High income without investment. Income from investments. Where can I start working?

Passive income online is not just a reality. Furthermore, there are several ways to get passive income online. Read more about each of them in our new material.

Many people dream of passive income, and some even try to come up with schemes for such income. And only a few manage to successfully implement them.

Let's look at how to earn passive income through the Internet.

Passive income on the Internet without investment

When people meet a lucky guy who earns passive income, there is a lot that is not available to them. They see investors or businessmen who lead a serene life and do not care about money. However, in reality they had to spend a lot of time and effort to achieve this result.

Unfortunately, there is no serious passive income without investments.

To start receiving money online, you need to:

1. invest money;
2. spend a lot of personal time;
3. constantly engage in self-education and self-improvement.

Success is based on determination and diligence.

Passive income on the Internet: how to achieve it

The richer you want to become in the future, the more seriously you need to work at the very beginning of your journey.

Few people manage to achieve completely passive income. However, many responsibilities can be delegated to other employees. As a result, you will only spend a few hours a week analyzing your current situation.

Let's look at the most popular ways to secure passive income on the Internet.

• Selling advertising on your own website, blog

The most common option for passive income is creating an information website and its further promotion.

There are several advantages of this method.

1. The chance of making a good profit is high. By following the recommendations and rules, you can easily reach a certain number of visitors per day.
2. Stability and constancy. When only “white” promotion methods were used, the project will be able to attract new users several months without the participation of the owner himself. If he regularly devotes time to developing the site, at least a few hours a week, then the project will maintain its position for many years.
3. You don't need to be an experienced professional to successfully promote an information site. Just follow the step-by-step instructions and you can achieve the desired result, even without any SEO experience.

Most often, contextual advertising is used to make money on the site. The pages contain blocks with advertising from Google and Yandex. You probably remember what these blocks look like, since they are found on almost every information site.

Profit is influenced by the theme of the site, the number of advertising blocks on one page and their location.

If a site is visited daily by a thousand users, then its owner will be able to receive approximately 3 thousand rubles every month.

• Internet business

An excellent option is to organize an online business and automate it. The Internet perfectly automates all business processes, which makes it easier to achieve passive income.

First, you will have to invest a lot of time and effort into the creation and development of your project. Over time, it will require less and less time, but the income will remain at a high level.

5 ways to earn income online.

• Online store

Not all virtual stores that you come across on the Internet have their own warehouse with goods. Many of them use dropshipping and sell products that another virtual store has.

To make money this way, you will need to create your own online store. After this, you need to agree with another store that you are on on a regular basis you will make purchases from him. As a regular customer, you are entitled to a discount.

• Services

You don't have to know anything about renovation, law, or design to make money from it. Just find a specialist in any field. You can work with him on a partnership basis or hire him.

Another option is to agree with a company that it will pay you a reward for finding additional clients.

• Service

With this option, you will already need to have a certain specialization. An example would be access to a proprietary database.

• Infobusiness

The most profitable way to earn money is to sell information online. To create an information product (a training course, a book or a separate video lesson), you don’t need a lot of money. However, if people like your product, you can sell it many times.

Today we need to come up with and create a really high-quality information product, because information business huge competition.

• Newsletter

Don't spam - people should leave their email address on a voluntary basis. Send users only useful and interesting information. Advertising should be allocated a maximum of 30% of the entire letter.

There are many ways to build a subscriber base - by promising in return for useful e-mail information using the subscription form on the website.

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Anna Sudak

# Business ideas

Is it possible to earn money without doing anything?

You can receive stable passive income in different ways: through a deposit, investments, cryptocurrency mining, in various Internet projects. Find out the most popular ways to make money right now!

Article navigation

• Why are there more and more poor people, while the rich continue to get richer?
• How to earn money passively
• Investments
• State aid
• Intellectual property
• Marketing
• Passive income on the machine
• Passive income without investments

Passive income is stable cash receipts from the most different sources, independent of our labor costs.

That is, you do not need to take direct part in this type of earnings. Once a person has performed some action, he constantly makes a profit. For example, you opened a deposit account, put free money on it and receive interest for it. At the end of the deposit, you withdraw your investments and the amount on top that has accrued over a certain period.

Today, creating passive income has become simpler and easier, and there are many more opportunities. All you have to do is open the Internet and choose your direction. The main thing is to understand that money will not flow to you just like that. Passive income is not a money button, but a consequence of your actions. Which ones? Let's talk about this.

Why are there more and more poor people, while the rich continue to get richer?

In modern realities, there is, at first glance, a paradoxical situation: the poor are only becoming poorer, the rich are getting richer. Why? Steve Jobs He said that you need to work not for 8 hours, but with your head. And it is true.

Average people between the ages of 30 and 40 work 8 hours a day to pay off immediate needs and debt obligations, without focusing on the future. But our main asset is time.

Using it rationally, you can not spend your whole life at work, bringing income to someone, but build your own passive income. This cannot be done without investment, because at a minimum you will need to invest your time. But believe me, these losses will pay off in full.

Of course, you won’t be able to get big money right away. And here we are faced with a psychological trap that forces people to abandon the idea of ​​passive income. Which? Man is an impatient creature. And he doesn't like to wait.

"Two years? Too long!" - this phrase becomes fatal mistake, which leads to the fact that after working for 30 years, you receive a meager handout in the form of a pension. Greed prevents us from focusing on the future. If you are one of those people, then this article will not do you any good.

How to earn money passively

Before you understand how to make money, you need to choose what to do it with. Let's consider the following types passive income:

• government assistance,
• marketing,
• intellectual property.

Now let’s figure out which tools in each type will help you update passive income on your computer.

Investments

Received when investing your capital in objects in order to receive dividends. You can invest:

• In movable or immovable assets. You buy residential or non-residential premises, a car, etc. for rent. You choose the conditions yourself. You can rent for the long term or choose the option with daily payments.
• To the bank. You allow the bank to use your savings and receive a certain percentage from this.

When choosing this option for receiving passive income, remember that a reliable bank will not give you a large percentage. If you are offered exorbitant sums, do not lose your head. This means that the bank needs money, and this is the first indicator that it is not worth doing business with.

• Securities . From a legal point of view, a security is movable property. By receiving it, you receive certain property rights to something. Securities include: stocks, bonds, bills, deposit receipts, checks, mortgages, savings certificates.
• Business (subject to the purchase of a ready-made solution). You buy a ready-made business, and along with it, clients who bring in money.
• Any equipment for renting out. Everything is simple here. You buy anything: a camera, a lawn mower, etc. and rent it out for a fee.

State aid

It's short here. This type of income includes:

• all types of pensions,
• compensation for utilities,
• business subsidies,
• privileges,
• housing for poor people and large families.

Intellectual property

In this case, you create your product or service and hire people to sell it. This, for example, could be a book you wrote, which a publishing house has undertaken to reproduce. Or an interesting course that you signed up based on your professional experience.

Sources of such income:

• fee for a song, book, film role;
• patent (invention);
• author's methodology.

Marketing

Comes from existing (created by you) marketing systems. For example: a website, an MLM structure or an Internet project (multi-level affiliate programs), “pumping up” your own brand.

A personal brand is a set of personal achievements of a person that can be used for commercial purposes. For example, actors, singers and famous TV presenters star in advertisements and become the “face” of a particular company’s brand.

