5 Best Side Hustles for Passive Income (Not For Lazy People)

Starting a side hustle is one thing you can do to make extra money, but starting a side hustle that will create passive income for years to come will require a bit more work, and more importantly it’s something that isn’t easily created overnight.

The truth about passive income!

Let me start by saying: Passive income is never truly passive. And all the side hustles that well touch on in this video have the ability to create consistent cash flow but like anything worth having in life, it will require upfront work to get it going and over time will become more and more passive.

Although passive income is portrayed as easy money, most successful passive income ideas are the result of hard work.

None of these activities are as passive as people like to think. You have to put in the work upfront, like actually writing that book you’re going to sell, or finding and choosing the assets you’ll buy that will cash flow later, and then update and maintain them as time goes on. And sometimes you have to wait for the work you put in to pay off, which can happen months or years down the line.

And for those who are unclear on what passive income is, its Income that requires little effort to maintain. SO, there is still some effort involved for the ongoing efforts even if it’s minimal. This is much different than active income where you are taking an active role to generate income, once you stop working, the money stops rolling in.

Ok now I won’t drag this on..

Here are the Best Passive income Side hustles that have the ability to truly transform your finances.

Buying and selling raw land

Wanted to start with a side hustle that I don’t hear anyone talk about when it comes to generating passive income.

At the moment I make about 5K a month passively from my land notes. I started from simply buying and flipping lots, to seller financing it out to create passive income.

Here’s how I did it.

Once I own the land, I would then list it online for sale and offer seller financing to interested buyers. Seller finance or owner finance is where you are essentially acting like the bank. The buyer will pay you every month with interest over the course of let’s say 5 years, until they pay it off in full.

Most of the time I make most of my initial investment back from the downpayment we collect from the buyer and I’m usually cash flow positive after about 6 months of receiving payments.

This is an amazing side hustle for passive income, because there is very little competition and with raw land, you don’t have to worry about any tenants or toilets. You are simply selling the dirt.

People are willing to make payments so they can use the land, whether it’s for recreational use or they want to park their mobile homes on them.

This side hustle does require upfront work but once you have your notes in place, there is very minimal effort to maintain the active notes you have in place.

The challenge then becomes finding more lots to seller finance and increase your overall cash flow over time.

Next, we have …

Buy a cash flowing website

Here’s another side hustle that we don’t hear much about. You can buy existing websites that are already cash flowing every month. So here’s how it works:

You can visit websites like Flippa and buy websites that are earning hundreds of dollars per month and bid around several thousand dollars or If you want a business that’s bringing in more like $1,000 — $2,000 in profits a month, you’re usually looking at mid- to high tens of thousands of dollars.

If you have a lot of capital to work with you can look at businesses earning $5 – $6,000 in profits per month, you’re looking at a six-figure investment.

The catch here is you need to know how to analyze a website based on its performance, traffic, and monetization strategies. You would need to know how to maintain or increase the incoming traffic and profits.

You may be thinking by now, why can’t you just start from scratch and create your own website. Well, you can but there are some advantages to buying an existing website like having a high domain authority and history on google.

If you decide to start a website then maybe look at flippa.com and at least see why companies are valued more then others. This way you can reverse engineer your website to be profitable in the future and maybe even sell it for a nice pay day.

Speaking of traffic and websites, the next passive income idea is probably the most mentioned side hustle of them all, and for good reason, and its…

Affiliate marketing

Now I’m sure you have heard of affiliate marketing. Basically it’s performance-based marketing where a business rewards you the affiliate for each customer that you bring through your own marketing efforts.

You would essentially promote a product or service to your audience in exchange for a commission on sales made through your unique referral link.

You can use social media, your influence or start a blog or newsletter that promotes the affiliate links.

People generally tend to gravitate towards this passive income side hustle because, it has low start-up costs, you don’t need to create a product, buy inventory, or handle customer service. All you need is a traffic source like a website or blog where you can promote products to your audience. So you can easily boot strap this it at the start if you’re low on funds.

Affiliate marketing also offers a lot of flexibility in terms of when and where you work. You can work from home or anywhere with an internet connection. You can work at your own pace and choose which products to promote.

Affiliate marketing is also scalable. You can start with promoting products to a small audience and gradually build up your promotion efforts as your audience grows. You can also expand into different niches or markets and promote products to a wider audience.

You can easily track your results and measure your success. You can see how many clicks your affiliate links are getting, how many sales are being made, and how much commission you’re earning. This means that you can optimize your promotion efforts and focus on the products that are generating the most income. Similar to the 80/20 principle.

Now if you don’t mind creating your own product the you can consider our next side hustle which is..

Sell a digital product.

Selling digital products has become a great way to earn passive income. And the best part is that you can create a product once and sell it over and over again!

A digital product is something that you can store and sell online.

You could create and sell.

E-books
Online courses
Templates (such as website templates or graphic design templates)
Pintables (such as planners or worksheets)
Stock photos or graphics
Presets and plugins

Once you’ve decided on a product, it’s time to create it. Depending on the product, this could take anywhere from a few hours to a few months. But the great thing about digital products is that once you’ve created them, you can sell them over and over again. This is semi passive, because you will still need to update the material and drive traffic to your product to get the sales.

Now, let’s talk about where to sell your digital products. There are a few different options:

Your own website or blog

If you already have a website or blog, this can be a great place to sell your digital products. You can set up an online store or use a platform like Gumroad, sellfy, Clickfunnel or even kajabi to sell your products directly from your site.

Then there is social media.

You can also sell your digital products directly through social media platforms like Instagram or Facebook. Simply create a post or story about your product and include a link to purchase.

Now that you have created your product and a way add it to a platform to be purchased and consumed, then start thinking of a few strategies to take it to the next level: For example you can…

Create a lead magnet (such as a free e-book or mini course) to attract potential customers and have them added to your email list.
Use social media or google and run paid ads to drive leads and sales.
Collaborate with influencers or other businesses in your niche.
Offer a discount or special promotion to encourage sales. You could even try to have affiliates market your product for a commission as well.

The key to selling digital products for passive income is to create a high-quality product and market it effectively. After you put in the upfront work, you can create a product that generates passive income for years to come.

One of the digital products that stand out to me, is our next side hustle which is…

Develop an APP/Software

One avenue for creating a passive income stream is to develop a mobile app. Mobile apps can be a great source of passive income because they can be downloaded and used by millions of people all over the world, and if your app is useful and popular, it can continue to generate income even when you’re not actively working on it.

To get started with developing a mobile app, you’ll need to decide what type of app you want to create. Some popular categories of apps include productivity tools, social networking apps and e-commerce platforms. Once you have an idea for the type of app you want to create, you’ll need to begin designing and developing it.

One important factor to consider when developing a mobile app for passive income is that it needs to be useful and engaging for users. If your app is boring or doesn’t offer any real value, people won’t be interested in using it, and you won’t make any money. So, make sure that your app is well-designed, easy to use, and provides a solution to a common problem that people face.

Another potential option for creating a passive income stream is to develop software that can be sold online. This could include anything from productivity tools to marketing automation software to accounting software.

To get started with developing software for passive income, you’ll need to identify a market need and create a product that addresses that need. You can then sell your software through online marketplaces like the App Store, Google Play, or even your own website.

This isn’t an easy task and will be very difficult at first. One important thing to keep in mind when developing software for passive income is that you’ll need to provide ongoing customer support and updates to keep your customers happy. While software can be a great source of passive income, it’s not truly passive in the sense that you’ll need to continue to maintain and update it to ensure that it stays relevant and useful.

This side hustle is a tall task but can truly transform your finances and create passive income, to a degree.

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