Entrepreneurs who understands the importance of passive income seek for avenues to invest in businesses to make money without working it out themselves.
The world’s most successful entrepreneurs build streams of passive income ideas that makes them extraordinarily wealthy and incredibly rich.
One of the world most successful investor I respect so much on passive income building is Warren Buffett.
This is because he understands how passive income works and has taken advantage of it for decades as a world class billionaire and investor.
So before we proceed in knowing how to build streams of passive income, let us briefly remind ourselves what passive income is about.
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What Is Passive Income?
According to Investopedia, passive income are earnings derived from a rental property, limited partnership, or any other enterprise in which a person is not actively involved.
Passive income is the best class of income because your presence is not required before money comes into your pocket.
Most of the world most successful people like Jeff Bezos, Elon Musk, Bill Gates and many others earn from passive income.
Though, passive income is usually taxable, however it is often treated differently by the IRS.
Therefore, let us check out some 11 amazing streams of passive income below.
11 Streams Of Passive Income For 2022:
1. Start An Affiliate Business:
An Affiliate business is a business model where you sell other peoples products to earn commissions.
You can signup at various affiliate companies like Amazon or become an affiliate at Expertnaire.
Also, you can check affiliate networks like Shopify and Clickbank, just choose the one that suits you better.
Affiliate marketing is lucrative because you only have to promote products on your free times online to earn commissions on sales.
2. Launch A Business And Hire Others To Run It:
Have you also considered starting up a business and hire others to run and manage it for you.
One thing you must take note of is looking out for the best set of workers and a manager while you carry on with your other businesses.
This is one of the best streams of passive income that has capacity to take you from zero to becoming a millionaire.
3. Build Passive Income By Outsourcing:
You don’t really need to be a graphic design before you take graphic designs jobs.
Similarly, you don’t need to be a caterer before taking cooking deals.
You can always outsource it to specialists in those areas.
This is similar to contractors who take build contracts and outsource it to engineers.
Hence, you pay them and take your own share of the money while they do the job.
That is to say, you make your money and they also make their money.
4. Buy An Existing Online Business:
Look out to start ups who might want to sell their online businesses.
Some owners might decide to sell because they don’t have the required capital and capacity to carry on.
Similarly, look into online businesses seeking for investors and buy shares if you see good future potentials in them.
For instance, Jeff Bezos had to take 60 meetings to raise $1 million from 22 investors in 1995 at approximately $50,000 per person.
Any of those investors who bought shares in Amazon in 1995 will be millionaires and billionaires today if they didn’t sell off.
5. Renting Out Properties Are One Of The Best Streams Of Passive Income:
Rent out your second home and extra rooms.
Having unused car parks are potential waste of money.
Also, you can rent out apartments you can cheaply do without.
Hence, rent out your unused cars, car parks, extra rooms and other valuables you don’t actually need.
This is one of the most common streams of passive income that will make millionaires in 2022.
In addition, if you’ve the required capital, you can take advantage of starting a real estate business.
6. Take Advantage Of Franchising:
Many top brands well known by customers are also seeking to reach more people in locations their business can’t cover.
Hence, you can reach out to them and start a business under their name and reputation.
If you get approved to work with them, franchising is highly profitable.
For instance, many people know McDonald’s for their burgers, fries, salads and many chops.
The same is applicable to Kentucky Fried Chicken, You can take advantage of franchising on food niches.
Hence, if you succeed in franchising with them in area they don’t cover and employ staffs to work for you, you’ll make a lot of money.
However, this requires capital to carry out.
7. Create Online Books And Courses:
Are you a specialist in health, fashion, graphic designs, programming, blogging, beauty and skincare.
There is something in you that have the capacity to solve problems in peoples life.
If you’re knowledgeable in any field of human life, you can build passive income by creating online books or courses.
Today, many people are seeking to learn something on the internet.
Hence, if you can create a detailed course, you’ll end up creating a passive income that will help you make money in your sleep.
8. Invest In Peer To Peer Lending:
If you’ve good financial capacity and understand how loan works, you can decide to invest in peer to peer lending.
This is a platform where you give out loans to people in return for interest.
Ensure to also collect collateral from borrowers in cases where they do not pay back.
Hence, you can always use their collateral to recover your money.
To be more secured, even if you collect collaterals, a co-signer should come in for additional security measures.
9. Trade Cryptocurrencies At Your Free Periods:
So many people have been made millionaires through cryptocurrency trading.
If you’re a novice in cryptocurrency, ensure to check out the 14 truths about cryptocurrency trading and blockchain technology.
The crypto market can be unpredictable, so always ensure you’ve a good understanding of any trade you intend to carry out.
This is one of the most convenient streams of passive income that will be profitable in 2022 and the next 20 years to come.
Related article: Should Traders Expect Another Huge Crypto Market Sell Off In 2022
10. Join A Multilevel Marketing Business And Recruit People With Similar Passion To Work With You:
One of the beauties of multilevel marketing business is the ability to help you make money in your sleep.
Find the perfect multilevel marketing business of your choice and get registered.
To succeed in network marketing business, focus on building a very large team of active marketers.
A good team will be a plus to you.
Introduce others to the business and when your team grows up, you’re sure to make money in your sleep.
Another advantage of multilevel marketing business is the freedom to work from anywhere.
Here is an article on how to build a network marketing business quickly.
11. Forex Trading Could Be On Of The Best Streams Of Passive Income:
Just like cryptocurrency trading earlier discussed above, forex trading can be one of the best streams of passive income for you.
If you’ve no idea on how to trade in the forex market, here is a quick guide to forex trading for you.
Please note that you’re bound to make mistakes when you take wrong trades, however if you stick to the rules, you’ll build a good passive income in forex.
Hence, you can make money in your sleep.
In conclusion, if you’re not used to forex, here are 18 secrets of forex trading you must know as a beginner.
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