With so many options and ideas online on how to make money passively, it can get confusing when it comes to which venture to take, especially when you want to spend as little as possible to be able to start your new endeavor. You may want to read different blogs and talk to different experts to ensure that you know what you’re doing.
This article compares e-commerce stores, Amazon’s Fulfillment by Amazon (FBA) program, and digital marketing techniques – three of the most popular ways right now in terms of earning passive income.
1. How soon do you want to make a significant amount of money?
- E-commerce – So far, building an online store that sells products and services is the fastest way to make money online. You may think that this is expensive, but there are actually ways that you can start your e-commerce site for less than $200. When you sell your own goods, you make more profit because you don’t have to pay commission to a third-party site. You need to be ready to sell your goods in your store, so profit comes in faster.
- Amazon FBA – There’s no doubt that Amazon can provide you with a wide audience because it is one of the biggest marketplaces globally. However, you need to make sure that your products sell, and you need to consider their fees before jumping into this platform. Compared with e-commerce stores, this can start out slower in terms of giving you revenue due to fees and the limited inventory you stock with them.
- Digital marketing – There are many ways that you can earn through digital marketing. Affiliate marketing, lead generation, and social media marketing can all provide you with passive income. There are now several ways to learn online, and you can check journalreview.org course cost for lead generation skills you may want to learn. Digital marketing needs hard work and skills, and it’s not going to get you rich overnight.
2. Do you want to run your business while you’re location independent?
- E-commerce – If you’re using a reliable drop shipper, then you can keep earning through your store regardless of where you are in the world. You only have to take orders and let your supplier do the fulfillment. However, if your business model isn’t drop-shipping, it may not be feasible to be location independent unless you’re providing services that you can fulfill wherever you are.
- Amazon FBA – Because orders are fulfilled by Amazon, you can be location independent. While you can spend your time jet-setting across the world, you still have to ensure that you can facilitate getting inventory to their warehouse in case your items run out.
- Digital marketing – Among the three, digital marketing is the most flexible in terms of location because your business is only on your computer. You can keep on earning regardless of where you are in the globe, and once you’ve set this up properly, you can earn even while you sleep.
3. Will your business be sustainable in the long term?
- E-commerce – If you are in control of most of your business, then this is something that can thrive in the long term. You need to take care of your branding and the following that you build so that you can continuously generate income passively. You also need to value customer service so you encourage repeat buyers.
- Amazon FBA – As long as your items continue to sell on the platform and you’re able to keep up with the fees which may increase from time to time, this is also a sustainable business. If you sell many kinds of items, make sure that you stock more of the fast-moving items, buy less of those that are not in demand, and stop buying more of those that are dormant items. You need to keep checking on seller updates from Amazon, too.
- Digital marketing – Depending on the income stream that you have, digital marketing methods can also be viable for the long term. If you’re doing affiliate marketing, it’s crucial that you are prepared when the company you’re promoting decides not to have an affiliate program anymore. If you have a lead generation website, it’s important to be up to date and look into venturing to other niches so that you can continue to earn passively. If you’re an expert on something, online courses can also generate substantial passive income.
There are a lot of opportunities to be able to earn a passive income. Whether it’s through an e-commerce store, Amazon FBA, or digital marketing techniques, it all depends on the business model that suits you. You have to consider the time that you can spend on the business as it operates, the risks, the investment, the skills that you need to learn, and the revenue that you’re going to make. Different individuals have different priorities, so depending on what you what to achieve, find a business that can cater to your needs. Who wouldn’t want to earn money passively, right?