Passive income streams are essential to building your wealth as a woman of color. Apart from negotiating a higher salary, this practice helps close the gendered and racial wealth gap many of us experience. Read on for our top eight passive income ideas.
Our platform is built upon the idea that all mujeres can build multiple sources of income. We even believe that they should. Why? It wasn’t that long ago that women had to depend on men to build their financial stability. And as a woman of color, we have been set back even further. It’s not enough to just learn about personal finance. Sometimes we have to build our own systems for financial independence, including passive income streams.
What Are Passive Income Streams?
Passive income is income that doesn’t require active work at a certain point. Almost all of these options require some up-front time, effort, and energy. But if done right, you will reach a point where they bring in income on their own.
We’ve rounded up our top eight passive income ideas for you to try out.
1. Drop shipping
Drop shipping is a business model where a store doesn’t keep inventory of the product it sells. Instead, inventory is purchased as needed, when a customer places an order. This order is sent to a third party supplier and is fulfilled by them. It is great for aspiring entrepreneurs who:
- Are testing out different markets
- Have little up-front money to invest in inventory
- Do not have capacity to package, ship, act as customer service, order inventory, etc.
Think you can’t make money with a blog in 2021? Think again! My food blog Delish D’Lites earns over $7,000 a month, completely passively! Blogs are the perfect passive income source for writers or hobby enthusiasts. A blog (shortening of “weblog”) is an online journal or informational website displaying information in the reverse chronological order, with the latest posts appearing first. It is a platform where a writer or even a group of writers share their views on an individual subject.
Do you want to:
- Communicate something, like a message or an idea?
- Build a community around your love for a cause?
- Keep your followers and fans updated on what’s the latest with your brand?
- Explain how your product or service works and why people should buy it?
A blog can help you inform, educate, promote and even sell!
61% of online customers make purchases based on recommendations from a blog.
How To Start A Blog:
- Step #1: Select the perfect niche for your blog
- Step #2: Choose a blogging platform (we recommend WordPress)
- Step #3: Pick a domain name
- Step #4: Get a web hosting account
- Step #5: Design your blog, write content and build your online presence
- Step #6: Optimize for SEO and build traffic
Your blog becomes a passive income stream through display ad placements, affiliate marketing and/or digital product sales. In order to earn passive income through display ads, you need to focus on making great content that is optimized for SEO, or search engine optimization. SEO is the science of getting traffic to your website. Once your blog becomes more valuable, companies may even reach out to partner on projects. Now you’ve got yourself another income stream through your blog.
The key to blogging is to be authentic. Your audience will see right through you if you are not. If you haven’t yet built your blog or chosen your niche, grab our free worksheet to identify what’s most important to you. And check out our video, How To Start A Blog That Actually Makes Money!
If you already have a blog but are looking to spice it up, check out our list of 10 essential WordPress plugins.
3. Digital Courses
We all have expertise in something that someone is willing to pay for. You can turn your skills into dollar bills through a digital course. A digital course is a source of a passive income that continues to sell itself without you having to do much work after the initial creation.
You may already be sharing your expertise and not even realizing it. Maybe it was a Facebook post, YouTube channel, or blog sharing advice on a particular topic. Instead of giving all your knowledge away for free, you can turn it into passive income by collating your ideas, skills, and knowledge into a digital course.
To make a successful digital course, you’ll have to do a few things, including:
- Market research
- Ideal client demand
- Market your course
- Generate sales
Your findings will dictate your host platform, modules, price, etc. Platforms like Teachable, Podia & Kajabi make it easy to package, market and sell your digital course. We’re big fans of Podia to host our digital courses.
4. Create an E-Book
Similar to the digital course, writing an eBook is another avenue to sell a particular skill set or expertise you have. The main difference is the way this information is packaged. An eBook, also known as an e-book or eBook, is short for “electronic book” which uses either a computer, mobile device, or eBook reader (such as Kindle) to view long-form text in a book form. It is made available in digital media, composed of text, images or both. These don’t have to be the length of full novels (though they can be!), but keep in mind that your price will determine your clients’ expectations. An average eBook can be between 2,500 & 10,000 words, depending on your niche. You can design your eBook on sites like Beacon or even Microsoft Word.
5. Digital Downloads
Digital downloads are tools that provide your customer with a quick win to an issue they have. Instead of producing a full e-book, with digital downloads you produce singular downloadable products. These are products that can stand on their own and still add value to your clients. Printable checklists, craft and hobby guides, downloadable spreadsheets and social media templates are all viable options for digital downloads. The possibilities really are endless. You’ll have to perform market research to confirm what your potential customer base is looking for. We’re fans of Canva for creating digital downloads, and platforms like Etsy and SendOwl for selling them.
6. Affiliate Marketing
Affiliate marketing is the process of earning a commission by promoting another company’s product (or service). You find a product, promote it to others, and earn a piece of the profit for each sale that you make.
Affiliate programs are ways of teaming up with retailers to promote their products and benefit from successfully carrying out sales through a commission. Some affiliate marketplaces that we use to find reputable partners to become affiliates for are Amazon Associates & ShareASale. The key here is authenticity. The moment you promote bad products is the moment your audience loses trust in you.
7. Invest In Real Estate
Real estate investing is the costliest passive income option, this will require some big initial investment, especially if you are completely new to the world of real estate. Before launching this passive income idea, we’ve created a blog post of questions to ask yourself to determine if you are ready for real estate investing. Within the realm of real estate investing, you have numerous options for real estate investments to choose from, depending on the amount of energy you want to put in and your goals.
8. Investing In The Stock Market
Investing is not as difficult or inaccessible as people make it out to be. It is painted as something so difficult to keep people out. This is called gatekeeping. In reality, investing is quite easy and, in our opinion, essential to any wealth building journey. Common investing advice, however, might not be aligned with your goals. Before you start investing, ask yourself these five essential questions to determine your investing strategy. Having answers to these questions will make your entry much smoother.
- What are your investing goals?
- When should you start investing?
- How long will you be in the market for?
- Where are you going to invest? (i.e. which brokerage?)
- Why do you want to invest?
So where does the passive income stream come along with investing? Through capital gains or dividends. Your passive income will grow as the value of your stocks grow. Insider tip: the market historically always go up, even in the moments it goes down! So if you buy and hold, there is a high chance that you will make money. If your investments are in a retirement account, maybe this “income” won’t really be yours for years. But it’s still free money requiring little to no work on your part! And you will experience all the benefits whenever you choose to retire.
The Bottom Line
“Passive income ideas” is a highly popular search term on Google. The good news is that there are a lot of options to start building out a passive income stream. Most will, however require a little up front energy devoted to building them out. Explore the rest of our blog and episodes for more information on many of these passive income ideas.
And if you’re ready to commit to launching your side hustle and one of your passive income ideas, sign up for our third and final Side Hustle Summit, with 6 of the most knowledgeable, funny Latina personal finance and business content creators. This live 6-day event starts April 19th, get your ticket today!