How to start earning passive income or at least protect your money: 5 real ways

The opportunity to earn passive income always seems like a good idea, but during a pandemic it becomes especially relevant. How to create sources of passive income? Let's look at it in the article.

Passive income is a type of income that requires a minimal investment of time and effort. But it’s worth immediately dispelling the main misconception: passive income does not mean that you need to sit and wait for your account to be replenished without doing anything. Almost every type of passive income requires some work and investment, especially at the start. After that, it will generate income without requiring your activity.

In this article we will look at 12 ideas for passive income. There will be no offers to purchase securities, cryptocurrency or trade on the stock exchange. All ideas are available for implementation, they are suitable for beginning entrepreneurs and do not require specific knowledge.

1. Car as a source of passive income

You can rent out your car to taxi services or rental cars. But you should understand that you won’t be able to simply give away the car and wait for income. We'll have to control everything. First, you will need to understand the legal side of the issue. Secondly, select the right tenant (private individuals, transport companies, local taxi companies, aggregators) and determine the terms of cooperation with them. Thirdly, it is worth drawing up a plan for the income and expenses of the project in advance to determine how beneficial it is in your particular case.

As a rule, in a city with a population of over a million, a leased car can bring in 1-1.5 thousand rubles per day, and 30-40 thousand rubles per month. But you should take into account the wear and tear of the car, possible repairs, maintenance costs, insurance, etc.

This idea is suitable for those who are well versed in the intricacies of taxi companies and transport companies.

So, in theory, this is a highly profitable business, but, as practice shows, the process is very risky and troublesome. For example, to reduce the risk, you can rent out a car not as a taxi, but for personal use - companies often rent cars for their employees. Or choose another way to make passive income from a car.

A simpler and safer option is to use the car as an advertising medium. All you need to do is place an advertisement on your car. To find clients, you can contact advertising agencies, place an ad on Avito, or look at specialized services like Wrapify and Carvertise.

The amount of income will depend on the advertising space: the larger it is, the higher the income. For example, you can place a large banner on a truck - thanks to such advertising you can earn about 10 thousand rubles per month. A lightbox placed on the roof of a car brings in 3-6 thousand rubles per month.

Game and mobile application development

A relevant and profitable idea. The mobile application market is growing steadily every day. Many new products are emerging that generate considerable income. The plan is this: you develop an app, upload it to the app store or your own website, and then start earning passive income. This could be payment for the application itself or part of the content; or payment for advertising displays in the application.

It's worth keeping in mind: creating an app requires certain skills, and selling them requires investing in advertising.

How much money do you need to invest in stocks to “enough to live on”

Ask ten different people the same question: “what income do you consider sufficient for a happy life?” Chances are you'll get ten different answers. This is natural: the concept of happiness and the level of ambition for each person is purely individual. So let’s put aside the rhetoric and move on to specifics, focusing on average statistics. In particular, we will proceed from the fact that the majority of Russian citizens (especially pensioners) consider an annual income of 500,000 rubles worthy

.

To receive dividends in this amount, it is necessary to create a portfolio of shares for a certain amount, the size of which depends on the dividend yield. If it is expected to be 10%, then the investment size will be 5,000,000 rubles, i.e. 10 times the expected income.

But this is in theory. In real life, passive income from a share is not a constant value, since the majority shareholders of company N may decide not to pay dividends at the end of the year, but to direct all profits to other needs. To insure against not receiving the expected amount (and it is most likely already included in the personal or family budget), you will need to invest much more than the theoretically calculated amount

. How long? It’s unlikely that anyone will answer this question, except perhaps an oracle-seer.

Despite the impressive amount of starting capital, no one is prohibited from trying their luck. At the first stage of a long and thorny path, you should not aim at quickly receiving a solid passive income. You can start by investing feasible amounts, feel the return, and gain experience. If all goes well, you can set a long-term goal of achieving financial independence.

.

Selling photographs or copyright illustrations on stocks

Photographers, artists and illustrators can make money from their creativity online. To do this, there are a huge number of photo stocks, exchanges and other services that allow you to sell images.

