“Shark Tank” Star Daymond John is an expert on making great investments. With a net worth of around $350 million, it’s also no surprise that he’s excellent with passive income strategies.
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With personal wealth of that magnitude, it may seem like John’s side gigs and passive income streams are out of reach, but his strategies can work for anyone. Here are three ways you can learn from his philosophy to increase your cash flow with passive income ideas.
Just like former fellow “Shark Tank” shark Mark Cuban, John is no stranger to generating passive income. He doesn’t speak much about these strategies publicly, but you can learn from what he does.
John has written seven books. This might not sound like a passive income strategy because writing a book can be a lot of work, but now that they are finished, he’ll continue earning income from them for as long as people purchase them. After the upfront investment, online platforms and companies pay him to speak about the financial advice he has written about.
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You can write a book or e-book as well or focus on other types of content that are highly resellable. You’re probably an expert on something that you could write about for business or start an advisory blog. Write a guide about it. If successful, you could continue to make money off that guide without any additional work for years.
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John owns a massive estate in New York and makes other private real estate investments. This shows he believes in storing a significant amount of his wealth in the asset class.
You may not have the capital to acquire a full apartment building. However, there are apps now that let you buy a part of income-generating residential properties for much less. Once you purchase a stake in a property, you’ll get a split of its profits until you sell.
On a smaller scale, you could also rent out your spare room. This extra income could cover your utility bills, a portion of your mortgage payments and help you pad your savings account each month.
John is also passionate about investing in equities. This can be one of the most reliable ways to earn passive income while also saving for your future.
For example, instead of investing in stocks with high growth potential, you could buy equities that pay high dividends to shareholders. With this strategy, the stock may not appreciate as much per share, but you’ll get cash sent back to you every quarter.
Many people choose to reinvest their stock dividends to grow their passive income faster. But you can also pocket the cash when you need it. If you’re going to invest in stocks or exchange traded funds (ETFs), John believes in investing in what you know and choosing companies that are already doing well.
John’s investment philosophy isn’t for everyone. Other passive income strategies may be a better fit for your skills and goals. Here are a few examples.
If you have an online following, you can try affiliate marketing to earn passive income. Whether it’s your YouTube channel or blog you’ve created, here’s how it works:
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Companies give you a link with a unique identifier in it
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You post that link on your website or social media profile
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When someone clicks the link and buys a product, you get a cut of the profits
Companies across all industries offer affiliate marketing deals. But you should look for ones that fit with your target audience. Doing so gives you the best chance at earning significant passive income.
For example, if you make TikToks showing your morning routine, you could try affiliate marketing for a breakfast or make-up brand. Mention the product in your video and share the link. Each viewer you have would then become an opportunity to make more passive income.
It’s never been easier to generate passive income with the property you own. You can find apps that enable peer-to-peer renting for everything from your car (Turo) to your home (Airbnb). There’s even an app for renting out the tools and equipment you’re not currently using (Rent My Equipment).
These can be powerful sources of income and don’t require much work on your end. But your results will vary based on what you have available to rent. For example, there are more people interested in renting vacation homes than circular saws.
If you’re artistic, you can create and sell designs online through sites like Etsy. These can generate a lot of passive income.
Once you have a design that people like, it may keep selling on posters, T-shirts and other merchandise for years. You won’t have to worry about shipping or logistics either if you use a dropshipping company.
Another idea is to open a high-yield savings account. These pay a higher interest rate than traditional accounts. If you need the money, you can always withdraw it. But the longer you save, the more you’ll earn in interest.
Finally, you can earn passive income by flipping products if you have a good idea in fashion, home decor or something else. People do this by purchasing desirable products cheaply — often at thrift shops, garage sales and other offline venues.
If you can find a great item at a low price, you can often turn around and sell it for much more online. People do this with clothes on Grailed, Poshmark, Depop and plenty of other sites. eBay is also still a popular way to resell vintage and rare products.
John has never explicitly shared his top strategies for passive income. However, actions often speak louder than words, so it’s easy to see that he values creating resellable content, investing in real estate and buying stocks.
Your passive income journey may not include those strategies. It’s all about taking advantage of what you have — whether that’s an extra room you can rent out or a passion for design that can turn into a passive business.
Caitlyn Moorhead contributed to the reporting for this article.
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