5 Best Ways to Make Passive Income In 2020
Before we dig deeper into the discussion, let us address the elephant in the room first. Passive income is often described cash flow received on regular basis with little to no actions required on your parts to earn the money. Think of it as a steady income from an investment business such as stocks and rental properties; although in some cases you almost have no involvement in the management side of the business indeed, there are certain areas where attention to details is necessary.
If you run rental property business for example, of course you need good marketing plan or even hire advertisement agency to introduce your properties in the market. If it is about stocks, market research is necessary otherwise you risk losing a lot of money in no time.
Passive income should be the gateway to financial independence, but it can only deliver that promise if you know how much and where to invest to begin with. Some businesses require massive amount of initial investment, while others only need a little bit of time and diligence. It is always wise to consider all options you have and think of all possibilities before you start a new venture because even a single wrong decision can set the difference between making a fortune and a terrible waste of money.
Best Ways to Make Passive Income in 2020
1. Develop a Blog
The first in the list is also the most popular one, blogging. Many people have proven that this method works, and in fact very effective to generate passive income when done right. Blogs can be excellent platform to share your ideas, stories, and personal experiences to millions of Internet users all over the world. You can also use a blog to showcase technical skills in various fields of study such as photography, 3D animation, video editing, web development, DIY design, etc.
Put in mind that your blogs can only generate considerable amount of income when it is popular. You need to attract visitors and commercialize the blog by displaying ads. You are essentially an advertising agency who receives income anytime a blog visitor views and clicks the displayed ads. It is also possible to use paid-subscription business model if you can create contents of great newsworthy quality. To popularize the blog, you need to understand the basic of SEO and online marketing methods. A successful blog does not just come into existence overnight; it takes time and efforts to make it happen, but it is a promising endeavor nonetheless.
2. Offer an Online Course
A blog with subscription model makes more sense if you use the platform to offer lessons about a particular subject. If you are proficient at 3D animation for example, use the blog to give visitors some practical instructions and tips. Give a limited amount of contents for free, but then ask your visitors to subscribe for more lessons. The subject of discussion can be anything from cooking to skydiving, from playing a musical instrument to online hacking. The process is basically the same as blogging in which you need to make quality contents and market them through various online (and offline) channels.
3. Write an eBook
Assuming you have good story-telling skills, writing a book is both great idea and excellent business opportunity. Strong credential can help you sell non-fiction books about specific topics related to your educational background just like an engineer writing a book about solar panels or a teacher telling stories about school programs. Relevant credentials of the author make the book more trustworthy. Fiction books are probably more promising, but the market is more competitive as well.
The difficult part is publishing the book, but now there are some companies that provide easy platforms for writers to promote their own books such as Kobo, Apple iBooks, and Kindle Direct Publishing. The platforms will take some percentage of your sales, but it is still good investment. You can even publish and sell the book not only on one, but all those platforms.
4. Affiliate Marketing
Many people have tried affiliate marketing and earned great success with that. Affiliate marketing, an old yet popular business model, remains one of the best ways to make passive income. The principle is also quite simple: you create a blog, write about certain products available from affiliate program providers, convince blog visitors to make a purchase, and earn a percentage of the sales. Some of the most well-known providers include Amazon, Rakuten, ClickBank, and eBay.
Each provider has its own terms and percentage to share with marketers, but the rule of thumb is that you make more money by convincing others to buy more items. Once again, you do this on a blog so it is just like blogging but with a specific purpose of selling things on the providers’ behalf.
5. CBD Business
All the previously mentioned business models are categories which may include an extensive list of niches. One specific venture worthy of consideration is CBD Business available from CTFO. The cannabis market is at the moment on a seemingly unobstructed way to become a major industry with no sign of decline during the last several years, making it one of the best ways to make passive income for years to come.