Passive income streams are multiple sources that allow you to have a regular supply of passive income. Although the income you earn is passive, it takes time, money, and effort to run a passive income stream and keep it profitable.
Passive income streams can be online, peer-to-peer, side hustles, or businesses that already earn a passive income.
How many passive income streams are available currently? Passive income streams can be abstract (online) or physical businesses that already earn money passively. We will look at their differences and how to leverage them and earn a decent passive income. So if you want to know more about passive income streams, keep reading our post.
In this article, we will look at the different types of passive income streams and how you can earn a decent income from them.
Whether you choose to buy existing streams or build your own from scratch, passive income streams require effort, dedication, money, and time to become passive and profitable.
You can view our comprehensive guide on buying passive income streams here.
Let’s dive right in.
Online Passive Income Streams
The internet offers countless opportunities for you to earn passive income and supplement your normal income or quit your 9-5 job. Whether your intention is to make fast cash or regular, sustainable, and long-term income, there are many available options online.
The best part?
Making money online is not as difficult as many people think.
Online passive income streams differ. Some streams provide immediate results, while others potentially revolutionize your finances in the long term.
Most online ideas start at the foundation of having monetized content, generating traffic, and growing your audience. Although it is not an easy task, it is totally worth it in the end.
Online/web-based passive income streams include Monetized Blogs, Affiliate Marketing Sites, eCommerce sites, Influencer Marketing sites, Niche Sites, etc.
You can choose to start and build your own passive income stream (e.g. a niche site) or buy a niche site that already earns passive income. Both ideas require investment and it takes time, effort, and money for you to break even and start earning a passive income.
You can combine two or more online income streams that are already earning passive income. For example, you run a monetized blog, YouTube channel, niche site, eCommerce site etc. Obviously, the more streams you have, the more money you earn passively.
For more details about online ideas that you can turn into passive income streams, please view this detailed guide.
Peer-to-Peer Passive Income Streams
Nowadays, it is easy to buy, sell, rent, and trade goods or services, thanks to peer-to-peer marketplaces. They are mostly online-based (through peer-to-peer platforms) or apps that allow buyers and sellers to work directly with each other.
These ideas are fairly easier to do because you trade good/services you have/own with people who need them at a price. Compare (blogging or podcasting) with (advertising with your car or renting your house on Airbnb).
Peer-to-peer passive income ideas offer higher scalability, passiveness, and easier to start. You can turn peer-to-peer passive income ideas into streams easily than most other ideas.
Why?
You already own whatever you are selling.
For example, let’s say you have an empty room in your house and a car. You can rent out the room on Airbnb and your car on platforms like Turo. You can also advertise with your car and rent out your home to film crews.
Most peer-to-peer ideas can be combined to help you earn more – the reason why they are popular passive income streams.
Peer-to-peer passive income ideas/streams include flipping properties, advertising with your car, renting your (things, cars, space, bikes etc.) ride-sharing apps etc.
For more details about each peer-to-peer passive income idea that can help you create a passive income stream, view this comprehensive guide.
Passive Income Side Hustles
If you have a passion, talent, skill, or knowledge that others can benefit from, you can cash in on with a side hustle. There are ways you can turn it into a passive income stream and earn money doing something you are good at or passionate about.
For example, you might be passionate about dogs. You can earn passive income offering pet & house sitting services and creating & selling eBooks about dogs. It all depends on what you love and are able to do easily.
Passive income side hustles are fairly passive since you are required to be physically involved. However, the amount of work you are needed to do is minimal. It is something you love or are good at doing so the degree of passiveness increases.
Moreover, you can make them more passive by employing someone to do the physical bit on your behalf or automating.
Side hustles that can help you create viable passive income streams include teaching a language, pet/house sitting, Multi-Level-Marketing, charging scooters, food delivery services, 3D printing etc.
For more details about passive income side hustles that can help you create a passive income stream, view this detailed guide.
Passive Income Business Streams
Currently, many businesses can help you create passive income streams by outsourcing or automating. Building a successful business venture is an active endeavor that takes time.
Getting your business off the ground, automating, and outsourcing to turn it into a passive income stream requires a huge investment (both time and money). Like online and peer-to-peer passive income streams, passive income businesses can be combined to earn more passive income but it requires more time and money.
For example, you may own a Laundromat. You can earn passive income by automating the service or employing an attendant to run it for you. If you have space, you can diversify your passive income streams by putting an ATM or vending machine, opening a shop, selling coffee etc.
You can also buy an existing car wash, automate it or outsource services and turn it into a passive income stream. For details on how to make a business more passive, please view this 6-step guide.
Popular passive income businesses include automatic car wash, Laundromat, food truck, game machines, ATMs etc. For more details about passive income businesses that can help you create a passive income stream, View this comprehensive guide.
Whether you choose to start and build your own passive income stream or buy an existing one, it might take time for you to start earning passive income from it.
Remember you will need to invest time and money to turn an idea in a passive income stream or buy an existing stream, break even, and start earning passive income (profits).
Related Questions
Can you buy passive income streams? Yes. There are many passive income streams (both online and physical) and you can buy and earn money from. Your ideal passive income stream depends on factors like the initial time investment you are willing to put in, your business skills, risk tolerance, centers of interest, capital etc.
Can you combine passive income streams? You can combine two streams and make more income passively. It all depends on your financial capability and what you are willing and able to do. For example, you can run a monetized blog, YouTube channel, and eCommerce site and earn passive income from each source.