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What is the Best Passive Income Source?

I will start this article with the answer: There is no “best” passive income source. If you get an income from a source that is truly passive and you are making a profit, that is a good passive income source. The best would have to beat the other sources with no debate, and that just doesn’t exist. It depends on your goals, your interests, and what you truly want.

But before we find out the best passive income source, first we need to ask ourselves a question: What are the popular passive income sources?

Dividends

“Consistently water the sapling, and it will grow into a tree.” This refers to dividend investing, and how consistency can grow your portfolio into a true powerhouse!

Dividends are a very popular passive income source, and those that can utilize dividend stocks properly have the potential to reap BIG rewards! To invest in dividends, all you need to do is invest at least a few hundred dollars in the stock market, with a good company that pays a decent dividend. There is a lot of research to do beforehand however, and you need to make sure you are well-prepared and educated in the stock market, along with how dividends work.

If you target dividends when you’re young, you can potentially reach a six-figure income by the time you retire! And it never goes away! (Unless a company cuts its dividend, in which case you can sell and invest in another one. Hopefully, you haven’t allocated a large percentage of your portfolio to one particular company.)

How do you research dividends? You may prefer one place where you can find all of the information, and I have the solution! This website! I update this website regularly to being you news and tips about dividend investing. However, if you want to look elsewhere, I have learned from many investors: Ian Lopuch (PPC Ian) is the best dividend investor that I know of, and I look up to him a lot and go to him if I have any questions related to dividend investing. Ryan Scribner has his money dipped in many places, with multiple sources of passive income. Investing geniuses like Warren Buffett, Benjamin Graham, Peter Lynch, are all people to look up to in the stock-market world.

Real Estate

 

Real Estate is an amazing source of passive income, and it is truly passive if you opt to hire a property manager. Now, rental properties aren’t the only form of real estate, but they are the only form of passive income related to real estate. The main problem that people have with real estate is the large amount of money required to buy a house or apartment. The beauty about this market however, is that you can get a down payment of just 3-5%!

This means that if you find an $80,000 property, you can potentially get a down payment of $2400! Now you own a house or apartment. You can get a payment of a few hundred dollars per month, and pay it off faster if you have the income.

Now, it is time for my opinion. If you do not have a house yet and need a place to buy, I would suggest a multi-family home. A popular strategy that has been in place for decades, is to buy a duplex. While you live on one side of the duplex, you rent the other side out. If you get a good price for the rent, it should be able to cover the mortgage! So in this scenario, you essentially have no mortgage as long as a tenant is on the other side! Or, you could purchase a 3-unit, or maybe a 4-unit house! It may cost more, but patience wins in this scenario. If you find the right deal in the right location, you could pay for the mortgage and receive some extra money along with it!

Affiliate Marketing

Affiliate marketing involves online business, and allows a marketer to advertise a specific product for a company and receive a commission anytime someone clicks on the product through the link the marketer provides. In order to be a successful affiliate marketer, typically you need your own internet platform where you can reach people, and then get in contact with an affiliate program that would allow you to advertise their products!

Essentially, affiliate marketing is easy if you already have a platform. However, if you don’t have a platform, you would need to build one up first. Whether it is a website, Youtube channel, or social media account, you would need a way to connect with like-minded customers that would potentially buy the product.

Book Publishing

Book publishing is a long-known trade that many take up as a career. However, now it is easier than ever to write and publish your own book. You can self-publish on Amazon with a quick and simple process. Once you publish your book, you will get paid everytime someone buys your book, whether it is a day after you published, or a year!

The tricky part is getting your book known. There are methods for this however, and if you figure it out, you can make big profits!

Conclusion

There are many, many passive income sources, and there is no best one! Choose what works for you, because any of these four income sources can grant you huge profit!

10 thoughts on “What is the Best Passive Income Source?

  1. What is your best tips for starting to build a platform? I’d like to do affiliate marketing with my weight loss coaching but my business is new so doesn’t have a large audience yet. Thank you in advance

    1. Well I don’t have a large audience yet either, but the two primary things to keep in mind are: Patience and consistency. You need to be patient, because it takes months to earn a following and bring in traffic, IF you have been consistently publishing blogs every other day.

      If you take advantage of keywords and provide good content, it is only a matter of time before people your audience grows.

  2. Great post with lots of good ideas!

    My favorite is affiliate marketing because it is inexpensive to get started and there are tons of products available. I actually fell into affiliate marketing from researching how to write books for Amazon. Both of these are simple to get started with.

    I am going to look into dividends as well. Thank you for the tips

  3. I am always interested in developing a passive income, I mean, who isn’t. I am a little nervous about dividends. I would love to start building a portfolio, but I do not even know where to start. There are so many scammers out there; I do not know who to trust.

    I also love the thought of real estate. It can be a lot of work and hassle in dealing with tenants. I have yet to make that leap.

    Affiliate marketing is intriguing. I know there can be a lot of misinformation when looking to get into affiliate marketing. However, I do hear the start-up cost is low, and the income can go on for years.

    You have definitely given me something to think about, and ideas to research. Thank you.

    1. The beauty about real estate is, you don’t have to deal with tenants! Most people involved in real estate hire a property manager, they find tenants, and if there is a problem, the tenant calls the property manager instead of you. The property manager holds biannual inspections to ensure that everything in the property is still perfectly okay! However, to hire a property manager, they take 10% of your rental income. But if you think about it long-term, it’s a lot less headache for just 10%, you can focus on more properties.

      As for dividends, I plan on posting a lot more about how to invest. Dividends are rather simple, the tougher part is finding good dividend stocks to invest in. There are many good ones out there, but it depends on your goals. The primary person I watch on Youtube when it comes to dividends is PPC Ian, he is a very trustworther dividend investor.

  4. Thank you for sharing a great post and tips on the best passive income sources.

    For me personally, affiliate marketing is a great way to build up a passive income. Affiliate marketing truly creates a win-win situation for all concerned from the vendor to the affiliate marketer to the customer. However, affiliate marketing is just like any other business and takes time and effort to build to a serious passive income.

    Thank you again for sharing the tips.

  5. This is a well-made article, I’m into affiliate marketing and I’m hoping to win big with it as many have done so. Do you have any tips for a recently started website looking for more traffic?

    Thnx!

    1. Similar to what I’m doing, consistency is the key. Use keywords in your article. Make it a nice well-thought out post, but have your keyword in the title, and maybe again in the first or second paragraph. The longer you show consistency and a desire to help people, Google will recognize that and you will rank higher and higher. Then, you can begin your affiliate business.

  6. I love this thanks for sharing!!

    Have you ever invested in index funds?

    I’ve read quite a lot around the subject recently but would love to hear your thoughts on this…

    1. Actually, there is one index fund that I love! It is the NOBL Dividend Aristocrat fund. It has 57 of the most consistent dividend stocks in history, who have paid a consistent dividend for over 25 years. I wouldn’t surround my entire portfolio around index funds at a young age, but it doesn’t hurt to have a portion of your portfolio allocated towards it.

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