12 best ideas to generate passive income in 2020

12 best ideas to generate passive income in 2020

Did you wake up this morning wondering how to generate passive income?

You are not the only one who yearns for some financial freedom to spend less and less time at work and earn money doing (almost) nothing.

It is anyone's dream.

And, there are people who make a living from it. 😲

We are not talking about something unlikely, like having the lottery played and you can dedicate yourself to the contemplative life until the end of your days, no.

We are talking about something that you can build yourself little by little to achieve the eternal goal of gaining quality of life and enough time for yourself.

Do you want to know how?

At Orbital Themes we tell you what are the best ideas to earn passive money. Take note!

Passive income definition

Before going further, let's clarify what passive income is.

We refer to income whose maintenance over time requires little or no effort, offering a high level of freedom and flexibility.

When we speak of progressive passive income, they are those whose amount increases even if we do not apply any extra effort.

But, before you get the wrong idea, stop.

Getting to generate passive income is not easy.

They require a lot of effort at the beginning, although it seems contradictory.

Real passive income is what really does not require anything to get it; and having a blog or creating a successful course is not passive.

At least in the short term, since you will need to dedicate many hours to it. 😊

Benefits of generating passive income

Surely you can think of a few advantages if you think about what it means to receive a monthly payment automatically, right?

With work, it could even equate to a salary, or a good supplement.

Getting extra income increases your level of freedom.

It allows you from paying off debts to investing in yourself and in what you like to do, such as traveling.

If we have learned a lesson since the last crises, it is the delicacy of the labor market.

This starting to work in the same company where you are going to retire is less and less frequent.

If you get passive income, it is you who takes control of your earnings.

Or, at least, you secure a mattress that is an oxygen pump in times of scarcity.

When we talk about earning passive money, the best thing to do is to think long term.

Public pensions are a recurring topic of dispute, along with the widespread feeling that they are not guaranteed.

Not, at least, to live comfortably.

Leaving aside the claims that need to be made, having extra money will always give you more margin to enjoy what you like.

Passive Income Living Ideas

There are many people who get up every day with the idea of ​​generating passive income.

With global and permanent access to the Internet, the number has even multiplied.

The most optimistic ones see themselves working less, earning more and going around the world in a short time.

The most realistic ones are getting some extra income to invest in the ones they like and / or live more comfortably.

But how do they do it?

We have prepared a list with useful ideas to achieve this way of life.

Our advice? Make a note of what we are going to tell you. ✍

1. Affiliate Marketing

What is it ?

With affiliate marketing you can generate passive income in a practical way.

Among its strengths, its low level of investment stands out and that you do not need to create your own products, so that you get profit from what others already do.

But, we explain it better.

You have a website, you have managed to attract a good volume of traffic and you have some authority.

So, you are willing to promote the products of a third party that you think your audience might be interested in, in exchange for a commission for each conversion you achieve.

As a result, it gives a triangular system with three agents who win.

The producer or distributor, the customer and you, the affiliate.

How to do it ?

All you have to do is have a channel to reach your audience and subscribe to an affiliate program.

The channel can be a blog, a web page, your social networks ...

A good way to succeed with this is, for example, to make an online store.

Users are becoming more accustomed to shopping online, so why not?

There are also many affiliate programs.

The most common, such as Amazon, eBay, AliExpress ...

In addition, the best known do not have to be the most profitable.

You will find many other programs! We have talked about some of them before.

The best thing is that you take a look at them all calmly, and choose yours based on two criteria.

First, think about what you want to sell.

And then weigh each show to see which one best suits your audience.

A real example

There are a lot of people doing affiliate marketing to earn passive income, and the examples are countless.

Nowadays, web pages that include product reviews and comparisons are frequent, since they offer a lot of information to the consumer.

It is, for example, the case of AvesExoticas.org.

You can take a look at their reviews section, and you will see what we are talking about.

