Passive income is the key to financial freedom because you don’t have to trade time to make income, which means you can literally make money while you sleep.
When I was a makeup artist, I only earned money when I was physically there. When I worked in corporate, I only earned money when I was doing the work.
When you buy through links on my website, I may earn a commission.
However, with passive income, I make money no matter what I’m doing and where I’m at!
What is passive income?
Passive income is defined as any stream of income that is earned without directly contributing to the effort.
One of the main benefits of passive income is that it can provide you with a way to generate income while you are not working. This type of income is typically generated by an investment, such as interest from savings, dividends from stocks, or rental income from property.
The other benefit of passive income is that it does not require much work to maintain. You do need to invest time in order to earn the money in the first place, but once you have it then it will continue to generate revenue without requiring much more work on your part.
5 ways I make money while I sleep
1. Ad revenue
Websites earn revenue when visitors engage with their ads, which is usually via views (i.e impressions), engagements, or clicks.
When you place these ads on your website and your audience interacts, the advertisor will pay you an amount.
YouTube also offers an Ad revenue system that allows YouTubers to earn money from their videos.
The Ad revenue system works by having ads play before or during a video and then giving the YouTuber a percentage of the advertising revenue generated from those ads.
To make money from ad revenue, you need to have at least 10,000 channel views per month and 4,000 total channel subscribers.
I currently earn passive income via my YouTube channel, Breonna Queen Beauty as well as via my beauty blog StylishWeekly.com which both collect ad revenue passively.
2. Dividend stocks
Dividend stocks are stocks that provide an income to the investor. They are also called “income stocks” or “income shares.”
A dividend is a payment made by a company to its shareholders out of the company’s earnings. A common form of dividends is cash payments, but companies can pay dividends in the form of stock, property, or other assets.
The dividend yield is the annual amount paid as a percentage of purchase price for one share of stock. The dividend yield will vary depending on how much the share price fluctuates and how often dividends are paid.
Are you interested in getting started with Dividend stocks?! Get a free stock via Robinhood here: https://join.robinhood.com/breonnl3 (I also get a free stock too)
Real estate investment trusts, or REITs, are a type of publicly traded company that invests in real estate. REITs are required to distribute at least 90% of their taxable income to shareholders as dividends.
REITs are typically listed on stock exchanges and trade like stocks. Investors can buy shares in a company’s trust directly from the company itself, through a broker or through an exchange.
The majority of REITs invest in commercial properties such as office buildings, shopping malls and apartment complexes.
Some companies invest in residential properties such as single-family homes and condominium complexes.
4. Affiliate marketing
Affiliate marketing is a great way to make money by promoting and recommending other people’s products or services.
This type of marketing is usually done online where the affiliate marketer will promote someone else’s product and when purchased through their affiliate link, the affiliate marketer gets rewarded with a commission for making that sale. Affiliate marketing is a way to make money without having to invest any capital upfront. You just have to invest your time and effort into the business.
5. Course sales and reoccurring income from the sales
My favorite way, by far, that I earn passive income with online courses and digital products.
Most people want to make passive income, but don’t know how. One way is to create an online course.
An online course can be used as a digital product that you sell over the internet.
A big advantage of an online course is that it can be created to suit any niche or topic, so there are plenty of opportunities for you to make money with your expertise.
Additionally, if you have a mid to high ticket course ($500+), you can offer payment plans where you break the payment out which can also serve as passive income.
I go more in depth regarding the different streams of income as well as how I, personally earn money, in my YouTube video above.