25 Best Passive Income Ideas to Make Money While You Sleep

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I worked a traditional 9 to 5 job for many years and eventually I got burned out. Do you know what that feels like? I knew that I wanted more freedom and the idea of passive income became very appealing.

I had heard of many people quitting and replacing their full-time job with passive income, but I had no idea where to start.

This pursuit led me to start this blog where I now make over $6,000 per month, however, this is not the only way to make residual income.

What exactly is passive income?

Passive income is where you get paid over and over again for work that you did once. I have multiple income streams that are passive, many of which I will mention below.

Passive Income Ideas

By choosing the right sources of passive income, you can invest your time the way that you want to. It is a way of buying back more time.

There are so many opportunities out there to make residual income in network marketing. However, this is NOT one of those “things.” These are legit ways for you to make money while you sleep with something that fits your passion, experience, or skill-set.

25-Passive-income-make-money-while-you-sleep-resized

1. Invest in Crowdfunded Real Estate

Real estate can be a great way to make money while you sleep. However, because it costs so much to purchase a home, using a crowdfunding platform to invest in real estate can be a more affordable option.

If you want an easy, low-cost way to invest in income-producing real estate, consider using a company like Fundrise. You only need $500 to get started and you can invest in more than 48 real estate products through real estate investment trusts.

Another company to consider is Rich Uncles as you can start investing in real estate with as little as $5.

Although they promote an option to start with $500, once you register for free you can browse their offerings. They actually have a Student Housing REIT which has a minimum investment of $5.

Their goal is to make real estate investing available to everyone and that is exactly what they are doing.

Related: 15 Best Crowdfunding Real Estate Sites

2. Dividend Income

Dividend income is money paid to shareholders of stocks in the form of cash in your bank account. Dividend-paying stocks are especially enticing for those wanting to make a living with passive income, as they will get payouts each quarter or so. Even Warren Buffet historically is a fan of dividend-paying stocks.

If you are going to go this route, make sure that you educate yourself and pick solid stocks so that you can depend on for dividend income for years to come.

If you don’t have an investment account, check out Ally Invest because trades are as low as $3.95.

This low fee is awesome because most brokers charge around $10 per stock trade. Check out our Ally Invest review here.

3. Peer-to-Peer Lending

Peer-to-peer lending is when you loan other people money who don’t qualify for traditional financing. With investment returns in the 3-8% range, investing money with a company like Lending Club can get you much higher income results than a typical savings or money market account.

If you are looking for a lower risk option, check out Worthy. They offer $10 bonds and pay a 5% return. One unique thing about them is that your money is liquid, so you can take it out at anytime.

This means if for some reason you need your money back, you are able to access it quickly and easily.

4. Get Out of Debt

The less money you’re paying in interest to creditors, the more money you have in your pocket each month. Getting out of debt quickly can increase your income even more because you’re no longer paying interest to creditors each month.

One way to speed up your debt payoff is to lower your interest rate. If you have high-interest debt that you want to get a lower interest rate on, check out Credible, which offers loan rates as low as 4.99% for refinancing your credit card debt.

Check out our review of Credible here.

5. Open a High-Yield Account

Are you looking for a low-risk way to make income passively? Then look at opening a high-yield savings account with an online bank like CIT Bank that pays 19 times more than traditional banks. CIT is currently are paying up to 2.45% which is unreal.

While this won’t make you filthy rich, it will be a safer way to make consistent income and not lose your money since CIT FDIC insured.

6. Write a Book

Once the initial work of creating the book is done, selling books can be a great way to produce some serious residual income.

I wrote a book called You Can Retire Early. I get a 10% royalty for every book that gets sold.

Once your book is available on a site like Amazon, you could receive a check each month for doing absolutely nothing. Note that spending some time developing an effective marketing plan is vital. Obviously, the more time you spend marketing your books, the more money you’ll make.

7. Rent out a Room in Your House

Do you have an extra room that you rarely use? Why not rent it out to someone looking for a short-term rental on Airbnb. Millions of people use Airbnb to find a place to stay instead of staying at a hotel, sometimes even for months at a time.

You can hire a maid service to clean and prep the room after a guess leaves. If you hire a property management company, then this will eliminate work on your end and make it truly passive income.

My friend Steve and his wife make over $1000 per month renting out their spare bedrooms.

8. Affiliate Marketing

If you have a website already then this is a no-brainer. Some people are making over $50,000 per month like Michelle who teaches others how to make money online with her course Making Sense of Affiliate Marketing.

If you don’t have a website, you can start one for less than $3/month. That’s the price for getting a website host – a company that stores your website on servers so it can be viewed on the Internet.  Click here to get special pricing of $2.95/month with Bluehost.

Affiliate marketing can be a great way to make money from home. All you need is a computer and a website.

Going the affiliate route is awesome because when people click on the affiliate links on your site, you receive a commission at no additional cost to them.

All they have to do is purchase a product or service and you get the credit for it.

9. Create a Lead Generation Website

Another way to make passive income is to create a lead generation website. Lead generation websites exist to give referrals to local businesses.

