to bypass. But until a novice entrepreneur has acquired a layer of necessary knowledge, it is most reasonable to use methods that have always worked and will be relevant for a long time to come.

Idea 1. Investments in HYIP projects (highly profitable investments).

HYIP projects are investment platforms that allow you to get a relatively large percentage of the money invested (you will find more information here). The difference with a bank deposit can be orders of magnitude, which explains the great excitement around high-yield investments. In some cases, in a few months you can earn as much as the bank would pay in a few years.

The problem with HYIP projects is their instability. It is never known at what point this or that site will collapse and cease to fulfill its obligations to investors. This problem is solved by HYIP monitoring services. They post up-to-date information about popular projects. If the platform stops paying, it will immediately show up on the service. Thanks to such monitoring, risks can be minimized by choosing only those sites that have been paying interest and returning assets for a long time.

Investment in HYIP projects - a self-sufficient channel for earning. In this area, you can organize a stable income by spending 15 minutes a day on site analysis.

But also high-yield investments are a lifeline for those looking to build seed capital for other projects. If you are wondering how to create a source of passive income, but you do not yet have sufficient financial resources, start investing in HYIP sites. You can start with small amounts, gradually increasing the asset.

Also, for all our readers, we have prepared a separate article, which is written and tested in practice. In it, we told you everything you need to know before investing in HYIP. Here is the link.

Idea 2. Investments in PAMM accounts.

PAMM Account It is a trust mechanism. In combination, this is a popular passive income on the Internet with investments, since it requires only the presence of money and minimal knowledge in trading. If you trade securities in the financial markets, this process can be streamlined by transferring the right to make transactions to an experienced trader. You should not be afraid of unreasonable loss of money, because:

1. The manager equally risks his own money;
2. On any exchange, the account manager does not have the right to withdraw or transfer other people's funds;
3. Money can be withdrawn from management at any time;
4. Transactions can be observed online;
5. Before transferring account management rights, you can view the trader's statistics.

There is a risk of losing money, but it is hardly more likely to drain the asset yourself. Your return on investment will depend on the value of the asset and the skills of the trustee who manages your balance.

Idea 3. Creation of a website and creation of passive income on it.

One of the most common answers to the question of how to create passive income from scratch is website development. At the present time, advertising revenue has begun to fall, but with the proper quality of content, you can still bite off your piece of search and social traffic. The advantage of this method is that you can enter a niche on sheer enthusiasm. It is enough to purchase a domain, order hosting, install a free engine and start producing content. The minimum price of the issue is several hundred rubles.

Over time, the site will be noticed by search engines. To make this happen faster, you need to study and apply SEO optimization. When users from the search results start visiting the web resource, they can already be monetized. For this, advertising, banner, teaser networks are used. You can also earn money by selling your own product, links, using affiliate programs. Keep in mind that with a zero budget, you will need to spend a lot of time to achieve tangible results.

Idea 4. Partnership programs.

An affiliate program is a reward mechanism for an attracted client. The entrepreneur provides the store with customers and receives a percentage (from 1 to 20-30%) of the amount of goods purchased by them. Referral marketing is a powerful tool if you know how to use it.

To make money on affiliate programs, you need a lot of traffic. In the context of passive income, web sites with SEO-optimized texts that link to the sites of partner stores through a referral link are suitable. Raise a few hundred pages to the top of the results - they will generate traffic until other entrepreneurs force you out or until the positions drop due to the actions of the search engine. Traffic sources such as Youtube videos, social networks, posts on forums and Q&A services, etc., are also suitable.

Idea 5. Software.

Earnings on applications, add-ons for websites and other types of software is a good source of passive income. Create a product that will be in demand in the market, invest in advertising and implement monetization. There are several ways to make money on software:

• Direct sale;
• Monthly / yearly subscription;
• Purchase of additional options not available in the basic version;
• Advertising banners inside the application;
• Donate system (for games);
• Voluntary donations.

You don't have to be a programmer to create a digital product. You can act as a manager and financial director by outsourcing the development of the technical part. You can also become an investor in a promising project that is at the initial stage of production.

What a beginner needs to know before organizing passive income

Your main asset is time. When the first money appears, delegate the maximum number of tasks to free up more time. You can spend it on new projects or more important things. No need to try to do everything on your own, this is a path to a dead end.

Don't stick to one niche, always look for new ways to make money. The channel that provides your bread today may close unexpectedly tomorrow. Therefore, you must have multiple sources of income. Do not risk the entire asset, even if you are 100% sure that the business will not fail.

Do not expect that everything will work out for you right away, do not hope for a rain of banknotes on the second day after you start working in your chosen niches. Remember that the question of how to create passive income is a strategic one. To get a profit later, you need to pay attention to the project now. And the more effort will be spent today, the longer the channel will bring money in a week, month, year.

Best Regards, Money Hunters