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If you’ve been at this while, you might’ve heard a lot of different ways to create passive income.
Most of those ways involve creating a product of some sort and selling it to people.
But not everyone has the desire or the creativity to develop their own product and figure out how to make people wanna buy it.
If you’re in that boat, don’t worry. There are several other ways you can creative a passive income stream without creating a product.
Here are five ways to do it.
1. Dividend Income.
The rich have been using dividend stocks to increase their income since the beginning of the stock market and Wall Street. If you’ve got a couple thousand dollars to put into dividend-paying stocks, why not earn some extra money on top of the money you’re already making in gains?
Do some research to determine what kind of stocks would be best for the type of portfolio you’re trying to build.
Think about whether you’re more interested in short-term or long-term capital gains (which would depend on your investing goals). Are you investing to for the future? Or just to make a little extra cash for a large purchase?
Are you okay with a little bit of risk if it means a higher return? Or would you prefer to play things safe and stick with well-known companies (dividend kings and aristocrats)?
2. Real Estate Investing.
Real estate investing is another way to earn passive income without creating a product. And it’s also been a tool used by the rich to get even richer.
And these days, there are even more ways to make money in real estate without actually owning any physical real property.
For example, you could own REITs (real estate investment trusts). They’re similar to stocks and somewhat like mutual funds in that they’re a group of stocks related to real estate that you can buy into to
Real estate ETFs (exchange traded funds) are another way to go.
You could also invest in partial shares of property directly by investing in real estate crowdfunding platforms.
Related: What is Passive Income?
3. Affiliate Marketing.
Affiliate marketing is a great way to make money online without creating your own product.
Essentially, all you’re really doing is selling other people’s product and taking a cut for your efforts.
Sounds pretty easy, right?
Well, it can be once you’ve got some momentum (which could take a while to build up unless you already have a pretty decent following online).
Making money with affiliate marketing might mean sending out an email blast to your email list about affiliate products, creating a blog and posting your affiliate links throughout your posts, creating YouTube videos and dropping links in the description, or posting affiliate links on your social media pages.
Once you start building up enough traffic, affiliate marketing can be a lucrative way to bring in extra income. Tons of bloggers swear by this method and you could become one of them if you work on creating interesting content that connects with readers in authentic ways.
4. Storage Rentals.
Buying storage rental unit facilities can be a great source of passive income, but it may require a large upfront investment.
However, the storage facility rental unit business is a $39.5 billion industry as of January 2021.
That means there’s a lot of money already made and still more to be made in the industry. So if you’re looking for a passive income stream that doesn’t require creating a product, this one could be for you.
Do some research before diving in to make sure it’s the right investment for you before you put any money into it.
5. Outsource Labor for Digital Products.
Don’t feel like creating products yourself, but still want your own digital products business?
Outsource the work and simply sell them. You can have a digital products business and do absolutely NONE of the heavy lifting yourself.
Okay, you might have to do SOME of the heavy lifting. If you have money left over in your budget to hire a designer for the cover of eBooks and to create marketing material, you won’t. But if you don’t, you may have to design this kind of stuff yourself.
But it’s not all that difficult with sites like Canva, Vimeo Create, and similar sites.
Setting Up Your Passive Income Streams
If you know you’re going to need some extra cash for whatever passive income stream you decide on, create a plan for how you’re going to come up with that extra cash. Are you willing to take some extra shifts at work? Are you going to pick up a side gig or side hustle like DoorDash or Instacart?
Make sure that whatever you do you set yourself up for success. Make it as easy as possible for yourself to ensure you meet your financial goals, whatever they might be.
Ready to Set Up Your New Passive Income Stream?
Now that you’ve got some ideas for passive income streams that don’t require you to create a product, you can start doing your due diligence and figuring out exactly what it is you want to do to bring in extra cash. It can be any of the ideas mentioned above or you can come up with a totally new idea.
What things have you done to create passive income for yourself? What’s your experience been like? Let us know in the comments. And as always, feel free to share with your network of like-minded friends and fam (links are right at the top of the post!).