 

2. Earn money with AdSense

What is it ?

Google AdSense is Google's advertising platform, and allows you to insert ads between your web content.

For example, on a blog.

It is an easy and practical way to earn money, if you are avid.

Advertisers bid on the ads, so the most demanded are more expensive.

This generates considerable variation in earning income.

Ads can be divided by type of visitor action / collection:

Pay per Click or PPC: you pay for each click.

Cost per Mille or CPM: paid per number of impressions.

Cost per Interaction or CPI: You pay to interact, for example, when filling out a form.

How to do it ?

All you have to do is create a Google AdSense account.

Once done, you will have to wait for Google to provide you with a code before you can insert ads into your content.

In your profile you will see the income you are generating, according to the visitors who click or carry out other actions.

💡 You must have a website with quality content and an acceptable volume of traffic before registering with Google AdSense, as they review each application.

👉 A real example

One of the oldest ways to earn passive money is through advertising.

No wonder the same thing happens in the digital world.

Therefore, you can find many pages that have joined the AdSense program.

Some of them are, for example, uncomo.com or wikihow.com.

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Tips to make money with Adsense

Try as many tests as you can ✔️ AdSense offers quite a few filtering and customization options, so go try colors, locations or different types of ads. The most important thing is to be able to place the ads in a way that does not disturb or hinder the user experience, but still be visible so that they click.

Track your URLs ✔️ It is an option that AdSense does not give you by default, but it is convenient that you use data for your analyzes. It is an interesting function because it shows you reports with all the statistics of the ads on each page, but you must add these to the corresponding section of your AdSense profile.

Focus on attracting traffic ✔️ If you need to have a lot of traffic to earn enough money with AdSense, you must focus on two pillars: creating interesting content (without forgetting the keywords) and “moving” the web using digital marketing. External link building usually works well.

3. With a blog

 What is it ?

It is about creating your own space on the Internet, which can be personal, professional, corporate or a specific niche.

As it grows, you can implement different forms of monatization to generate passive income, depending on what you think will work for you:

Affiliate Marketing

Advertise with AdSense.

Exclusive advertiser advertising.

Sponsored posts.

Other direct collaborations with brands.

And, this, to name just a few.

How to do it ?

Our advice is to use WordPress.org.

It is the easiest and cheapest, it also allows you to customize it to your liking.

To use it you will need to contract a hosting and a domain, in addition to a suitable template.

You will also have to invest in marketing to make it known.

In addition to choosing a profitable niche, be sure to choose a topic that appeals to you so as not to end up leaving the blog for lack of motivation.

A real example

There are many examples, and that is that a blog can serve multiple purposes.

They can also serve as a shuttle, so that their owners get interesting collaborations or develop their own brands.

The latter was what happened to Lovely Pepa, the blog of influencer Alexandra Pereira.

He began by sharing his looks, continued to collaborate with brands and today he has his own fashion brand for the public with significant purchasing power.

4. Sell ​​courses and workshops

What is it ?

It is a good way to generate real passive income.

Why?

Because although it requires great effort and time, it is a product that you can exploit a lot.

And once you have it done, you've already done much of the work.

But, you will have to do a lot of research on a topic, choose the type of course or workshop you are going to do, the platform where you will distribute it, with what tools you are going to create it, and then promote it.

How to do it ?

Select the content you want to send, organize it by modules, think about the format in which you are going to present it in each one and upload it to a platform that you think fits what you want and need.

There are many, but the most used by the creators of infoproducts are Udemy and Hotmart.

👉

A real example

The name of Antonio García Villarán may sound familiar to you.

He is an art YouTuber known for his criticism and analysis.

He has known how to take advantage of his position and take advantage of the community he has created by selling courses on Udemy such as the one dedicated to learning artistic drawing.

All of them are quite affordable, which has favored enrollment.

Nearly 12,500 students have trusted one of them!

