Tuesday, August 16, 2011

Two of the Best Ways to Make $600 in Passive Income Per Month

Here is a game plan to invest $5,000 that will give you at least 10% return on your money in a matter of weeks. My goal with this article is to show you how you can make a passive income of $500 (or more) in one month or less. Here we go, let's do this!

Passive income idea 1 Take $2,500 and buy two websites (that are already making money) from FLIPPA.

Most of the websites listed for sale can be sorted by earnings and price. Look for a websites that are making $150 or more per month OR that have a high amount of traffic coming in. If the website has a high amount of traffic, but no ads, you can place ads on your site for free or sell affiliate products. This should definitely give your earnings a boost.

But, trust me....if a site is listed for $2,000 or more it is going to have some decent traffic. Join some forums and further promote the site and it's products. Use some SEO strategies and bring even more visitors to the site. You should be able to make at least one affiliate sale in addition to the $300 you are already making. Let's say (conservatively speaking you sell one affiliate product at $90 and receive $60 commission. Your total income from this strategy is $360. You will be more than halfway there.

Note I just looked at Flippa's listings and they have one site listed for $1125 that is making $950 per month!!

Passive income idea 2 Take $2000 and buy a stock option credit spread with one month left to expiration

Buying a stock option spread greatly reduces the amount of money you need to invest when compared to buying that same stock straight out. (I used option spread trading to turn $239 into $1350 in six months so it works, trust me).

Use some technical analysis (fundamental analysis is not a big deal here, because this is a short term income strategy) to figure out if the stock is in an uptrend, flat, or in a downtrend. I will give you a hint...look for trend lines.

Once you determine the direction of a particular stock, do a Bull credit spread (if stock is going up) or a bear credit spread (if stock is going down) on that stock. The beauty about credit spreads is that you get your money upfront and all you have to do is wait for the stock options to expire worthless. If you time this right you should be able to set up a position that would give you about a 30% return with relatively low risk. Your 30% target return with this strategy would be $600.

Combine both passive income strategies and you have just added (at least) $960 in passive income to your life. Ok, I guess i told a bit of a lie...it's not 10% like we initially planned. It's more like a disappointing 20% ha ha.