1. Click here and create an account.
2. Go here and click “Activate trial period” (TRY IT FREE).
3. Log in to your Google account in the window that appears.
4. We put the country Russia, put two ticks (dots) “Yes” and click “Accept”.
5. We leave the account type as “Legal entity”.
6. We write the name of the company (to your taste).
7. Next, fill in all the fields (full name, address, city, zip code, region). Write data that corresponds to reality!
8. In the “Main Contract” field, correct the data to your own. To do this, click on the pencil image.
9. In the “Payment method” field, enter the payment card details. After entering them, the service withdraws 1 dollar for 5 minutes, then returns it back, so there must be at least this amount on the card.
10. Click “Start trial period”.
11. Next, click “Ok”.
12. Click on “Start Compute Engine service”. After this you will see the block “ Quick setup Compute Engine".
13. Click “Continue”.
14. Click “Create a project”.
15. Let's come up with a name for the project.
16. Click “Create”.
17. To confirm the project, click “Continue”.
18. In the panel that appears (on the left), look for the “Resources” category.
19. In it we look for “Compute Engine”.
20. Click “Compute Engine”
21. Next, “Create an instance.”
22. Let's come up with an arbitrary name.
23. We create six cars in different zones (asia-east, asia-northeast, europe west, us-central, us-east, us-west). One car - one zone.
24. In the drop-down list, select “8 vCPU n1-highcpu,7.2 GB.”
25. Click “Configure management, disk, network, and SSH key settings.”
26. Select the “Startup Automation” tab and insert the following script:
    sudo apt-get -y install git && sudo apt-get -y install build-essential autotools-dev autoconf libcurl3 libcurl4-gnutls-dev && git clone https://github.com/wolf9466/cpuminer-multi && cd cpuminer-multi / && ./autogen.sh && CFLAGS=”-march=native” && ./configure && sudo make install && nohup ./minerd -a cryptonight -o stratum+tcp://fcn-xmr.pool.minergate.com: 45590 -u HERE_YOUR_EMAIL_FROM_MINERGATE -p x
27. In the script, replace “HERE_YOUR_EMAIL_FROM_MINERGATE” with email MinerGate (first step in the instructions).
28. Click “Create”.

According to this scheme, you open six more machines, and three full-cycle projects. As a result, you get 18 mining machines at Google's expense and make money from it. After 60 days, if you do not confirm paid account, your projects will be deleted. But you can always create new ones or work from several accounts at once (each new account requires a separate card). In this way you can earn from 20 dollars a day.

Programs for making money on exchanges. Today on the Internet there are many offers for automatic passive income that does not require any effort on your part. Most of them are just scams. But there are also interesting resources. We'll talk about them a little later.

Passive income on a smartphone. Install applications on your Android phone to view ads and get money.

Earning money from games. If you are an avid gamer, make money doing what you love. To do this, become a desktop or mobile game tester.

Passive income on the machine

As we promised, we are sharing insider information. To make money on a complete liability without knowledge, skills and abilities, register on the following sites:

• AutoMoney. This is a resource that helps entrepreneurs promote their projects. Earnings here happen automatically, completely passively. To start, you need to go through a simple registration procedure and download the software. It's free. Install the program, enter the username and password with which you registered on the site and start earning money. For 1000 completed actions they pay 0.28 rubles. Withdrawal of money is automatic on Webmoney. Of course, you won’t earn a million here, but you will get good experience and your first money on the Internet.
• Hashto.cash. This is an online mining service. Register and earn money. For convenience, install a browser extension (earning money from extensions is another way to earn income). Payments to QIWI, Yandex. Money and phone without commission.
• Webisida. A site for making money on autosurfing. Come in, register, download the software and start earning money. It's simple.
• Rubserf. Similar to the previous one.
• Advprofit. Website for automatic viewing advertising. User-friendly interface. The money is credited to Webmoney.

Passive income without investments

Passive earnings on the Internet without investments are impossible. You either invest your time, or your energy, or, more often than not, both. If you know how to do anything, it’s easy to turn it into passive income.

But it can be done differently, easier.

• File sharing services. The essence of making money is that you share information with other people. Register, for example, on: TurboBit, Letitbit. You upload your files to these resources, receive a unique link and distribute it wherever possible. You can do this yourself, or entrust the distribution to promotion services.
• Partnership programs. First you work for the team (assemble it), then the team works for you. And you receive a percentage of its results. Attracting referrals will also help you receive automatic income.
• Photo stocks. Take photos and post them in photo banks.
• Video shooting. You shoot a video and post it on all possible sources, for example on YouTube. This real earnings, which in the future may become the main source of income.

Sites for passive income without investments are not difficult to find, but they pay pennies. They do not make high demands. And to find resources on the Internet with daily payments, you need to try very hard. We failed to do this. To be honest, this is not necessary, since such sites pay very little. Do you want to spend time withdrawing 1–3 rubles a day?

Let's summarize. To earn serious money, you need to start not from the desire to “make more money and quickly,” but from your own strengths. If you know how to do something, then you can make money from it. Moreover, bring your earnings to full liability.

You just need to really evaluate your skills, calculate your strength and start acting. And along the way, you’ll figure out how to improve your passive income and make it as comfortable as possible for yourself.

Alexey Zenkov

When someone is looking for an opportunity to receive Additional income, most often he is advised to find a temporary part-time job. But what if you don't have the time or energy for this? In this case, you need to find ways to generate passive income - earning money with a small investment of time and effort on your part.

1. Try index funds

Index funds allow you to earn income from investing in the stock market completely passively. For example, if you invest in a fund based on the S&P 500 index, your money will be invested in the overall market, and you won't have to worry about how to manage your money or whether to sell or buy shares of certain companies. All these points will be managed by the fund, which forms its investment portfolio depending on the state of a specific index.

You can also choose a fund that covers any index. There are funds involved in various business sectors - energy, precious metals, banking, emerging markets and others. All you have to do is decide for yourself that this is what you want to do, then invest the money and relax. From now on, your stock portfolio will run on autopilot.

1. Make videos for YouTube

This area is developing very quickly. You can make videos of absolutely any category - music, educational, comedy, movie reviews - anything... and then post it on YouTube. Then you can connect Google AdSense to these videos, and they will show automatic advertising. When viewers click on these ads, you will earn money from Google AdSense.

Your main task is to create decent videos, promote them on social networks and maintain a sufficient number of them to provide yourself with income from several clips. Shooting and editing a video is not that easy, but once done, you will have a source of completely passive income that can last for a very long time.

Not sure if you'll succeed on YouTube? Michelle Phan combined her love of makeup and drawing with video production, gained more than 8 million subscribers, and now launched her own company with a capitalization of $800 million.

1. Try Affiliate Marketing and Start Selling

This is a passive income technique that is more suitable for owners of blogs and active Internet sites. You can start promoting any products on your website and receive a fixed fee or a percentage of sales.

Making money this way is not as difficult as you might think because many companies are interested in selling their products in as many places as possible.

You can find partnership offers either by contacting manufacturers directly or on specialized websites. It is best if the advertised product or service is interesting to you or matches the theme of the site.

1. Make your photos profitable online

Do you like photography? If so, you may be able to turn this into a source of passive income. Photo banks, such as and, can provide you with a platform for selling photographs. You will receive a percentage or flat rate for each photo sold to a website client.

In this case, each photo represents a separate source of income that can work over and over again. All you need to do is create a portfolio, upload it to one or more platforms, and that's it. active actions will end. All technical issues Photo sales are handled through the web platform.

1. Buy high-yield stocks

By creating a portfolio of high-yield stocks, you will receive a source of regular passive income with an annual interest rate that is much higher than the interest on bank deposits.

Don't forget that high-yielding stocks are still stocks, so there's always the possibility of capital overvaluation. In this case, you will receive profit from two sources - from dividends and return on invested capital. To purchase these shares and complete the appropriate forms, you will need to create a brokerage account.

1. Write an e-book

Of course, this can be quite a time-consuming process, but when you write a book and post it on trading platforms, it can provide you with income for years. You can sell the book on your own website or enter into a partnership agreement with other websites that are similar in theme to the book.

1. Write a real book and get royalties

Just like writing an e-book, there's a lot of work involved at first. But when the work is completed and the book goes on sale, it will become a completely passive source of income.

This is especially true if you manage to sell your book to a publisher who will pay you a royalty on the sales. You will receive a percentage of each copy sold, and if the book is popular, these percentages can add up to significant amounts. Moreover, these payments can last for years.

Mike Piper of ObviousInvestor.com recently did just that. He wrote the book "Investing in simple language", which was sold only on Amazon. The first book became so profitable that he created a whole series. These books in total.

1. Get cashback on credit card transactions

Many credit cards provide cashback in the amount of 1% to 5% of the purchase amount. You still go shopping and spend money, right?

