The idea of earning money from a passive income is definitely alluring. After all, who doesn’t want to earn easy money with minimum effort? This article will explore whether it is really possible to earn big from a passive income.

What is “passive income?”

Before we can explore how side hustles can contribute to passive income, we need to understand what it is first. Passive income is where individuals generate revenue streams that don’t need a significant amount of daily effort. 

Debunking myths surrounding ‘effortless earning’

Despite the appealing concept of ‘effortless earnings’ with passive income, it’s often shrouded in misconceptions. Many people believe that passive incomes require no work at all, or that it’s a get-rich-quick scheme, which is far from the truth!

In reality, most passive income streams demand substantial initial effort. Whether it’s creating content, investing time in building an audience or managing investments, you’ll need to be prepared to put in the time to make your ‘passive’ income stream work.
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Three common revenue streams that could help you earn big

1. Affiliate marketing

This is where you promote products or services through unique affiliate links. Then, when someone makes a purchase using your link, you earn a commission. Now this sounds super simple, but the reality is that there is a lot of competition out there. You need to be savvy with your strategizing to make sure that you’re building an audience and driving traffic to your links.

Can it really earn big?

It definitely has potential! Successful affiliate marketers with large audiences can earn substantial commissions. But to achieve those earnings, you need to create consistent content and be strategic with your promotion. 

Tips to make affiliate marketing work for you

• Find the right place to promote your affiliate links. If you’re a passionate writer looking to make money online, then consider setting up a blog. Alternatively, the Amazon Affiliate program can be a great way to earn big. 
• Be consistent. It very rarely happens overnight, but posting routinely will help you build that audience over time. 
• Choose the right products. Don’t just look at the profit you could stand to make, although that’s definitely important, sure you research desirable products that are in demand!

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2. Create digital products

Now digital products could be anything from printable templates to ebooks or online courses. The possibilities are endless, there really is something out there for everybody! Whether you are better at creating visually appealing products or have a lot of knowledge to share, there’s a lot of hype surrounding digital products right now.

Can digital products really make money?

Creating high-quality digital products can be profitable. After all, once you’ve created and marketed your products, they can be sold repeatedly with minimal effort. Platforms like Etsy, Udemy, and Amazon Kindle Direct Publishing make it easy to reach a global audience. However, the initial creation process can be time-consuming. And you’ll need to ensure you are putting an ongoing effort into your marketing. 

Tips for doing digital products right!

• Choosing the right niche is crucial for success, especially in a competitive market. Whether you’re aiming to write self-help ebooks for modern mums or design downloadable journals for busy professionals, selecting the perfect niche can significantly impact your niche. 
• Ask for feedback from previous buyers. That way you can either look to make improvements to current products or find ideas for future ones!
• You need to make sure that you’re meeting your financial obligations and when you’re dealing with digital services or products - it can get tricky. Be sure to check out our article which makes VAT for digital services easy!

3. Building a property portfolio

Investing in property is a well-established method for generating a passive income. By purchasing residential or commercial property, you can earn rental income from tenants. You also have the potential benefit of selling your improved properties for profit.

Can property be profitable?

Building a successful property portfolio can be a highly lucrative form of passive income. The problem is, that it can also be costly if you get it wrong. To be successful in property you’ll need to be willing to do your research, get your hands dirty, and be willing to ongoing management of investment and property when required. But the good news is that when it’s done right, it can provide a steady revenue stream. 

Tips for nailing property

• Get the location right. Look for areas with high rental demand, low vacancy rates, and the potential for property appreciation to maximise your return on investment. 
• Consider hiring professional property management who will handle things like tenant issues, maintenance, and day-to-day operations. This will significantly reduce your workload and make this a much more passive way to earn.
• Make sure you’re buying a property that is either in good condition or that you’re budgeting for the necessary repair work. You do not want to be left with a money spender instead of a money maker!

Want more passive income ideas? Check out our article which covers seven of the best passive income ideas for beginners!
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The realities of “effortless earnings”

While the idea of easy side hustles that generate passive income is appealing, you need to approach this goal with a realistic mindset. Here are some factors to consider:

Initial time and effort

The majority of passive income streams require significant upfront effort and time. Whether it’s building out a property portfolio, building a popular blog, or creating digital products, the initial phase takes time. 

The promise of an “easy” side hustle often glosses over the fact that success typically involves a steep learning curve and considerable time commitment. That isn’t to say it isn’t possible to have a successful passive income, just that it often takes a lot more work than the name suggests.

Consistency and maintenance

Even the most passive income source will need periodic attention. For instance, maintaining a blog requires updating content and engaging with readers. Managing dividend stocks necessitates monitoring market conditions and adjusting your portfolio. The idea of a completely “hands-off” income is often a myth. Some degree of ongoing effort is usually required to sustain and grow the revenue. 

Scalability

Not all side hustles are scalable. While you may start earning modestly, scaling up to generate significant income often requires additional strategies and investments. For example, growing a blog’s audience involves consistent content creation and marketing efforts. Scaling digital product sales might involve expanding your product line or improving your marketing tactics. 

So can easy side hustles really earn big money?

Easy passive income can definitely provide a solid revenue source. However, they will often require a lot of initial effort and some degree of ongoing maintenance. The path to substantial passive income typically involves a combination of hard work, strategic planning, and patience. 

For those willing to invest the time and effort, passive income can become a really rewarding financial strategy. If you understand the realities and challenges associated with ‘easy’ side hustles, you can prepare yourself properly for the journey towards earning big money with minimal ongoing effort. 

Streamlining your financial management with Crunch

To help maximise the success of your passive income ventures, consider working with a reputable accounting partner like Crunch. We’re proud to offer accounting solutions that fit every stage of your entrepreneurial journey, from those looking to earn a little on the side, to big-time successful enterprises. 

Book a free consultation with our accounting experts today to see how we can help you!

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