The general earning scheme looks like this:

• Choose a service and register on it
• Upload your work (photos/illustrations)
• Pass the exam from the service and get permission to sell
• Choose the terms of sale, which determine the amount of royalties
• You receive income from downloading your content.

You can post your works on photo stocks - special sites where the author receives money from each sale of the work. The most popular photo stocks: Shutterstock, Depositphotos. There are a huge number of them, so you can choose the right option for yourself. Beehance and Dribbble platforms are suitable for selling illustrations.

But in order to achieve a high income, you will first have to work hard and create a large portfolio. The more content there is, the more downloads and, accordingly, money. It is quite possible to earn 40 thousand rubles a month or more on photo stocks. But for this, the portfolio must consist of 1-3 thousand photographs.

We wrote in detail about making money on photo stocks for beginners here.

And in this collection you will find 20 more ways to make money as an online artist.

5. Garages and parking spaces

Renting out real estate is a standard way of passive income. But if purchasing a home requires a significant investment of money, then the cost of a garage or parking space makes it easier to enter the rental market. So this is a suitable option for beginners whose starting capital is limited.

In a small town, a garage can be purchased for 50-100 thousand rubles. In large cities you will have to pay about 100-250 thousand rubles.

Rent for garages averages 2-5 thousand rubles, depending on the region. A separate building near the road can be rented out at a higher price - it is suitable for small businesses: service stations, tire shops, etc. The profitability of renting a garage is significantly higher than that of renting apartments: on average, it is a 20% return, while renting a home brings about 10% profit.

Renting a parking space is also relevant. The parking problem is getting worse as the number of car owners increases. Every year the number of cars increases, the land is built up with high-rise buildings, and there is very little space left for parking. These conditions create the demand for parking.

It is profitable to purchase parking spaces before the commissioning of a new house, because the cost of parking after the commissioning of the project increases by 40-50%. This means that even if you change your mind about renting and want to sell your parking space, you can already make money on this deal. In general, the profitability of parking rental is 15-20%.

You can also open your own business in the garage itself! This will, of course, not be passive income, but you can choose a business you like that will generate income and not take up a lot of time. Read 35 profitable garage business ideas here.

Earnings with savings

One way to obtain passive income if you have initial capital is to deposit funds in a bank. The advantages of the option are guaranteed profits and minimal probability of losing your deposit.

Disadvantages - the interest rate does not always exceed inflation, and a good income is obtained if you withdraw interest no more than once a year. The problem can be solved by choosing deposits with monthly profit transfers and foreign currency investments. But the rate in this case will be even lower.

The classic option is to invest in securities. For example, in coupon bonds – the risk is minimal, but the income is also small. Preferred shares provide higher returns, but increase the likelihood of losing your investment. The services of mutual investment funds are attractive due to their low entry threshold.

You can invest even 1000 rubles - but the lack of deposit insurance from the state increases the risks.

What kind of profitability can you expect?

• Shares on average yield 7-16% per annum
• Bonds from 4 to 9%
• Precious metals - 1-2%

Creation and sale of information products

If you are an expert in some field, you can make money from information products: selling courses, training materials, webinars, guides, etc. Despite the fact that the topic has been around for a long time and is actively used by many, it is still relevant. The main thing is to create a quality product, not hack work.

The essence of the idea is this: you create 1 information product and then sell it many times. The sales mechanism can work automatically if you configure all the tools.

You can read in detail about how to sell information products here.

Investments for the pros

Selling goods on a one-page website

If you don’t know how to create websites and set up contextual advertising, you can make money from sales from landing pages. List all the advantages of the product you are selling on your landing page, spend some money to attract traffic and collect profits.

Creating an application

We live in an age when smartphones replace most of a person’s electronic assistants. If you manage to create a popular application on the AppStore or Google Play, you will be able to provide yourself with passive income for a long time. Details here.

Sale of online courses, trainings, audiobooks

Do you consider yourself an expert in any field? Then create your own training course and put it up for sale on the Internet. Be sure that people interested in your help will definitely be found and come to your course. Another option for generating income is selling other people’s information products through an affiliate link.