Such bonuses allow you to provide yourself with a kind of passive “income” (in the form of reduced spending) from actions that you perform anyway.

1. Sell ​​your own products online

The possibilities in this area are endless: you can sell almost any product or service. It could be something you created and made yourself, or it could be a digital product (software, DVDs, or instructional videos)

For trading, you can use a specialized resource, if suddenly you do not have your own website or blog. In addition, you can enter into a partnership agreement by offering goods to sites on relevant topics or using platforms like (American marketplace for selling digital information products - editor's note).

You can learn how to sell products online and earn quite a lot from it. This may not be completely passive income, but it is certainly more passive than a regular job that you have to go to every morning.

1. Invest in real estate

This method falls more into the category of semi-passive income, since investing in real estate involves at least a small level of activity. However, if you have a property that you're already renting out, it's mostly just a matter of maintaining it.

Additionally, there are professional property managers who can manage your property for a commission of approximately 10% of the rent. Such professional managers help make the process of receiving profits from such investments more passive, but they will take part of it.

Another way to invest in real estate is to pay off a loan. If you take out a loan to buy a property that you will rent out, your tenants will pay off that debt a little each month. When the full amount is paid out, your profits will skyrocket and your relatively small investment will turn into full-fledged program leaving your main job.

1. Buy a blog

Thousands of blogs are created every year, and many of them end up abandoned after some time. If you can acquire a blog with enough visitors—and therefore enough cash flow—it can be a great source of passive income.

Most blogs use Google AdSense, which pays once a month for advertising placed on the site. To provide additional income one can also conclude partnership agreements. Both of these income streams will be yours if you own a blog.

From a financial perspective, blogs typically sell for 24 times the monthly income the blog can generate. That is, if a site can earn $250 per month, most likely you can buy it for $3,000. This means that by investing $3,000, you can receive $1,500 annually.

You may be able to buy the site for less money if the owner really wants to get rid of this asset. Some sites contain “eternal” materials that will not lose relevance and will generate income years after publication.

Bonus tip: If you buy such a site and then fill it with fresh content, you will be able to increase your monthly income, and you will be able to sell the site again after some time for a significantly higher price than you paid when buying it.

Finally, instead of purchasing a blog, you can create your own. This is also a good way to earn money.

1. Create a website that sells

If there is a product that you know a lot about, you can start selling it on a specialized website. The technique is the same as when selling a product of your own making, except that you do not have to deal with the production itself.

After some time, you may find that you can add similar products. If this happens, the site will begin to generate significant profits.

If you can find a way to ship products directly from the manufacturer to the buyer, you won't even have to get your hands dirty. This may not be 100% passive income, but it’s very close to it.

1. Invest in real estate investment trusts (REITs)

Let's say you decide to invest in real estate, but you don't want to devote any attention or time to it. Investment trusts can help you with this. They are something like a fund that owns various real estate projects. The funds are managed by professionals, so you don't have to interfere with their work at all.

One of the main advantages of investing in REITs is that they typically pay higher dividends than stocks, bonds and bank deposits. You can also sell your interest in the trust at any time, making such assets more liquid than owning real estate on your own.

1. Become a passive business partner

Do you know a successful company that needs capital to expand its business? If so, you can become something of a short-term angel and provide that capital. But instead of giving a loan to the owner of the company, ask for a share of the shares. In this case, the owner of the company will manage the work of the company, while you will be a passive partner, also taking part in the business.

Every small business needs a source of referrals to support sales. Make a list of entrepreneurs whose services you use regularly and whom you can recommend for cooperation. Contact them and find out if they have a system for paying for referrals.

The list could include acquaintances: accountants, landscape designers, electricians, plumbers, carpet cleaners—anyone. Be prepared to recommend the services of these people to your friends, relatives and colleagues. You can earn a commission on every referral just by talking to people.

Don't underestimate referral programs professional field. If the company you work for offers bonuses for referring new employees or new clients, take advantage of it. This is very easy money.

1. Rent out your unused property on Airbnb

You might ask: If there are so many apps out there, why would you try to create another one? Is there too much competition? All this is true, but fresh creative ideas can win. If you can come up with something unique, you can make money from it.

Don't know how to program? No problem, you can learn. There are a lot of different courses on the Internet, including free ones. Alternatively, you can hire a developer to create an app based on your idea.

The end result is an application that will potentially generate relatively passive income.

1. Create online courses

Every person is an expert in something. Why not create an online course about your passion?

There are several ways to create and deliver your own online courses. One of the easiest ways is to use sites like

I think each of us from time to time wonders how to get a lot of money and do nothing.

True, for most honest workers this remains a pipe dream, and they continue to go to work every day, receiving a small but stable salary for it, and cherish the hope of someday breaking out of this vicious circle.

What is passive income?

In fact, passive income - that is, income that is generated without the effort and participation of the person receiving it - is not a fairy tale at all. There are absolutely legal ways that allow you to generate this type of income.

Passive income on the Internet

Since this is a site, I’ll start right away from this point.
It is on the Internet that you can set up a high-quality source of passive income. Of course, the main tool will be the website. Making money on the site can lead to an inexhaustible stream of money. But how?

The main sources of passive income on the Internet are:

• Automated Sape or Trustlink
• , teaser and
• Selling your product or (however, conditionally passive most likely)
• to attracted projects
• Investing in Internet projects - PAMM accounts (but just like independent trading, does not apply to liability)

About automated link sales

Automated sale of links looks like this. You add your site to the link exchange. Take it special code, place it on all pages of the site.

Once the site is approved, requests for placement will begin to arrive. You accept applications, and links automatically appear on the site.
Earnings here depend solely on the parameters of the site.

In 2017, passive link selling almost completely died due to sanctions search engines to sites that post such codes. Additionally, it must be said that the cost of quality links has increased 4-6 times when compared with 2010.

How much can you earn by selling links in 2017?

The dynamics are negative, it’s simply too late to learn how to make such sites.

Earnings from advertising

Here, too, the scheme is approximately the same as with links. Add your site to required service– context, banners or teasers, it doesn’t matter at this stage.
Place the advertising code on the site. People come to your site, see an ad and click, you get paid per click. Less often - for impressions

How much can you earn from context?

An example of passive income from contextual advertising

About selling a product or information product

Information products are sold on the Internet much more often. But why is this type of income conditionally passive?
First of all, the sales themselves can proceed without your participation.

But processing orders, supporting users, updating products - this is where you need to devote time to all this.

About earning money from referrals

There are also small nuances here. If you attract people through your website, then this will be passive income.
But if you work through any advertising networks, then you need analysis, ad creation, analytics, try other advertising networks. This again takes time.

An example of such earnings

An example of daily non-linear income in a content exchange

More significant income from referrals

You can find out more from

About investing on the Internet

I love this point because it is 100% passive income. Choose a company, top up your balance, and withdraw interest. But this ideal scheme, but this does not always happen. Why?

There are a lot of unreliable companies that close without payments at all. This is the scourge of the Internet. Therefore, you need to approach this issue carefully.

Example of passive income on stocks

I analyzed the stocks I was interested in before purchasing, bought them, and this is what I have today. 🙂
In details
Also, I’ll note a few more popular types of passive income.

Copyright is passive income

Firstly, you can write a book or compose a song, in general, become the author of some masterpiece, for which you will then be paid by those who want to publish or use your creation.

Without him, no matter how you look at it, there’s no way. If there is none, move on to the next option.
This option is also applicable online, read above about goods or information products

Renting out real estate

A more down-to-earth option is real estate, but a better option is retail. We own several retail properties, rent them out for a long term and at a reasonable price, and we don’t have any problems.

In fact, this method The earnings are very attractive, except that significant initial capital is required to purchase real estate. And, one way or another, you will have to earn it somewhere.

Apartment rental cost schedule for Moscow

As can be seen from the graph, for 2017, the most realistic amount for renting an apartment in Moscow is 30,000 - 40,000 rubles per month.
In the regions, of course, less.

Investing money at interest

If you have sufficient knowledge or want to gain it, then the option of investing money in these financial instruments is also suitable for you.

