40 Passive Income Ideas That Actually Work
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Are you looking for passive income ideas to build wealth that actually work?
I tried many different ideas over the years and I have found options that now make me over $10,000 per month in passive income.
If you want to learn the best passive income ideas then keep reading.
What is Passive Income?
Passive income is income you earn from doing little to no work. You’ll have to do some upfront work, but then the money just comes in.
Some income is truly passive, which means it needs no attention from you. Other sources of income are passive but you need to delegate any work that needs to get done.
One way to earn passive income is to have multiple income streams coming in. In other words, don’t just choose one option, choose two or more.
Having multiple passive income streams is good for two reasons:
- You have more money coming in
- If one income source goes away, you’re not left without a paycheck
Keep that in mind as you read our ideas for building a passive income stream.
Checkout my video on some of the top passive income ideas here:
Types of Passive Income
There are two types of passive income, so it is important to know that before you get started.
The first type of passive income stream is where you need money to make money. The most common example of this would be investing in dividend stocks.
This is where you invest a certain amount of money, and in return, you get paid regularly in the form of dividends.
The second type of passive income requires your time, not necessarily money. The best example would be writing a book. It will take you a lot of time upfront, but it doesn’t require money to get started.
Want to hear from an actual person making over $100,000 per month in passive income?
Check out this podcast episode that I did with Pat Flynn from Smart Passive Income.
Top Passive Income Ideas
As you start researching, keep in mind the types of passive income that align with your skills and passions.
Read on to find your best passive income ideas to earn money while you sleep.
1. Dividend Income
Earning dividends is one of the most popular ways to make passive income using the stock market. Many investors, including Warren Buffett, earn money by owning shares in stocks that pay dividends.
Dividend income is money paid to shareholders of stocks in the form of cash.
Every quarter–or sometimes monthly–companies that have dividend-paying stocks issue dividend checks to stockholders.
You can reinvest those dividends to buy more shares of stock. Or you can take the money as a paycheck and live off of it if you don’t want to invest in the stock market further.
Whenever you invest money in the stock market, it’s important to do your research or talk to a financial advisor.
Investing in dividend stocks is one of the most popular ways to build wealth and has a long track record.
2. Invest in Real Estate
Another great passive income strategy is to invest in real estate and generate rental income.
The most common way to start investing in real estate is to buy a home and make it a rental property. This can be profitable, but unless you hire a property manager, having a rental property is not very passive.
It can be nice because you have a physical asset that you have more control over, and the cash flow is consistent with its monthly income.
I tried this traditional route, but it was too much of a headache trying to find new tenants and maintaining the property to generate rental income.
Looking for a better way to get passive income with real estate, I checked out real estate investment options.
One company that I came across is called Fundrise. It is a like REIT (Real Estate Investment Trusts) but better. Fundrise has low fees, and you can start investing in real estate with $10.
Note: We will get a commission if you sign up through this endorsement of Fundrise. However, we only promote brands we believe are a good fit for our readers. All opinions are our own.
3. Invest in Land
Did you know you can earn passive income by investing in land? Of course, you can buy land and rent it out, such as farmland.
However, you can also participate in crowdfunded land ownership and rental properties. This is a little simpler and might not require talking to a financial advisor for guidance.
Companies like Acretrader allow you to purchase shares of farmland. They handle all of the administration and property management work.
You earn the profits from the farmland being rented out. Rent for the farmland is paid upfront to reduce the risk of loss from crop failure.
AcreTrader boasts about their up to 11.5% annual return! That is worth checking out.
4. Create Software
Have you thought about using your skills to create software to sell? Spencer Haws created a software program called LongTailPro.
LongTailPro is a keyword research software that helps you find the right keywords to get high-converting traffic to your website or blog.
In fact, Spencer made over $10,000 a month by selling his LongTailPro software.
By partnering with other bloggers and advertising LongTailPro on his own blog, Spencer marketed his software in niches he knew would benefit from the software.
One interesting thing about Spencer’s story is that he hired someone via Upwork for all of the development of the software. So, he didn’t actually create the software he sells.
He had an idea of what he wanted the software to do, but he hired someone else to create the software.
So, even if you don’t necessarily have the skills to make a software program, you can still make this passive income business with digital products source work for you.
Related: 15 Ways to Make $50,000 a Year In Passive Income
5. Open a High-Yield Savings Account
This option won’t make you rich, but it is one of a few passive income ideas that requires little risk and minimal time investment.
When you open a high-yield savings account with an online bank, you often earn a higher interest rate than a traditional bank.