So, let’s say you created a lead generation website that focuses on real estate. You’d use the site to educate people about home ownership. Or, you’d educate them about real estate investing.

Within the site you’d have links where people could contact you to learn more. When someone contacts you, you refer them to a real estate professional in their area.

The real estate professional would pay you for the lead. It’s a warm lead and not a cold lead, so professionals would be more willing to pay.

You could also make money by having advertisers on your site. Note that you would have to understand SEO (Search Engine Optimization) rules in order to make the site successful. Getting your site at the top of search engine pages would be vital to success.

10. Sell Products on Amazon

Do you shop on Amazon? Most of the world does too.

Did you know that you can sell your own products on Amazon and have them even ship the products for you? I actually have a friend who has done really well with this as he makes six figures per year selling his own products online.

11. Cash Back Earnings With Rewards Shopping Sites

You can earn even more money by signing up with a special rewards shopping site. There are sites that will pay you every time you shop at certain online retailers.

You just download the site’s browser extension and every time you’re on an e-commerce site that’s eligible for cash-back, you’ll get a notification. I use a free site called Ebates, which will pay you $10 just for signing up.

With their double cash back specials, you can double your earnings if the right items go on sale.

Again, your earning strategy goes out the window if you buy things you don’t need just to earn rewards. Just go about your shopping as usual, and potentially earn a nice cash bonus in the process.

12. Create an Online Store with Drop Shipping

With the explosion of eCommerce, drop shipping has become very popular. Here’s how it works: you create an online store that offers products from certain manufacturers.

A person visits your site and orders a product, and then your system sends the order to the specific manufacturer. The manufacturer then completes the order by shipping it directly to the customer.

One of the cool things about this type of business is that you do NOT need to order inventory. The customer pays for the product; you collect the profits, and the manufacturer stores and ships the products to the customer. It’s as simple as that.

If you’re interested in starting a drop shipping business, consider using a platform like Shopify to build your online store.

They even have a 14-day free trial that you sign up for here.

13. Create an Online Course

Online courses can be a great source of passive income. Here’s how they work: you create a value-packed online course that helps solve a problem or fills a need.

The course can include videos, e-books, and emails with pertinent information. Customers sign up to purchase the course, and your system automatically emails them everything they need to access the materials.

You get money for the price of the course that you created. A platform such as Teachable can do all the heavy lifting for you when creating your course.

14. Create YouTube Videos

Everyday regular people like you and me are making money on YouTube. Each time someone watches one of your videos, ads can appear, and you can make money from those ads. The key to becoming successful with YouTube is building a large enough subscriber and viewer base.

It can take a lot of time up front, but once your videos are live there is potential for you to make passive income from each video indefinitely.

Granted you probably will not make a living off of just a few videos. Be prepared to make over 100 videos if you really want this to take off.

15. Start a Business and Have Someone Else Run it

Owning a business can be a good passive income source. The key is in having the right people running the business for you. Whether it be through the purchase of an existing business or opening a new business, your great business idea can be a viable source of passive income.

Do you want some creative small businesses that you can start for under 100 bucks? Then check out the $100 Startup by Chris Guillebeau. These are all verified businesses that grew to over six figures per year. And they all started with very little money up front.

16. Buy a Vending Machine Business

A successful vending machine business can be a great way to make passive income. The key is to find the right places to install your vending machines. Check with smaller brick and mortar businesses. Contact those that have over 100 workers in the building on a daily basis, and see if they need vending machines.

Another key to vending machine success? Ask those workers what items they prefer to have in the vending machine and then stock accordingly. Once again, if you want to reduce the amount of time that you are involved, consider hiring someone to stock the machines for you.

17. License Your Photos

Have you ever wondered how you could make money taking pictures? Do you have an eye when it comes to taking good photographs?

If so, check out a site like Shutterstock. You send your photos to Shutterstock and if they are approved, each time one of Shutterstock’s clients downloads one of your photos you’ll get a paid a royalty.

18. Create a Mobile App

If you are a bit techie and can come up with some unique ideas for mobile apps, or improve upon an existing app that will help people make their lives better, you may land yourself a great source of passive income.

Every app on your phone is making money for somebody, somewhere. For instance, Joel Comm made over $1Million from his iFart app.

We won’t even talk about the ridiculous money that Angry Birds brought in.

While these are the exceptions, there are plenty of people making thousands of dollars per month with their mobile apps.

19. Rent Your Car for Ad Space

How would you like to make money just for driving your car and not have to pick up any passengers? By allowing companies to place advertisements on your car windows, you can earn a few hundred dollars each month simply by driving your car around town.

Check out Wrapify to see how you might be able to make passive income by wrapping your car with an advertisement.

20. Buy an Existing Online Business

The beauty of an online business is that most will allow you to work from anywhere. Starting one from scratch can take a lot of time and resources. Why not consider buying an already established online business? Websites such as Biz Buy Sell have hundreds of online business listings that are for sale in varying price ranges.

