Build a $4,600 Monthly Passive Income Stream in Under a Year in 4 Steps

Passive income comes in different flavors, from investments that generate regular payments to low-maintenance small businesses. What they have in common is that you can make money without actively working. The idea is that once you’ve done the groundwork, it will take minimal effort to maintain.

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The challenge is that you have to invest money, time, or both to get your income streams up and running. That might mean buying income-generating assets or setting up a passive income business. This article discusses how to build a popular passive income enterprise: a print-on-demand business.

Figures vary, but according to Gelato, the average print-on-demand business makes over $4,600 per year. Other studies suggest you can make between $1,000 and $5,000 once you’ve gained traction.

If you’re making that kind of money, it’s important to use a business bank account to separate your personal and business spending. Check out our list of the top bank accounts for small businesses to find one that works for you.

Every money-making enterprise starts with idea generation. In this case, you’ll need to think about designs and products that people may want to buy. Try to find a theme that fits with your own passions and interests. That might be jokes, pets, cartoons, hobbies, or even your work.

You can also look online for ideas, see what’s trending on social media, and talk to friends and family. It’s important not to copy other people, but you can riff off what others are selling — perhaps you’ll find a successful idea and see a way to do it better. Or maybe you can reimagine it to reach an untapped market that you’re closely familiar with.

Once you’ve narrowed down a theme, you can start to develop your product range. Look into specific products such as T-shirts, mugs, or tote bags and consider what will work best for your market.

With print-on-demand services, your products are only created when someone orders them. That gives you a lot of creative freedom because you won’t get stuck with a warehouse of unsellable items.

Print-on-demand services don’t require huge amounts of time or money at the start. Even so, it’s important to do some groundwork to give your idea the best chance of success. Planning will help minimize the amount of time you put in and maximize the money you make.

Here are some things to consider:

• Map out your costs and potential earnings. Make a budget that includes any start-up and ongoing costs.

• Learn more about your customers, particularly how broad your customer base might be and how to reach them.

• Compare print-on-demand services to pick the right one for you. Look at quality, prices, and service.

• Look at the strengths and weaknesses of your competitors. Think about how you can differentiate yourself.

• Ensure none of your designs or slogans are under copyright.

• Decide how you’re going to sell — you can build your own website or use an existing store.

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