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Passive income can bring in extra revenue. Read on for the most popular sources of extra revenue in 2024 to see how they might help your business. [[{“value”:”
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If you’re a small business owner or entrepreneur, earning passive income can give you some breathing space during difficult months or when you’re trying to get things off the ground. If you’re retired or work an office job, it can give you some extra security and spare cash to put toward your financial goals.
In short, alternative revenue streams can help you build wealth or keep your head above water financially. Here are some popular passive income trends in 2024.
1. Getting imaginative with rentals
The most obvious way to make passive income through rentals is by letting out a room or a whole property. If you have space to rent, that can be an excellent plan. But space isn’t the only asset you can rent out. You may have all kinds of items that you rarely use and could rent out to people who live nearby.
Apps and websites make peer-to-peer rentals increasingly feasible, too. Here are some interesting rental trends:
Cars and other forms of transportPower toolsIT equipmentStorage space
Make sure the equipment you’re renting is in good condition, and be aware of any legal or liability issues. For example, you may need specialized insurance to cover yourself against loss, theft, or accidents.
2. Online courses
If you have specialized knowledge — especially something that connects to your small business — consider sharing your expertise through an online course. Not only could this translate to an extra stream of revenue, but it can also act as a marketing tool.
For example, a wine shop might create an online course in wine tasting. Students who get to know you through your course may also stop in to talk in person, join wine-tasting events, and become part of your community.
On the downside, it takes time to create and market an online course. You’ll need to map out the content, record videos, and write any supplementary materials. The dramatic growth in online courses means there’s a lot of help out there in terms of both creation and marketing. Some platforms (like Udemy) take a percentage of your revenue, while others charge a fixed fee.
Be prepared to put effort into marketing too. Top customer relationship management (CRM) software can help you automate common tasks and create an effective sales funnel. Even then, don’t underestimate the work you’ll need to put in to make this an effective source of extra income.
3. Get creative with on-demand printing
Printing technology has evolved rapidly, making it easier than ever to generate prints, cups, t-shirts, tote bags, and more. If you have some skill with graphic design and a bit of imagination, print-on-demand services can open up a world of opportunities.
With on-demand printing, you only need to make the product when someone orders it. Even better? You can put your products on a platform such as Etsy and have a print-on-demand service like Printful send the item directly to the customer. It’s a low-risk way to build online sales, without the risk of being stuck with piles of unsold products.
You can get started pretty quickly, though it is worth exploring different models to find one that’s right for you. For example, it may make sense to start your own online store if you’re familiar with building a website. If not, you might want to pay a higher commission to a site that will do everything for you.
4. Putting your money to work
A more traditional source of passive income is to buy assets that generate returns. If you have a lump sum to invest, there are various ways you can put it to work for you. Think about how much risk you’re willing to take, how much time you’re able to spend researching and managing your investments, and when you might need the money.
Dividend stocks are a popular choice, because they make regular payouts and the shares themselves may also increase in value over time. Index funds and ETFs can help you build a diversified portfolio without having to buy each asset individually. Fixed-income investments such as bonds can generate a reliable income stream. Right now, CDs and savings accounts are paying high returns, which may make them a useful tool in the short term.
Passive income can still take time
I’ve heard people say that passive income is like making money while you’re asleep. If that were true, we’d all spend more time sleeping and less time working. Don’t underestimate the time and money involved in developing and managing alternative revenue sources. The extra income may be useful, but if it means less time for your core activities, it could prove counterproductive.
The trick to building passive income is to work smartly. The smoother the processes, the higher the work-to-profit ratio will be. Whatever route you choose, consider using a business checking account or business credit card to separate your business activities. It will make it much easier to track your business spending and keep your accounts in order.
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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Etsy. The Motley Fool has a disclosure policy.
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