Updated: Dec 2, 2022
Every hardworking freelancer can appreciate those old fairy tales about finding a goose that lays golden eggs or a purse that never runs out of money. When you’re constantly hustling to secure your next contract, the idea of money that just magically appears can certainly seem attractive.
Of course, we all know there’s no such thing as a magical, unending stream of cash — but there is a way you can create an income source that will pay off exponentially without ongoing effort on your part. This is called a passive income stream, and figuring out how to set up one can be a boon for the overworked freelancer — and some of the ways to do it may already be within your reach. TaskAngel lists a few here.
In need of a bit more organization and productivity in your life and in your business? Let TaskAngel handle the heavy lifting! Take it out for a test drive today.
Rent out property.
One popular source of passive income is rental earnings. You could rent out residential property, such as an apartment or house or even space in your own home. Or, you could rent out office space.
If you own land, you could even rent it out to be farmed. One thing to be aware of before you pursue rentals as a potential passive income source, though: It is often a lot more work than you would anticipate, especially when it comes to residential properties, where it’s essential that you keep your tenants happy and treat them fairly, while also protecting your own interests.
This calls for efficient time management, as you’re on call 24/7 and can’t afford to get bogged down in unnecessary and unexpected tasks. Consider utilizing an online time management app like TaskAngel that can be accessed anytime day or night using your computer or smartphone. Using such a tool, you can customize your settings and inputs like priority tasks, reminders, scheduled items, due dates, and subtasks, saving you time and money by taking much of the guesswork out of managing your rental property.
If you’re not one for closely following the market, the prospect of investing may seem daunting. You don’t want to make a mistake and end up losing your hard-earned money, after all. Luckily, there are options for first-time investors that are neither exceedingly complicated nor dangerously risky.
You probably hear the word “investment” and automatically think “stocks” but safer options, such as treasury bonds and CDs (certificates of deposit) are out there, as well. They may not promise as much yield, but these safer alternatives in investing can provide you with slow and steady passive income.
Outsource your work.
If you are inundated with work and feel you can’t keep up, HostPapa suggests outsourcing some of your projects to other freelancers. This is a great way to set up a passive income stream while protecting the integrity of your business. It can also be a way to assist other freelancers in getting their foot through the door and possibly laying the foundation for future partnerships and collaborations.
If you do opt to hire freelancers, make sure you have a reliable system for managing payroll, both to maintain a good work relationship and to avoid getting into trouble with taxes.
A solid software platform like QuickBooks Enterprise — an alternative to ERP software compared to traditional ERP programs — integrates with payroll to help you manage schedules and provide payroll direct deposit on the same day, making compensating your workers a lot easier. This robust software also plays a big role in making inventory management and advanced reporting much more streamlined and accessible.
Sell digital products.
Even if you don’t work with digital products or services, this doesn’t mean that what you do can’t be translated into a digital medium. If you work as a tutor or consultant, for instance, consider crafting tutorials or online classes and setting up an ongoing enrollment option.
Or, if you are a visual artist, see if you can turn some of your creations into digital images that can be downloaded and used for a fee. Other popular digital products include ebooks, software, plugins, and videos.
Engage in affiliate marketing.
You can make your store, website, or blog a source of passive income by breaking into affiliate marketing, notes sixads.net. This is a method of marketing for other companies or sellers by promoting their products on your site in return for a commission.
One common way this works is by including affiliate links in your digital content. In order for affiliate marketing to work as a sustainable income source, you need to be able to trust the advertiser enough to promote their products without reservation, and the consumer needs to view you as a trusted source or reliable influencer, too.
It might not be magic, but getting once you have your passive revenue stream up and running, it can make a world of difference for your overall well-being and for the sustainability of your company.
Author Stephanie Haywood, Guest Author
Stephanie Haywood is happy to be living her best life. Personal development and self-care gave her a boost when she needed it most, and now she works to share the gift of self-knowledge, self-care, and self-actualization with everyone who visits MyLifeBoost.com.