One of the main goals of freelancing is to have a steady stream of income and this is where passive income comes into the picture. For most freelancers, our main source of revenue is called active income. This means the money we earn is a direct result of the time and effort we put into our work.
But there is another source of income that we can also create. That is called passive income.
This is something that you’ll usually hear from financial advisers. They’ll tell you to create passive sources of income. It’s one of the key elements that won’t just help you build wealth – it can also help you be more financially secure.
But as a freelancer, how do you create this? What passive income opportunities should you look out for?
Before we dwell on the possibilities that you can pursue, let’s first define what it means.
What is Passive Income?
“Earning while you’re sleeping.”
That’s a pretty accurate explanation of what passive income is. You earn money even if you only exert minimal or no effort at all. It’s usually a result of something that you’ve set up or worked on in the past.
A concrete example of a passive income is rental payment. You invest in a house and lot then rent it out either on a long or short-term lease. At first, you work hard to fund the investment property. Once you’ve set it up and you’ve found a tenant for it, you can get a steady source of revenue from the lease.
You won’t have to lift a finger other than to make sure the property is well-maintained.
Isn’t that the dream?
Passive Income Ideas
Now that I’ve gotten you excited about passive income, let’s talk about your options. Not everyone can afford to buy a house and lot and have it rented out. Even buying condominium units can be incredibly expensive.
The good news is, there are passive income ideas that you can pursue and they won’t be too costly for you.
Here are some examples.
Ad Space on your Blog or Website
Not all freelancers have a blog or website. But if you want to be viewed as a trustworthy freelancer, I would suggest that you invest in a blog or website. Just like Earn At Home Ph. I use this website to show potential clients what I can do.
If you can set this up, it won’t just help you get more clients. You can also use this as a source of passive income.
Sell ad space on your blog or website.
Of course, this would require you to build up the following on your website. You have to make sure enough visitors are reading the content you provide on your site.
Once you’ve built enough followers, you can set up Google Ads to help you generate passive income.
Affiliate Marketing is a great source of passive income
This is another online source of passive income. It’s easier to do this if you have a website. So apart from getting paid ads on your site, you can also set up affiliate marketing.
Here’s how it works.
You apply as an affiliate partner. The company will give you a link that you have to embed on your website.
Every time a visitor to your site clicks on this link, you’ll get commissions.
The more clicks, the higher the revenue.
When choosing an affiliate, make sure it’s connected to your website. For instance, if you’re a freelancer on Upwork or Freelancer, get an affiliate link from the outsourcing platforms. Or if your target audience is mothers, be affiliated with companies that they resonate with. Refersion pointed out that income from affiliate marketing can be as much as six figures every month.
Publishing an eBook
An eBook is also a great option for an online passive income. Write about your expertise. Share your experience and journey.
If there’s something that you succeeded in doing, write about it and publish it as an eBook.
Then you can sell it.
I would advise that you spend a bit of time marketing the eBook first. Once you’ve gained traction, you can exert minimal effort and still have your eBook sell.
Among the topics you can write about includes how-to books, success stories, or motivational pieces.
Create a Video Content
YouTube is a powerful platform that has successfully made a lot of people millionaires. They create video content either for educational or entertainment purposes. And if people like it, the video goes viral.
It seems so simple but it’s a very effective way to earn passive income. You create a video once, promote it, and then it stays online for as long as people watch it.
You get to earn from the ads on that video and you don’t have to lift another finger and it’ll keep helping you profit.
The key to making this successful is to make sure you give your audience incredible content – and it has to be something that you’re passionate about or an expert in.
Like if you’re a graphic artist, you can create videos of techniques that you use.
Think about it then shoot the video and post it online.
Final Thoughts…
Having a passive income is a great way to make you more financially secure. It provides you with the peace of mind that even if you lose a client, you’re still earning from somewhere.
Do you know what the best part is?
You can set up as many sources of passive income as you can. The more you have, the closer you’ll be to financial independence.