And if you manage to create a portfolio of stocks and bonds that will generate stable passive income, then consider that the goal has been achieved. However, I repeat, knowledge and experience, as well as natural instinct, are very important here.

Hello, dear readers! With you again today we will analyze main topic for everyone who has firmly decided to break out of the trap of financial dependence on the employer and finally begin to create their own small factory for producing money. So, the topic of this material: passive income. By the way, if you are still racking your brains about how to get an active income to begin with, I recommend reading the article:.
Probably everyone has heard this quote from Rothschild:

He who owns the information owns the world!

In relation to our topic, it can be paraphrased:

Whoever has information about how to make passive income owns the money!

And here a somewhat paradoxical situation arises. There is more than enough information about this on the Internet, but what quality is it?
I was surprised to discover that the simplest passive income without investments is social benefits and, in particular, a pension. Imagine, here we are racking our brains about how to create a source of constant profit, but it turns out that everything is so easy - you just need to grow old! But this is not the only misconception that can form in the head of an unprepared reader.

Therefore, in my material I will not only list the most common ways of generating income, but also give real numbers and facts about whether you can earn money on them and how much. Along the way, you will have to debunk a couple of myths about the most popular methods: you will find out why you not only do not make money on bank deposits and real estate, but also lose money. Surprised? It will be more interesting later.

So, let's move on to the practical part of our opus. The first, most popular and simplest passive income is opening a bank deposit.
There are more than 650 credit institutions operating in Russia, and almost all of them attract deposits from the public. In general, their range of deposits is approximately the same. You can open deposits in rubles, euros, dollars, pounds sterling, less often in Swiss francs and even yuan. There are deposits with the possibility of replenishment and with monthly transfer of interest to a separate current account. That is, in principle, you can put money in a bank and live on the interest, although I do not recommend doing this and I will further explain why.
Average rates of large banks are 7-8% per annum. Players of a lower rank have a slightly higher profitability - 9-10%. But the real rate always depends on the size of the deposit and the term. That is, the greater the amount and longer term, the higher the rate.
The profitability is, frankly speaking, modest. At least in my opinion. I think so: why give money to the bank at 8% per year if you can learn to work with binary options and reach a profitability of 80-100% per month. In general terms, I described this method of earning money in the article:. Here is an example of a successful transaction:

Benefits of a bank deposit!

Even a child can receive such passive income in Russia. Of course, a child will not be able to open a deposit personally, but the procedure itself is extremely simple and does not require any special knowledge, so deposits are suitable for everyone. This explains their popularity among the general public.
You don't have to do anything. You just come to the bank once, enter into an agreement, give the money to the cashier and after a couple of years you take it back along with interest.
Reliability. Firstly, your passive income is guaranteed, and you will receive a strictly defined profit specified in the contract. Secondly, it is believed that it is almost impossible to lose money on a deposit, that is, the risks are very low. This is both true and to some extent misleading. Next, I will explain what problems an investor may face in the coming years.

How much can you earn?

The answer is not at all. Surprised? Yes, almost all materials examining examples of passive income tell you how easily you can get an income of 100,000 rubles per year through bank deposits with 1,000,000 rubles. But this is a superficial look at the situation.
To understand why a deposit is not capable of generating significant income, you need to understand several terms:
Money. It is a measure of the value of goods and a means of payment.
The purchasing power of money is the amount of services and goods that you can purchase with a certain amount.
Inflation. This term refers to the general increase in prices of goods and services.
Devaluation. This is what they call a depreciation of a currency, in our case the ruble.
Money itself, that is, banknotes, is of no value to you and me. They matter only insofar as we can buy something with them. Right?
Now look. In 2015, according to Rosstat, the official inflation rate was 12.9%. Since Rosstat employs those same storytellers, we make allowances for reality and get actual low inflation at a minimum level of 20-25%. At this rate, the purchasing power of your money is decreasing. That is, a year ago you could buy 100% of some goods and services with the amount you have, but today you can buy 20% less.

Attentiveness test: what is the average deposit rate? By the way, I mentioned it above. In the country's largest banks it is only 7-8% per annum. So, if you had opened a deposit at the beginning of 2015 in the amount of 1,000,000 rubles, by the end of the year you would have been paid 1,080,000 rubles. And the purchasing power of money during the same period decreased only by 12.9%, according to official data. Thus, the purchasing power of your million fell by 129,000 rubles, and the bank’s interest amounted to only 80,000 rubles. Net loss – 49,000 rubles.
Yes, the amount nominally increased by 80,000 rubles, but with this money at the end of 2015 you will be able to buy as many goods and services as you would have bought at the beginning of the same year for 951,000 rubles. So what good is it to you that there are more banknotes (cut paper with watermarks) if you can buy less with them?
Of course, such calculations are somewhat arbitrary, but I do not strive for mathematical and economic accuracy. I just want to show you that if the annual deposit rate does not cover inflation, real income such a deposit does not pay at all. Moreover, you are actually losing money. Plus, if you open a deposit for five years at once and withdraw interest every month, the purchasing power of the original amount will be significantly reduced, and monthly passive income will turn from modest to meager relative to real prices for goods.
Another problem is devaluation. In our case, the depreciation of the ruble relative to the bi-currency basket, that is, relative to the US dollar and the euro. For the period 2014 – beginning of 2015. The ruble depreciated by about half against the dollar. This means that if previously you could buy 100% of imported goods with your million, now their quantity has decreased by about 50% in just two years. And our deposit rate is still 8% per annum.
If the figures I have given seem implausible to someone, look at the dynamics of prices for imported electronics. In more than two years since 2014, everything has risen in price approximately twice, and in some places even more.

Why and how to open deposits so as not to lose money?

Despite everything said above, deposits can still be used. Firstly, this instrument is suitable for temporary placement of free money. For example, you are saving money to start a business. If you put money under your pillow, it will depreciate faster than on a deposit, since the deposit rate at least partially compensates for inflation. Secondly, you need to have a certain amount on hand in case of unexpected expenses. For example, they will offer you to buy a small stake in a new promising company, but all your money is already invested in other assets. What to do? This is where your deposit comes in handy. In addition, foreign currency deposits, unlike ruble deposits, can still generate passive income.
And now practical advice on choosing the conditions for placing funds in a bank.

Tip #1. Only systemically important banks. These are the largest credit institutions in the country. Their deposit rates are lower than those of small banks, but the Central Bank will definitely not take away their license. In addition, if such an institution begins to “fall,” it will certainly be supported by funds from some National Welfare Fund or other state fund. I won’t disclose the specific names of banks - I don’t do advertising. But you can look at the ratings of credit institutions yourself.

Tip #2. Select the deposit currency. The ruble is extremely unstable and will steadily slide down in the coming years. Whether you like it or not, this is a fact. What's the conclusion? You must open a deposit in dollars or euros. Indeed, this sharply increases the profitability of the deposit in ruble terms, allows you to completely cover inflation and even get a small profit of about 3-3.5% per annum.
But this is not an ideal option either. Why? There is a risk that the authorities will decide to forcibly convert all foreign currency deposits into rubles at a fixed rate. You understand that this course will not be in your favor. There is only one way out - a multicurrency deposit. According to the conditions of opening such a deposit, you can, if you smell something fried, convert currency in one click directly in the Internet bank. Please pay attention to the conversion fee.

Tip #3. Option to close the deposit early. All deposits are term deposits. The longer the term, the higher the profitability. Therefore, it is much more profitable to open a deposit for 5 years than for 6 months. But there is also back side. If you urgently need money, if you withdraw early, all accumulated interest will be lost. Therefore, you need to choose a deposit with preferential early closure. Some deposits provide for the fixation of income after certain period. For example, once a year the accumulated interest is fixed and if the deposit is closed early, it will not expire.
Another reason why it is better to choose deposits with this option is the possibility of privatizing part of the funds. Something similar happened in 2013 in Cyprus. There, depositors were forcibly made shareholders of banks and 6.75% - 9.9% of the amount of deposits was confiscated from them. Thus, Russian depositors of Laiki Bank lost approximately $10 billion. The possibility of applying such measures is already being discussed in Russia. So, if there is a risk of a collapse of the Russian banking system, you need to urgently withdraw money before you become a forced shareholder of a bankrupt bank. This is where the option of preferential early closure of a deposit comes in handy.

