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Types of Passive Income

Affiliate Marketing
Affiliate Marketing

Smart Affiliate Marketing Strategies Affiliate marketing is the world’s most untapped source for generating passive income. What is affiliate marketing exactly? Keep reading! Affiliate marketing is the process of earning a commission by promoting another person’s (or company’s) product. Products exist in your target market right now (that people are probably already buying) and if you can become the resource that recommends those products, you can generate a commission as a result.

Certificates of Deposit (CDs)
Certificates of Deposit (CDs)

... depositors can still use certificates of deposit as a way to earn a respectable amount of passive income. ... certificates of ... certificates of deposit work ...

Creating Your Own Products
Creating Your Own Products

Here are 27 passive income ideas you can start in 5 minutes or less that will put your cash flow on auto pilot. Want to make money while you sleep? Here are 27 passive income ideas you can start in 5 minutes or less that will put your cash flow on auto pilot.

Dividend Income
Dividend Income

Dividends are paid either in cash or additional shares of stock. Passive Income. Passive income, as defined by the IRS, can only be generated by rental activity or by a business in which you have a financial interest but do not play an active role.

Dividend Investing
Dividend Investing

With your total investment of $12,000 in January 2014, you would have 1032 shares of Colgate worth $62,214, earning you roughly $1404 of dividend income (on a yearly basis), nearly a twelve percent yield (income) on cost.

Fixed Income / Bonds
Fixed Income / Bonds

Anybody can buy a bond ETF such as IEF (7-10 Year Treasury), MUB (muni bond fund), or a fixed income fund like PTTRX (Pimco Total Return Fund). You can also buy individual corporate or municipal bonds. The main concern is the future of interest rates. If interest rates do go higher, bonds will decline in value, all else being equal.

Get Out of Debt
Get Out of Debt

For example, you can use passive income streams to help you get out of debt or achieve financial independence sooner. Like Fundrise - you can start investing in real estate for just $500. It's one of our favorite ways to build passive income.

Invest in Crowdfunded Real Estate
Invest in Crowdfunded Real Estate

Crowdfunded platforms such as these are a great way to make passive income in real estate without investing hundreds of thousands of dollars as the sole owner of a property and without having to do the time-consuming work that direct property owners often have to do.

Open a High-Yield Account
Open a High-Yield Account

The great thing about using a platform versus doing it yourself is that the income is even more passive. 4. High Yield Savings Accounts And Money Market Funds. If you don't want to think much about your money, but want it to work for you, a basic place to put it is in a high yield savings account or money market fund.

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Peer-to-Peer Lending
Peer-to-Peer Lending

Creating a passive income portfolio with peer to peer lending at Lending Club. P2P lending is a revolutionary investment vehicle for serious investors.

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Peer-to-Peer Lending (P2P)
Peer-to-Peer Lending (P2P)

Prerequisites To P2P Lending. There’s some qualifications to use peer to peer lending such as being in a state that allows it, and having a certain level of verified income in different states. Usually it’s $70,000 a year or more in income.

Physical Real Estate
Physical Real Estate

Physical real estate doesn’t stack up well against the other passive income sources due to the lack of liquidity ... Ranking The Best Passive Income Investments ...

Private Equity Investing
Private Equity Investing

Hedge funds and private equity funds generally meet the requirements for being characterized as investment partnerships, deemed not to be engaged in a trade or business. Therefore, tax-exempt investors in the investment partnership will not be considered to be engaged in a trade or business and would not have any UBTI from an investment partnership.

Rent out a Room in Your House
Rent out a Room in Your House

Renting out a room in your house is sometimes favorable to leasing the entire property. It offers more flexibility for your own private use of the other rooms, and renting multiple rooms can often be more profitable than renting the whole house under one lease. People who live in shared households are an increasing bunch.

Write a Book
Write a Book

After all, the goal of writing an eBook is to generate sales and a passive income. When you write about a popular topic, you increase your likelihood of getting the sales you’re looking for. Bonus Tip: Stay on top of trends.