The 6 Most Profitable Ways to Generate Passive Income in 2023

if you're looking to add a passive income stream into the mix this year but you're not exactly sure which one's for you I've got you covered I'm going to share the six most profitable tried and true ways to generate passive income this year including how to get started the initial investment required if there is one their earning potential and how passive each income stream really is so first let's define what passive income is and what it isn't now when you're earning passive income you are no longer trading time for money now all passive income streams require you to put up an asset up front so that's either time or money in other words you either put up a financial investment to get started more quickly or you do a bunch of work up front and then you set up a system that allows you to earn money without your actual real-time input so theoretically you can be earning money even when you're sleeping which is awesome but setting up that system that allows you to earn money without your actual real-time input isn't easy it usually requires immense effort consistency patience and the grit to keep going when things get hard which of course they always do it's also not fast it usually takes a substantial amount of time to set up and fine-tune you might have to work for months before seeing any Financial return on your efforts and most passive income streams are not 100 passive although you may eventually arrive at that elusive set it and forget it stage there's nothing passive about the work that you're going to need to do up front to get there and once it's actually generating Revenue growing that income stream is going to require further effort still all right let's talk about those six lucrative passive income streams so first off I'm going to skip the passive income streams that require significant upfront financial investments instead we are going to be focusing on the income streams that can be generated primarily through your own elbow grease now number one is YouTube if you're watching me right now you know what YouTube is obviously now the way to earn passive income with a YouTube channel is through advertising Revenue so how do you get started to create a personal YouTube channel you just sign into YouTube on a computer or your mobile device you click your profile picture and then you click create a channel you check the details sales with your Google account name and photo you hit confirm and then you've got a Channel with a YouTube channel you're not going to be able to start generating Revenue right away your channel needs to meet three requirements before it's eligible to be monetized so first you need to have a thousand subscribers second your channel needs to accumulate 4 000 hours of watch time over a 12 month period and third you need to have an AdSense account set up now what will this cost you getting started with YouTube isn't going to cost you anything it is free to set up a YouTube channel and an AdSense account and despite what you might think you need in terms of fancy equipment you really don't need anything more than a laptop to get started or even just your smartphone so when I started all I did was plug my laptop right down in front of a living room window for some good light and I just used the webcam and the microphone that were attached to my laptop I don't think I bought a professional mic for at least a few months and then I only just bought a DSLR camera like a few months ago and I'm basically four years in at this point now how much can you make with a YouTube channel that is going to be determined by the quality of your content whether other people on your YouTube care about the content you're creating and the frequency and consistency that you publish new videos with so how passive is earning money through YouTube it definitely requires a time commitment and you've got to be consistent so personally I batch all of my content every month I spend a few days coming up with ideas writing the scripts shooting all four videos at a time then I send them off to my editor in the beginning of course I was doing all of that myself the great thing is that once those videos have been published they continue making money even if you take a break so I had baby number two a couple of years ago I took a few months off during that whole time and my videos were still bringing in money each and every month while I was gone so that's when my YouTube channel really started producing that passive income next up is digital products so what is it you create a digital product like an ebook an online course some templates or even creative work like photography video music and then you sell those products to your own audience so through your website and your email list or you can leverage someone else's audience through their website or email list there are several ways to get started earning passive income through digital products now at the bare minimum end of the scale you could create a simple ebook or some templates over the course of a few days and then you can partner up with a few Affiliates who would promote your book to Their audience or you could submit your existing creative works like photography illustrations video music whatnot to a stock site where other individuals or companies can pay for the right to use those Works in their own projects now at the more laborious end of the scale you could create your very own online course in which case you're going to need your own website you're going to need at least a small sized audience and an email list and it's going to take you probably a few weeks or even a few months of hard work to create the course this is what I did to create my own digital course low content profits Academy this has been an extremely lucrative income stream for me but I did need to build up a small audience before I launched it which I did through this channel now as for startup costs for digital products if you create an ebook or some template yourself and then leverage someone else's audience it's not going to cost you anything now if you want to create an online course you can plan on you know tennis dollars a month for web hosting maybe 10 bucks a month for email service provider although you can even find one or two of those out there for free and then maybe like 40 to 100 a month uh for a platform that's going to host your course so something like teachable or kajabi now if