What is Passive Income?
Passive income is the income you generate by putting in efforts in the beginning while enjoying its benefits later. It isn’t the money you earn by doing nothing. However, it does give you an opportunity to earn while you are sleeping because you have done the initial work. One common example can be writing a book and publishing it while earning royalties for the number of copies sold.
Why Passive Income?
If you think the job you have is enough for you to sustain your livelihood, then you’re probably living a delusional life. The global pandemic has clearly shown us how uncertain the future is and how we could lose our jobs at any moment. As per Statistica, unemployment in Nepal spiked up from 2.85 percent in 2019 to 4.44 percent in 2020 after the spread of the Novel Coronavirus. Hence, this highlights the importance of having more than one source of income. You can always start a side hustle, but given the amount of time and effort you’ll need to dedicate towards it, opting for passive income could be the best option. Earning passive income does not mean zero work. However, it does mean regular earnings with minimal efforts from your side.
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5 Ways to Earn Passive Income in Nepal
Rental income has to be the most prominent and traditional way of earning passive income in Nepal. However, there are more areas to explore, and it is up to you to select the ones that work best for you. We have five ways you can earn passive income, which you do not want to miss out on.
The biggest learning from Robert Kiyosaki’s investment journey, as he states, is “Don’t work for money, let money work for you.” When you invest, your money is at work, generating more money for you. The simplest way to earn passive income, which has garnered a lot of attention in Nepal, is the share market. The number of people opening Demat accounts and filling in IPOs is increasing in numbers which is considerable since there’s no one who’d like to miss out turning a thousand rupee into a couple of thousands more.
While this seems more to do with someone’s luck, there are other ways to earn passive income from the stock market. If you’re someone who lacks knowledge and does not have even a little time to spare but would like to make yourself some extra money, you can invest in mutual fund schemes that are managed by financial professionals who will invest on your behalf.
Similarly, investing in dividend stocks will generate dividend payments periodically, which can be re-invested or used when needed. Moreover, the liquidity is high, and you can sell the stocks whenever you wish to. If tied liquidity is not a problem, you could always purchase bonds and enjoy interest payments.
2) Create and Sell an Online Course
If you possess relevant knowledge and skills in a particular area (E.g., designing, finance, excel, etc.), you now have an opportunity to earn money by sharing your expertise. One such platform in Nepal is ‘Sikumna’, which connects learners and tutors, where instructors can record a video tutorial course and upload it on the platform, and learners can get quality skill-based knowledge at an affordable rate. It allows you to register as a tutor, invest for once and earn for a lifetime. All you have to do is create an online course, upload it, and you’ll start earning money as students sign up for your course. Do not forget to go through the terms and conditions available on their website.
3) Start a YouTube Channel
This is perhaps something you are already familiar with or might have considered starting. If you think you can create good content and be consistent, starting a YouTube channel can help you create some good money. One of the minimum eligibility requirements to monetize your content is to have more than 1000 subscribers and more than 4000 hours of watch time over a period of 12 months on your YouTube channel.
After you’ve joined the YouTube Partner Program (YPP), which is mandatory for monetization, you can make money from the views you get along with the ads displayed on your videos. Traffic on your older videos can keep on generating revenue for you. You can also earn through affiliate marketing by promoting products of affiliate organizations on your YouTube channel, which is explained in point number four.
One crucial aspect to focus on is YouTube’s policies. We’ve probably come across YouTubers who’ve had to close their YouTube channels because they did not abide by the monetization policies, which is why we’d like you to emphasize going through these policies before starting your YouTube journey.
4) Affiliate Marketing
Affiliate marketing involves promoting third-party’s products that lead you to earn commissions. Your bank account gets credited for each sale you make, which is an excellent way of earning passive income. There are organizations that provide affiliate programs in Nepal. Some of them being Daraz, Sastodeal, Clothing in Nepal, Durbar Mart, among others. After becoming a part of these programs, you can place their product links on your content, and sales made through clicks on those links will earn you an affiliate commission. The standard commission rate is 5% in Clothing in Nepal, and you can earn up to $10 for every purchase made through you in Daraz. The best part is that you’re not charged any fee to become a part of these programs. All you need to do is sign up.
How to get started? To become an affiliate marketer, you’ll need a customer base or audience whom you can influence. So, a great way to get started is to create a website and start blogging. Blogging is by far the most popular way to begin your affiliate marketing journey in Nepal. You give quality content to people, gain their trust and people are not afraid to try out your recommendations. If you’re worried about where to post your blogs, then a recommendation would be WordPress.com, where you can create a website to post your blogs. You could always watch some videos on YouTube before getting started. It does not have to be blogging only. Social media is another great platform to start your affiliate marketing journey.
5) Sell Graphics And Photos Online
If you’re interested in graphic designing and photography, you can use your skills to create a passive stream of income for yourself. There are platforms such as Shuttershock, Istock, Adobe Stock, etc. that let you upload your graphics, videos, and photographs and earn through them. Firstly, you’ll need to register and upload your images, after which you’ll get approval, and you can upload unlimited content on the respective platforms. You get paid every time someone purchases your photographs, which is why it is a passive source of income. It’s like killing two birds with one stone because you can turn your passion into an income-generating source.
One thing to be careful of is the standards. Make sure that the photographs you upload are sharp and have a high resolution, not blur. What you upload should surround the audience’s needs. This way you can make more sales. You can receive your payment through payment gateways like PayPal, Payoneer, and Skrill. However, you cannot make a PayPal account in Nepal. A solution to this problem would be to create an account by adding the details of your relatives residing in a country where PayPal is available. Whenever you receive a payment in the account, you can ask your relatives to send the equivalent sum to you.
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