Passive Income Ideas That Freelancers Should Consider
Passive income is revenue that can be earned automatically, is easy to maintain, and requires little labor or only initially while setting it up. If you currently pay rent, your rental payments are passive income for your landlord who invested in commercial real estate and only pays to maintain that investment and manage it while collecting revenue every month.
Finding the right passive income streams can bring you more flexibility and freedom. There are passive income streams for every income level that can work in any country. I will give you passive idea tips and strategies to keep that passive income flowing.
Drop-Shipping
This is a form of retail business, where the seller accepts customers' orders online or in-person without keeping the stock and fulfilling customers' orders directly with the manufacturer or distributor. The distributor will then deliver the goods to the customer.
The drop shipper considers the cost of the goods, and delivery costs and marks up the price of the goods to make their profit. This income is passive because the seller simply needs to set up a sales funnel such as a website, run ads or find their target market online without ads and make them aware of where they can purchase the item in question. Once orders come in the seller will use the customers' payments to pay the distributor who will ship and deliver items to the buyer.
Royalties
The music industry pays musicians based on royalties generated by licensing of copyrighted songs. Copyrighted songs can also make royalties in movies, radio play, commercial jingles, and also content online on video platforms like Youtube.
If you have the talent of a singer or skills of a music producer or writer. It's worth the shot to create music and copyright it for monetization. The music you create either by writing, producing, or vocalizing, could make you passive income in the form of royalties for the rest of your life.
Selling Online Courses
This can be done by selling access to someone else's coursework or creating coursework on a topic of your expertise. This calls for a lot of work upfront but selling online courses can be a great way to generate passive income.
To sell an online course you would first need to find your target audience, and provide that audience a clear solution in an online course. With the right sales funnel and marketing, the online course would be recommended to your target audience continually earning you passive income.
Vending Machine Business
A vending machine is an automated machine that dispenses small items such as candy, sodas, cigarettes, make-up, and wigs when a coin or token is inserted. Vending machines work for any popular pre-packed food item or packaged goods like headphones.
The goal is to look at the location where you want to place the machine and put items that people in that area might need. If you put a vending machine in the airport lobby you would put phone cables, headphones, or soft drinks that most travelers would need. If you place it in an apartment building, perhaps laundry detergent, or sodas might be useful to the tenants.
Vending machines are a great investment granted that the area could benefit from the items placed in the vending machine. The only labor needed would be to add items to the vending machine and pick up the cash from sales.
Affiliate Marketing
This is a marketing arrangement by which online retailers pay a commission to an external website for traffic or sales generated from its sales. You can also get a cut of affiliate marketing even if you have no website by using social media to market products and services.
If you have a blog or create content on social media this is a great way of earning passive income. By knowing your audience you can direct them to products and services that they can benefit from. If a large number of your audience click on the links you give them and shop using your discount code, you could earn a huge chunk of commission for your referrals.
These are just a few examples of how you can earn passive income. This income will need initial setup funds and management, but it will generate income continually for you. Do you have any passive income sources? Which passive income most interests you? Comment below and share with our community of African freelancers.
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