Tips for making money selling courses

Do not launch it until you are satisfied ✔️ For the course to be successful it has to be good, and we repeat that this means spending many hours on it. It will take you a week, two or three months, but don't launch it if it doesn't have a minimum of quality. Of course, you should also know when it is enough.

Assume there is an after ✔️ After launch will come the promotion, student support, content update or correction of possible bugs.

Put the right price ✔️ Do not sell yourself for peanuts or put it at a price inaccessible to most people. Take into account expenses, such as commissions and taxes, so that a course of 100 euros can stay at around 60. Valuate your work correctly and act accordingly.

6. Dropshippi

What is it ?

Dropshipping isn't exactly a passive income source either, as it will take a lot of effort to make it work.

You have to create an ecommerce from which to sell the products, which usually requires an investment in web design that explains the investment fork that we have estimated.

The products you sell in that store are not yours, but from an external producer / distributor (the dropshipper) who produces, stores and distributes them.

You must take care of the promotion, but in a much more active and responsible way than in affiliate marketing, so you have to create a secure payment gateway on the web and respond to customers.

How to do it?

You will have to select a niche and choose the dropshipper you want to work with.

It can be a well-known one, such as Oberlo or AliDropship, or a local provider with whom you can reach an agreement.

The idea is that the profit margin is attractive, but also that you can sell something that is not found in thousands of other stores.

You will also have to select a platform with which to mount your online store.

We recommend Shopify, but there are others like PrestaShop or the WooCommerce extension for WodrPress that also work very well.

A real example

Watch Outfitter is a store founded by a 17-year-old who mastered the subject, given his passion for watches.

In his first year, he made a monthly income of about $ 13,500, which is certainly inspiring.

👉

Tips to make money with dropshipping

Find a good niche ✔️ It is recommended to choose a specific niche, wide enough but well located, and grow it. More than shoes, she sells flip flops, and more than clothes, she sold maternity clothes. This will make it easier for you to focus your content.

Choose a good supplier ✔️ You must have a good reputation, distribute your own stock, have a wide and multilanguage catalog, offer various forms of secure payment and guarantee fast shipping. You should also offer exclusive products, but finding a company that meets all of those requirements is not easy.

Be clear that you will have to invest ✔️ You can have a discreet and lost store on the Internet or have a powerful and competitive site. That will require investment in web design, tools (the good has to be paid for) and marketing.

7. Create your YouTube channel

What is it ?

First of all, you need to have a YouTube channel.

You will also have to invest a lot of effort in creating content in audiovisual format.

To earn money with this medium, you must monetize your channel to account for your income and collect.

How to do it ?

To create content with a minimum of quality you will need a camera (or a software to capture the screen if you are going to do tutorials) and, preferably, also a microphone.

You must also have a video editing program and assemble your creations so that the result is attractive to upload it to the channel.

If you promote, you will have more possibilities of reaching the content to more people, which together with the different qualities of the tools you choose makes the investment fork wide.

From your YouTube profile you can activate the monetization options, as long as you meet the requirements established by the platform for each program.

👉

A real example

Who does not know any youtuber today?

Depending on the style and audience you are targeting, you can find many examples.

The Rubius, AuronPlay, Jaime Altozano, Pascu and Rodri, Loulogio ... Any topic you can think of has a place, including science!

Tips to earn money with your YouTube channel

Create quality content ✔️ The level has gone up a lot on the platform, and recording any nonsense waiting for it to go viral is not effective and can turn against you (see anchovy face). There are youtubers who spend days preparing their content and still have to write the script, record, edit and add effects. Competing with that requires a lot of commitment.

Interact with your audience, on and off YouTube ✔️ Through comments on the platform, but also on your social networks. Read, respond, thank and, above all, write down what they have to tell you about the content.

Go to the Creators Academy ✔️ It has resources and advice that may be useful to you and is given by YouTube itself, so it is worth taking a look at it.