This is because online banks have much lower overheads than brick-and-mortar banks. That means they can pass higher profits on to you.
One popular online bank is CIT Bank, which pays a much more competitive rate than many traditional banks.
A high-yield checking or savings account can be a good way to start making passive income.
6. Music Rights
Did you know you can get royalties from music or movies you didn’t take any part in creating?
Royalties are the money actors, singers and other artists get when they create a song, TV show or movie.
Sometimes, those artists want to sell future royalties because they need a lot of money right now.
So, they sell a portion of their future royalties to investors. The investors make their money back with profits.
Companies such as Royalty Exchange work to connect artists with investors.
7. Be an Angel Investor
Angel investors provide funding for small startup businesses or entrepreneurs. This could be a great passive income stream if you have a lot of extra cash lying around.
When you invest with companies like AngelList, you can invest in specific startups, or you can invest in a basket of startups that is designed similarly to an index fund.
Although it does take an upfront investment, minimums for Angel investing products on AngelList can range from $1,000 to $500,000.
8. Peer to Peer Lending
Have you ever heard of peer-to-peer lending? This is kind of like crowdfunded real estate investing.
With P2P lending, a group of investors get together and invest money loaned to borrowers. As the loan is paid back with interest, you, as the investor, make money.
For instance, a borrower with excellent credit is less of a risk for you to lend money to than one with poor credit. You could choose to invest in lower-risk loans to minimize your chances of losing money.
Just know that investing in the lower-risk loans will result in a smaller profit.
If you want a lower-risk option with a decent return, check out Worthy Bonds. They offer $10 bonds and pay a 5.5% return.
9. Pay Off Your Debt
Many people don’t think of paying off your debt as a form of passive income. But it’s actually a legitimate financial investment.
The less money you’re paying in payments to creditors, the more money you have in your pocket each month.
On top of that, getting out of debt quickly can increase your passive income streams even more because you’re not wasting money on interest charges from creditors.
If you want to get out of debt faster, some companies can help you do that. For example, you could check out Credible, which offers low rates.
10. Rent Out Your Spare Room on Airbnb
Does your house or apartment have a spare room? If so, you could start generating passive income streams by renting it out on Airbnb. Airbnb is a popular alternative to regular hotels.
This is because it’s often cheaper than regular hotels and provides a more “homey” feel for guests.
Of course, some maintenance is involved. You’ll need to be sure the rooms are cleaned after a guest leaves.
However, you could hire a maid to do that. This would mean you’d have a minimal time investment in managing the property.
My friends Steve and Annette Economides make over $1,000 per month renting out their spare bedrooms.
This can be a great way to generate income with your own assets. You just want to ensure that the extra cash flow is worth it since it will take a little work each month.
11. Start Drop Shipping
Drop shipping has become one of the most popular ways to make passive income.
Basically, it’s where you create a site that advertises other company’s products.
A buyer would order the product from your site, which is set up to send the order to the manufacturer automatically.
Then, the company that makes the product is responsible for shipping the item directly to the client.
With drop shipping, you don’t have to worry about carrying any inventory. You’re simply a go-between of a client and a company that makes a profit.
If you’re interested in selling products online, consider using a platform like Shopify to sell digital products and build wealth.
12. Write a Book
Have you considered writing a book and then selling it to produce a passive income stream? It’s truly one of the more creative financial investment options.
I did this with a book that I wrote called You Can Retire Early, which is about real ways to retire early. For each book that sells, I get a 10% royalty.
Of course, there is the initial work of writing the book. This requires a more substantial time investment. But after that, you can sell it on Amazon and collect passive income.
Also, you will want to do some marketing. The more marketing you do, the more chances you have of selling your book.
If you’ve got good content that could help or entertain many people, you might want to consider book writing as a way to make passive income.
13. Earn Income From Affiliate Marketing
Do you have a blog or website? Many blog owners make money by using affiliate links or sponsored blog posts. Affiliate marketing is one of those passive income ideas that makes me the most money these days.
Here’s how affiliate marketing works. You link to a product or service on your blog. Then, when someone purchases that product or service through your link, you get paid.
Websites are easy to start, too, if you don’t already have one. In fact, I can show you how to start a blog in less than ten minutes.
You’ll need a hosting service for your blog to be seen on the internet, but that’s inexpensive when you get a deal.
Blogging can be great way to make money from home. You just need a computer, internet service and engaging content on your blog.