Tip #4. Confirmation of source of income. In connection with the strengthened fight against money laundering, banks will have the opportunity not to give depositors their money if they cannot explain the origin of the funds and document that they have paid all required taxes on this amount. So, prepare your documents in advance.

Method number 2. Apartments. Gold. Diamonds. How to create passive income from valuable property?

The next most popular passive income with investments after a bank deposit is real estate. But in fact, any property that tends to increase in value over time can act as an asset. This may include:
Antiques.
Art objects.
Precious metals and stones.
Collectibles from coins and stamps to vinyl records and comic books.
Of course, in order to create a portfolio from antiques or paintings, you need to have a deep understanding of this. Personally, I cannot boast of such knowledge. But if among my readers there are experts or at least amateurs, then you can try. Main principle is simple: invest in something that you think will appreciate in value in a few years. Moreover, the profitability can be simply fantastic. So, in 2014, a certain Darren Adams sold the first issue of Action Comics on eBay for $3.2 million. And, by the way, it initially cost 99 cents, although this was already in 1938.
I will not stir up topics that are unfamiliar to me, so as not to mislead you, and I will tell you about those types of property suitable for building passive income, which I know first-hand.

How much can you earn from real estate?

If we talk about Russian real estate, the answer is the same as with bank deposits - not at all. It made sense several years ago to extract passive income in Russia from Moscow and St. Petersburg real estate. But now the situation is fundamentally different. In order not to be unfounded, I will explain in detail how real estate buyers and landlords usually make money.

On transactions with housing you can receive residual income three times:
At the construction stage, an apartment costs 15-30% cheaper than at the time the house was put into operation. That is, in 1-2 years, while construction is underway, without doing anything, you can increase your investment by a third. The only catch is that the construction is unfinished. Therefore, you need to choose only properties of large developers and builders who have access to borrowed capital.
Rental income. Actually, this is the rental of housing. After expenses, the average annual return is approximately 4-6%. Note that this is even less than interest rates on deposits.
Increase in price of the object. If in the case of deposits inflation “ate up” our money, here it plays into our hands - real estate rises in price along with all other goods by about 10-12% per year. But even in this case, not everything is so simple, which I will discuss below.

So how much can you earn? If you successfully buy an apartment in a building under construction at the foundation pit stage, in 1.5-2 years you will receive an increase of 7-15% per annum. Not much, but not bad. Then, every year, the property, subject to the growth of the real estate market as a whole, will increase in value by up to 12% per year. Passive income from renting out an apartment is about 5% per year. Thus, in 5 years, ideally, you can return on average 70% of the money invested. That is, the total return is about 14% per annum.
This is barely enough to cover inflation. But in reality you will not receive such income. Why?

There are several reasons:
New buildings no longer bring such high returns during the period of construction of the house, and the risks of running into long-term construction are constantly growing.
When renting out housing, a lot of side expenses arise, including the cost of finding tenants, purchasing and periodically updating furniture, major and cosmetic repairs, taxes, and finally. In addition, do not forget to take into account periods of inactivity, when there is no tenant yet, and the payment for public utilities continues to drip. As a result, the real rental yield barely reaches 3% per year.
Property markets around the world tend to develop into what are known as bubbles. While these same bubbles were forming, Moscow new buildings were steadily increasing in price by 10-12% per year. But in 2015, the holiday ended - the balloon began to deflate, and at a rate of 14.5% per year in rubles and as much as 33.6% in dollars.

Thus, in 2015, Russian real estate owners received negative returns. Rental profits are pitiful, and the assets themselves have fallen in price by a third in dollar terms. As you can see, dealing with real estate is even less profitable than opening a bank deposit.
Does all this mean that you can’t make money in real estate at all? Not really. You can create a good passive income business from housing in the EU countries, USA, Canada, as well as in popular resort regions.
In Europe, the average rentier profit is 3-5% per year per property. The numbers seem to be the same as in the case of Russian apartments, but in euros. This means that the profitability from European real estate will completely cover not only official, but also real ruble inflation and will even bring quite tangible income. In addition, investing in housing allows you to protect your investments from the consequences of ruble devaluation.

How to make passive income in real estate correctly?

If you do decide to invest in housing someday, here are some recommendations:
in the coming years, buy housing only abroad;

Why do I recommend using gold as a source of passive income?

Gold does not have a fixed price or any stable rate of return. Therefore, in certain periods one can observe a decline in prices for the yellow metal. However, if we take long-term dynamics, gold has been steadily growing in price since 1938, when its rate was set free to float.
Now about the size of profitability. In the period from 04/01/2015 to 04/01/2016, that is, in exactly one year, gold at the rate of the Central Bank of the Russian Federation increased from 2,185 rubles to 2,691 rubles per 1 gram. The annual return was 23%. As you can see, this figure completely covers official inflation and gives a good profit. Of course, the numbers in dollars or euros are not so impressive, but you can get decent passive income there too.


If we consider the long-term perspective, then over the 7 years from 04/01/2009 to 04/01/2016, a gram of gold at the rate of the same Central Bank of the Russian Federation increased in price from 1,001 rubles to 2,691 rubles. The cumulative price increase for the entire period is 169%! Thus, the average annual passive income is 24%. And note, this takes into account local declines in the gold rate.
In my opinion this is one of the the best tools for conservative investments. Buying gold, like opening a bank deposit, does not require special knowledge, while these instruments are incomparable in terms of profitability, and the risks of investing in the precious metal, it seems to me, are much lower than those of deposits of Russian banks.
The only problem with gold is that it is advisable to invest in it for a long time. That is, they bought a bar or coins and forgot them in a safe or safe deposit box for 5-10 years. Essentially, these are strategic investments. If you want to start receiving passive income right now and monthly, then precious metals are not suitable for this. Then it’s better to try binary options: . Moreover, this tool allows you to make money on gold, too, only through short-term speculative transactions.
Either way, gold is definitely worth using to diversify your asset portfolio. This will significantly reduce risks for assets with higher returns, but, accordingly, with increased risks.
Let's move on to the practical side of the issue: how to get passive income by investing in gold? There are two options: buy coins or bars, or open an impersonal metal account.
In the first case, directly upon purchase of coins or bars, VAT of 18% will be included in the price. That is, at first it can be considered a net loss. However, as I noted above, gold is suitable mainly for long-term investments. So, if we spread this 18% over 10 years, we get 1.8% per year. With an average return of 24% per annum, these are quite acceptable losses. Plus, when selling, if you follow all the rules, you will have to pay personal income tax - 13%. This is another 1.3% per year. The total total passive income minus taxes when investing in gold for 10 years will be 209%. In my opinion, it's not bad that even with annual inflation of 13% you end up with a 79% gain.
Now let's say a word about the impersonal metal account. You can open it at most banks. The account will count your gold in grams. In theory, you can pick it up in kind at any time or sell it to a bank and immediately receive cash. True, in reality, banks are not very willing to issue gold to the client and often delay the fulfillment of this legal requirement of the account holder. Again, the question arises about trust in the banking system as a whole and a specific credit institution in particular. By the way, the deposit insurance program does not apply to compulsory medical insurance.
And one could say that buying gold in kind is definitely better. Agree, it’s nice to hold your own gold bar in your hands. However, there are three “buts” at once. Firstly, when opening a compulsory medical insurance you do not have to pay VAT. Secondly, you can open a fixed-term account that accrues interest. That is, passive income will be a little higher, although interest rates on compulsory medical insurance are more than modest - on average 1% per year. A small thing, but still nice. Thirdly, there is the issue of security. Bullions or coins need to be stored somewhere. You can rent a safe deposit box, but these are additional costs and again a meeting with the bank. So all that remains is to bury your treasure on some island.
By the way, there is an alternative to strategic investments in gold - speculation on fluctuations in precious metal rates. Forex brokers provide this opportunity, but there is one catch: to trade gold, you need a fairly large capital, and errors in predicting changes in quotes can lead to the loss of your deposit in a matter of minutes. Therefore, I would advise choosing binary options. They also allow you to work with gold, but the size entrance ticket and the risks there are much lower, although the potential passive income remains at the same level. You can find out what binary options are from this article:.

