Do you always want to have an extra income source while working in your current profession?
The Internet has the power to help you achieve financial freedom by having multiple income sources online?
In this article, I am going to share the 13 best passive income source ideas in 2020.
Before starting I want to mention that these ways require a lot of work and it is not a quick-rich scheme.
The below mentioned passive income sources require less investment or no investment.
Some of the income sources you can start while sitting at home and without having a team.
I strongly support having at-least 3 sources of income to become financially free.
13 Best Passive Income Ideas in 2020 are:-
I was into freelancing for almost 2 years in digital marketing. In these 2 years, I have worked with many companies with multiple niches.
The best part of freelancing is to have multiple sources of constant income.
If you are into a job and earning 1 Lakh rupees, there is no guarantee that your company is going to keep you forever, and as long as you are there in your job you will get that income.
Now if you are into freelancing you can have 3-4 clients paying you 25 thousand each you can earn 1 Lakh rupees per month. Even if one client goes you still have 3 clients to pay you.
Freelancing is one of the best ways to earn money. In freelancing, there is no additional cost like an office, furniture, staff, etc.
You can handle your clients while working from home. Your team can connect online and discuss things.
If you have a good understanding of tools then you can easily manage your teams and projects.
You can focus more on multiple projects.
This type of income is best for beginners.
1. You can be your boss.
2. Great Opportunity to work on multiple projects and learn.
3. Multiple Sources of income.
4. Have a laptop lifestyle.
1. You need to manage clients as well as the employees.
2. You need to work on strategies and multi-task yourself.
3. Payment delays and reminders are at you.
Niche based consultation is one of the topmost money paying niche in the world. The multiple types of consultation available in the field are Education, Health, Money, Business, Personality Development, etc.
Many companies nowadays do not hire outsiders for marketing and they prefer to stay inbound and use their staff to perform the activities.
As a consultant, you can easily approach these types of companies that are looking to train their existing employees.
1. You will have an interested audience.
2. You will understand the buyer persona by doing research.
3. Can effectively do A/B Testing.
1. You need to manage a large group which is not an easy task.
2. Teach the very basic concepts of everything.
3. Time Consuming
3. Online Courses:
In the lockdown, you might have seen many ads on the various online courses.
The profit margin on an online course is way higher than any other income source. Many big bloggers are introducing their courses to specific niches.
The demand for online courses is going to increase only. I took 3-4 Full-Time courses on various topics in this lockdown.
One of the best things about online courses is that you can access it anytime sitting at any place.
A well known digital marketer DigitalDeepak is known for his various courses in the digital marketing field.
1. You can be an expert and showcase your expertise.
2. You can have a large audience.
3. You can sell your other courses also.
1. Huge Competition.
2. Expertise required.
3. Good LMS is required.
4. Online Business:
In this digital age where millions of buyers are now online, it is best to start a business online.
You might have seen many ads and banners of small businesses advertise themselves. Many small restaurants tied up with Zomato and Swiggy and made their business online.
Same as that, one of the best examples of online business is Amazon, where the vendors register themselves, and whenever the order comes they fulfill it.
1. Less Investment.
2. Less Storage required to keep limited items.
3. You can work on seasonal items and regular items.
2. Storage costs will increase if you deal in perishable goods.
3. Stocks management
5. Affiliate Marketing:
I do not have to convince you of affiliate marketing. You are already aware of the power of affiliate marketing.
Now bloggers are focusing full time on affiliate marketing and earning a good income.
One of the best things about affiliate marketing is that you do not need to have your products, you do not need to store it, you do not need to talk to a customer and you do not need to worry about the after-sales service.
In the US alone affiliate marketing has reached $6.8 Billion in 2020, that big is the market.
1. Almost every company nowadays has an Affiliate marketing program.
2. There are affiliate products for every category.
3. Once you put enough hours into this, you can build a successful income stream online.
1. Building trust will take time.
2. Huge Competition.
3. You need to focus on content creation.
6. Mutual Funds/Investments:
Multiple income streams are what I focus on. I am working on generating income from at least 3-4 sources.
