Updated: Aug 13, 2021
To build wealth you need to learn how to invest. Whether it's investing time or money, nothing is for free.
I say the term "passive income" is forbidden. When you say passive income, most people imagine a regular flow of cash into their pockets without any work, but nothing is for free. The most important thing for earning money is financial education, you can earn thousands of dollars but if you don't know how to manage themy
, you won't become wealthy.
Whether it is a stock, real estate or business, you must always be sufficiently educated in the field to make money.
Today we will show you 3 tips for income, which after a certain time and work will become a passive income.
1. Drop-shipping store
We all know greats like amazon and ebay, logistics is one of the most complicated business sectors. But haven't you ever imagined yourself as another Jeff Bezos? The idea is nice, but the probability that you will be the next Jeff Bezos is almost non-existent. On the other hand, you can get closer to your dreams and earn nice money with a little help from our big fellas like Amazon and Ebay (and many more).
So what is drop-shipping about?
I'll tell you from my own experience. Dropshipping is a business model, in which the retailer offers stuff from the wholesale. You don't need to own your own warehouses and make big investments, all you need is to create a website, and research the products you want to sell.
How big investment are we talking about?
It depends on what your goals and expectations are, also on your situation. You can create a website and sell products through these three sites. Sorted from least expensive to most expensive.
Ebay is the least expensive out of these three, If you want to go with Ebay, all you need is some cash and time. If your goal is to make a little bit of money quickly, ebay is the way. But I don't think it's scalable.
Shopify should be the right decision if you are looking for a long run, you can build a decent brand with a mid range budget. All you need to do is to register on shopify.com and choose a plan, it is free for 14-days so you have enough time to create a website. To create a decent looking website with some cool functions and stuff, your starting investment on shopify should be around $500. After you're done with creating and you have your plan, you should do the market research and decide what you want to sell. Atlast, you need to bring people to your store, marketing is a very important thing if you want to succeed in online business. If you don't want to invest much, then platforms like Instagram, YouTube and Facebook is your go. On YouTube, you gonna pay about $3-8 for about 3.000 views (it was like that in March when I was doing this). TikTok might be a good choice too, when I posted a video with the right hashtags, it got 18k views (I had no followers and no TikToks before). Shopify gives you more freedom in designing your website than Amazon, so you can create a unique look of your website.
Amazon's dropshipping is similar to shopify, exept there are more products and options and it is more expensive. You don't need to bother too much with marketing, because it is free - let's say you just get organic amazon traffic. Amazon is semi-long but at the end of the day, amazon owns all your customer's data. Dropshipping on amazon is going to cost you about $2000-5000 for a decent start.
There are many dropshipping providers on the internet, it's up to you who you choose. Only problem of dropshipping is high competition, so the most important thing in this business is marketing, because without visitors there is no profit.
Is dropshipping still the thing?
Dropshipping is still profitable in 2021. This question came every year, and will probably come in 2022 as well.
2. Affiliate Marketing
Affiliate marketing is one of the best ways to make money on the internet. If you manage to get enough people to your site and at the same time get them to shop through you, affiliate marketing can become very profitable for you.
What is Affiliate Marketing?
In short, affiliate marketing is a process of earning money by promoting products or services of other sellers on your website. If a visitor of your site clicks on your affiliate link and then buys a product through it, you get a share of the sale.
For example, our site is cooperating with Amazon through affiliates - Bloggers or Influencers use affiliates as another source of passive income.
How to make money with Affiliate Marketing?
The steps are really simple (I'll talk only about Blog as it is best for affiliate marketing):
Create a website and start a blog - Write about anything you know, it is important to write about things you like and enjoy so the creating won't become boring for you and you can create quality content.
Choose a niche
Find affiliate programs you can join - There are many programs you can join, Amazon is the one we chose
Drive traffic to your blog - Same as Dropshipping, you need to get people to your site, create quality content so they will feel the need of coming back to your blog and can become your regular customers
Affiliate Marketing is a topic for itself and I will write a more detailed blog on how it works in the future. For now, let's move to our last tip.
3. Peer to Peer Lending
Peer-to-peer (P2P) lending is a type of investing that connects people.
How does it work?
P2P Lending is about lending your money to people who wants to buy something they cannot afford.
For example, some Michael would like to buy a new car, instead of a loan at a bank he will borrow from people on the site that mediates P2P loans, he will choose his own interest rate and the number of months for which the car will repay. You as an investor, lend Michael money, let's say his new car costs $50,000. You are willing to lend him $2,000. The remaining $48,000 will be lent to him by another thousand investors. Michael chose an annual interest rate of 5%, which means Michael will give you back $100 more money.
This type of investment is definitely long-term, in any case, thank you for reading our article. If you want to ask something or you found a mistake, write it to us in the comments. For other types in the future please subscribe, and in the meantime, have a nice time.