A lifestyle writer with an entrepreneurial spirit. Owner of Poshmark store, Rachel's Closet (@shop_rachels).
8 Ways to Make Money While You Sleep
What if you could make money while you sleep? As crazy as it may sound, it’s very possible. In fact, there are at least eight different ways you can do it.
It takes effort and patience to establish and maintain nontraditional income streams. The reality is, most folks give up before they begin to see a real profit. It’s hard, and the payoff might not come for several months or years. Like any other entrepreneurial undertaking, you get back what you put in.
Before you try to make money while you sleep, manage your expectations. If you’re willing to grind it out, the rewards can be many. The money that you earn could one day replace your full-time income. Even if it doesn’t, we could all use a side hustle these days, am I right?
I’m not saying it’s impossible, I’m just saying that nothing worth having comes easy.
What is Your Definition of Financial Freedom?
An active income will (probably) cover your bills, but what about all the time you sacrifice? Not to mention the feeling of working all week to pay your bills, only to have pennies left to spend on the things you actually want.
Case in point, Liz Benny. Once homeless, she built a cash making machine through automated webinars.
Passive income is money that comes in regularly and automatically, without very much intervention on your part.
Passive Income Explained
Establishing a passive income means automating your earnings so that little maintenance or effort is needed to keep the money coming in every month. It’s less about providing one-on-one services and more about products and businesses that operate autonomously. The goal is to focus on creating multiple income streams, freeing up your time and allowing you to step away from the 9 to 5 grind. Think of it as self-employment with a twist.
Not everyone will earn a seven-figure income on the internet. Again, it’s important to manage your expectations. There’s a very particular mindset that the most successful online entrepreneurs share.
The Mindset of a Passive Income Earner
Most people have mental roadblocks that lead them to believe that certain things are not attainable, when in fact the only thing standing in the way is their own attitude.
Most people are pre-programmed to believe that the journey to success is long and arduous. For most of our lives, our parents and authority figures instill this belief and reinforce it at every turn. In truth, things that previous generations would write off as nonsense are happening for us every day. Rapid advancements in technology have opened up endless opportunities for us and all future generations.
Shifting Your Mindset
Identify things that add the most value to your life
Adopt this mantra: “If I think I can, I will”
Be genuine in your approach to everything
Give far more than you receive
Place integrity above all else
Accept that it’s ok to be vulnerable
Start Preparing Yourself to Make Passive Income
Proven Passive Income Methods
Pre-recorded webinars are, by far, one of the top ways to make money while you sleep. Automated webinars can run all day and night. To make one, you first need to have something valuable to offer. Webinars work for high-ticket digital products, as well as coaching or consulting services. What is your area of expertise? Think about the valuable knowledge you possess that other people would pay to have.
Identify a niche market and write an eBook. Aim for 60 to 80 pages of compelling, informative content. While you could sell this on an existing platform like Kindle, you’ll do better selling it via your own blog or channel. Use it as a lead magnet. In the long run, that’s how you’ll maximize your earnings.
If you’re not a veteran online marketer, though, using Amazon Self Publishing may be a simpler approach. That way, you’re not trying to market and sell the book all on your own. Amazon will send you a monthly payment on the sales of the eBook.
E-commerce is absolutely exploding in 2021, particularly given the global pandemic and resulting quarantine. Many of the online shops and boutiques you see are operated as drop-shipping businesses, where the store owner never actually touches the product. It’s warehoused somewhere else and shipped in the name of their business when the customer buys it.
4. Online Courses
Selling online courses requires almost zero upkeep after the courses are published. The only thing you may have to do is add or change content to keep a course relevant. You can start building online courses in just about any subject on Udemy or Teachable.
While creating and maintaining a high-traffic blog is hard work, the potential for passive income is high. With a bit of active effort, you can create content or digital products to sell to your audience. A blog grows with time and a steady stream of high-quality content.
6. Real Estate Rentals
Real estate rentals will always be a top producer of automated income, though buying property is more cost prohibitive than some other methods on this list. You can make landlord income 100% passive by hiring a manager or repairman, assuming there’s adequate cash flow. Alternatively, you could purchase a duplex and rent out the second unit while occupying the first.
7. Peer-to-Peer Lending
Depending how much you can invest, you have the potential to see a hefty return on investment with peer-to-peer lending. Sites like Prosper and Lending Club help you invest your money and minimize your risk with in-house algorithms that identify smart investment opportunities.
8. Affiliate Marketing
Affiliate marketing is the golden goose of online marketing opportunities. It offers one of the quickest and most profitable income streams and requires very little investment of time.
To be a successful affiliate marketer, you, of course, need to have some reach. You’ll need an audience to promote to and share affiliate links with. If no one is looking, no one is clicking. If you already have a blog, email list, or strong social media presence, affiliate marketing should be at the top of your to-do list. If you don’t already have a fan base, you could try Facebook Live promotions or YouTube videos as a means of reaching a larger audience.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2021 Rachel Hezel