Even if you work 24 hours a day, you won’t earn ‘enough’. Check out 12 Passive income ideas for 2016
What it is: Passive income simply put is money you earn with minimum activities or with minimum activities to maintain it. Some say it is making your money to work for you. Others say it is making money even when asleep. One thing many people forget is that passive income will only come after you must have done the SMART WORK upfront.
What it is not: Some people think passive income is making money from nothing or getting something from nothing. No it is not, that is fraud.
To bring this to life, I will share a couple of passive income ideas to inspire you.
- Rental from a property: Many people will immediately react to this with a negative exclamation. ‘I don’t have enough money to buy property’. Yes! You may not have enough as an individual but have you considered partnering with a few like-minds to co-purchase? However, ensure you have a clear contract of purchase that covers exit, re-selling, title allocation and more. Also, try to buy properties can be easily partitioned versus 1 single unit. Example a 4 flat apartment versus a duplex because each person can decide resell of their individual flat as needed.
- Interest from a bank account: These days the interests on bank accounts are tiny but it is still an option.
- Earnings from internet activities on websites: This is quite popular. From blogging to creating Youtube videos, there are endless opportunities to create passive income online. You can also create an online course or training.There are many people making extra money through training on facial make overs, beauty products production, fashion classes, modelling from WhatsApp training, Facebook tutorials and more. You can do free-lance writing for blogs.
- Royalties from a published book or patent: To generate royalties on books, invest heavily on creating unique and useful content. There is so much information available online that people will only pay for your book if your work truly adds value.
- Dividends from securities such as stocks. This is not as easy as it sounds. Many people were impacted in 2008 from the Nigerian stock exchange depression. Before you buy any company’s stock, you must investigate the company and be sure of their financial health. Review their financial statements, read about the company’s performance and be sure the company is not being over- valued.
- Rent on equipment and tools: You can generate money from lending out highly demanded tools and equipment. These include cameras, projectors, sound systems/speakers, vehicles, generators and more. Be sure to have insurance and damage clauses.
- Peer to Peer lending: How many times have you loaned friends money at no interest? You can do better especially if the person is investing the money in income generating ventures.
- Invest in someone’s business. Popularly known as the ‘silent investor’. A cool way to make money is to invest capital in someones business with clear repayment terms for both capital and interest.
- Paid surveys: Many businesses need to generate insights on their businesses. You can participate in online surveys, focus groups, in home discussions and more and get paid for it. I know several research agencies that pay for this so please google research agencies in Nigeria and connect with them.
- Licensing photos: Recently, many artistes are being celebrated on social media for their amazing paintings, drawings, pictures and more. Are you one? Then upload your creative content on photography websites and get paid for them. Examples are stutter stock and istockphoto.
- See your products on e-commerce sites. There are many e commerce sites that offer an online market place for you to sell your products. You don’t need to worry about delivery to clients or even delivery to e-commerce sites. Examples Konga, Jumia and more. Just research.
- Get paid for referrals. Many companies will gladly pay you a commission on referrals made to them. I know some schools in Lagos do this already- they give a discount on your children’s fees if you bring in a new family. You can take this even a notch further by referring accountants, home tutors, hair stylists, dry cleaner and generate cash or discounts at least.
The beauty of this list is that you can do as many as possible without hassle. I just did a quick scan of the list and realize I actually do 4-5 intermittently. My personal goal for 2016 is to do them even more steadily. Which one do you do already? Which ones do you want to start? Let us know.