Check to see if there is an online business for sale that is in line with your passions or hobbies. Again, in order for this idea to produce passive income, you’ll need to hire someone to run the business.

21. Buy a Laundromat

Here’s another turnkey passive income business idea. Many cities have established laundromats that are available for sale.

Here is how it would work:

  1. Buy the already existing business
  2. Make sure that you have someone to manage the day-to-day operations,
  3. Then “soak up” the profits.

The reason why you would want to buy an existing laundromat is that the startup costs are pretty high. Commercial washers and dryers are not cheap. It makes a lot more financial sense to buy an already established laundromat than to start from scratch.

22. Open a Batting Cage

I am shocked by the lack of batting cage facilities. Baseball is one of the most popular sports for kids in America. Yet batting cages are hard to come by depending on where you live.

Something to be aware of, though, is that these can require a lot of money up front. You will have to have a big facility, equipment, and someone to run the cage.

So make sure to do your due diligence before you invest too much money in this endeavor. Buying an existing batting cage business may be a more financially sound choice.

23. Product Design

Another way you can make passive income is by designing t-shirts and other products – even with no prior design skills. Sites such as Redbubble allow you to upload your witty design ideas and then create t-shirts, coffee mugs, laptop covers, etc.

Shoppers then visit the site and check out your products. When they purchase one of your designs, Redbubble will pay you a portion of the profits. They handle all of the production and shipping of products.

24. Bond or CD Laddering

Bond and CD laddering involves owning several different bonds and/or Certificates of Deposit. Each one matures at different times during the year. Then you take the profits from those investments as cash income during the year.

Although many CDs and bonds might not earn as much of a return as a Peer-to-Peer lending investment, bonds and CDs also generally come with little to no risk. This helps ensure a solid income source on a regular basis.

25. Rent Your Stuff

Thousands of people every day are looking to rent any variety of items. Craigslist can be a great place to advertise your items for rent. Here are some ideas of products that you could rent out:

  • Extension ladders
  • Party tents
  • Tables and chairs
  • Utility trailers
  • Log splitters
  • Chainsaws
  • Snowmobiles
  • ATV’s.

You can even rent out your car when you are not using it with a company like Turo.

Just make sure that you have a proper rental agreement signed by both parties. Also, get paid in cash beforehand, and get a current photo ID and secondary proof of address from renters.

This will help you to protect the property you’re renting out. For extra peace of mind, consider requesting a security deposit as well.

Summary

As you can see there are a ton of ways that you can make passive income. Hopefully, this list has helped you narrow down which source of income is best for you.

So if you’re tired of the traditional way of making money, implement a few of the passive income strategies above so you can start working less and making more money while you sleep today.

**The information contained herein neither constitutes an offer for nor a solicitation of interest in any securities offering; however, if an indication of interest is provided, it may be withdrawn or revoked, without obligation or commitment of any kind prior to being accepted following the qualification or effectiveness of the applicable offering document, and any offer, solicitation or sale of any securities will be made only by means of an offering circular, private placement memorandum, or prospectus. No money or other consideration is hereby being solicited, and will not be accepted without such potential investor having been provided the applicable offering document. Joining the Fundrise Platform neither constitutes an indication of interest in any offering nor involves any obligation or commitment of any kind.


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145 COMMENTS

145 responses to “25 Best Passive Income Ideas to Make Money While You Sleep”

  1. Brian @DebtDiscipline says:

    This is a great list. I have a friend who is researching the batting cage idea.

    • Laurie @thefrugalfarmer says:

      We’ve done some work on it too, Brian, and it seems like a super profitable idea. I wish we had the cash to open one here!

    • Deacon Hayes says:

      That is awesome! Let me know if he actually follows through with it. I am curious how the numbers workout from a net income standpoint of owning a batting cage.

    • Erika says:

      Yeah, I have been looking into a batting cage for a while now, and I’m really considering trying my hand at it!

  2. Luke Fitzgerald says:

    These are great ideas! I really like how you mentioned, “get out of debt”, as passive income. I’ve never thought about it like that before. I’m always trying to think of new ways to persuade people to get out of debt. This is a great way to flip someones perspective. Debt reduction really is passive income!

  3. I love this list–thanks for posting it! I’ve been learning a lot more about passive incomes lately and this list included several ideas I hadn’t thought of before. Thanks again!

    • Laurie @thefrugalfarmer says:

      Thanks, Niomi!! I’m glad you are finding the post helpful!

      • Ashley says:

        I am in the process of writing a book and starting an online business as well as an at home business. I loved this post because it solidified about 6 of my existing ideas but gave me some resources that could help. How do I get my book edited and published professionally though? Isn’t this needed in order to sell?

        • Deacon says:

          Try going to our post bout how to get paid to read books. Even though editing is not what this post is about, there are several companies that might do book editing such as Kirkus. I hope this helps and good luck on your book!

    • Emeka Richard says:

      Thanks for your great ideas to get off the hunk of debt.

  4. Laura Harris says:

    I love this list, Laurie! I’m in the process of figuring out what eBook to write. It would be so fun to do a course someday too. Thanks for validating my thoughts with this boost of encouragement!

