Earning an active income as a freelancer is great, and that’s how almost everyone starts. But once you’ve established yourself, generated multiple income streams, and have rates high enough to give you some free time, it may be worth trying to generate passive income.
Generating passive income can be more difficult than generating active income, but if you are successful enough, all you need to do is sit back and watch the money roll in.
There are endless ways to generate passive income depending on the field you work in, your expertise and your creativity.
But before you get started, take the advice of graphic designer Brent Galloway: “Always focus on generating a steady stream of income first. But this doesn’t mean you can’t work on generating passive income at the same time. The great thing about passive income is that you can work it through between projects. However, the goal is to let your main source of income feed your side projects.”
Good advice. Now let’s take a look at some of the ways freelancers can generate passive income.
The great thing about passive income is that you can work it through between projects. #freelance #passive income Click to Tweet
Sell digital assets to generate passive income
Galloway has adopted a number of key strategies that have helped him generate a passive income as a freelance graphic designer.
“The most effective way I’ve found to generate passive income is by selling digital assets,” Galloway says. “Things like textures, mockups, vector graphics, etc. They’re simple products to put together, and in most cases you might already have your own assets that can be easily packaged and sold on a platform like Creative Market.”
But where do you start? Thing of the old saying: how do you eat an elephant? One bite at a time. When you finish a project for a client and find yourself with a few hours to go, start building a product that you think would be of value to the rest of the world.
“I recommend starting small. What assets have you created for yourself that make your job easier? Chances are, those assets could also be of value to others in your field. For me, I started with a very simple texture pack,” Galloway said. “I also built my own T-shirt mockups for work, which I then repackaged as a premium asset for other designers. I didn’t build it with the intention of making money. I had a need, so I built it. But then I realized that if I had this need, chances are other designers could use this asset too.”
Once you’ve created a few digital assets to generate passive income, and they start to sell, you can ramp up your production in those markets. Since they are all digital, there are no costs associated with production. If your digital products aren’t selling, you can always change your focus and try something different, or try what you’re doing differently. Your attempts to generate passive income will be unique to you and will, of course, have to work like an experiment, but if you just keep hammering away at it, you’ll get it right in the end.
Create online courses to generate passive income
Online learning is a huge industry. As in, 100+ billion dollars a year huge. As a freelancer, you’ve developed skills that hundreds, thousands, or millions of other people would like to develop themselves. Creating online courses is a way to learn what you know while generating passive income.
Creating online courses is a way to learn what you know while generating passive income. Click to Tweet
According to journalist Mridu Khullar Relph, when it comes to generating passive income, “online products, in the form of courses, workshops or webinars, are generally the best way. The most important thing about online products is that people buy them to get a specific result, so if your program (in whatever form) can help you achieve that result, it can be a great way to earn some extra income. to build.”
You may not be as lucky as the math teacher who made over $1 million after creating just four online courses, but you can, with concentrated effort, generate thousands of dollars a month in passive income creating online courses.
However, not every course will earn you money. As with everything in life, sometimes your efforts are not rewarded and creating online courses can take a lot of time. That’s why it’s wise to follow the advice above and make sure you have solid sources of active income – then you can spend some of your free time creating an online course. In the worst case scenario, you will learn a lot about yourself or gain new skills when creating your first course. At best, you’ll learn a lot about yourself, gain new skills, and earn tons of passive income.
Blog to generate passive income
This is one of the busiest fields in the world, but that doesn’t mean you shouldn’t go for it, especially since the benefits of creating your own blog are twofold.
The truth is that for every blog that makes a significant income, there are thousands that don’t. But your blog can be created first to build your own brand and drive customers to your services, which can increase your active income. Then, as your posts start to lead to more engagement, you can turn your blog into a source of both active and passive income.
You can also use your blog to drive other passive income streams, such as the online courses and digital assets you’ve created.
Write eBooks to generate passive income
As with most passive income sources, it takes a certain amount of dedication to make eBook writing work. Your content should be valuable to potential customers. You have to do marketing. You have to become a trusted source of information, or develop a niche. The topics you can write about are endless – from dinosaur themed novels (yes, this is real, and seems to really sell…) to eBooks on how to write and generate passive income from eBooks (maybe you can add even more meta- and write an eBook on how to write eBooks on how to write eBooks).
Just kidding, if you’ve always wanted to write a book, there’s never been a time in history when it was so easy to get your work out there. You can also take a highly-rated Udemy course on this topic.
Design WordPress themes and plugins to generate passive income
If you are good with WordPress, then there is a huge market. The field may be busy, but if a few themes or plugins you’ve designed take off, they can generate a nice passive income.
You can check out freelancer Chris Wharton’s story to see how his passive income from creating WordPress themes went from just under $10,000 in 2012 to nearly $50,000 in 2014.
Whichever of these potential routes you choose to generate passive income as a freelancer, you’ll be in for a challenge before you see money pouring in. First you have to create something new, useful and marketable, and then you have to get the word out.
To generate passive income, you need to create something new, useful and tradable. Click to Tweet
Sometimes you have to stop taking it for months before you see the fruits of your efforts. However, if you already have a solid foundation with your regular income streams, then you don’t have much to lose – you just have a lot to gain.
It’s worth a try, especially if you’re starting to generate more passive income than active income – because how much easier would it be to enjoy the freelancing life if you knew that a certain amount of money is guaranteed to come in every month?
Have you found great ways to generate passive income? Tell us in the comments!