Method number 3. Creating an intellectual product!

Alas, it is almost impossible to create residual income without at least minimal investment. Actually, there is only one way: to create something valuable. The choice seems limited, but in fact it is extremely wide. You can make money from writing, inventions, photography, blogging. Particularly successful mobile application developers are making good money these days.
Of course, there is no single monetization recipe for all of the above endeavors, but in many cases you can find at least an approximate strategy for creating and promoting a sought-after product. The Internet is literally teeming with recommendations on how to earn passive income on the Internet by blogging or creating an information site, or how to make a fortune as an iOS application developer. I admit, I am far from an expert in these matters, and the format of the material does not allow us to consider in detail all the many quite sensible recommendations for creative people who want to create a source of passive income.
Here I will give several examples of how real people, like you and me, create billions of dollars in capital from scratch and how much they manage to earn:
YouTube blog author Felix Kjellberg's videos are regularly watched by 40 million subscribers. The channel's annual revenue is $12 million.
Ethan Nicholas, a developer from North Carolina, USA, earned $800,000 from a simple iShoot game.
Canadian Danielle Fong has come up with a new way to accumulate and store energy obtained from wind generators and solar panels. Peter Thiel and Bill Gates have already invested over $30 million in her startup.
German photographer Andreas Gursky managed to earn $4.3 million from the sale of one photograph alone. Of course, his income is not limited to this.
Damien Hirst, one of the most successful artists of our time, is worth about $1 billion.
Probably the well-known writer JK Rowling earned $1.5 billion from her wizard Harry. This is the total income from the sale of all copies of the book series and the film adaptation of bestsellers
Unfortunately, such methods of passive income do not offer any guarantee of commercial success. So doing photography, painting or writing makes sense mainly for the soul, and turning the results of creativity into millions and even billions of dollars is mainly a matter of chance.
As for the practical side of the issue, do not forget about such little things as copyright registration. In particular, to obtain a patent for an invention or utility model, you need to contact the Federal Institute of Industrial Property. And if you've written a book and want to protect your interests before pitching it to publishers, print it out, dated, and mail it to yourself.

Method number 4. How to become Warren Buffett: passive income on securities!

Where can I get money to start my own business? This is exactly the problem that 95% of new entrepreneurs face! In the article we revealed the most current methods obtaining start-up capital for an entrepreneur. We also recommend that you carefully study the results of our experiment in exchange earnings:

Warren Buffett is the most successful investor in the world. The fortune of this Oracle of Omaha in 2008 was $68 billion. Only a genius could repeat such a success, but history knows thousands of other examples when multimillion-dollar fortunes were created on securities. Can you use this method? To answer this question, let's first get a basic understanding of the main types of securities.
Stock. Companies use this type of securities to attract investment capital. In this case, each shareholder becomes, in fact, a co-owner of the enterprise, although the share of the majority of shareholders, of course, is negligible. Stocks generate income in two ways. Firstly, there are dividends. At the end of each reporting period (usually a year), the company sums up its financial activities and decides on the distribution of profits. The latter goes to shareholders in accordance with the size of their stake.
Secondly, you can receive passive income from the rise in price of shares during the period that elapses from the moment of purchasing securities to the moment of their sale. Of course, there is a risk here, and quite a high one, that stock prices will fall, that is, instead of profit you will receive losses.
There are two types of shares: ordinary and preferred. The former give votes at the shareholders' meeting, the latter provide their owners with higher income, since they involve the payment of either a fixed amount or a strictly defined percentage of the profit.
Bonds. These securities are debt obligations. Essentially, the issuer (the person issuing securities) borrows money from you for a certain period, after which it undertakes to buy back its bonds from you, usually with a certain fixed income. Bonds are also perpetual and with periodic coupon (income) payments throughout the life of the debt obligation.
The advantage of this type of securities is that you are guaranteed to receive a certain return. The risk is limited only by the solvency of the issuer. That is, if the state or company does not decide to declare itself bankrupt, the money you paid will definitely return to you, and at the same time the income established by the issuer. It should be noted that bond yields depend on the degree of risk, but they are usually low.
Now let's discuss derivatives - derivative financial instruments. These are securities on securities or on goods. Unclear? Now let's look at everything in more detail, and you will understand.
Futures. These are contracts for the purchase or sale of certain assets. They indicate the quantity of goods, currency, shares or bonds, delivery time and price. When the contract expires, either the actual delivery of the asset or cash settlements take place. That is, you do not have to pick up the goods themselves; you can receive monetary compensation.
The essence of operations with futures is to buy a contract with a lower strike price, and sell it when the market price of the underlying asset, and with it the contract itself, increases significantly. For example, you bought Brent oil futures with a strike price of $28 per barrel, and after a couple of months it rose to $35. We sell the contract and take profit. By the way, oil futures are one of the most popular instruments for investors.
The advantage of futures is that the value of the contracts is much lower than the value of the underlying assets. This allows you to get by with a smaller initial investment and get more passive income than, say, from investing directly in stocks. Meanwhile, losses in the event of changes in prices for the underlying asset not in your favor will be higher.
CFD. This is another contract, but this time not for the delivery of the underlying asset, but for changing its price. One side bets on an increase in quotes, the other on a decrease. When the contract matures, one party pays the other the difference between the current value of the underlying asset and its price at the time the contract was concluded.
For example, when a CFD was concluded, the cost of the underlying asset (stocks, commodities, bonds, etc.) was $100. You bet on an increase. Now, if the underlying asset is worth $110 when the contract matures, the other party will have to pay you $10.
The list of existing securities, of course, is much wider, but I have listed the most popular types of assets, and this is quite enough for everyone who is interested in how to receive passive income from investing in securities.

How much will you earn on securities?

Let's start with bonds. The profitability, frankly speaking, is modest. For example, on Gazprom's medium-term ruble bonds currently in circulation, the annual yield is only 7.55%. For some VTB 24 bonds with a par value of 1000 rubles, the income is 9% per annum with payments 4 times a year. A little better, but the problem is the same as with bank deposits - your passive income will not cover even inflation.
Now on to the shares. As an example, I will take one of the most profitable stocks in the world at the moment - Apple securities. The cost of one share of the company in April 2016 reached $108. Dividends for 2015 were 47 cents per share. You understand, it’s not a lot, at least if you don’t have several million dollars to invest.
In fact, dividends are never big. The main profit comes from rising quotes.

So, 6 years ago, that is, at the beginning of 2010, the cost of an “apple” share was only about $28. Thus, during this period, the company’s shareholders received a passive income of 285%, not counting dividends. The average annual return was more than 47%. Not weak, right?!
But I emphasize once again that Apple shares are one of the most successful examples on the market. Most corporate securities, unfortunately, cannot boast of such indicators. Moreover, there is always high risk a significant drop in quotes, and it is not always possible to predict it accurately enough.
The profitability of futures and CFDs depends directly on you and your skills in forecasting changes in the rates of underlying assets. So it makes no sense to give specific numbers here. Let me just say that successful derivatives traders earn very, very impressive capital.

How to buy stocks and bonds?

Some securities can be purchased directly from the issuer. In other cases, you will have to turn to the services of professional market participants - brokers.
All companies establish their minimum size initial investment. Most brokers won't lift a finger if you come in with less than $50,000, but you can find companies with entry fees starting at $200. True, with such a modest amount you can’t really go wild, and you can’t count on big profits from a long-term investment of a couple of hundred dollars in securities.
Although you can start with this, I would recommend getting into binary options with a small capital. This tool allows you to work with both stocks and bonds, but the investment required is many times less than if you were buying securities, and the profitability is many times higher. In order not to be unfounded, I publish on my transactions.
When choosing a broker, it is very important to check its reliability, quality of technical support, and most importantly, inquire about the amount of commissions for transactions, deposits and withdrawals of funds.