you create a quality product that solves a problem for your audience the potential is there to make hundreds thousands or even tens of thousand dollars a month so how passive are digital products really well depends on the product so ebook sales they're pretty passive but a course that you launch multiple times a year that could require a lot of ongoing work so for example my course LCPA there's quite a lot of hard work in the beginning but now that I have all my systems set up the entire thing runs in the background and it's now actually my biggest stream of passive income next up is physical products now there are generally two ways to earn passive income in the e-commerce space and that is Drop Shipping and fulfillment by Amazon or FBA so with Drop Shipping you either sell other people's products in your online store or you use a print-on-demand platform like Redbubble to sell your own custom designs on items like t-shirts or mugs or you know that kind of thing pillows whatnot in both cases the supplier is going to ship directly to the customer so that you never have to actually deal with any of the inventory now fulfillment by Amazon involves listing your products for sale on Amazon and then shipping those items to an Amazon warehouse unless you use a site like Redbubble both Drop Shipping and FBA are going to require you to Source the products that you sell if you're Drop Shipping you're going to need an online store most people use the Shopify platform when an order is placed on your site you're going to relay that order of two-year supplier who is then going to fulfill the order now for FBA you're going to have your products sent directly to one of Amazon's warehouses and when an order is placed through Amazon they are going to fulfill the order for you now for startup costs you can sell your own designs on a print-on-demand platform like Redbubble for free if you're Drop Shipping all you need is a basic e-commerce website or you can join Shopify starting at I think it's like 29 a month plus the transaction fees and if you go the FBA route you're probably looking at at least a 2500 startup cost that's going to include product samples inventory promotional giveaways UPC codes and maybe a little bit of an advertising budget now there is a great earning potential with physical products there are people out there that are just earning money hand over fist with this but there is a steep learning curve and there's a lot of competition as well so that can make getting started with e-commerce a lot more challenging than some of the other models we've been talking about Drop Shipping that is probably going to be the easiest and cheapest way to get started so how passive is selling physical products now your main job after getting your store up and running is going to be that of customer service rep that could take up anywhere from a few hours per week to even a few hours per day depending on the size and the success of your store now FBA does remove the customer service and order order fulfillment component from the equation even so you can probably still expect to spend anywhere from five hours a week to even 20 plus hours a week on your Ecommerce business just depending on how many products you sell next up is affiliate marketing now with affiliate marketing you receive payment for promoting other people's products or services to your audience and you can do this in a couple of ways so you can write blog articles that include links to products or services offered through an affiliate program like Amazon Affiliates or ClickBank and then when a visitor to your site clicks on one of those links and makes purchase you're going to earn a small commission you can also promote your peers products or services like digital products or online courses that you think might be relevant to your own audience now to get started with affiliate marketing you're going to need a website and ideally you're going to need an email list that caters to the same audience as the product or service that you'd like to become an affiliate for if you're starting from absolute scratch this could take many months potentially couple of years of hard work to build that audience affiliate marketing requires a relatively low Financial investment you can expect to pay 10 10 ish dollars a month for your website's hosting you're also going to want an email service provider so that you can build an email list that you actually you know you've got people to actually promote other people's products or services to in terms of earning potential with affiliate marketing you've got the potential to make hundreds or even thousands of dollars a month depending on the popularity of your website or blog affiliate marketing is definitely one of the most passive income streams that you can build once those links are set up you're basically ready to start earning commissions each time someone makes a purchase after clicking on one of those links or if you're promoting a product to your email list then you're going to probably be writing a few you know emails or social media posts and then you're basically good to go now if you want more of a deep dive into affiliate marketing please check out this video which I just posted a couple of weeks ago this is my 2023 7 000 a month affiliate marketing plan which I have linked to down below number five is Niche websites so for Niche sites the idea is to create a small website or blog that contains as much information as possible about a particular Niche the narrower the niche the better now the main source of Revenue on a niche site is going to be advertising and affiliate marketing you can generate ad revenue from Google AdSense banner ads sponsored posts or paid reviews affiliate sales are going to come from writing blog posts that contain links to products related to your Niche just like what we were talking about a couple of minutes ago so for example if your Niche site is about knitting you might write a blog article about a particular brand of yarn and then you might link to a type of yarn that brand sells uh you know and you'd probably link that to Amazon or something like that and then you would receive a commission when someone clicks on that link and buys the product now to get started with a niche site you're first going to need to do some research and decide on on your Niche next you'll create a website or a Blog and you'll be writing articles to attract the traffic you need to start