Freelancing can be a great way to make an active income, and it's how almost everyone gets their start. Once you have established your career and generated multiple income streams, it could be worth trying to create passive income.
Passive income is a type of income stream that requires minimal maintenance. To create this passive income stream, you can do most of the work initially as you set up your system and put in substantially less effort down the road. There are many different ways to generate passive income as a freelancer, and in this post, we'll explore six of them. So if you're looking for ways to create passive income, read on!
1) Create content for stock sites
One of the best ways to earn passive income is by creating content and selling them on stock sites. To get started, you create the content upfront, sign-up for a stock website, and upload them to the platform. Whenever someone downloads your content, you get paid based on your agreement.
If you are good at WordPress, you can create WordPress themes and sell them on markets like Envato's ThemeForest. After you build a WordPress theme and put it on sale, you will need to update it regularly to ensure it is working flawlessly with all future WordPress updates.
If you are a photographer, it's worth trying to sell your photos on platforms like Getty Images , Shutterstock , and Alamy . You can search for trends about what is selling the most versus not on the platform and plan accordingly.
There is always a vast potential for passive income opportunities in the creative stock sites. But selling the same digital assets to multiple customers is the real challenge here. First, search for online markets based on your field and sign up for them. Make your research on other people's works and be creative about what you can sell more quickly. Don't give up if no one is interesting and check if you can do it better or simply choose another subject and try again. Few items in your portfolio may drive all of your revenue, so be consistent about creating new items. Once you sustain enough sales on multiple items, this might increase your cash flow in time as a freelancer.
2) Create online courses
Creating online courses is a relatively simple way of generating passive income since passive income ideas require minimum investment and effort. If you believe that you have lots of knowledge on a particular subject, you create online courses that can help you generate passive income. For example, as a designer, you can create courses on topics like “design theories” or “advanced photoshop techniques” and share your knowledge with people while earning a passive income. You can create custom courses in different media such as videos, audio recordings, or write-ups on Udemy and Coursera . If you successfully create online courses, this may be a good way of supplementing your freelance income.
Blogging is one of the top ways to earn extra money online. If you are a good writer, you can create your own blog and try driving your clients to your services to improve your active income. Creating unique and high-quality content is the key to success since there are thousands of blogs online. You could also prepare written tutorials, which are in high demand in blogs that publish them regularly. Hopefully, once you have enough engagement in your blog posts, you can try to generate passive income from your blog. To monetize your blog, you can use advertising networks like Google Ads, where advertisers pay for views or clicks. Depending on your blog's traffic, you can make direct advertising and sell ad spaces on your blog. Furthermore, you can publish sponsored posts from clients who are willing to pay for them. While creating your own blog seems easy, your success will depend on your readers' degree of interest in the topics you focus on.
4) Create video tutorials
If you like to share your knowledge, you can try to make YouTube videos on specific subjects you are qualified for. For instance, if you are a graphic designer, you are likely talented in Photoshop, so you can try making tutorial videos on Photoshop and upload them to your channel. Or, if you are a web designer, you can create videos on new web trends. YouTube videos generate revenue through incentives such as paid ads and sponsorships. If your videos reach many people, you'll be sure to make a passive income. And if you have a decent amount of subscribers and video views over time, you can also create a subscription model and set a monthly fee for your future videos. All in all, video tutorials can be a reliable and sustainable way to generate extra income for your freelance business.
5) Provide website hosting
Offering hosting plans from your dedicated server to your customers is always profitable for web designers. Reseller hosting is a type of web hosting where the account holder has the ability to allocate resources of their hosting account to other users. This allows them to host separate websites on the same server. You can think of reseller hosting as an apartment complex. You are the building owner, which means you can lease all the individual apartments.
While this is a great way to generate passive income, it requires some know-how on your part. If something goes wrong, the responsibility falls on you to protect your client's website with minimum downtime. Providing hosting plans is a great way to earn passive income if you know what you are doing.
6) Delegate work to other freelancers
If you are a successful and seasoned freelancer with a remarkable portfolio, you will get different projects from different clients over time. Some freelancers spend much time trying to do everything simultaneously and stressing over deadlines that they can barely meet. You don't need to do all the projects by yourself; you can delegate some to other freelancers and give them a part of the revenue for their work. Delegating can help you expand your work volume, increasing productivity while requiring minimal effort. However, trust is an essential component of delegation. We don't recommend delegating to random freelancers whose work ethic might not be up to your standards, as shoddy work by a subcontractor will ultimately reflect poorly on you.
There are thousands of ways to create passive income streams as a freelancer. In this article, we covered six potentially effective methods. For freelancers with limited time who are looking for ways to supplement their income, creating passive income sources is an idea absolutely worth exploring. Even if your freelancing business does not last forever, you can secure your future by developing a passive income stream. Find what works best for you and step out of your comfort zone. And if you need us at any time, we will be right here to support you along the way!