Then sign up for affiliate programs and start promoting them within your content using things like sponsored posts. Affiliate marketing can be a great side hustle or even a way to get a full-time income.
It took me about six years before I started making a livable wage with my blog.
14. Start a Lead Generation Website
Another way to make passive income is to create a lead-generation website. The point of a lead generation website is to pass leads on to local businesses. You can also use your page to advertise.
For instance, let’s say you want to create leads for local realtors. You could start a blog that talks about owning a home or about real estate investing.
The site would contain links where people could contact you for more information. Then, you’d pass that lead on to local real estate agents.
This is what’s considered a “warm” lead. It’s not total cold calling. Instead, the person came to your site and is seeking out more information.
Professionals in any arena will typically be excited about warm leads. However, it’s important to know that making money this way requires your articles to be high-ranking in Google searches.
And that means you’d have to learn about search engine optimization.
15. Sell Products on Amazon
Many people are earning passive income by setting up a shop on Amazon.
You have the option to sell your own products on Amazon and ship them yourself. But that’s not true passive income.
Instead, you could have Amazon send the products for you. My friend has done really well with this.
He earns well above the six-figure mark selling his products online.
16. Make an Online Course
Do you have information you can share that would help others? Maybe you know how to kill it in investing or paying off debt. Or perhaps you can teach someone a skill.
You can pass that information on to others by creating an online course. Your course can include a variety of teaching techniques.
You can do it all via video, e-books, or emails. Once the course is created, any sale is passive income.
However, be prepared for a more substantial time investment upfront.
You can design the course so that the information is automatically sent to the customer after they pay.
The money you charge for this digital product goes into your pocket.
17. Create A YouTube Channel
I’m sure you’ve heard of people making big bucks by posting videos to your YouTube channel. They post a video, and the video contains ads.
As the video creator, you earn money from the ads within the videos you create. The key to earning money on YouTube is growing a large audience.
You’ll want to reach out to people who like similar content to what you publish on your YouTube channel.
Ask them to subscribe to your YouTube channel. Doing this will increase your YouTube following.
Once the initial work is done, you have a passive income source that will help increase your cash flow.
18. Start a Business
Owning a business is one of the best ideas to make passive income. You can start a new business or purchase an existing one.
Companies like Biz Buy Sell list hundreds of online businesses for sale. The businesses range in price and in the genre.
In order to truly be passive, make sure to hire the right people to run the operations so that you don’t have to.
19. Vending Machines
Organizations like gyms or dance studios love having vending machines available for clients or workers. You can visit these places to see if they’ll let you install vending machines their clients can use.
If you have the right types of snacks in your vending machine, you could make some big money with this unique financial investment.
Once you get approval to install the machines, ask workers or clients what types of snacks they want in the machines. This information could help you increase sales.
To make this really passive income, you can hire people to restock the machines for you.
20. Sell Your Photos
Are you good at taking pictures? Would you like to make money from your photos?
Companies and website owners purchase stock photos from sites like Shutterstock for online stores and blogs.
Open an account, and once your photos are approved, clients can begin downloading them for use.
You get paid each time someone purchases one of your photos for use. The more photos you have uploaded on the site, the more money you can earn.
Note: Look to sell stock photos that contain people doing everyday things, as they are the ones that earn the most money.
21. Create An App
Are you good at tech stuff? Do you have some unique ideas for mobile apps? Why not use those skills to earn some passive income?
Once the app is created and published, you earn money every time someone downloads your app.
Every app on your phone is making money for somebody, somewhere. For instance, Joel Comm made over $1Million from his iFart app.
And imagine the kind of money people are making from gaming apps such as Candy Crush.
You might not get to the million-dollar mark, but even if your app brings in a few hundred dollars a month, that’s still some decent money.
22. Put Ads on Your Car
Did you know some companies will pay you just for driving as you normally do every day?
If you live in a major metropolitan area and do a decent amount of driving, you could earn money by having advertisements on your car.
Companies such as CarVertise wrap your car with ads and then pay you for your daily driving.
Usually, the companies want vehicles that are in good shape with no dents or rust. These types of cars are easier to make advertising wraps adhere to.
23. Buy a Laundromat
While it’s an unusual financial investment, owning a laundromat is another popular passive income idea. Cities everywhere have laundromats for people who don’t have in-house laundry facilities.
Here is how you could make owning a laundromat into true passive income:
- Buy an existing laundromat from someone interested in selling
- Hire a reliable and trustworthy person to manage the store
- Take home a paycheck
Start-up costs for laundromats can be pretty high, as commercial washers and dryers aren’t cheap.