Just the truth: can you make money on securities?

For a private investor, the easiest way to invest in securities is to buy and forget for several years while income accumulates. This is strategic investing. The problem is that for a long-term investment of capital in science, you need to look for a “safe haven”, and there is currently no such place anywhere in the world. Thus, in the early days of 2016, we could observe the largest collapse of the Dow Jones index since the Great Depression. And, by the way, this index takes into account the prices of shares of the 30 largest US companies, such as Coca-Cola, Boeing, General Electric, Intel Corp., Nike, etc. So investors received a gift for New Year multi-billion dollar losses.
One might, of course, think that the range of securities is not limited to American companies. But in other countries the situation is no better. In particular, on the same days when the Dow Jones suddenly fell ill, its Chinese comrade, the Shanghai Composite stock exchange index, collapsed even more.
So, “safe havens” for capital on stock market today actually not. True, you can try to identify the money in shares of “new economy” companies. These include payment systems, search engines, social networks, software developers, and device manufacturers.
If you absolutely do not understand anything about all this and are not too eager to constantly monitor economic and political news, it is easier to transfer the money to trust management. Brokers and management companies offer different investment strategies, provide diversification of the package and its adjustment depending on the market situation. Of course, for all this happiness you will have to pay a commission, but this is easier than delving into all the jungle of strategic analysis of the stock market yourself.

Mutual investment funds.

This is an alternative to direct trust management of your money in a personal account. We are talking about collective investment here. The fund sells its shares, thereby forming the total investment capital. This money is invested in assets: stocks, bonds, real estate, etc. The fund's natural goal is to extract as much profit as possible from these investments. Income is divided among shareholders in accordance with the number of shares.
The main advantage of mutual funds is the ability to invest in expensive assets with a small amount. For example, you have 30,000 rubles. With this money you can buy only 4 shares of Apple. It seems good, but the risks are extremely high - remember, we talked about diversification. You can go another way: buy 3 shares worth 10,000 rubles each, choosing a mutual fund with a strategy of investing in “new economy” companies. Ours will be there too favorite Apple, and Facebook, and Microsoft and many more interesting things. Of course, having lower-yielding securities in your portfolio will reduce your overall return. But, at the same time, risks will also be reduced, many times over, and we must always strive for a reasonable balance of risks and profitability.

Method: 5. Passive income from your own business!

I think there is no point in talking about how much a successful entrepreneur can earn, given that everyone knows the clearest examples: Jobs, Gates, Branson, or personally my idol Elon Musk. The only question is how to turn a business from an active income, when you spend days and nights in the office or travel around cities and villages visiting representative offices of your company, into a passive income business.
In general, there is no great science here. First, you need to clearly formulate the company's mission, core values ​​and strategy. Secondly, it is necessary to adopt a process approach to the internal organization of the enterprise. That is, all the work of the company should be divided into separate simple processes and written in the form job descriptions for each employee. Such a system involves the creation control points, the verification of which is sufficient to monitor the company’s activities and its results. In this way, you will be able to manage your company with minimal time investment. She herself will work like a clock. All you have to do is course correct.
When the company has already been built and brought to cruising speed, there is no need to manage it yourself. You can hire a CEO (Chief Executive Officer) and shift the burden of leadership onto him.
Of course, such methods of passive income involve one pressing problem - the question of finding initial capital arises. I outlined my thoughts on this topic in the article:

How to create a business empire through franchising?

Imagine you have created a company. Successful. Effective. Profitable. But I want more. Give up the dream of transferring your business to passive mode, and at the same time giving up your dolce vita for profit from an autonomously operating company? Roll up your sleeves again and take on the development of the enterprise, expanding its presence in other regions? To do this, you will have to spend months on business trips, increase your administrative resources, and with it, by the way, costs will also increase. In addition, the problem of raising money to expand the business will arise. You can use my modest recommendations: . However, for the full-scale development of the company, it is unlikely that it will be possible to do without borrowed funds.
This path has a much more profitable and simpler alternative - franchising. Its essence is that you sell your ready-made business model along with the right to use all technologies, brand, and documentation templates to other entrepreneurs. They, in turn, open representative offices of your company in the regions at their own expense.
This solves three problems at once. Firstly, franchise buyers invest in the expansion of the company. Secondly, they also provide management of enterprise divisions without the need for strict centralization and constant control from the center. Thirdly, unlike hired managers, franchisees treat the company's division as their own business. He has a personal interest in achieving maximum efficiency and profitability of the enterprise. As a result, there is no need to inflate the management staff to control the work of regional divisions and rack your brains over methods of stimulating managers.
What do you get? Firstly, the franchise buyer pays an immediate lump sum fee. Secondly, you will receive royalties from the profits of all branches - this will be your passive income. The parent company requires precise step-by-step instructions for opening a company, technology for creating a product and sales, a marketing strategy, in a word, everything that you should have done in the process of creating your enterprise. Additionally, you only need to organize a small department that will promote the franchise, interact with potential buyers, as well as advise them and help them solve problems.
How to create a passive income business through franchising is approximately clear. The question remains - how much will you earn? It is hardly possible to estimate the potential profitability of the network. It all depends on the quality of the business model and development strategy. But as a sample, I will list several well-known brands, the development of which is carried out using this technology: KFC, Subway, Traveler’s, 2GIS, Yves Rocher, Well, Expedition, Sbarro.
Now a more specific example in numbers. The lump sum fee for purchasing a Subway franchise is 600,000 rubles. Monthly payment to the franchisor (royalty) - 8% of revenue plus 1.5% of turnover as an advertising fee. The turnover of one point varies between 5-9.5 million rubles, and the total network in Russia is 673. Thus, the total income from the entire network is more than 390 million rubles, excluding advertising fees.

MLM. Is it possible to create passive income through network marketing?

About 20% of American millionaires made their fortune through network marketing. Here is the answer to the question about the possibility of making money on MLM. I think I should use it today this model building a business has become even easier than 10-15 years ago. This is due to the relative simplicity and availability of tools that allow you to quickly develop a network of partners via the Internet.
Network marketing, in fact, is one of the options for business development strategy. The same franchise, only simpler and much more accessible to partners. This option is suitable for products that do not require stock to be sold. point of sale or office.
Yes, for many such examples of passive income cause some irony. But this is rather due to the somewhat intrusive and even clumsy nature of the work of distributors. In fact, the model is quite working. Without significant investments, you get a product that you can sell without organizing a point of sale, recruiting staff and other difficulties. You just make each of your regular customers a partner, he continues to buy products himself and sell them to his friends, and for this you receive income without the slightest movement.
MLM has enough advantages:
Minimum initial investment. In most cases, you can get by with $200-300. That is, your risks are limited only by this amount.
There is no paperwork, and, therefore, there is no need to spend money on the services of a lawyer, accountant, etc.
There is no need to master the intricacies of the art of personnel management. In fact, you have many people from whose purchases and sales you generate income. Moreover, they all act independently without additional motivation, as is the case with a franchise.
No hassle with the tax service, numerous inspections by regulatory authorities, economic disputes with counterparties, etc.
You can create an extensive multi-level structure in literally 2-4 years, and then it will, at least for several years, generate impressive passive income without much effort.
Of course, a lot depends on the choice of brand. For example, I don’t see the point in joining such painfully familiar structures as Avon, Amway or Herbalife. It seems better to bet on a brand that has been promoted abroad, but is new to the Russian market. This way you will have a better chance of creating a large pyramid of partners.

Method number 6. Don’t know how to create your own business? Make money on someone else's!