Business income on autopilot through outsourcing

Outsourcing is full-fledged assistance in your business from experienced specialists. If you don’t have time to develop your business on your own, but you see that the business can make a profit, then maybe it’s better to turn to professionals for help? By delegating all routine work to assistants, you can free up time and start earning passive income.

Affiliate Marketing

Do you know how to attract people and advertise your products well? Then you can try yourself in affiliate marketing, where the main goal is to interest as many people as possible in a service or product, creating a large customer base around you.

Investments in startup projects

If you have large capital, you can profitably invest it in promising startup projects. This option is suitable for experienced investors who have an entrepreneurial spirit and good intuition.

You can find profitable projects by comparing the size of the investment and the expected profitability on startup exchanges:

• napartner.ru;
• indiegogo.com;
• boomstarter.ru;
• startup.network/ru/startups/;
• planeta.ru.

Earning money on social networks

You can create your own blog, channel, public page - and connect various ways of earning money to it: from advertising, selling your products and ending with donations (rewards from grateful subscribers). There are a lot of earning schemes. For example, you can create a channel on any service and make a subscription to your account paid. Or you can earn money by streaming and watching video content.

If you don’t want to create your blog from scratch, then you can buy a ready-made project and make money from it. Owners of successful public pages and channels often sell their resource, which already has a certain audience. Examples of such offers can be studied on exchanges such as Trade-groups.

You can find materials on how to start making money on various social networks in the special section of our website “Internet Business and Media”.

Federal loan bonds

Another investment instrument, which in its reliability can be compared to a bank deposit, is the purchase of federal loan bonds (OFZ) on the stock exchange.
These are securities that the state issues to attract additional money to the budget - and pays interest for it. The OFZ yield for June 2022 ranges from 7-7.9%, that is, approximately equal to the rates on most deposits.

Data: Smart-lab.ru

It is important to understand that transactions on the stock exchange are not insured, like deposits, but OFZ is an extremely reliable instrument. After all, these bonds were issued by the state, and if it does not pay for them, this will mean a default with corresponding events for the entire economy of the country and the banking sector as well.

Partnership programs

An affiliate program is an interaction between an advertiser and his partner who is engaged in sales.

Anyone can earn money in this way - the owner of the community, the owner of the account, and even those who are not registered on social networks.

The diagram looks like this:

• you post on your page information about special products, goods and services connected to affiliate programs,
• people follow your link and make sales,
• from each sale you receive your percentage.

The search for affiliate programs is available on CPAseti.com, Bintrader, Monecle LetyShops and other similar services.

Your earnings consist of a percentage of advertiser sales or a fixed amount. You won’t earn much from this, but the idea can be considered as a source of additional income.

A few words about shares and dividends

A share belongs to the category of securities issued by a joint-stock company (JSC) in order to raise funds to increase capitalization or develop a business. By purchasing a share, an investor becomes a co-owner of the company (shareholder) and receives the right to part of the profit in the form of dividends

, as well as part of the company’s property upon its liquidation.

The amount and procedure for paying dividends is prescribed in the charter of the joint-stock company and depends on the type of share. An ordinary share gives the right to vote at the general meeting of shareholders (i.e. the right to participate in the management of the JSC), but does not guarantee dividends. For a preferred share, the dividend amount is predetermined as a fixed amount, a percentage of the company's net profit or the par value of the share. However, the owner of such paper does not normally have voting rights.

If a decision is made at a meeting of shareholders to pay dividends, then the owners of preferred shares receive them first

. Dividends to holders of ordinary shares are paid only when the company's obligations to preferred shareholders are fully fulfilled and there is enough profit to cover this.

Important!

If a company has received even minimal profit, it is obliged to pay dividends on preferred shares. Otherwise, the owners of such shares have the right to go to court to protect their legitimate interests.

So before purchasing shares, it makes sense to familiarize yourself with the charter of the joint-stock company

and decide which type of promotion suits your needs.

Buying websites with income

Recently, a source of passive income such as purchasing a ready-made website has become popular. There are unprofitable and profitable projects, so sites are constantly selling and buying.

