10 PASSIVE INCOME IDEAS TO BUILD WEALTH IN 2021

10 PASSIVE INCOME IDEAS TO BUILD WEALTH IN 2021

What is Passive Income?

Passive income is defined as income that requires minimal effort to earn. For example, if you invest some money and your investment increases in value, that's passive income. If you create something digitally–like a video or a song–and you get money every time someone views it, that's passive income. It is a form of income that builds you wealth even when you're not working.

1.Create a Print on Demand Online Store

Print on demand (POD) is a printing technology and business process in which book copies (or other documents) are not printed until the company receives an order, allowing prints of single or small quantities. While other industries established the build to order business model, "print on demand" could only develop after the beginning of digital printing, because it was not economical to print single copies using traditional printing technology such as letterpress and offset printing. 

Website:Redbubble,TeaPublic,Printify etc.

2. Run a Blog

The most popular passive income stream tends to come from blogging. Blogging has helped countless entrepreneurs earn passively through affiliate links, courses, sponsored posts, products, book deals, and more. 

3. Create a Course

Selling online courses is one of the best passive income ideas of 2021. That’s because we’re still seeing massive sales growth for course creators. Whether you decide to sell a course on your own website or on a platform like Udemy, you’ll find customers who want to learn your insider tips and tricks. 

4.Invest in Stocks

When you look at the world’s richest people, it’s pretty safe to say that stocks have played a big role in their deep, endless bank accounts. 

While the act of investing in stocks is pretty passive, the research that goes into it is active. Warren Buffett reads 500 pages a day, but he’s not reading your average mystery book. Nope. He reads business’ annual reports. By reading annual reports each day, he better understands whether or not a business is performing well, which helps him improve his ability to invest in stocks. 

\Stock investments can help you earn passive income that stretches far beyond what your value at your 9 to 5 job is worth. So, consider this passive income idea if you like reading about the performance of various businesses.

5.Buy Property

Depending on where you buy and when, real estate can be a good way to make passive income. In popular cities like Toronto, there has been a steady increase in property value – 9.36% during 2020, the highest growth in Canada since 2016. 

By buying pre-construction condos, you may find some lower cost properties that’ll increase in value by the time it’s finally built, allowing you to sell the property once it’s complete for a profit.  

As with all investments, it can be risky, so it’s best to speak with a real estate agent if you’re new to the game to help you buy the right investment property.

6.Build your Own Website

Building your own website can be a reliable source of passive income. 

Some folks create marketing agencies and outsource the work to freelancers. Others, like a couple entrepreneurs on this list, create online courses to share their knowledge and educate others. You can also sell products – digital or physical – online. New to online selling? Here are some ideas for what to sell on the internet.

However, by building your own website, you gain more control over what you sell and how much money you make. It’s one of the best beginner passive income ideas as there are a variety of tools to help you create a website (no coding required). You can then spruce it up by adding a theme, logo, and other UI elements. Ultimately, your success lies in your hands, enabling you to take your brand wherever you want it to go. 

7.Affiliate Marketing

Affiliate marketing is one of the best passive income opportunities available today. The upside to it is that almost every big brand has an affiliate program so you can sell some pretty popular products and rake in the dough. 

The only real downside is that you only make a commission of the sale. Some programs like Shopify’s affiliate program allow you to earn up to $58 per referral, which is a decent income. Other online companies only give a measly $5-$10 in referral bonus. 

So, you’ll want to make sure you do some research into the best affiliate marketing programs before you get started. Blogging tends to be the most cost-effective way to make recurring affiliate commissions without having to spend money on ads.

8.Create YouTube Videos

YouTube is the passive income stream that just keeps on giving. From sponsored videos to ad revenue, you’ll find that you can make recurring income from your YouTube channel. 

The secret to creating a successful YouTube channel is creating content on a consistent schedule for a long time. That’s it. If you stick with it for the long haul, you’ll eventually start reaping the passive income rewards.

Already have a YouTube channel? Check out our article, How to Make Money From YouTube, for ideas on how to monetize your video content.

9.Write an eBook

Ebooks exploded onto the scene in 2009 and 2010 and are still a hugely popular content medium. Even though they first became popular a few years ago, there’s still a pretty good chunk of people who make passive income from writing ebooks to this day. 

Sure, it’s an insanely competitive market. But if your writing chops are stellar, you could find yourself with a decent slice of the profits. By creating how-to ebooks on popular niches and marketing them, you could build a fanbase of loyal readers.

10.Sell Digital Products

If you’re looking to create your own products instead of selling someone else’s, you can create digital products. 

You can create a Shopify store to sell your digital products online. Digital products can include ebooks, online courses, PDFs, custom graphic designs, stock photos, or other digital goods. 

Selling these products is the epitome of passive income, as the entire process can be automated on Shopify with instant downloads.