    • Deacon Hayes says:

      Hey, Laura! That is awesome that you are planning on writing an eBook. What are you thinking the book will be about?

      • Laura Harris says:

        Hi, Deacon! I’m a financial coach and a mom, so I’d love to write a book that will encourage people to get out of debt and smash their financial goals so they can travel the world with their kids or start new hobbies or just be able to come home before dinner every night. We’ll see.

        It’s kind of you to ask!

        • Cindi Pieniazek says:

          Can I get access to your book as soon as you are done? I have M.S and not one for collecting from the government. I want to do this by myself. So, I would love to read your ebook and any advice you have.

    • Laurie @thefrugalfarmer says:

      That’s great, Laura! You definitely have tons of great info to share with how well you and Dontae have done.

      • Laura Harris says:

        You’re always so encouraging, Laurie. I really appreciate that. Perhaps I’ll get started on that sooner than I thought. 🙂

  5. Casey says:

    These are great ideas…I will try to experience some of these.

  6. DivHut says:

    There are so many ways to generate a passive income stream these days. Though some of the items listed are not that passive. Maintaining a blog takes time and work and so does managing real estate. One of my favorite ways of generating passive income is via dividend growth investing. Thanks for compiling this list.

    • Laurie @thefrugalfarmer says:

      Dividend income is a great passive income form. Blog income is passive in some capacity in that once a post with an affiliate link is posted, it only takes a click and a purchase by another party to produce the income. Thanks for weighing in – we appreciate it!

  7. Chella says:

    Writing is definitely on high demand now with many small businesses in need of online marketing. Thank you for mentioning creating an online course too! Sites like Udemy and Udacity are worthy trying out.

    • Laurie @thefrugalfarmer says:

      Thanks, Chella! Yes, writing has been lucrative for me and I’ve enjoyed being able to work at home and still bring in income.

  8. Bodhi Clifford says:

    I made a little over $500 USD last month from passive income. 97% of that comes from two Amazon sites I built but can’t seem to find motivation to work on anymore. I am slowly working on creating my first product now. It’s going to be an online course.

    • Deacon Hayes says:

      That is awesome that you made $500 last month. Way to go! I know how you feel. I find it hard to get motivated from time to time, but then I start a new project and I am all in.

  9. Brendan says:

    What a great list!

    I’m almost debt free so I’m excited about the “pay-raise” I’ll recieve! I especially like the content creation ideas (book publishing, online courses, etc.) because of the relatively low overhead. Once it is made, it never has to stop working for you!

    • Laurie @thefrugalfarmer says:

      Congrats on almost reaching debt freedom!! You could definitely do a book about your experience and help increase your income that way, too. Good luck, Brendan!

  10. sourabh says:

    Hi,

    Today while surfing I came across this list. This is an awesome list of ideas. I am interested in online ideas to build passive income streams.

    Can you suggest anything which we can start immediately and build a business?

    • Laurie @thefrugalfarmer says:

      I’m glad you found it helpful, Sourabh! YouTube videos are one way that you could start building a business immediately. You could easily have an instructional video up today and start advertising and getting views. Best of luck to you, Sourabh!

  11. Nicole says:

    I’m one of those weird people who actually loves to edit content. Whether it be a report or an essay, I feel a strange joy in reconstructing clumsy sentences and ensuring language and layout consistency. Is there any income to be generated from THAT? lol

    • Deacon Hayes says:

      Hey Nicole! You could definitely make money at that. There are plenty of places that hire proofreaders where they will pay you to read and edit content. Let me know if you end up doing that!

    • Venice says:

      Hi Nicole,
      It’s nice to have finally found a twin! I naturally LOVE editing content too. We’re both word nerds – that’s what I call it anyway. I would love to know if you find anything good to put your talents to work! I really enjoyed this list. Keep them coming! Thank you!

  12. Bill says:

    Deacon

    A drop shipping business – is it something that has to be worked 24 – 7? The reason I ask is because I have a full time job and was wondering. I want something that won’t take up all my time. I mean, I already work 15 hours a day, Monday thru Friday. I want to start out slow and learn as I go. Any info would be helpful. Thanks in advance.

    • Deacon Hayes says:

      Hi Bill,

      I have only dabbled in drop-shipping before when I had an eCommerce platform 6 years ago or so. I think it is something that you could do on the side, but you would want to do in depth research on the industry you want to get into before setting up shop. It may be a little less passive up front, but over time you could take your hands off the wheel.

  13. Donna says:

    Thanks for posting such great ideas! I’m interested in a dropshipping business. Exactly how does one get an opportunity to sell and work with manufacturers?

    • Deacon Hayes says:

      Hi, Donna. There is a lot to it when starting a drop shipping business, so I figured I should point you to the best resource I know. This guy is doing great things in the eCommerce world and shares how you can get started at eCommerceFuel in his post about how to start a drop shipping business.

  14. Shaleah says:

    This is an excellent and informative article! These are also great ideas!