8. Write an ebook

What is it ?

It is basically the same process as writing a book.

You must capture the knowledge you have on a specific subject.

The only difference is that the book will be digital, so there is no need to print it in physical format.

Your objective may be to disclose, to help or simply to entertain.

Depending on what you have worked on your work, set a price and sell it.

How to do it ?

Your main task will be to write putting your writing skills into practice.

If you spend a lot of time, it is recommended that you go beyond PDF and produce and edit the ebook in a format like epub or mobi.

If you want them to correct it and design an attractive cover, you should invest a little. Hence, the cost can exceed 300 euros.

You can also do it for free (or practically) using tools like StreetLib or Reedsy, for which you will need to register and become familiar with the editor.

Ideally, you should create a sales page within your site and use a program to manage the download, such as GetDPD or eJunkie.

These host your eBook and allow it to be downloaded when the payment information has been obtained.

👉

A real example

In the online marketing sector, ebooks abound.

Usually you do not earn money with them, since the objective is to get leads.

But, with a quality ebook, you can earn money.

By browsing Amazon, for example, you can find countless ebooks such as the one on the Digital Marketing Course (Social Media), by Miguel Ángel Florido.

 

Tips to earn money with an ebook

Audience comes first ✔️ No matter how well you think you write, if you don't have any relevance, no one will read to you. Get organic traffic on search engines, fans on your Facebook page or Twitter followers. Make them know you so you can sell them.

Set the right price ✔️ The average sale price is 6.70 euros according to Solodelibros, but the fork can be huge: a novel can go from 13 to 25 euros in its launch phase, and books specialized in scientific niches can reach 125 euros.

Ask for help reviewing ✔️ Design is attractive and fluent writing is essential. Ideally, you should ask your environment for help, at least, although an editing professional will give you more guarantees.

9. Online Trading

What is it ? 

It is a trading strategy, that is, the sale of assets.

It consists of copying the operations that other users, considered experts, execute in the market when investing, with the idea of ​​more than recovering their investment.

Therefore, it requires little knowledge of the financial markets, which means being able to generate passive income with little effort.

How to do it ?

You have to register on a platform.

The best known is eToro, since it is the origin of the idea, and it is an Israeli startup that set out to open to the general public a market with many access barriers.

You must register, search for the most popular users in the classification and click on the copy button.

A real example

There are many social traders who are trying it today, persuaded by the possibilities of easy profit.

Tips for making money with social trading

Take the opportunity to learn ✔️ Do not dedicate yourself to copying, because that will make you depend on others permanently. If you like trading and see it as a possibility of extra income, try to train yourself to earn more and more.

Consider the risks ✔️ It is the riskiest method on our list, and there are traders who have lost hundreds, even thousands of euros in a single day. Act in moderation, especially at the beginning.

Choose well ✔️ The eToro platform does not show you what users earn, but the return on their investments through percentages. It may happen that you are copying a user who is simultaneously copying another user, and that the investments have a high profit percentage even if the total earned in euros is negligible. Look at the number of followers and copiers each account has.

10. Rent houses or offices

What is it ?

Putting an establishment or second home for rent is a way to get recurring passive income, and perhaps the formula that best suits that liability.

You have a local or house, you put it to rent for long or short periods and you get money for it.

That easy. 😉

How to do it ?

First of all, you must prepare the premises or house to generate a good impression.

In addition, you will have to take into account other factors:

Investigate the market in your area to estimate the price.

Think about the requirements you are going to ask for.

Contact a realtor or put an ad on the Internet.

Get the necessary documents, including the contract.

A real example

To see examples, just go to real estate pages.

With Idealista as a great reference, and check the properties that are rented.

That will allow you to relate the parameters of your city and the area, the state of the house and the price to know the market trend and act similarly.

Tips to make money renting real estate

Put yourself in the hands of a real estate agency ✔️ You will have to pay a commission, but you can save a lot of time if they take care of advertisements and procedures, as well as orient yourself if you are a little lost with the latter.