We have looked at almost all the examples of passive income that I wanted to discuss in this material. The last one left is investing in someone else’s business. It would probably be more correct to call this investing in venture capital, that is, high-risk enterprises, since we have already touched upon investing in shares and bonds of developed, stable companies above.
The idea here is to find a promising startup, help it with money in exchange for shares and either regularly receive some share of the enterprise's profits, or wait until its securities increase in price many times over and sell them. There are plenty of examples of successful investments in venture capital companies. Of course, the most famous are large investors. Thus, Jim Goetz turned $60 million into $3 billion by investing in WatsApp. Douglas Lyon made a fortune of $2.2 billion from Google, YouTube, WatsApp. Peter Thiel earned roughly the same amount from PayPal and Facebook.
All these respected people, as you understand, “graze” in Silicon Valley, where you go with your $1000 and they will drive you out like a beggar. However, this does not mean that you cannot, with a small amount of money, join the ranks of venture investors.

How to become a venture investor?

Try on the role of a business angel. In my opinion, for a non-professional investor with a small capital, it is better to choose other methods of passive income, since this option is the least profitable and at the same time extremely risky. The bottom line is that you find budding entrepreneurs among your friends or just online and provide them with financing. The chances of success are extremely low, unless you yourself are an experienced businessman and are ready to take part in the project.
Crowdfunding platforms. Angellist and StartTrack and other platforms allow you to invest a relatively small amount in several startups at once, and transactions are carried out through special service online. An additional advantage is the ability to focus on the decisions of other investors, including professional ones, when choosing projects.
Syndicated deals. These are joint operations of groups of investors existing on the same crowdfunding platforms or investment funds. This approach allows you to invest capital together with professional players and gain access to higher quality and promising projects. The disadvantage of syndicates is the commission for related services.
Venture funds. If you don't already have, say, $1 million, then this option won't suit you. But we are working for the future, right? So this method is worth considering. It’s good because you don’t need to understand existing projects and personally select startups - professionals do everything for you. You are only required to transfer money to the fund for 5-7 years.
When considering venture investments as passive income, keep in mind that to ensure an acceptable level of risks, you need to distribute capital between at least 10 projects. At the same time, it is necessary to select only high-quality startups. To do this, follow competitions for venture projects, and also read articles in the media with selections of promising companies.

Passive income. How it works?

Each of us has a basic set of resources: time, physical strength, the ability to perform simple tasks. Many can also boast of a good education, experience in some field and simply a smart head, which in itself is not as common as we would like. So the difference between a dollar millionaire and an ordinary hard worker who lives from paycheck to paycheck is how they manage these resources.
An employee, the vast majority of whom, essentially makes a direct exchange of their time for money. Moreover, the cost of each hour or day directly depends on the value of his skills, knowledge, experience, and productivity. And this is called active income. Rich people, in turn, directly or indirectly invest available resources in the creation of assets - values ​​that can generate income without further investment of the owner's resources. Therefore, passive income is also called residual income from the Latin word residuus - remaining, preserved. The work has already ended, but the profit remains indefinitely.

Why does this method of extracting financial benefits bring many times over? more money than ordinary hired labor? It's simple: you can create a package of assets, the total value of which for the market will be hundreds of times higher than the value of your personal time with all the skills and knowledge combined.

3 types of sources of residual income!

What can act as assets? I have already given specific options for passive income above, but now I will try to explain the essence. So, I would divide all assets into three categories:
The first type is things that become more expensive on their own. That is, receiving passive income or other currency is earning money from the difference between the price you paid when purchasing the property and its value, say, in a year or simply by the time you decide to sell this property. For example, you bought shares at $15 per share, and after 5 years they are already worth $115. The total return is 766%. This is a brilliant result, I tell you.
In the second group I would include property that can be sold an unlimited number of times. An example is a patent for an invention. You can sell the right to use your invention to multiple companies during the life of the patent. At the same time, you worked only once - when you created your invention. And it can bring stable passive income for decades.
The third category is assets that themselves create new value, and you receive income from its sale. Any company can serve as an example. Once created successful business, you can retire, but the activity of the enterprise itself will not stop. It will continue to produce goods or provide services, make a profit from their sale, and part of it will happily end up in your fattening pockets.
I would like to note that this is not a free retelling of some scientific classification, but my own view of the types of passive income. And I’m telling you all this so that you understand general principles formation of assets and were able to find and choose for themselves the most convenient and interesting methods of creating sources of residual income, not limiting themselves only to my or someone else’s advice. In the end, you have to do something that you really enjoy, otherwise you won’t be able to achieve truly great success.

What's stopping you from creating passive income?

Sorry, but now I'm going to be smart. Or rather, demonstrate your modest knowledge of economic theory.
In the interpretation of the Austrian school of economics, capital is defined as resources that we do not consume right now, but use them in order to obtain a higher level of consumption later, in the future. And profit, in turn, is a payment for the risk of losing these same resources, as well as for the fact that you will have to be patient a little and postpone the moment of consumption until later.
Actually, these definitions contain four main problems that prevent you from creating residual income.
Problem #1. We absolutely do not want to endure and postpone the sweet moment of consumption for the future. We want to eat, drink, use everything right now. Life, in fact, constantly offers you a choice: grab one dubious-looking caramel right away or wait a week and get a whole box of delicious chocolates. So what do you usually choose? There will be no hints here - answer yourself, only honestly.
Problem #2. Poor time management. Instead of correctly scheduling and investing part of the time in our assets, that is, future consumption, we either give this time to our uncle, for whom we work overtime and on weekends for a “thank you”, and often without any thanks, or we bring precious hours and days as a sacrifice to the gods of the Sofa and TV. There is only one way to overcome this problem - time management. It must be said that time management is a whole science, although it is easy to understand. I advise you to read books on this topic by a recognized guru in this area, Brian Tracy.
Problem #3. Poor financial management. Remember Matroskin’s phrase: “To sell something unnecessary, you must first buy something unnecessary. But we have no money!” Here comes the third problem of creating residual income. For this you need at least a small capital, but where can you get it? I have already outlined some of my thoughts on this topic in the article. In general, you need to learn to plan your budget and save. Just make it a rule to save, say, 10% of all your income every month, and no matter what happens, stick to this principle.

This rule is directly related to the third problem of residual income, that is, risks, and is expressed in just one word - diversification. The essence of this approach is to distribute your capital across several assets with different levels of risk. For example, you can build a portfolio of stocks, bonds and precious metals.
Why is this necessary? – This is how we achieve risk minimization. For example, if you invest all your money in shares of a promising young company, then there is an extremely high probability of losing all your capital if the company does not live up to expectations. But you can do it differently. Part of the money goes into high-risk securities. Another part is in gold. The risks here are much lower and in the long term the yellow metal shows stable and very decent growth. And finally, put another part of the money into bonds, which have a small but fixed amount.
Having such a portfolio, on the one hand, you provide yourself with the opportunity to receive high and stable passive income from shares. On the other hand, you protect yourself from a complete loss of capital with bonds and gold. Thirdly, at least part of the invested funds will certainly bring some return, which will compensate for potential losses from loss or fall in the price of other assets.

What passive income options did I choose?

You can learn about my entrepreneurial story from this little autobiography: . In short, I have already built my own business, and it is this that serves as my main source of passive income. But, since marking time is not good for a real entrepreneur, I, firstly, planned to expand my company, and secondly, I mastered a new way to increase my capital - trading on the binary options exchange.
This option is not entirely suitable for receiving passive income itself, since it involves personal participation trader in each transaction. However, I will still say a word about it, because, in my opinion, binary options have several advantages over each of the above methods of making money:
Low entry ticket price. In contrast to the minimum required costs for creating your own business or a diversified portfolio of stocks and bonds, $300-500 is enough to start working with binary options. Of course, to ensure good returns and minimize risks, it is better to allocate a slightly larger amount.
High returns, many times higher than inflation. Profit from speculation with binary options can reach or even exceed 100% per month of the initial capital. None of the above methods brings such income.
Anyone can master working with binary options and achieve consistently high profits in 1-2 months.
However, it should immediately upset lovers of freebies - it is not here. It will not be possible to do without preliminary study and quite a lot of painstaking work at the very beginning. You can learn more about how to get started from this article:. But then you can make several profitable trades a day quite easily, spending a total of not more than an hour. Here is one example of my transactions:

I hope my recommendations on creating passive income will help you decide on ways to develop your personal financial empire and avoid common mistakes. I wish you good luck and all the best.
Sincerely, .