Have you ever wondered how great it would be to lay your head on your pillow at night, and know that while you sleep, you will be earning money? To a lot of people that might just sound like fanciful and wishful thinking, but, thanks to the internet, it is a reality for many.
Indeed, there are literally thousands of entrepreneurs who know that their bank balance is increasing virtually every hour of the day, and that includes those hours when they are fast asleep.
In this article, we'll explain some of the ways it can be done, including some which you can start with very little upfront expenditure.
The Traditional Way of Making Money
For most people, the way in which they make money is to give their time, in return for a salary. In other words when they are working, they get paid, and when they are on a day off, they do not. This arrangement has been in place for centuries and to this day it continues.
However, the idea that anyone working in this way would get paid while they are asleep is obviously ridiculous, and certainly, any employer is not going to entertain the idea.
While many employees are paid 'by the hour' it is also the case that many businesses are too. Think of all the retail outlets, professions and services that may not necessarily be getting paid hourly, but as with many employees, can only earn while they are present. For example, there are not many gardeners, candy stores, chiropractors or real estate agents, who get paid a passive income while they are asleep.
What is Passive Income?
One of the best definitions of the term passive income is ‘money earned which requires minimal to no effort by the recipient to maintain it.’ Passive income can be achieved in literally thousands of ways, but they will all likely fall into one of three headings. The first is income derived from investments and savings, where you are not actually doing anything active to earn the dividends and interest from stocks, shares, bonds and property investments, for example.
A second way is that you provide goods or a service one time for which the person using them pays you a regular fee to continue using them. Examples include rental income from a tenant and leasing a car or equipment.
The third way is where you sell goods or services, and the sales of those goods or services happen automatically, with you having little or no interaction with the person buying. This can happen offline, however, the vast majority of these opportunities occur online.
Online Passive Income
The opportunities to create an online business which can generate passive income are plentiful, and while many can take a lot of time and effort in the beginning to set them up, there are also those that can be literally set up within hours.
One example of this type of business is 'Auto Tweets' which was created by Steven Hall. This is a simple, but very effective way to generate income using Twitter by focusing on niche subjects, generating useful content, and promoting products or services, for which you receive a commission if someone buys them.
Auto Tweets follows one of the core principles of online passive income and that is you set up everything in advance, and then allow software or an online service, to work away in the background, while you carry on with your day … or as we mentioned earlier, you go to bed and earn while you sleep.
Outsourcing to Reduce Your Workload Even Further
In any passive income opportunity, you will also have options to outsource some or all of the work to others. You will find outsourced workers who can and will do any kind of online work you can think of, from the most basic and mundane, through to complicated software programming for more advanced projects.
Outsourcing is a fantastic way for you to have an online business where you are very much hands-off, and you spending just a few minutes a day to make sure everything is working as it should, and to check your earnings from the previous day, is all the effort that is required on your part.
Top Online Passive Income Models
There are several passive income models which allow you to do most of the work up front and then add to this on an ongoing basis, although in many cases no further work is required. Of course, you also have the option to outsource any work as we've just discussed. We can't cover every single passive income model that will make you money while you sleep, but here are two of the most effective.
This is one of the most popular ways of generating passive income. It may take a bit of work to start with in terms of researching your niche, setting the membership site up, finding members, and producing content, but once all that has been done it can bring you a healthy monthly income, almost on autopilot. The key is making the content as good as it possibly can be so that members will want to continue to pay their subscription every month.
If you do not want to sell your own product, a great to earn passive income, is by earning commissions selling other people's products and services. Ideally, you want to promote those that require a monthly fee to be paid by the buyer. Online tools such as website hosting or autoresponders, membership sites, software subscriptions and subscriptions to services such as Amazon Prime are just a few of the myriad of potential products you could promote.
To promote them you could build a website based on the niche or product category and derive an income from the products you sell. But, if you want to make it even easier you can do so without even needing a website and instead promote to followers you have on social media pages. Using the methods taught in 'Auto Tweets,' you can be promoting products within a day, and even earn your first passive income while you sleep tonight.