  15. Amina says:

    Hi,
    I am an English major and a herbalist with so many ideas and no extra income to fulfill them. I recently started renting my extra apartment in the attic with Airbnb. It’s amazing how fast I accumulated some money for few hours of work between guests. Now I want to persue all my dreams of opening an online herbal store, publishing my ebook of treating Ulcerative Colitis with herbs, blogs, and videos, and pretty much all of the ideas mentioned here. I will save this article as its really helpful for whomever needs some ideas…
    Thanks for sharing and the encouragement…
    Great job. It can be done, people!

    • Deacon Hayes says:

      Wow, I’m glad to hear about your success with AirBnb. I love that site and we use it nearly every time we travel. I wish you all the best with your ebook and online store. Let me know if there is anything I can do to help!

    • Sandra says:

      Hi Amina,
      Do you have anything published on your herbal treatments or a page?

  16. Lori says:

    I used care.com and all I got were scammers.

  17. Trixia says:

    Add more ideas for this article, please.

  18. Emily says:

    I just wanted to say how nice it is to see such a positive exchange between strangers on the Internet. Seriously, not only was this article (list) motivating and well-drafted, the tiny little community of readers truly were a pleasant crescendo I found to be the cause of an inward smile. Thank you, everyone, and good luck to you all with your passive income efforts!! 🙂

    PS-If anyone needs an Equine Massage Practitioner in CO Springs, I’m raring to go!! 🙂

    • Deacon Hayes says:

      Hey, Emily. Thanks for the kinds words. It is all about helping each other reach our goals in life, so I am glad you found it helpful. Good luck to you as well!

  19. Dave @ www.AffordEverything.com says:

    This list is awesome. The idea about renting your stuff out is great. I’m probably shooting my self in the foot here, but if someone were to make an app similar to Airbnb ,but to rent out your stuff, it would probably make them rich. 😉 This is a great post!

    • Deacon Hayes says:

      Haha, that is too funny. I wanted to make an app back in the day called “MyShares” (You can probably tell how I cam up with the name at the time). The idea was that I would loan out books and DVD’s and then would never get them back. Then I thought, how cool would it be if I could rent those items out and that would motivate people to bring them back. Obviously, books and DVD’s are cheap, so this isn’t the money maker. The idea that would probably make the most money would be things like tools, ATVs, etc.

    • Joel says:

      You could have your app developed if you aren’t knowledgeable in app development. Although, this would require some cash because you would be hiring an outsourcing company to build it for you while you do the marketing.

  20. Robert says:

    I always encourage people to start their own blog and make some extra money via affiliate marketing (#8 on the list above).

    Adding to the first on your list (crowdfunded real estate), those that read this article should look into real estate investment trusts (REIT’s). It definitely fits the definition of crowdfunded real estate.

    One of the most appealing options, particularly for millennials, would be #12 on your list (create a Blog/Youtube channel). The videos can be about anything that interests you, from your daily makeup routine (with affiliate links to the products you use), recipes (what you eat each day) or as you mention, instructional videos (again with affiliate links to the products you use). Once you gain a large following and viewership, you can earn via Adsense on YouTube.

    Passive income (with a little effort) can be a great way to earn while you sleep!

    • Deacon Hayes says:

      Affiliate advertising is one of my favorite sources of residual income. I have articles that I wrote years ago that still make money every month.

      As far as REIT’s, those can be a decent investment. However, I have seen some go under, so make sure to research them thoroughly before investing.

      I would love to make more money with my Youtube channel. However, I still have a small following of around 300 people. What size audience do you think would be enough to make around $1,000 per month?

  21. Renee Hinmon says:

    This article was very insightful. I’m working on creating a blog now so that I can create online courses as well as post affiliate links.

    Thank you for sharing!

    • Deacon Hayes says:

      I’m glad that you found helpful, Renee. Please keep me posted on your progress and if you have any questions at all, please don’t hesitate to reach out!

  22. Vlad says:

    Hi Deacon,

    About buying an existing online business: do you have any tips about what is important to look for when you choosing an online business?

    This is a really good article and some really useful ideas. Thanks.

    • Deacon Hayes says:

      When I purchase an existing online business, I look for cash flow over the past year and where the money comes from. I want the sources to be more passive so that it does not take a lot of my time. Also, typically I will make an offer that is 18 – 24 months of profit so that I know that I will get my money back within the next two years. I hope that helps!

      • Vlad says:

        Thank you for your help, Deacon. I have found a business/website, and now I am negotiating the price, trying to get it for the 18 months of profit.

        Thank you, Deacon.

  23. Chelsea says:

    I use Turo for my car and it is great! The day after I put it on, it was already booked for 2 weeks solid. I have the money going into a separate checking account that is dedicated to my car payment and insurance payment. It pretty much pays for itself!

    • Deacon Hayes says:

      That is awesome to hear your success with Turo. I know a guy who does something similar with his RV and he said it pays for itself as well. That’s not too shabby.

  24. Leah says:

    This is a great comprehensive list. I saw some new ideas! Thanks.