For that reason, you’ll probably be better off financially if you buy an existing laundromat.
24. Purchase or Open a Batting Cage
Baseball is one of the most popular sports for kids in America. However, there aren’t a ton of batting cage facilities in most areas.
Starting a batting cage from scratch can be very costly. You’ll need a building and the equipment to run the store.
Buying an existing batting cage might be a better bet if you can find one.
Again, you’d have to find a good manager to run the store. If you like sports, this might be a great passive income idea.
25. Use Your Graphic Design Skills
Are you good at graphic design? Print-on-demand sites such as Redbubble allow you to upload your witty design ideas and create t-shirts, coffee mugs, laptop covers, etc.
You might have ideas for great sayings that can go on shirts or mugs using a print-on-demand site. Or just great designs.
The cool thing about print-on-demand sites like Redbubble is that all you have to do is create your store and upload your designs.
They handle all shipping, payment and customer service. When your designs sell on any print-on-demand site, you get paid via a monthly check for your portion of the profit.
Alternatively, you could open your own online store on your own website to sell your designs.
26. CD Laddering
Bond and CD laddering is a type of financial investment where you own many bonds and/or Certificates of Deposit.
You spread out their maturity dates so they come due at different times of the year. Then, you’ll have cash coming in from them throughout the year.
Note that bonds and CDs typically don’t earn as high of a return as other passive income investments. However, they usually have a much lower risk, too.
Bond and CD laddering can provide you with a sure and steady passive income stream. While the time investment to get started may include research, once you set up your CD ladder, you are good to go.
27. Rent Your Stuff to Others
What about earning passive income by renting out your own stuff? Craigslist can be a great place to advertise your items for rent.
Products that you could rent out:
- Tools and ladders
- Party tents
- Tables and chairs
- Utility trailers
- Log splitters
- Cleaning equipment
- Snowmobiles
- ATV’s
You can even rent out your car when you are not using it with a company like Hyrecar.
If you’re going to choose this passive income idea, be sure to have all renters sign a contract.
That way, you protect yourself and your equipment in case something goes wrong.
I’d consider charging a refundable security deposit to protect yourself in case someone damages equipment, too.
28. Become a Social Media Influencer
While this does take a lot of upfront work, it can become a great revenue stream once the money starts rolling in.
To be fair, this is not for everyone. If you like being in front of the camera and speaking your mind, then this might be a path to consider.
Big brands pay a lot of money every day to social media influencers in order to get their brand in front of the influencer’s following.
29. Invest in Local Business
Mainvest is a crowdfunding company that helps you invest in local brick-and-mortar small businesses.
With Mainvest, you might have the opportunity to invest in coffee shops, breweries, restaurants, and more.
The minimum to invest with Mainvest is just $100, and you don’t have to be an accredited investor to join.
There are no investor fees with Mainvest.
30. Sell Digital Planners
Digital planners and other digital downloads present a financial investment opportunity. You can start selling blank planners to help people map out their day.
You can create a digital planner with the right software. Some options include Keynote App, Microsoft PowerPoint, or Adobe InDesign.
The software you choose will vary based on your comfort level and the design you are trying to create.
A few places to try selling digital products using an online store include Etsy and Shopify. Stand out from the crowd by creating amazing listing images!
31. Start a Podcast
A popular podcast can create a passive income stream. You can find podcasts on topics covering everything from gardening to personal finance and everything in between. Find a topic you love to get nerdy about!
When creating episodes, try to solve a problem for the reader. The problem could just be that they are bored and looking for fun entertainment.
Not only can you get sponsors to advertise on your show, but also consider creating digital products that your audience will love. If you build a strong audience, they’ll tell their friends and continue to grow your passive income streams.
32. Rent Storage Space
Many Americans don’t have enough space to store their items at home. So, the storage industry solves their problem by holding onto their extra stuff. You can hop into that space!
You can buy a storage unit to rent out. Or even rent out extra space in your basement to generate passive income for space you aren’t using.
When creating a storage unit business, consider making it as hands-off as possible. That might include keypad entry and security cameras to ensure everything stays secure.
33. Trade Domain Names
A domain name is the name of a website. In some ways, a domain name is like a digital property. Domain name owners stake a claim on their corner of the internet.
Since it’s possible to build income-generating websites, domain names can be in high demand. If you spot an available domain name that you think will be worth something one day, then you can buy it now and sell it later.
Depending on the name, you might be able to buy it cheap and make a nice profit. In most cases, domain names can be purchased for less than $100.