generating add an affiliate Revenue the main factor for success in a niche site or a Blog is an in-depth understanding of search engine optimization or you're going to need the willingness to pay for someone else's expertise in this area now SEO that's what's going to allow your articles and posts to show up in Google when people are searching for Content like yours without it your site is never going to be seen by those it's intended for as far as cost is concerned your only real upfront cost is going to be web hosting so again like 10ish dollars a month now there's huge earning potential with Niche sites in the order of like hundreds or even thousands or even tens of thousand dollars a month but it is going to take months potentially even years to start paying off in big ways like that it's all going to come down to your ability to drive traffic to your site mainly through SEO so how passive is Niche site income really there's a lot of work up front but once it's going it can be quite passive one thing to keep in mind though if you need to keep creating fresh content like weekly blog post then there's definitely going to be some maintenance but you can always Outsource that work once you've started to generate some Revenue anyways okay so I saved my favorite way to start generating a passive income this year for last now for those of you that know me it's not going to come as any surprise that this last one and my favorite one is self-publishing and with the self-publishing business model you self-publish books in either ebook or physical book format through the Kindle Direct publishing platform and then you earn a royalty each time a copy of your book is sold it's simple because you're able to take advantage of an already existing Marketplace Amazon so the need to drive traffic to your products isn't as crucial as something like a niche website now I'm not talking about writing a novel or some like thick non-fiction volume here in order to scale a self-publishing business unless you're already an established author or someone with a substantial following you're going to need to publish many books in relatively short amount of time you can do this by Outsourcing the writing of fiction or non-fiction books so that you can have multiple books being created at the same time or you can go my personal favorite route which is publishing low content books that you can quickly and easily create by yourself low content books are books that as the name suggests have small amounts of content rather than lots of text and this includes things like planners journals guest books log books coloring books activity books just anything in that General umbrella low content publishing is one of my absolute favorite ways to make passive income and I still think it's the fastest and simplest way to start making the largest amount of passive income to get started with low content publishing as a passive income business model you create a book cover file and an interior file with design software of your choice then you upload those files to KDP and your book is then made available for sale on Amazon if you want to learn about how you can start generating passive income creating and selling low content books like journals planners coloring books Act activity books and more on the Kindle Direct publishing platform download my free guide three steps to publishing your first low content book in less than a day by clicking on the link in the description below you're also invited to attend my free masterclass three secrets to a wildly successful low content publishing business and you can even join my free Facebook group low content profits I've linked all that stuff down in the description below now creating your own books it's not going to cost you a dime and creating a KDP account is also completely free now if you're Outsourcing the work you can probably expect to pay as little as ten dollars for a book cover on Fiverr and then it just kind of goes up from there revenue from self-published books can vary from hundreds to literally like tens of thousands of dollars a month personally I have made about half a million dollars publishing non-fiction fiction but mostly low content books under various pen names on the Kindle Direct publishing platform so how passive is it really sometimes the books might require regular promotional regimen While others might fall a little bit more into the set and forget it category in my Peak publishing stage I was spending about 20 hours a week on my low content publishing business but when I had my daughter at the end of 2017 I completely walked away for everything from everything for six whole months and I still generated 10 to 20 000 a month totally passively and of course if you want to keep building your catalog you're going to have to keep creating some more books but the idea here is if you do want to take a bit of a break you can do so also if you get into some advertising that's definitely not a set it and forget it type of situation so you're going to be using ads to try and amplify the sales of your books that that's going to be some ongoing maintenance as well so there you have it six profitable ideas to generate passive income this year are starting a YouTube channel digital products physical products affiliate marketing Niche sites and self-publishing specifically low content publishing I hope I've gotten your wheels turning and you're a little bit closer to choosing the passive income stream that you think going to be right for you this year if that passive income stream happens to be low content books then go ahead and download my free guide the three steps to publishing your first low content book in less than a day you can also join my free Facebook group low content profits I've linked to both of those down in the description below if you liked this video please hit that like button do subscribe share this video with anyone you think will find it useful thank you for watching

Channel: Rachel Harrison-Sund

Views: 24,032

Keywords: best side hustles for 2023, make money online 2023, passive income 2023 for beginners, how to make money online 2023, how to make money from home, earn money online 2023, how to make passive income online 2023, best passive income ideas 2023, passive income ideas 2023, how to make passive income in 2023, passive income 2023 ideas, rachel harrison-sund

Id: VU60WBO6c34

Length: 15min 56sec (956 seconds)

Published: Mon Feb 13 2023