    • Deacon Hayes says:

      I’m glad to hear you got some new ideas out of it. I tried to make as comprehensive of a list for passive income ideas as I could.

  25. Samar says:

    That’s a nice read! I love your many tangible ways mentioned to make passive income unlike certain people trying to recruit others by mentioning network marketing and trying to get them to join up and sell products like Amway, Avon, Mary Kay, Cutco or 5Linx. People get sucked into wealth and profits and become influenced joiners from the use pressure tactics.

    Would you say it is a total waste of time, a pyramid scheme, and a wrong sense of passive income and network marketing when joining these companies and being pushed to sell products?

    With passive income, it only makes sense to receive tangible earnings.

  26. Emily Brookes says:

    These are such great ideas! I’m trying to create passive income that I can live off of at the moment, so I’m keeping my fingers crossed…. I’m also loving the challenge!

  27. Ben Anderson says:

    Deacon, I’m so happy I found this blog. I’ve been trying to increase my passive income in multiple ways and now I feel like I have some great new tools to do that! I think I’m going to look more into crowd-funded real estate. I’d never heard of it and definitely didn’t know it could be so profitable!

    Generating a passive income was the key for my family and me to get out of debt. I’m your average American. I went to college, got a decent job, married the girl of my dreams, started a family and BOOM… tens of thousands of dollars of debt. YUCK!

    I had to get out. I actually had this random Facebook ad come up in my news feed (go figure) and it eventually led me to a webinar that taught on how to start an email marketing business (which is, by the way, the most profitable form of affiliate marketing – or ANY marketing for that matter). I listened through the whole 2 hours, completely mesmerized. By the end of it, I knew what I was going to be focusing on to help my family out of the pit of debt we were in and into a world free of financial stress. I didn’t know if it would actually work, but eventually it lead to EXCESS income!

    I gave it a shot. And I have NOT been disappointed. I decided to write a little bit more about it on my own blog (trufiliate.com) and I hope it can help others find the financial freedom they’ve been looking for!

    Thanks again, Deacon, for a quality blog for people like me. I’m always looking to leave a legacy for my family. 🙂

  28. Loro says:

    Skip the laundromat idea. It’s NOT passive. I owned two of them. It was a hell of a lot of work and problems. No thanks.

    • Deacon Hayes says:

      That is good to know. I looked into buying a laundromat and it seemed very passive. However, the owner only had one employee, so if she was sick then I would have to step in. It wasn’t for me, but I am sure some people have made it work.

  29. AG says:

    This is a great list. I tried all kinds of ways to make extra money online. What works best for me is koocam. I teach my hobbies and sell my knowledge in every field. It’s great. 🙂

  30. Krystal Glover says:

    I’m definitely jumping on 3 or 4 of those right now! Hopefully I can give a good and profitable update soon!

  31. Sonny says:

    I’m so interested in having passive income. But, sometimes these passive income ideas need a bigger capital budget. I’m giving only a few dollars of income monthly. So, we have to choose carefully which asset to buy or create.

    • Deacon Hayes says:

      Yeah, it is true that some of these do take an up front investment to get started. However, there are several that take less than $100 to start.

  32. Al says:

    This is an awesome list! Thanks for putting this together!

  33. Dottie says:

    You can find pet sitting jobs on Care.com, but be super aware of scammers. I have gotten four scam job offers in the last 30 days. If the offer is too good to be true, it probably is.

  34. Wallet Squirrel says:

    Wow! What an awesome list! My favorite is the stock photography because I love photography. I have had some success there, particularly with one photo I make some decent income from. I think the key with stock photography is finding a shot that is high demand. Then, find a new unique way to frame that shot. This is the reason my St. Louis Arch photo is a top 10 on both ShutterStock and iStockPhoto. Thanks for the awesome ideas above!

    – Adam

  35. Nancy says:

    You may want to take Pet Sitting out of it. It’s definitely not passive income. It’s not a laid back job by any means. It’s an 80 hour a week business. I run one, so I know. Overnights are fun for awhile, but then you’re sleeping in a strangers house and they have might have cameras watching every move you make.

  36. Adil Mirza says:

    Thanks, Deacon. I’m utilizing affiliate marketing, which is working good for me. Now as you recommended, one should start a business and let someone else manage. So, I’m going to use this method as well.

  37. Chris says:

    I really appreciate the info and ideas. I love your blog!

  38. Tim Webber says:

    I currently use number 2. My last dividend payment was from my Coca-Cola (KO) stock paid out to shareholders on October 2nd.

    I use the Robinhood app to purchase my stock as it is free as long as you don’t cross over into day trader territory (buy, sell, buy, sell the same stock), which you won’t if you’re holding shares for dividends.

    You will receive your first share for free chosen at random by the Robinhood app, which will most likely be valued somewhere between $3 and $10. But, if you are extremely lucky, it is possible to receive one valued up to around $170 (they say). I have not personally seen one that high yet.

    In the interest of full disclosure, I too receive a free share if you use my link. However, you do have to use a referral link in order to get the free share. So if you know someone else who already has an account, feel free to get theirs.