Where can I buy a website? There are various services that allow you to buy or sell a website and ensure the security of transactions. The services act as an intermediary and receive their percentage of the transaction. Exchanges where you can buy a site:

• Telderi is the largest Russian exchange. It is an auction of websites and domain names;
• Flippa is a foreign exchange. On it you can very often buy a website with a company, i.e. ready-made business;
• Bitus is a private exchange of Internet projects.
• PR-CY.ru – the service conducts auctions for the sale of websites and does not take a commission, so all risks remain with you. But for 5% of the transaction amount, the service provides guarantor services.

As a rule, the price of a website is calculated based on the return on investment of the project. But it all depends on the monetization method: sites with passive income are more expensive.

Thus, purchasing a website is a profitable investment that can quickly pay for itself and generate profit. The main thing in this matter is to be able to correctly analyze offers and buy promising sites.

Private loans

Personal loans from individuals are a great opportunity to make your money work for you. This service is especially popular among those who have a bad credit history or do not have time to collect documents to obtain a bank loan. However, we should not forget about the risks of non-refund, which is why it is worth taking care of the competent conclusion of a legal contract. Private loans will bring you income of up to 30% per annum. You can place an offer from a private investor on specialized private loan exchanges, such as vdolg.ru, bystryj-zajm.ru, onecred.ru and others.

Selling old things and junk

In times of crisis and limited resources, these areas can become profitable. There are many successful ways to implement the idea of ​​​​earning money from old things. For example, here are a few such ideas:

• Second-hand bookshop
• Renting decor in vintage and retro style
• Museum of Old Things
• Recycling collection point
• Second-hand and consignment stores.

Read more about how to make money on old and unnecessary things here.

Started with half a million

— My loss for six years was $30,000. And another couple of million wasted nerve cells and missed opportunities during this time. However, every cloud has a silver lining: I converted all this into valuable experience, which today allows me to successfully invest and advise people on money management issues.

This is how I came to portfolio investments. And this is a completely different calico. Unlike a speculator who tries to make money on everything that moves (up, down, sideways or in circles - it doesn’t matter), an investor buys shares as shares in an existing business. Every day, real people, like you and me, come to work in offices and factories around the world in order to do something useful for society; the company makes a profit, part of which can be paid to investors as dividends. In the long term, stock prices rise under the influence of economic factors; like a tree - under the influence of nature. An investor can also buy bonds, that is, borrow money from companies, municipalities and even entire states. I started with a small amount, about half a million rubles. And after some time, making sure that I was on the right path, I took over the management of part of the family capital.

— Every investor has his favorite investment instruments. Which ones do you have?

— I feel comfortable investing in the organized securities market. The purchase and sale of shares here is carried out centrally, on the stock exchange; brokers provide access to it. Market makers maintain liquidity, custodians account for rights, and issuers report regularly. Russian brokers, although I almost never work with them, even take on the function of tax agents. Unlike the over-the-counter market, the organized securities market is a transparent and convenient environment for private investors. Favorite instruments are stocks and bond funds. Sometimes I buy individual bonds and stock ETFs that track a country's stock market or sector of its economy. In most cases this is quite enough. Believe me, a former currency speculator. I have no interest in various exotic items such as gold bars, structured notes, investment life insurance policies, income-producing real estate, and art objects, and I recommend such investments to clients only in special cases. These are quite specific assets and instruments that are more suitable for solving non-investment problems: protecting capital from the claims of third parties, obtaining a second citizenship, inheritance planning, and so on.

ETF, or How to make money on Uncle Fedor's business

Billboard rental

Outdoor advertising is always relevant and is in great demand among customers. Therefore, you can earn a lot of money by renting out advertising space. For example, roller shields. Such structures are installed on busy city streets and do not take up much space. Many billboards are equipped with a scrolling mechanism - this allows you to display up to four advertising messages from different customers.

One billboard can bring in about 15 thousand rubles per month. And its installation costs about 70 thousand rubles. This means that you can recoup your initial investment within a few months.

The main problem in this matter is to obtain permission to install a shield in the location of interest. You can read more about this idea here.

