If you need to generate extra income and you know you do not have the capacity for another full-time or even part-time work, passive income is the right solution for you. In fact, passive income is the right decision for everyone right now. It is your way towards financial freedom. If you don’t know what passive income is, read our introduction to passive income post.
Basics of making passive income
In order to start making passive income, you will either have to invest your time or money or possibly both. The investment is fully up to you however bear in mind that the return on investment is dictated by how much you are willing to invest. Before you start, look at your financials and see how much you can set aside for investments. If the answer is nada, look at the skills you have (and you definitely have a skill or five) as they will help you find the right niche to generate passive income. While it is possible to create passive income streams with 0AED investment, it is likely that with good budgeting, you will be able to spare some money and invest to grow your passive income portfolio.
Actionable passive income ideas
1. Have an investment portfolio
Everyone is investing right now. It became increasingly easier to understand stocks and commodities and even easier to invest your money, any money, into them. If you look at some of the richest people around the world, you will understand why it is so important to invest. Before you do so, make sure you understand what you are investing in, what strategies are best for you, what the implications are, as well as potential risks. Check out the likes of Sarwa and baraka if you want to learn about investing from homegrown companies.
2. Invest in a property
You probably heard it before, you might have already invested or even inherited one, but it doesn’t mean you should stop there. Properties purchased for investment are a great way to generate returns instantly through the holiday and long-term rentals. Before you decide to purchase a property for investment research the market prices and feasibility. Check if there are new projects coming up creating new job opportunities, new neighbourhoods or facilities being developed that will attract potential renters or if there’s anything happening that could potentially negatively impact market prices. If you don’t have enough for a deposit, check recently developed property investment sharing schemes offered by the likes of UK-based Property Partner or UAE-based Smart Crowd.
3. Invest in your employer
If you are working for a company that offers shares or is looking to raise funds, see how you can invest in some. International corporations tend to offer shares as part of the package, however, if your company does not, do your homework and calculate the feasibility of investment and speak to the right parties about a potential investment.
4. Sublet your space
Whether it is a spare parking space or a spare room in your house, if your contract and landlord allows, look at ways of monetising it and increasing your income. There are websites like Dubizzle and local Facebook groups that will help you gauge the prices and understand what to look out for.
5. Start a blog
This classic passive income stream tends to be the most overlooked. While it requires a lot of initial effort including the setup, upfront payment and heavy workload on content creation, if done right, it can create a healthy passive income stream for years to come. Blogging is also a great way to diversify your revenue streams as you can generate profits from product reviews, affiliate marketing, sponsored content, ads, partnerships and much more.
6. Start a YouTube channel
Similarly to a blog, if you feel like you are more comfortable in front of the camera, a YouTube video channel might be the way forward for you. You can monetise your videos with sponsored content, video advertising and affiliates.
7. Monetise your Facebook content
If you run a page or account on Facebook and create video content, you can now monetise it through the Facebook Monetisation platform that will let advertisers use your content to place their advertising.
8. Create a course
Probably one of the hottest ways to create passive income right now. And for the right reasons too – it works. If you have skills you can share then it is time to monetise it. There are plenty of places online where you can sell your course, including Thinkific, Kajabi, Skillshare, Teachable and much more. You can create a course on any subject of your fancy, from photography to languages, to marketing, to soft skills and much more. See what is in demand and what is missing and start working.
9. Sign up as an affiliate
If you have a website, blog or forum/social channel with a good engagement, you can monetise it by promoting brands you like. Affiliate marketing essentially allows you to make a percentage of sales that resulted from your mention. All you need to do is set up affiliate accounts with brands you want to promote (Amazon is one of the most commonly used ones) and set up affiliate links in your content. Once a person clicks, a cookie is dropped into their browser and if they make a purchase within a specified time, the sale will be assigned to you.
10. Allow display ads on your website
Another way to monetise your blog or YouTube channel is by letting ads run on them. This way, you will give an opportunity for brands to reach your audiences and make additional income from it. Ads are managed by third-party services like Google AdSense so your effort here is minimal.
11. Create an Instagram sponsored content
Now, we know what you might think – I don’t want to be another Dubai influencer. The truth is, if you have a healthy following, good taste and engaged audience, you already are influencing people in one way or another. Brands now, more than ever, value the support of authentic brand ambassadors with healthy engagement on their content. If they represent the same values, even better. So if you are promoting places, products and services you like, why not start making money off the back of it?
12. Write an eBook
Since we are on the subject of sharing your knowledge, you can easily also turn your course, video content or blog post into an eBook and make additional revenue from your knowhow.
13. Sell your photos and videos
Did you know there are people making over $3,000/month from banana photos? While you might think you’re not a pro photographer, think twice. Stock image sites, publishers, bloggers and brands are all always looking for visual content. And since you have a phone with a camera, why not try monetising it?
14. Create a print-on-demand store online
This has been around for a while and there are many success stories of people who used their creativity to make extra income. Print on demand allows you to sell your custom designs on all sorts of products including t-shirts, clothing, mugs, canvases, phone cases, bags, and so much more. Check out the newly launched UAE-based Merchful, Spreadshirt, Redbubble, Teespring or Zazzle.
15. Sell your skills online
If you’re digitally savvy you can probably monetise it too. You can sell everything from Microsoft Office templates to PDF templates, to custom graphic designs, to your voice to code and poetry. The worldwide web is rich in opportunities, you just have to look for them.
16. Read audiobooks
Did you know you could make royalties from audiobook recordings? While it is incredibly cumbersome and time-consuming, for bookworms, this is a perfect way to make additional revenue and create passive income streams.
17. Peer-to-peer lending
Now, this one might be risky and you accept more risks for a higher rate of return than you would get with safer investments options. There are a few platforms specialising in P2P lending, including Beehive in the Middle East.
Passive income sources are available all around you, you just really have to know where to look. It can really help increase your monthly income and build up savings for your dream holiday or further investments. Which of these passive income ideas did you like the most? Let us know in the comments below.
Also, if you are in the UAE, we just launched our brand new super-banking app. It allows you to manage all your money in one place. Download our app now to check it out.