5 Ways to Make a Passive Stream of Revenue in 2023
While you can’t work five jobs simultaneously (at least not in a conventional sense), nothing prevents you from owning five, ten, or 500 rental properties. The only limitation is your available money, but you can always use the money to make more money.
To help you exploit this idea, here are the top five ways to make a passive revenue stream in 2023.
- Rental property
When discussing the passive income stream, anyone first considers the rental property. The downside of this idea is that the buy-in is pretty steep. After all, rental properties cost tens of not hundreds of thousands of dollars; in the case of a commercial rental property, we might even be talking about millions.
Generally speaking, there’s a rule out there that a rental property should return 1-2% of its cost every month. In other words, it should pay itself off in about eight years. With commercial properties, 4-5% per year is the norm.
Still, it’s worth mentioning that rent depends on several factors.
Even if you don’t have enough money to buy a whole rental property, there’s still an option of finding a real estate investment trust (REIT) is still available. This way, you can buy in at a lower cost.
2. Stocks that pay dividends
The main idea of making money via stocks is that you would buy them, the price would go up, and you would sell them for a profit. So far, this sounds like a trading plan, not a passive income one, right? Well, unless you find the stocks that pay dividends.
The way this works is simple; if you buy a stock that pays dividends based on the company’s performance, you will earn a small fraction of its earnings. How big of a fraction? It depends on the number of shares you own and the company’s performance.
There are many different ways you could turn cryptocurrencies into a passive stream of income. First of all, some cryptocurrencies pay dividends. This way, the route to passive income is more than evident.
Another thing you could do is look for crypto savings accounts and get an interest on your holdings. Naturally, if the value of these cryptos goes up, you would get an even higher bump in value (and interest). This is one of the main reasons why even riskier investments, like new crypto presales, might be viable.
4. Royalties from intellectual property
Intellectual property needs to be produced (active work); however, once it’s up there, it generates a passive income stream.
Let’s say you’re a writer, self-publishing a story on the Amazon Kindle Direct Publishing platform. Depending on the cost of the story, you will likely receive a 65% royalty fee.
The same goes for any other intellectual property, whether a song, a photo, or a video game. Once you upload it, your work with it is done (or at least it can be).
5. Creating an online course
In the introduction, we’ve mentioned that to monetize a certain skill; you need to employ it actively. Well, this isn’t always the case. Sometimes, you can turn this skill into an online course and a passive revenue stream.
With so many courses out there, you might have trouble standing out. What you can do to stand out is produce higher-quality content. Even if you’re talking about the same subject, with a unique/fresh approach, you can significantly raise the appeal of your course.
There are so many investments that you can turn into a passive stream of income
As you can see, the fact that you don’t have enough money to buy an apartment doesn’t mean you don’t have the means to create a passive income stream. Just do your bit of research before committing. Nothing is more reckless than investing in an asset you don’t know enough about.