My Favorite Passive Income Ideas

My Favorite Passive Income Ideas

Before I can tell you about my favorite passive income ideas, I think it’s only fair to tell you what I think the term actually means. To me, passive income is income, whether currency, goods or services, which is received on a regular basis with relatively little effort on the part of the person receiving it. This makes it different from active income, which is like the paycheck a person works to receive, as well as portfolio income, which is income based on stock dividends, purchases and sales. Granted, the market moves on its own without the individual shareholder, but any investor will tell you that income is far from passive.

Getting back to the main point of my post, I wanted to share with all of my readers some of my favorite passive income ideas, including a couple of ideas that the average person may be able to use to start turning a profit sooner rather than later. Drop shipping is something you may have heard about before, and while it does require significant effort to set up an online store at first, once you have things in place you can just sit back and watch the money roll in. It works like this – find goods that are scarce in your local market or which are hard to find online and for which you could easily make a Google ranked page.

You should focus on low-cost goods that the general consumer would be likely to buy. That means things people want and more importantly, that they can actually afford. Goods which are hard to price-shop for online are what you’re really after, like specifically colored shoes or clothes, instead of branded televisions. You don’t actually need any inventory so there’s very little overhead involved. Post goods you can buy cheaply on your website, where you increase the price over what you pay to the point where you can claim a tidy profit, and make sales. Then just ship the goods direct to your customers.

You don’t need to deal in tangible goods to make passive income either. In fact, I find the idea of paying someone to create a marketable app for me and then putting it in stores all over the Internet a much more lucrative prospect. If you have a good app, it will literally sell itself, and all you need to do is show up once or twice a month to collect your income from the related sales. The same thing goes for eBooks, though those are a bit easier for me to write than apps since I don’t know a thing about writing in computer code languages like SQL, Java or HTTP.

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What to Know Before Starting to Sell on Amazon

Selling goods online through eCommerce websites like Amazon can be a great way to make some residual income, or to propel an entire business if you have a product which is in especially high demand. But you can’t just jump into an arrangement like that. There are things you need to know before starting to sell on Amazon or related websites, like eBay, so you don’t end up getting thrown off the site, or failing to make any sales, or experience some other bad outcome. These tips aren’t going to make you rich, but they can help you to get there.

On Amazon specifically, there are now more than 2 million individual business, companies and sole proprietors vying for consumer dollars every day. That’s a very saturated market if you ask me, but there is still plenty of space for an earnest person like you to carve out your own niche, so to speak. Amazon brings in more than 175 million visitors every month because of this wide variety of goods, so you don’t need to worry about whether or not you can find customers. Instead, worry about them finding you, and come up with good products to gather attention and get those sales.

A friend of mine actually makes some decent money every month through Amazon by selling high quality automotive LED light bars, and that’s definitely a niche market that not too many consumers are interested in, but he manages to make it work anyhow. This leads me to my next piece of solid advice, which is to make sure your listings, descriptions and meta-descriptions accurately relate the product you’re trying to sell. Listing titles are especially important here – make sure you include pertinent information like dimensions, colors, models and manufacturer names when selling goods on Amazon.

No, you can’t just list a product and be successful. This is a misconception which has caused many would-be Amazon businesses to go bust and break down after just a couple months of poor sales. Even more important than a good description and sales copy, though, is a high quality photograph (many photographs!) which shows off the product you’re selling. Get pictures from different angles, under different lighting conditions, and even try getting pictures of the item in its idle state as well as while in use. Humans are visual creatures who see things long before they smell, touch, taste or hear them.

That’s just some basic human physiology, but you’d be amazed by how many Amazon listings feature terrible pictures. Now, the last piece of advice I have for you is to take a long, hard look at the terms and conditions which govern your account on Amazon. You absolutely must follow the website’s rules and guidelines if you don’t want to get your listings taken down and get your account banned from the site. Become intimately familiar with the rules and regulations, and follow them strictly. Even a small slip could have serious consequences, so just don’t let that happen!