It is also worth mentioning other profitable ideas for passive income that are associated with advertising: advertising in elevators, on street screens, video stands, etc. Everywhere the principle is the same - we install advertising space, rent it out and receive income.

Newcomers “with a mustache themselves”

— Nowadays advertising is actively pushing newcomers to the stock market. Have you noticed an influx of fresh blood? Has the demand for consulting in this area increased?

— Yes, in general the demand for consulting services has increased. But most of the newcomers, especially those who do not have significant capital, “have a mustache themselves.” Why would anyone pay for a consultation if there are forums and YouTube? In fact, these people are repeating my path.

— How much time do you need to spend on the stock market to become a seasoned, experienced investor?

— The time of formation is very individual: for some a few years are enough, for others even life is not enough. I think, at a minimum, you will have to go through the full cycle of a successful transaction several times: from buying an undervalued asset to selling it at the market peak. As a rule, deals last two to three years. Then an inner understanding and faith in the success of investments will come to you, you will “get on the investment bike” and then it will be easier.

Over-the-counter market: be careful, professionals work

Vending

Vending is suitable for those who want to make maximum profit with a minimum of effort. Starting such a business is quite simple and quick, with a starting capital of 100 thousand rubles. With this money you buy a vending machine for a specific product, install it in a crowded place and start earning money. Your participation in the business is minimal: it is enough to come 2-3 times a week to replenish goods or consumables and collect the proceeds.

The most popular vending machines brew coffee and dispense snacks. But today the vending format is relevant for a wide variety of goods and services. A vending machine for jewelry, lenses, flowers, accessories for smartphones, a vending machine for printing photos from social networks and photo booths - all this can be classified as a vending business. Guides to starting a business using a variety of vending machines can be found here. And here is a selection of 90 unusual vending machines.

The essence of this format is the possibility of a quick start with small investments and minimal participation in the business.

Common beginner mistakes

Pay attention to the following 5 mistakes so you can avoid them:

• Attempts to invest other people's funds.
  You should not borrow money to form investment capital, since if you fail, you can end up with large debts.
• Investments down to the penny.
  First, you need to set aside funds for subsistence and other unforeseen expenses, and only then create a piggy bank for a deposit and start investing.
• Ignoring the learning stage.
  Beginners often make this mistake, but a minimum of knowledge is required.
• Give in to emotions.
  Among beginners, there is often a reaction to the minimum fluctuation in value, as a result of which the sale or purchase of shares occurs ahead of time.
• Gullibility.
  Sometimes newcomers may be promised investments with unrealistic returns. It is worth understanding that only attackers can promise guarantees.

How to create passive income from scratch

Finally, a few tips for those who want to create passive income:

• Do not try to cover several areas at once, choose one area in which you are most knowledgeable
• Do not choose business ideas for passive income that will require constant cash investments from you.
• Remember that earning money without work and investment is a myth. In order for income to appear, in any case, you need to spend certain resources: your time, effort, initial capital.

Evgeniya Yurkina

(c) www.openbusiness.ru - portal of business plans and guides for starting a small business
02/01/2021
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Non-investment in household appliances

— During currency crises, Russians traditionally “invest” in household appliances. Nobody takes inflation into account. For example, they believe that the income received through a bank deposit can simply be spent. Or they think that selling a car bought five years ago “for about the same money” means keeping it - and this despite the fact that the ruble depreciates on average by half every eight to nine years.

Sometimes I imagine that I came to the island, to the Tumba-Yumba tribe. I'm standing in a suit; headscarf, boots, hairstyle - as expected. And everyone is happily jumping around the fire to the beat of drums and singing songs. “Hmm... gentlemen,” I say for the umpteenth time, unsuccessfully trying to attract their attention, “maybe you could sit down and talk about investments? No? OK". Not far from Russian reality.

“If you don’t find a way to make money while you sleep, you’ll keep working until you die.” Whoever wrote this statement is right. One of the most important and pressing tasks for all of us that investments will help solve is the formation of pension capital. Solving it will take not a year or two, but twenty, thirty, forty years of regular investment of part of your active income. Get started now.

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