This post describes options for creating passive income with explanation of basic steps you need to execute to be successfull and earn some money.
What is passive income?
First you need to understand difference between active income and passive income. Active income is dependent on the quantity of hours you work. For example when you work 100 hours and your hour tax is $30 per hour you will earn $3000. Passive income is not dependent on the quantity of hours you work. You create something at the beginning and it makes money for you for a long period. You spent only minimal amount of time to maintain this income. Benefits of passive income:
- You earn money even if you sleep or you are on holidays
- You get more time for you, your family and friends
- You can spent more time with your hobbies
- You spent more time on your project which can shift you to your targets in the future and you don’t have to spent time on projects of your employeer
What changed internet
In the past passive income was related to especially real estate business. Typically you own some house or flat and rent if for money. Internet revolution created new options and opportunities for creating passive income streams.
Passive income options for programmers
Programmers can establish passive income this ways:
1. Tematic website
You create website with some interesting content. Content is a king when you want to attract people to your web site. Setup Google Analytics to analyse traffic to your website and then setup Google AdSense to earn money on ads.
This passive income idea is very similar to tematic website. Choose topic you want to write about and then create blog using some blogging platform, for example WordPress. Setup Google Analytics to analyse traffic to your website and then setup Google AdSense to earn money on ads.
3. Mobile app
At the beginning choose the mobile platform: Android, iOS, Windows Phone. Then choose monetization model: free app with ads, paid app, in-app purchase (IAP). Create mobile app and publish it to store. Setup Google Analytics and integrate it into mobile app to analyse usage of your app.
4. Udemy course
Udemy is modern e-learning platform with big potencial for students and also for instructors. At the beginning choose the topic, you can inspire from Udemy website, Udemy hot topics or Google Trends. Then create the video course. Course creation process in not easy.
It takes me 30 hours of work when creating my first Udemy course with duration of 30 minutes. After publishing of course you should promote your course to build audience of students.
5. Kindle ebook
6. Custom library
In the past you probably create some piece of code or library for solving some specific problem and you and your colleagues used it on many projects. If you think that this library can help also other people, you can earn some money on it. Setup website for selling this library, choose license and setup payment method for example PayPal.
If you are interested about more detailed step by step instructions, take my Udemy course Passive income for programmers. This course describes all aspects of creating passive income as programmer.