Goods and services are getting expensive and not affordable as compared with a few years back.

By relying only on active income generated from our typical 9 to 5 job, it’s almost impossible for us to achieve our desired lifestyle.

Hence, people started looking for ways to make passive income so that they can cover their expenses.

In this article, I’ll be sharing some of the best passive income ideas you can find in 2020:

1. Amazon Kindle Direct Publishing

Amazon Kindle Publishing is one of the famous passive income ideas which is still trending worldwide.

Earning Passive Income From Amazon Kindle Direct Publishing

How to Make Passive Income through Amazon Kindle Direct Publishing?

To earn passive income through Amazon Kindle Direct Publishing (Amazon KDP), you have to write and sell an eBook on Amazon.

Whenever someone purchase any of your eBooks from Amazon, you’ll earn a royalty from Amazon KDP even if you’ve stop writing and selling eBooks.

The royalties earned from Amazon KDP is a passive income.

This Passive Income Idea is for:-

Amazon Kindle Publishing is suitable for people that does not expect to see results overnight.

If you’re interested in earning passive income through Amazon Kindle Publishing but do not have much experience, you can learn more from one of my content:-

Step-by-step guide to make passive income with Amazon Kindle Publishing.

Level of Difficulty

Among all passive income ideas, this is considered as one of the hardest approach to see actual results.

You have to be equipped with little knowledge on digital marketing in order to have a higher chance on succeeding.

This is because you would need to make sure that there are people buying your eBooks every month or else you will not be earning any passive income at all.

Hence, I’ve created an article on 10 Proven Ways to Promote your eBook Effectively.

This will help you to have a better understanding on how you can promote your eBooks and get more people to buy your eBooks.

Initial Investment Required

If you’re planning to write and design the entire book by yourself, the only cost you’ll have is the amount of time spent to create the eBook.

This means that you’ll earn a 100% profit margin for all your eBooks sold.

On the other hand, you might need to spend some money if you’re planning to outsource most of the work. Still, the cost is considerably low as compared with others.

From my experience, the initial investment required for Amazon Kindle Publishing would be approximately $25 – $40 per eBook if you hire a freelance at Fiverr.

How Much Passive Income Can I Earn from Amazon Kindle Publishing?

Usually an eBook with approximately 10,000 words is able to sell well at the price range of $1 to $10.

The more eBooks you sell, the more you’ll earn.

There are many Amazon Kindle Publishers that had successfully made more than $1,000 in passive income per month by selling eBook on Amazon.

If you’re interested, you can learn more on one of my articles – Step-by-step Guide to Make Passive Income with Amazon Kindle Direct Publishing.

2. Dividend Investing

Dividend Investing is another passive income opportunity that is not likely to go wrong. It is one of the passive income sources that does not require much effort to get started.

Earning Passive Income Through Dividend Investing

How to Earn Passive Income through Dividend Investing?

To invest, you need to have a brokerage account from a trusted bank and look for a financially stable company that gives a high dividend yield.

When you own shares of a company, you’ll earn passive income every time the company distributes dividend for their shareholders.

To learn more on domain investing, you can refer to – Step-by-Step Guide in Making Money Online Through Dividend Investing.

This Passive Income Idea is for:-

Looking for a way to earn passive income with minimum effort? This is the one for you.

Dividend Investing is suitable for anyone that is good at managing their finance and have some basic knowledge on investing.

If you’re new to investing, this may be a risky option for you to make passive income as you may end up losing money rather than making money.

If you’re interested in exploring more on investment, I’ve created an article on what you need to know about investment as a beginner.

Level of Difficulty

In Dividend Investing, you have to conduct detailed financial research on the company before you can invest to prevent unnecessary lost.

It involves understanding their financial performance, business model, calculating a company’s intrinsic value and much more.

To be successful in making passive income through dividend investing, you have to have a basic knowledge on how to perform these tasks.

If you do not have any idea how to do so, this may be slightly difficult for you.

How Much Passive Income Can I Earn from Dividend Investing?

The answer is simple. The more you invest, the more passive income you’ll get. Here’s an example:-

Scenario 1
You invested $10,000 with a dividend yield of 6%.

Each month, you invest additional $10,000. By the end of the year, your portfolio value had increased to $100,000.

With the same dividend yield of 6%, you’ll earn $500 passive income per month.

Scenario 2
You invested $10,000 with a dividend yield of 6%.

After that day, you did not do any further investments. By the end of the year, your portfolio value had remained the same.

If your dividend yield increased to 7%, you’re earning around $58 passive income per month.

Nevertheless, if you’re serious in making passive income through dividend investing, follow this step-by-step guide in making money through domain investing and get started right away!

3. Create Video Content on YouTube

In 2020, there will be more people starting to create videos on YouTube and here’s why you should too!

YouTube is well known platform for probably anyone to create video content on YouTube and make money online. The cool thing is, the money your making is passive income.

How to Generate Passive Income through YouTube?

When someone sees an advertisement on one of your videos, YouTube will pay you a certain amount of money in return.

When someone views an advertisement from a video you created 10 years ago, you’ll still get paid.

This Passive Income Idea is for:-

If you don’t mind showing your face or voice to the public, this is a good option for you to explore.

I believe anyone is suitable to make videos on YouTube and earn money online in return.

There are even kids having more than 1 Million Subscribers in YouTube. If they can do so, I believe we can do it as well.

All we need is patience, determination, and consistency in creating videos and publish them on YouTube.

Level of Difficulty

The difficult part of this passive income source is that you have to be consistent in publishing videos on YouTube every week.

You have to stay motivated and create more videos even though there’s nobody watching your video.

It takes time to start seeing results so you have to be patient and not get discouraged easily.

How Much Passive Income Can I Earn from YouTube?

According to Influencer MarketingHub, you’ll earn $4.18 on average for every 1,000 advertisement views shown in your video.

Let’s say you have 1,000,000 views in total on all your videos each month, you’ll be earning around $4,180 by the end of the month.

Imagine you have 3,000,000 views each month, you’ll be earning around $12,540 passive income this month.

Now here comes the question, how can you get 3,000,000 views or just 1,000,000 each month?

Follow these 10 Simple Steps on Getting More Views for your YouTube Video and you’ll start seeing results as the months passed.

Key Takeaways

In brief, we discussed that we can make passive income through selling an eBook on Amazon Kindle Direct Publishing, dividend investing, as well as creating videos on YouTube.

Unfortunately, not all approaches suits us. We need to choose for the one that is ideal for us so that we could have a higher chance of succeeding.

In hope you’ve learn something from this article. For more amazing contents, you can click here to learn more.