The dream of many people is to be financially independent in the long term, in the best case to have little or no work for a steady income and to be able to use the time to pursue a passion professionally. Anyone who is familiar with online marketing, possibly already runs a blog, and has built a reach, can certainly build a passive income through affiliate programs. However, if you start from scratch, you should be aware that a lot of work and financial investments are required to generate passive income in the long term.
The dream of many people is to be financially independent in the long term, in the best case only to have to work little or not at all for a steady income and to be able to use the time to pursue a passion professionally. Accepting a job just to earn money - fewer and fewer people can imagine that. By Robert Steininger * If you deal with the topic of financial independence, sooner or later the topic of 'passive income' comes up. Passive income is about a regular income for which no or at least very little active work has to be done. Living exclusively on passive income is difficult.
An additional source of income can be built up well with it. We would like to give an overview of three different options. Securities like stocks and bonds are some of the most popular methods of building a passive income. Securities are, for example, stocks or ETF portfolios. Equity is invested in order to acquire shares in selected companies. If the value of the company increases, so does the value of the securities. Bonds follow a very similar concept. However, they are a type of loan that is given to companies by, among other things, private individuals. The difference to securities such as stocks is that bonds are borrowed capital. Bonds are also investors, but they are creditors.
Should a company file for bankruptcy, bond owners are at least slightly better off than shareholders. Because as a believer it is possible to get at least part of the investment back from the bankrupt estate. As a rule, shareholders do not get their money back. Depending on the strategy of the investments, buying bonds and securities can be associated with high risk. In principle, one can also say: the higher the risk, the higher the possible return. But even with less risk, lucrative profits can be achieved in the long term. Own blog & affiliate marketing entirely different possibility to build up a passive income is your own blog in combination with affiliate marketing.
So-called affiliate programs can generate permanent income for which you only have to work once. These are sponsored products or services that are posted on your own blog. With every click on the link and with every purchase, a commission is paid to the operator of the blog. Once a blog has enough reach to enter into affiliate partnerships, this option is quite lucrative. However, it is a long way to reach this level of reach and awareness. Comprehensive knowledge in online marketing and especially in search engine marketing is required here. Because the first step is to make a name for yourself with a blog. To do this, the right topic has to be found first. In the best-case scenario, it should be about a topic in which there is little or no competition.
So if you want to build a passive income with a fitness blog, for example, you should think it through carefully. Once a topic has been found, the second step is to generate visibility. This is where keyword search engine optimization, or SEO for short, comes into play. Your own blog should be optimized for search engines like Google. There are some measures, both on-page and off-page, that should be carried out. On-page measures include, for example, the creation of a clear page structure, clean links, and the mobile-optimized design of the page. The most important point, however, is optimizing the content. Google ranks its search results based on certain keywords, the relevance for the reader, and the user-friendliness of the content.
The topic of SEO is very extensive, which is why it can be helpful to organize professional support for this area. Anyone who is familiar with online marketing, possibly already runs a blog, and has built a reach, can certainly build a passive income through affiliate programs. However, if you start from scratch, you should be aware that a lot of work and financial investments are required to generate passive income in the long term. Real estate Another, much more conservative way of generating passive income is investing in real estate. The rented property ensures constant passive income over the long term, which is why this form of investment is one of the most popular.
However, when it comes to real estate, it quickly becomes clear that the financial investments upfront is comparatively high. Investors should expect six-figure amounts to build up a lucrative, passive income. In such a case, many people take out a loan and sometimes live in the property they have bought themselves in order to save costs and be able to pay off the loan. When the loan is finally paid off and the property is rented out, there is not much you can do wrong with this type of passive income. Nevertheless, you should regularly save money in order to be able to finance any repairs or renewals.