Humphrey Yang: 9 Ways You Can Earn Passive Income
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Ashley Donohoe
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Maria Concepcion
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Besides working jobs, you can increase your earnings potential and build wealth through passive income sources. While you’ll usually need to do some work upfront, you could earn cash in the background with less hands-on effort than regular jobs. In a YouTube video, financial expert Humphrey Yang went over these nine passive income ideas worth considering.
1. Investing in Stocks
One easy, scalable option is putting cash in stocks to get dividend income and benefit from potential gains. Yang said you could get an 8% average return by holding investments for the long run. However, he cautioned there’s a risk of loss and suggested index funds as a diversified option.
2. Investing in Real Estate Investment Trusts (REITs)
Investing in a REIT is appealing since it doesn’t require the expenses and work involved with managing a rental property. Yang discussed how you can get dividends based on the rental income generated and potentially benefit from appreciating the REIT’s properties. For diversification, you could consider REIT exchange-traded funds.
3. Being an Affiliate Marketer
If you partner with brands online or locally, you could earn commission income as an affiliate marketer. You might post affiliate links on your blog, YouTube channel or social media platforms to increase sales. Yang emphasized this option requires knowing how to get traffic.
4. Starting a Membership Community
You could charge a monthly fee for access to special content, your expertise or group discussions. Yang explained that a membership community is especially suitable for those with an existing online following. You should also consider that running the community requires hands-on work.
5. Having a YouTube Channel
If you meet YouTube’s subscriber and views requirements, you could profit from ad revenue with your videos. Eventually, even very old videos can bring in money. However, Yang cautioned, “Most experts recommend that you post at least once a week for one to two years before expecting any income, and that can be a tough pill to swallow for many people.”
6. Writing Content
If you create content for Medium, you can earn income from page views. Another option is setting up a Substack email list for which you charge. Either way, Yang said you’ll need good writing skills and a willingness to work.
7. Selling Digital Products
Offering Udemy courses, selling e-books on Amazon or putting digital art on Etsy are all options for earning cash on digital products. You’ll just need to consider competition and prepare for some hands-on work. But Yang highlighted this can be very scalable with a big customer base.
8. Renting Out Your Car on Turo.com
Similar to an Airbnb for cars, Turo lets you earn income by lending your vehicle to others. Most of your work would be handing over the rental and monitoring the car’s condition. One drawback Yang mentioned was the lack of scalability without additional cars.
9. Staking Your Crypto
It’s possible to earn interest by locking up your crypto on a platform like Coinbase. Yang highlighted how this is a very hands-off and scalable passive income option. The drawback is that cryptocurrency has several risks.
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