7 Most Popular Ways to Create Passive Income Online

Passive income is money you can earn without much effort to maintain it, but will require effort, money and time at first to create. Sometimes it also takes your regular monitoring to get things moving in the right direction.

To create a passive source of income will usually go through 3 main ways:

• Build assets: create products from your creativity and sell copyrights to license them for others to use, by writing books, publishing ebooks, composing music, designing online graphic publications,…

• Investing: you will put some initial capital into financial channels, then receive a return or interest over time, such as stock investments, savings, peer-to-peer lending, etc.

• Share assets: receive interest from leasing the assets you own such as: renting real estate, vehicles, costumes …

2. Benefits of generating passive income

Let’s take a look at 4 ways passive income can help change your current life:

• Freedom in terms of time

Passive cash flow is generated whether you’re sleeping or traveling, providing stability and security, allowing you to be free and relaxed on days you don’t want to work, without financial pressures. From there, it helps you have more time for yourself and your family.

• Financial stability

One of the most important milestones you need to achieve on your way to wealth is financial stability. Passive income helps you not to worry about every dollar earned, now you will feel confident and see the big picture, helping you make wise financial decisions in life.

• Reduce stress and anxiety

Passive monetization will help you have an additional source of income in addition to your main job. You don’t need to put in too much effort, the money will also flow into your wallet. The feelings of anxiety and stress when paying bills will gradually subside thanks to the additional guarantees from different incomes.

• Earn extra income from anywhere

Passive income gives you flexibility that other monetization methods can’t, making it possible to work anywhere while earning a steady stream of money.

3. 7 Most Popular Passive Ways to Make Money Today

3.1. Affiliate Marketing

Currently Amazon, Ali Express, Esty … are promoting cooperation campaigns with KOCs / KOLs to create affiliate marketing campaigns (also known as link affiliates). The simple way to participate is that you will earn a commission from referring customers to buy products through marketing links. You can link products to your websites, posts, or profiles where a lot of people visit.

The passive source of income you get is from the number of clicks and purchases of each customer. However, affiliate marketing commissions are not high, usually ranging from 1-5% of the value of the product. Therefore, you need to have a content plan that attracts users as well as a clear strategy to reach the most customers who want to shop.

3.2. Digital Product Copyright

If you are a person with qualities, abilities, excellence in any field, you can completely take advantage of this, create your products in digital form and post them on websites and applications for online shopping.

Others who wish to use your works will have to pay to buy the rights to use them, thereby generating periodic passive cash flow for you.

You can refer to some platforms that allow listing certain products such as:

• AudioJungle.net and Pond5: The site allows posting and buying and selling high-quality tunes and music products.
• Adobe Stock and Shutterstock: A place for photographers, art organizations, creative young people to upload beautiful and exclusive images, then charge a fee from those who want to use them.
• Blurb and Aer.io: A specialized platform for buying and selling ebook products, each of which brings together a community of creators and consumers in need.
• Udemy and SkillShare: A collection of online courses, allowing you to post online lessons and attract students from everywhere.
• ThemeForest and TemplateMonster: The world’s largest marketplace for theme products for website building.

3.3. Real estate rental

Many investors who specialize in real estate or have a high capital often choose to buy houses and then rent those houses for a long time. You can choose from extremely diverse forms of leasing such as renting as a house, as an office, as a warehouse or as a business. From there, the day you just stayed at home added a passive amount of money to your pocket by monthly rental.

To get a good profit from this form, you need to thoroughly understand the needs of users and study the location and terrain of real estate. At the same time, you may have to pay a fee to the intermediary to find a tenant to help you.

3.4. Vehicle rental

Currently, the rental of vehicles has become quite popular. In particular, if you are in a developed region in terms of tourism or in big cities, this form becomes even easier. You can rent bikes, motorbikes, electric cars and even car rentals. This is a passive way of earning income that you can consider.

Tourists will come to your billboards to rent self-driving vehicles to visit around the tourist destination. With this form, you need to spend some money to buy many vehicles to be able to meet the needs of tenants.

3.5. Bank savings

Bank savings is a traditional form of passive investment of Vietnamese people. The advantage of this form is the guarantee, certainly, of obtaining legal protection.

Every month, every period, every year you just need to spend money to save, you have received an interest of 4-8% / year on the total amount you have deposited. Without spending too much effort, you also have an additional source of passive income for yourself from that.

Moreover, in the era of digital development, you can completely save online through the bank’s applications without having to go directly to the bank as before. This reduces the inconvenient and inconvenient procedure for investors.

3.6. Stock investment

Stock investing is one of the popular ways to generate a high source of passive income every day. You can choose to invest by buying stocks, bonds, fund certificates … to earn high profits from companies and businesses. Monthly interest rates can be as high as 35-55%, an unbelievable return for the investment market.

However, this investment channel contains many risks because it depends a lot on market volatility. The economy is always changing every minute, so you always need to add knowledge about investing, master financial information to have the right plans and moves, avoid heavy losses, even empty-handed.

In addition, common market risks such as inflation, interest rates, economic instability, event risks such as legal changes, natural disasters and pandemics… can also make it difficult for your passive income stream.

3.7. P2P Lending

In addition to the traditional way of investing in securities, in the past few years, Vietnam has begun to appear a new form of investment with high sustainable value and does not require too much understanding in the financial sector, which is investing through the P2P Lending model.

P2P Lending is a model that connects investors (lenders) with borrowers without going through any kind of intermediary. P2P Lending has become an investment trend that generates passive income by easy, fast operation, completely done on the online platform and has a high interest rate, ranging from 12-20% / year depending on each company providing the platform.