Make your house attractive ✔️ Make the house more modern and, if you can, invest in useful items for the comfort of the tenants, as well as for an attractive decoration. Photos are important, so take care of them.

Check the solvency of the tenants ✔️ The usual thing is to ask for an extract from your bank account and a copy of the last three payrolls, to study if they are really going to be able to pay you.

11. Sell ​​your artistic creations

 

What is it ?

It consists of selling your paintings, drawings, photographs, illustrations or literature, among other things.

Depending on your level or your popularity, you can set one price or another and earn a lot of money with your art for a minimal investment.

They are not passive income, as such, but it is a good way to earn money.

How to do it ?

You have the option of setting up your own online store and selling your works, exhibiting in an exhibition hall or gallery, at fairs and conventions or through an internet marketplace.

Among the latter, Saatchi Art, Singulart, Saicho Art, Artig Gallery or Art Madrid are some well-known.

A real example

Many artists sell their creations over the Internet.

Rubén de Luis sells paintings from his website, while illustrators such as Brush Willis or Mercrominah strive to create a strong community in their networks to gain visibility and place their products.

Tips to earn money selling your artistic creations

Work your digital identity ✔️ Making yourself known as an artist is essential if you want to be successful. You must work on your style, take care of details such as photos, interact with the community that you get to create and, ultimately, get to make a name for yourself

Diversify sales channels ✔️ You do not have to stick to just one channel, you can try to sell on the marketplace, accept requests to order on your blog or on your networks, exhibit in rooms if you have the possibility, etc.

Research trends ✔️ To connect with your audience, which is important when selling, you must know what they want. There are successful illustrators, such as Moderna de Pueblo, who have made their community, made up mainly of young women, feel highly reflected in their characters.

12. Sell ​​your own products on Etsy

What is it ?

Etsy is a marketplace for handmade products, vintage items, and craft supplies.

It is a meeting point between creators, small business owners, and buyers looking for exclusive, curious, or unusual items.

It is true that this is not going to generate passive income, unless you can serialize production.

How to do  it ?

Before you start, check Etsy's seller policies and fees.

Create an account on the platform and log in, then fill in your details (including profile picture and biography).

At the top right of the page, click "Sell on Etsy> Open your Etsy store." Select the language of the store, the country and the currency and choose the name.

These first steps must be taken on the web, but then you can operate with the "Sell on Etsy" app.

A real example

Alicia Bock is a modern artist and photographer based in Michigan.

Through Etsy, she has managed to have her photographs appear in the two Sex in New York movies and in several television series, among other things.

Tips to earn money selling your products on Etsy 

Take great care of photos ✔️ Product photography has its own, because you have to take care of the light, the layout, the background, the quality of the camera, the perspective, etc. Take the time you need and repeat how many times you create, because a good photo sells.

Put a detailed description ✔️ Sometimes something very specific or for a very specific use is needed, so provide everything you can so that the person knows if it is your product or not. We talk about size, materials, price, shipping time, possibility of gift wrapping ...

Think the right price ✔️ The biggest risk is not putting too much, but falling short. Be aware of the commissions Etsy charges.

Mistakes to avoid looking for sources of passive income

 

Let's face it: perhaps the first mistake is to believe that there are 100% passive sources of income.

Even the lottery should not be taken as passive.

It would be necessary to make a minimum effort to know where to invest to make the most of these revenues.

Take passive income as something that will allow you to earn more time and money in the long run.

We tell you this because a common mistake is to get carried away by the siren songs that speak of exorbitant amounts, and to be disappointed when it does not arrive.

What we do encourage you to do is find that source of passive (or extra) income that motivates you. The first thing is to be clear, and then pursue it hard.

And at Orbital Themes we know you are going to get it.

Once you reach it, be sure to come back to tell us about it!