    One last thing: if you decide to go for it, please comment below letting us all know what stock you got. Good luck to all of you. 🙂

  39. Harpreet Kumar says:

    I really appreciate your ideas, sir. For me, affiliate marketing is the best suited money making technique today.

  40. Luis says:

    Cryptocurrency trading is about a way of creating passive income. I would like to recommend Trademinator.

  41. Arturs says:

    I do agree that a few of these ideas are not bad, but for me the problem with some of these platforms has been that I’m not from the USA. So, I can’t operate there. It’s a really interesting possibility to get some extra bucks from doing what you would do either way, like shopping. One of the best projects so far that I have seen is FluzFluz. It’s simple and really easy to use for everyone who uses Uber, Amazo, or other apps. The best part of all is that you can get some passive income – not just from your own purchases, but from other people’s as well. I hope one day it will make it here to your list. I think it’s worth it to check out.

  42. Alican says:

    Some of these ideas are very creative. Thanks a lot for sharing!

  43. Jesse says:

    These are all good, fun ideas. But, people should be aware that many of these are not really passive income. Building up something, building an infrastructure, and hiring someone to run the day to day operations is a business. You have employees, managing, purchasing, etc. etc.

  44. TJ Mitch says:

    Deacon, I like your crowdfunding idea. I think I will give it a try.
    Thanks for sharing. TJ Mitch at passiveincomewiz

  45. Josh Kelnhofer says:

    I’m very pleased to see batting cages up there! I have thought the same thing numerous times, as in my area (Indianapolis) there are hardly any and it’s a shame.

  46. Josh Kelnhofer says:

    I have been toying with the idea of writing a book for some time. I was surprised you didn’t have an affiliate link (lol) to the publisher you used, or provide a little more guidance on proceeding.
    I feel there are so many scam publishers online. They remind me of the cheesy “patents for inventors” commercials you see.

  47. Lars Bunsen says:

    That is the best article I’ve read about this! There are some ways I never thought about, like vending machines. I’ll definitely have to try some of them, but I would recommend using this book too. I’ve made a lot of passive income with this.

  48. Brian says:

    This is a great post. I agree with the above comments that this has been an encouraging group to get some feedback from. The one that jumped out at me the most was #13. Has anyone here started their own business and outsourced the majority of the day to day stuff so that it really does become a source of passive income?

  49. Lili says:

    It is never too late to start making income online. A smart man said: Stop dreaming, start acting. Whatever method you choose, stick with it. If you don’t have one, stick with me and it will be the best decision you ever made.
    🙂

  50. Deacon says:

    That’s another possibility.

  51. Krzysztof says:

    It’s good to mention that passive income can be made from cryptocurrencies.
    I’m not talking about day trading or mining directly – as those things are not so ‘passive’. You can host a thing called ‘masternode’ instead. Masternode generates new coins for you everyday (which you can sell for real money).
    For a long time masternodes were reserved for technical people only, as you need to know how to configure a masternode in order to make it work. But it’s no longer true as there are already platform on the market which take the technical stuff from you. You can check GINcoin and their platform if you’re more interested.
    I think that it would be more and more popular as it’s more and more available for regular people. 🙂

    • Deacon says:

      Although I’m sure more people may be getting into cryptocurrencies all the time, it may be a while before it’s something regular people pursue as a means of income. However, for some it may be a way to make more money, so I don’t completely disagree with your first statement.

  52. James says:

    I just started out with Affiliate Marketing (idea # 8) and it is not as easy as people make out to be. For me, the hardest part so far, is learning Search Engine Optimization (SEO) and driving traffic to my website. I’m only 3 months into it, but I am confident that the site will begin to generate some incom., I have to give it 6-9 months, so we’ll see.

  53. Ajish Cheriyan says:

    These are 24 awesome tips. Thank you for sharing the info. Making a passive income will really be a great help for me.

  54. David Bauer says:

    #25. Get paid for your good credit by renting out your authorized user spots on your credit card. I know it sounds sketchy, but once you educate yourself you will learn it’s perfectly legal and safe. If you have good credit, you can make thousands per month.

    • Deacon says:

      That sounds rather interesting. I’m sure it carries some risks as well as rewards. Thanks for sharing this idea.

      • David Bauer says:

        It’s definitely not risk-free and not for everybody. The biggest risk is having your credit card closed down for shuffling authorized users on and off too often, which, depending on your situation, may not be too big of a deal. If you have the right credit profile (old, high limit cards) it can be a very nice extra income stream.

  55. Megan says:

    This is an excellent article! Not only does it list the idea, but the reference website to get started on each one. Thank you.

  56. Jordan says:

    Hi, Deacon. I am a newbie in this passive income thing, but everything I read here seems obvious to me. Why not create passive income, right?
    So I started googling about making passive income via the internet. I found this article which seems that it is probably very new. But in the ebook there is great information about passive income, at least in my POV (newbie POV). Is this legit and does it actually work? I want to expand on that because my 9 – 5 s*cks…
    Here is the URL: https://cashwithoutjob.online

    • Deacon says:

      Well, Jordan, I hate to totally burst your bubble. However, almost nothing worth having is actually free or easily had. So, to put it another way, it may not be possible to have a different job or create passive income without some work.
      Yes, you can make money through affiliate marketing. But you also have to have followers who are interested in what you are advertising. That’s where the hard work comes in – through building your audience and following.
      Now, if you decide to try it and end up lucky enough to make tons of legitimate money with very little work, good for you. But I would definitely be cautious. Read the fine print of any deals you are considering.

  57. earn money says:

    Hello. This article was really remarkable, particularly because I was looking for thoughts on this issue last Saturday.

  58. Asmara says:

    This is one of the best articles I’ve found as I’ve looked for ways to make money while I sleep.

    I am on number 14 and 19 now. I already have three online businesses. One is already streaming income while the other two are in their infancy stage. LOL.

  59. Ebony says:

    Hi! It would be great if you could make these links open up in a new window so we don’t lose our place in this article if we wander off! Just a suggestion.

    Thanks for these tips. I’m definitely going to look into them.

    • Deacon says:

      Thanks for your suggestions. I will consider them. Good luck with your passive income. I hope you have success!

  60. David says:

    These are great ideas and this is a good list. Thanks for posting!

    I would add two opinions:

    1. The batting cage idea is very risky. I’ve seen many of them close over the years and it is not anything close to passive income if you want to keep the business going. You have to continually promote it and target youth leagues, coaches, schools etc to catch all of the new players who grow up and want to play. I’ve played at probably 8 batting cages over the years and 7 of them closed.

    2. Drop shipping is very risky. You need to verify your manufacturer’s ability to deliver on its promises. All it takes is a handful of orders that don’t ship on time and you get a bunch of cancellations and angry customers. Do a lot of research before trying this idea – you’ll find out the risk involved.

    Thanks for the list!

  61. Sandra Clarke says:

    This is a great article! Thanks for taking the time to put it together. I’ve shared it with friends and family.
    These are great responses and interactions.

  62. Vipul Baraskar says:

    Can I use these ideas if I am 17 now?

    • Deacon says:

      You should at least be able to do a couple of them. For instance, you might be able to write a book or house sit. Pet sitting is another option. But we have other posts about jobs for teens that might help too. Check them out on our site and good luck!

  63. Christie says:

    This is one of the best articles I have read in awhile. You offer great ideas for students and those looking for extra income. My whole family can each try on our own to combine our effects. Thank you.

  64. Hailey says:

    That’s a great idea about the T-shirts. 🙂 I always have plenty of “stupid” ideas but never got around to making them. I opened up a simple e-merchandise site recently *hooray*. It’s not as hard as it seems now. I got some free courses from BitDegree, used WordPress, and bam. I wanted to come back and thank you for the idea!

  65. Meredith Smith says:

    The list of residual income ideas you have here is incredibly great. Each one of them has the potential to make you money frequently. But I want to add that being a virtual assistant – VA, is a remarkable way to make money online, as it involves a variety of jobs under the VA platform.

    • Deacon says:

      Yes, you can make a lot of money as a VA. I’m not sure you would generally describe it as passive income or residual income, though. I suppose you could if you have someone else hired beneath you to do the actual work and you just find and contract with the clients.

  66. vipul baraskar says:

    Is entrepreneurship better, or is doing a job better? I am just 18 now and want to know the answer.

    • Deacon says:

      Unfortunately, I can’t answer that conclusively one way or the other. It all depends on you, what you like to do, your work ethic, personality, etc. If you are a good writer perhaps you could write a book and make money that way. Or, you could start your own website and do affiliate marketing. Just because you are young it doesn’t mean you can’t make money doing at least a few of these ideas. I wish you luck in your money making efforts!

  67. Jay says:

    Hey there,

    There’s some really great information here. About 6 or 7 of these I will be checking out. It seems strange that I haven’t heard of some of these ideas. but you can’t know everything… 🙂

    Thanks for sharing and take care.

  68. Accfin says:

    Do all these approaches apply in Malaysia?

    • Deacon says:

      I don’t know. You would have to do a little research on the ones you are interested in to find out. If one or two don’t, keep searching until you find ways that do. I wish you luck in finding ways to make passive income.

  69. Nelle says:

    Thanks for the list of great information. I really appreciate it.

  70. Nick says:

    This is a very impressive article! You’re one heck of a writer. My top month online from a drop shipping store was just under $500 USD. I have 3 stores now, but I just don’t have the motivation to keep working on them. I’m going to give Forex trading a try and maybe utilize some of the skills I have while being a student so I don’t have to work for anyone else.

  71. Doug says:

    This is a terrible list. I think a 10 year can figure that out. It states the obvious. How about a list that’s not like the rest on the internet. Several of the items on your list are not passive! What a joke.

    • Deacon says:

      Not everyone feels the way you do and some do not know about some of these ideas. However, we value your opinion and thank you for your comments.

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