Updated: Jul 5, 2021
If you haven’t heard of passive income in 2021, you sure have been living under a rock!!
The internet is clearly all about how you can add passive income sources and ways to earn money online, to your active income by getting creative and hustling a little.
To help you leverage the passive income trend, we are going to discuss, some of the very popular ways to earn money online in 2021.
But first, let’s clear the basics-
What does Passive Income mean and how it works?
Passive income if described in a nutshell, means a stream of income that doesn’t need your active involvement for long. Thanks to the digital revolution, apart from the conventional but lucrative options like rental property, many other ways to earn money online have come.
People are getting creative and generating passive income sources to have more financial freedom and basically a bigger account balance…..and find me one person who doesn’t love that!!!
Warning- Don’t mistake Passive income generation for a “get rich quick” scheme, as it does require efforts and research work initially and regular maintenance to keep the source updated and relevant is non-negotiable.
Let’s talk about How do you generate a passive income?? We highly recommend you read till the end for the pro tip-
1. Downloadable Digital products-
This one is getting quite popular really fast. The deal is if you can find a problem and provide a digital product as a solution to it, your product will gain momentum and you will keep earning with every download.
E-books, worksheets, readymade templates, a list of prompts, etc fall under this category. For instance, if you discover that people are having a lot of problems in writing outreach emails, you can provide an E-book that explains everything needed to write a good marketing email or you can provide a checklist for people to refer to before they hit “send” on their emails.
These digital products sell themselves if there is a demand for them in the market. So, effective research is required before you set out to create such a product to gauge the demand for it. Once you sense a requirement you can create a value-packed product and sell it to your target audience.
2. Affiliate Marketing-
So the internet is abuzz with tips on how to become an affiliate marketer, but before you hop on the bandwagon, you need to spend some time building an audience that trusts you and will be influenced by your opinion.
So, you can start with choosing a niche and a social media platform. Begin with providing valuable content for free on your choice of the social media platform for people to follow you and engage with your content. Gradually as people start trusting you and following you, you will find brands approaching you to promote their products to your set of followers. The brand will approach you for their promotions as your followers fit into their target audiences and your influence can help them with their product promotions. The easiest way to go about it is to become an affiliate marketer for Amazon or eBay. As an affiliate marketer, you don’t have to be bothered about the product, it’s shipping, delivery, inventory, storage, nothing but still, you can make good money by providing brands with sales.
E-learning has seen a boom like never before and If you have a skill that has a demand in the market, by all means, you can create an online course with a certificate on the topic of your choice. Skills like content writing, email marketing, graphic designing, canva designing, content marketing, etc are in high demand, and an online course with a certificate, if designed on these topics can be a good strategy to help you generate a passive income. People are really interested in an online course on nutrition too, if you have some wisdom to share in that niche, you can create a consistent inflow of cash by creating a course on daily nutrition. The key is to do proper market research and a thorough competitor analysis before launching a digital course.
4. Content writing-
To start earning money as a content writer all you literally need is a laptop and good wifi. You don’t need an exclusive vocabulary, you don’t need to have had scored a 100/100 in your English exams and you absolutely don’t need a degree in content writing. All you need is a basic understanding of how to write simple and clear paragraphs that people can understand and relate to easily. If you have had people asking you for help with framing sentences, rephrasing words in a better manner, and proofreading, you surely can do this.
Content writing is on an all-time high, right now even businesses that didn’t care for an online presence earlier are looking to establish one, and all brands need content to market their product and services. You can easily find small business owners and solopreneurs to pitch your writing services, to begin with.
I am sure Youtube popped into your mind as you heard vlogging. if you have something you are really passionate about why not blog or better vlog about it. People are addicted to reading and viewing content online now more than ever, and it’s never too late to use this addiction to your advantage.
Do you love making food?? Build a blog on it or vlog about your recipes on youtube, people are looking for more and more food recipes every passing minute.
Do you love traveling? Take people on virtual vacations with you, you will be amazed at how many people love that and will keep coming back to you for more.
You are a fitness freak?? Start documenting your journey via a blog or a vlog and let people follow you and come back to you for more inspiration and actionable advice.
The key is to emotionally and genuinely connect with your audience and also provide them with value in form of either information or entertainment. You can earn good money through brand deals and advertisements on your blog and vlog.
Passive income sure is a great idea if you want to feel more secure and stable financially, also many times starting something on the side just for an additional income stream ends up becoming a full-blown career.
In recent times all you need is a lucrative and profitable idea, the huge digital landscape makes it possible for you to reach so many at the same time to sell that idea. A need discovered in time and a consecutive launch to meet that need, with decent marketing can help you get started with your passive income goals.
But the deal is that like everything that gives good results all of the above ideas need some serious work and research to ensure that you are not set out for a flop show. This is also not a “one size fits all” approach, you need to take your pick from the multiple choices available for passive income generation. You need to be smart enough to choose something that is lucrative, sustainable, requires less effort, suits your personality, and is in demand.
Having an additional income source sure sounds irresistible but it’s always wise to understand the market than jumping into it clueless. The good thing is that the opportunities are endless you just need to pick one that works for you and start generating a passive income in 2021.