Although it’s a speculative financial investment, it could definitely pay off.
34. Rent a Billboard
As you drive along the interstate, you’ll likely see countless billboards. Not only do these billboards serve to keep you entertained on your drive, but they also act as a cash cow for the owner.
Each of those companies advertised is paying the sign’s owner rent for the privilege of being seen. You can buy a billboard of your own and rent out the ad space for passive income.
Of course, the location of the billboard matters. You can’t expect a business to pay for a billboard slot in your backyard unless your backyard is near a high volume of traffic.
Typically, billboard locations near interstates in areas with a high population earn more per ad.
35. Buy an ATM
An ATM in the right place can be a big money maker.
In fact, you might have seen an ATM earning passive income in action the last time you needed cash unexpectedly. The ATM didn’t necessarily go to your bank. Instead, it makes its way into the pocket of the ATM owner.
But the ATM charges around $3 per withdrawal. That can really add up! If you can find a high-traffic location, this could be a great passive income stream.
36. Own a Car Wash
Owning a car wash can be a great way to earn passive income. People pay money, drive in, drive out, and are on their way.
You can own car washes with automatic washers, self-service wash bays, or both. Of course, owning a car wash means maintaining equipment.
However, for the most part, car washes with pay stations run themselves. Search online to find car washes for sale.
Or consider building one if you can find the right location.
37. Sell Digital Files on Etsy
Selling on Etsy can earn you an unlimited amount of cash. All you have to do is open an Etsy shop and upload your design file on Etsy.
The most popular digital files for Etsy sellers are files that contain calendars, organizational documents and files with motivational quotes or sayings.
After you upload the file, the rest is up to Etsy. They deliver the sold files and give you the remaining profit after they’ve taken their cut.
Your main job will be to market your Etsy store on social media so that people are aware that the store exists.
38. Design T-Shirts
Designing t-shirts is another great way to earn passive income. With sites like Redbubble, you can upload your designs and they do the rest.
Companies like Redbubble handle printing, shipping and even customer service. Your job is to create great designs that potential customers will love.
Then you’ll have to market your designs and get them in front of the right audience.
39. Use Cashback Rewards Cards
Using cashback rewards cards is likely one of the easiest ways to earn passive income.
You can use your favorite cash back credit card and pay the balance in full each month to avoid paying interest.
Better yet, you can get one of these great cash back debit cards and earn cash back while avoiding debt altogether.
Use your cash back card for all of your grocery, gas and entertainment spending. Then watch the cash back roll in.
Search for cash back debit cards that have little to no fees so that all of the income you earn is money in your pocket.
40. Partner With a Network Marketing Company
Network marketing companies such as Young Living, DoTerra, and Pampered Chef earn hundreds of thousands of people passive income every day.
Of course, when you first start out with a network marketing company, the income you earn will be very active income and require a lot of legwork on your part.
However, when you start building a team that does the active work, your position becomes one of more training and coaching.
You’ll get a percentage of the sales of those on your team, similar to how Redbubble or Etsy take a percentage of your sales for products you list on their sites.
Be sure to choose a network marketing company that sells products you like and use yourself.
Frequently Asked Questions
Before you invest time to create passive income streams, check out these frequently asked questions.
Is passive income truly “passive”?
While most passive income opportunities do not take effort to maintain, it can take effort up front to get it going.
Some options, like buying dividend stocks, require minimal work, while others, like buying rental properties, can involve more work on a regular basis.
How do I generate passive income?
In order to generate passive income, you will need some capital to get started.
Once you have capital, you must research and choose the best passive income opportunity.
How much money do I need to start making passive income?
While some options like crowdfunded real estate start at $10, others like buying a single family property could require over hundreds of thousands to get started.
What are the most popular passive income ideas?
The most popular passive income sources include stocks, real estate investment opportunities, and bonds.
Recently, investing in businesses, as well as crowdfunded equity, have become popular passive income opportunities.
What is the difference between active income and passive income?
Active income is where you need to continue to work in order to make money. The best example of this is working a traditional corporate job.
You only get a paycheck if you work. Having a true source of passive income does not require work for continued income.
Summary
Passive income isn’t just for the wealthy. Everyone has to start somewhere, and there are many ideas you can start for less than $100 that will help you make money.
Don’t let a lack of knowledge or the initial time investment stop you from achieving your goal of having a source of passive income–even if you want a lot of it!
Decide on four or five that seem right for you. Then, get to work and earn some passive income!
This is a good read. