IMO, there’s nothing cooler than passive income. That’s how the world’s billionaires make their money. You don’t work, but you still make money. You could be sleeping or gardening, or traveling, but the income keeps coming. That’s passive income. And there are multiple ways to make it.
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If you want to make $5,000 a month in passive income, this article contains a list of some of the most realistic ways to make this happen. They’re not the overnight success ways. But, in the long run, you can definitely generate passive income to the tune of $5,000 dollars monthly. Stick around some more to know how you can make this happen.
How to Make $5,000 a Month in Passive Income: 14 Proven Ways.
1. Start a blog of your own.
When it comes to making passive income online, blogging is one of the cheapest high ROI options to explore. You start a blog, focus on a niche or a series of interwoven niches, create content consistently, build authority for your blog to rank, drive traffic by ranking for multiple high search volume high competition or (a myriad of) low search volume low competition keywords, monetize your traffic while you grow your email list and focus on getting more search traffic.
If you love writing like Elna Cain (whom I’m trying to model) does, then you can take a blog from nowhere to somewhere in the journey to create a passive income stream. To start up a blog today, check out this free blogging guide.
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Podcasting is one way to build an audience, and another way to make money passively. If you want to learn how to make $5,000 a month in passive income, then start a podcast and learn to grow a podcasting channel. Podcasts can be very educational, and can be listened to over and over again. For this reason, advertisers troop in to sponsor them (the podcasts) with the interior motive of promoting their campaign, objective, or product. Podcasts can be monetized in different ways. And if you’re beginning to make a name for yourself with your podcasting channel, you’ll find it easy to attract the right sponsors for the products and topics in your niche. This means more money. Plus, podcasts aren’t published on air. They’re hosted on a blog, an audio blog.
And this blog can also be monetised with ads (Ezoic, Mediavine, AdThrive, or AdSense) assuming you choose to accompany every podcast with a well edited transcript of the podcasts you publish, optimized to rank for search terms on the search engines.
3. Amazon FBA.
The idea behind earning with Amazon FBA is simple; you buy products from another store online and resell it on Amazon for more money. So, let’s say you buy a product at $20 dollars from AliExpress, you sell it for $25 on Amazon, you keep $3 dollars (after all the fees on Amazon just because it’s not free to operate an FBA account). But then, the challenge is to find these products that you can buy and sell between Amazon and another ecommerce website.
Once you find this magical product (and I don’t mean magical literally), you can buy them in bulk and resell them on Amazon over and over again. You’re paying Amazon a small flat fee for every successful sale of your product. Amazon ships the item to the users placing the orders. So, you’re at peace here. No delivery/shipping challenge or expenses for you.
Dropshipping is wrapped around the concept of ecommerce, but without the stress/challenge of inventory and shipment. It’s not free, and you can generate upwards of $5k a month in passive income as a dropshipper. Firstly, you create a store, import products from other e-commerce websites to your online store, up the original prices of the products you import, and promote your store to get customers. The more customers you get, the more money you’ll potentially make.
Your profit is basically anything else you add on to the original prices of the imported products in your store. Dropshipping is technical from the backend, but there are already easy tools to make it simple for you to configure and get things running smoothly.
While this is an expensive fit to generate passive income, it probably has one of the highest ROI on this page. Ecommerce like you know it, serves a purpose; remote shopping. So, regardless of your location or where you live, you can shop online and get the products you need even if they’re not available in your country. The point is for you to launch an ecommerce website/business of your own and market it to generate passive income.
Basically, it doesn’t have to be the next Amazon. It could be. But right now, the ecommerce space for niches Amazon dominates is stuffed by aggressive competitors. And they’re not lazing around. If you want to start an ecommerce business, it’s best for you to take out some time to find the perfect niche to launch into. If you want to sell all kinds of products (just like Amazon or Alibaba), it’s more money, it’s more work.
On YouTube, you can create a channel for free and start putting some good videos out there to gain traction monetizable in different ways. I feel YouTube will monetize channel creation real soon because it’s too good to be true. In the space of 8 months, you can crack the code on generating passive income on YouTube if you’re consistently putting up the best videos in your niche.
IMO, it’ll be easy to dominate any niche on YouTube with consistency, creativity, and quality video uploads. It’s a no-brainer. And YouTuße rewards content creators for consistency by bringing their videos to limelight over time.
7. Affiliate marketing.
Today, a lot of webmasters and people working on the internet generate passive income with affiliate marketing. It’s simply marketing a product online and getting paid when someone buys that product. As an affiliate marketer, you can promote several products. As many as you want. Or, as many affiliate marketing programs you can get accepted into. There’s an application process you’ll need to go through so that you’re given an affiliate link to promote products.
So, if you’re promoting a product that’s worth $500 dollars and has a 20% commission, this means you’ll get $100 dollars for every sale of the product. To make $5,000 dollars a month passively with affiliate marketing, you’ll need to promote multiple high cost affiliate products that have a high commission rate. And you’ll also need to do affiliate marketing the right way.
8. Course sales.
Create a course around something you’re pretty good at, and sell it online. Don’t know what to create a course about? It could be anything. If you’re good at cooking, writing, programming, or designing graphics, or even making money in a unique way, you can create a course about what you’re good at. When you’re done creating the course, you can promote it on social media or list it on marketplaces like Udemy to get more sales.
People want to learn, and they’re willing to pay a lot of money for you to teach them. Here’s the catch; your course has to be authentic so that it’s worth a lot of money. The more quality and authentic it is, the more monetarily valuable you can tag it. Selling courses online remains one of the most realistic ways to make $5,000 a month in passive income. Plus, it takes a lot of work. It’s not an easy task.
9. Online product sales.
Another idea to make $5k a month in passive income is to create products of your own and sell them online utilizing a self-made store like your own ecommerce store or selling on platforms like Etsy. Whether it’s handmade crafts or graphics, you can sell just about anything for money on Etsy.
All you need to do is upload the item on Etsy and make the price a moderate one. Basically, you’ll need to learn how to sell on online marketplaces like Etsy, Amazon, eBay, and others. In the 2020s a ton of people are still able to generate $10k in sales passively just from Etsy.
10. Stock investment.
Without a doubt, investing in the stock market happens to be one of the best ways to generate income passively without having to trade. This works really well if you’ve got six figures to invest in the stock market. With very little price movements, you can expect to see cumulative profits of over 10% a month. If you’re in the market with $100k, 10% of this is $10,000 dollars. And for this to happen, you’ll need to invest in strong stocks. Stocks with the best growth potentials.
Some months will be different than the others, and you’ll rarely have bad months where you see negative integers (for example -2%🔻devaluation in stock price of Netflix, Pinterest, Apple, or Etsy). These bad months will come where you’ll see a drop, a slight drop, in the value of assets in your portfolio. But then, you’ll see more price sprouting months with investment in strong stocks.
11. Mobile app development.
Want to make $5,000 a month in passive income? Then one of the many ways to make this happen is to build a mobile app of your own. It doesn’t have to be an app like Snapchat or Canva, but it should resolve an issue. Your mobile app should be significantly relevant to an audience so that its value doesn’t depreciate. It should make things easy for people to do. Or, it should be such that people subscribe to use it monthly for their online needs or for the complementation of their projects. Now, it’s your work to think up an app like this.
Brainstorm an idea, and work towards bringing it to life. Again, you don’t need to be a seasoned programmer to build an app of your own. You can always hire skilled coders and UX developers to build your app. You’ll also need a ton of money to promote your app so that it steals some traction against competing softwares out there serving as formidable alternatives.
12. Launch a fashion brand.
If you can fork out the money, then starting a fashion brand of your own, like Fendi or Gucci, is a great idea to make a lot of money passively from sales. Firstly, come up with a brand name for your fashion brand, and register the name to secure it. Next up, figure out the cheapest ways to manufacture and design your own t-shirts.
And other outfits like trousers, and shorts. Place a price tag on your products, and start producing them in bulk for the external market. Focus on creating an ecommerce platform for your fashion brand and rely on intense marketing to drive sales. Marketing can be digital, and influencer marketing (both of which will prove more effective).
13. Design t-shirts online (for print-on-demand services).
Print-on-demand services are the kind of services on the internet that create and send them to customers. But then, they don’t design every product in their database. People like you and I do the job. You can set up your own boutique on print-on-demand platforms/services like Teespring or Zazzle. There are more, but the idea is to focus on one of them, the most popular print on demand service out there, and create tons of designs there for customers to surf through and buy.
After having several hundred designs on your store, you can promote the store (which is usually hosted on the print-on-demand site) on social media to get more eyeballs. The more people you have visiting your virtual boutique on the print-on-demand platforms, the more sales you’ll get. This is passive income with a lot of upfront work. And you’ll need to be creative with every single design.
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14. Establish a physical business
A physical business like a restaurant, grocery store, a car wash, or some other kind of business that you can start up physically can generate $5,000 a month in passive income for you. What you do is start the business, get someone to run the business and perform administrative activities. And sometimes, supervisory roles where needed.
Again, you can hire a professional manager to run the business and keep the cash flowing while the business expands. One very important factor you’d want to address when starting a physical business is the issue of location. The business location. If you miss this out, it’d be difficult for you to get it right quickly or make a boatload of profit (from sales & services) from the business.
How to Make $5,000 a Month in Passive Income: 14 Proven Ways – Final Words.
Making $5,000 a month in passive income without a lot of risk is no easy job. I mean, if it wasn’t so hellbent on consistency and realistic money-making strategy implementation, a lot of people would be making $5k a month passively.
Plus, the ways to make this happen doesn’t require you to have a degree. You just need to be consistent, willing to learn, patient, and aggressive in the right way towards making money. And making it passively. In summary, some of the ways to make $5,000 dollars a month in pure passive income include becoming a Tiktok star (just because Tiktok pays passively for your views),
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