In this digital age, we can manage a different business online easily. We just need to manage the time and have proper discipline.
With the right knowledge in Mutual Fund, you can invest in various portfolios and earn good money.
Mutual Funds require a good understanding of the market and how a particular company performing in the current and how was performing in the past.
1. You can invest in multiple portfolios.
2. You can learn more about the behavior of the market.
3. You can start teaching others or manage their account.
1. Uncertain market nature
3. Require lots of research.
7. Selling Ebooks
You can put everything in the video. Some people love to read and learn through reading and take notes.
Taking notes is also one of the most common things which make a beginner an expert.
Selling a detailed eBook on a particular topic is far better than a less researched video.
You can even combine your posts and make an eBook and sell it on various platforms like Amazon.
Selling eBooks to your loyal audience is one of the best things you can do.
8. Bug Finder
Companies like Facebook and Google pay a huge salary to bug finders. Bugs generally occur when huge data in the form of codes and snippets enter into the website.
Bugs could not be seen with naked eyes and can only find at the back end of the page/website.
Bugs can even break the website and it is very much necessary to find and fix it.
1. Good Salary
2. Good Technical Understanding
3. Get a chance to work with huge companies
2. Good understanding of coding
Online coaching is booming day by day. In 1990 and 2000, students used to refer only the textbooks but now due to competitive exams, they are now started consulting multiple books and references.
Byjus, Vedantu are some of the examples of online coaching. Do you remember the advertisement of Whitehat Jr.?
You can start your online coaching or can work with these companies and teach on their behalf.
This is one of the best passive income source for beginners.
You can learn, teach, and earn.
Not only academics but also other activities like Singing, Dancing, Painting, English Speaking, etc.
1. Flexibility of Time.
2. Less Pressure
3. Many Platforms
2. Less pay because of more human resources and fewer platforms.
Gone are the days when the brokers used to roam in the market and used to search for the property to sell online. Nowadays many people are started listing their property online.
Brokers nowadays can see the property online and make a deal.
There are many types of brokers like Real Estate, Vehicle, Insurance, domain buying, and selling, etc.
Domain buying and selling is also a huge business model nowadays. After closing the deal apart from the commission of the portal rest goes to the broker only.
1. Huge Market
2. Many Field and niche available
3. Commission based Income
1. Huge Competition
2. Large brands already exists
11. Website Designing and Developing:
In India alone, 700 million internet users are there at present. The online buyers in India are expected to reach 330 million by 2020.
Now you can calculate the potential of the business owners who would require a website for their online business.
The business nowadays needs to showcase their products and services to the audience in the marketplace so that they can target the right buyers.
1. Huge opportunity
2. Good Income Opportunity
3. You can even create websites without having coding knowledge.
1. Huge Competition
2. Clients does not pay higher in some cases
3. After-sales services
12. Graphic Designer
Website designing is incomplete without the graphics. 1 infographic image is better than 1000 words.
There is a huge demand for good and experienced graphic designers.
A graphic designer with knowledge of mobile testing can grab a good package.
Graphics can be used in the form of infographics, social media posts, content writing, emails, ad copies, webinars, courses, eBooks, etc.
1. Huge opportunity
2. Creative Work
1. Huge Competition.
2. Large brands already existing.
13. Digital Marketing Services
I have already mentioned freelancing but is a sort of individual or a small team.
Now I am talking about the proper digital marketing agency where you can approach clients for various services which you offer i.e. SEO, Website Designing, Email Marketing, Lead Generation, Marketing automation, etc.
Digital marketing is the most cost-effective marketing technique which not only lowers down your cost but also helps you reach the right audience directly into their hands.
1. Huge Opportunity
2. Long Term Career
3. Flexible and dynamic
4. Creative Field
1. Huge Competition
2. Indian Client does not pay more.
3. Too many bigger brands are already there in the market.
Which Is Your Favorite Passive Income Among All?
I have already mentioned the 13 best passive income ideas in 2020 for beginners and intermediates.
If I have missed any stream which you know, just go to comment and say it out.