Digitization of the U.S. economy has accelerated beyond all estimates and the trend is only likely to intensify going forward.
While traditional physical ways to build a passive income still remain relevant, your efforts should be concentrated more towards digital income sources in 2021.
Here are four proven ways to build passive income:
Create and sell an online course
The online education market has exploded. Even people who never thought of upgrading their skills or technical knowledge are now willing to pay and learn online.
You can create a unique and original course that provides real value to students, employees, or entrepreneurs, and sell it digitally.
Popular global platforms such as Coursera and Udemy can provide massive exposure for your course. You could even sell the course through your own website or blog. A successful course can continue to sell and generate passive income for years to come.
Invest in a successful blog
If you don’t have the time to create and popularize a blog from scratch, you can buy out an established blog and monetize it to build a passive income. Blogs that are generating cash flows are available for sale through online platforms such as Flippa.
Blog flipping is a fast-growing activity among people who believe that the future of digital assets is bright. It will not just produce a passive income from day one but may also multiply the value of your original investment over time.
Launch your own podcast
More than 20 percent of all Americans listen to at least one podcast a day on average. If you have a creative idea for a podcast that can deliver valuable information to your target audience, it is the best time to take the plunge.
You can learn online about the basics of starting a podcast, and invest your time in designing the right audio content.
Make sure to set up high quality recording equipment so that your podcast delivers superlative clarity of sound. Spend time on learning the right formatting of your podcast to capture the attention of your audience.
You can pair your podcast with related blogging content and publish it on leading platforms such as iTunes. Each time a user wants to download your paid podcast, you will earn an income on each sale.
Sell photos, music, or an app
If you love photography, consider selling your original images via stock photo websites. You can get paid each time a user downloads a photo.
You may also turn your hobby of music into a source of passive income. Just like stock images, you could license your music and enjoy royalties each time someone uses it.
Background music for infomercials, podcasts and YouTube videos is often purchases through freelancers. Online music libraries can store your music where clients will come to search for it.
If your strength lies in the area of software development you can create your own app.
But even if you just have a solid idea for an app but don’t have the tech skills, you can hire an app developer and get it going. As your app starts selling through the app stores, you will start reaping a residual income.