Table of Contents
- Quick Summary
- What is Passive Income?
- What are some examples of passive income sources?
- 5 Strategies to Increase Passive Income
- 1. Keep up with the Internet
- 2. Use a Viable Platform
- 3. Publish Ads on Social Platforms
- 4. Make Multiple Income Streams
- 5. Learn about Your Craft
- Important Tips
- Final Thoughts…
Online passive income streams can generate a substantial amount of money for you. However, there are multiple ways to further maximize your online passive earning.
You can use these strategies to min/max your time/earning respectively. Some require learning of internet trends while some just simply require you to use numbers for your ads.
In today’s post, we’ll go over the following things:
- What does passive income mean?
- Tested strategies for you to use
What is Passive Income?
Passive income, according to the definition from IRS, means a source of income that doesn’t include your active participation. However, in this case, it also includes all online sources.
Internal Revenue System further states that a passive income source also excludes the presence of an active employer or a contract.
What are some examples of passive income sources?
A simple example of a passive income source is a rental property. You rent it out to a person and get a specific amount after a month without your direct presence.
Other online passive incomes sources can be:
- Selling an online course
- Proofreading material
- Graphic designing
- Website and application testing
- Focus groups
5 Strategies to Increase Passive Income
We have gathered 5 tested strategies that you can use to increase and expand your online income sources. Let’s have a look.
1. Keep up with the Internet
Internet is your key to everything. Trends change on a daily basis.
One day graphic designs might be the name of the game and the next day it might be proofreading different material.
Since the beginning of the pandemic, surveys from Statista have shown a 60% increase in online incomes.
You have to be on the lookout for these daily shifts. It will enhance your current understanding of the online market and help you predict future trends to some extent.
How much time is required for this task?
For starters, you can learn about your passive income source from various websites and forums. On average, 5-6 hours on the internet are sufficient to know and understand current trends.
2. Use a Viable Platform
In the current digital era, you can find multiple platforms in the form of online shops and freelance websites. However, your options aren’t limited to just that.
Forums like Reddit or Quora can help you find specific communities. You can learn about the needs of your target audience and adjust accordingly.
This will ultimately help you increase your conversion rate and grow your passive income.
For example, you can ask about which website is good for affiliate marketing.
What other platforms can I use?
Social platforms like Facebook, LinkedIn, and Instagram can help you gather tips. Let’s say you want to be efficient at proofreading.
You can join a group on Facebook related to proofreading and learn how people maximize their time and proofreading material.
You can check our guide on platform selection. We have explained in detail how different platforms work in terms of opportunities related to passive income.
3. Publish Ads on Social Platforms
Let’s suppose you are a graphic designer and want to get your designs out in the market. One easy way to do so is through ads on different platforms.
Instagram and Facebook can help you for such a purpose. Not only you can advertise your account but also increase the overall reach of various posts.
We have a detailed guide on how to sell online courses on various platforms. You can use it as an example.
How will ads increase your passive income?
Social platforms are not only just for friends to hang out online. Ads can help you find a buyer that needs some designs for a logo or maybe a t-shirt.
Moreover, you can advertise a specific post as well.
Important Note: According to online surveys, ads with a clear visual representation of a service or a product yield a 75% more click turnout rate.
You can use this approach to increase the reach of your posts as well.
4. Make Multiple Income Streams
A single passive income stream is probably enough to cover your monthly expenses. However, if you want to truly maximize your income, you have to develop multiple sources.
You can check our online guide on how to create multiple online income streams by selling online courses.
Who doesn’t want more money? Let’s take an example.
Say you are currently earning $100 from your side hustles. It covers your minor bills like daily meals, bills for streaming services, or travel costs.
If there are multiple streams that earn $100 each, it will help you cover your costs and save money for future purposes as well.
But won’t that require a lot of time investment?
Well, that’s the neat part about passive income sources. You don’t actually have to invent a lot of time once the stream is all set up.
The only thing you have to do is keep track of what’s going on and how you can further improve it.
5. Learn about Your Craft
It goes without saying that learning about your income stream will eventually help you increase it by a substantial margin.
There is always room for improvement and you can benefit immensely from it. In the long run, it can even help you make a career out of it.
But what if I don’t want to pursue it seriously?
That is your personal preference. However, if you expand your learning about a certain thing, it will help you do it more efficiently.
Moreover, people are likely willing to pay an expert for a job rather than a beginner.
Following are some expert tips that you need to keep in mind.
- No side hustle is too small. If you want to start a passive income stream, start small. Most of the time these opportunities can develop a stable money inflow.
- Discuss what you want to do with your peers. More than often, your peers can point you in a direction that can be helpful for your side hustle.
- Keep yourself updated. People often start a passive income stream and forget about it. However, it is important to keep yourself curious.
Online passive income streams are a viable way to support your monthly expenses or save some money for the future. However, there are ways to maximize them as well.
You should keep in mind that there is no shortcut to increasing your passive income overnight.
Just remember that it is a trial and error method that changes according to the nature of your hustle.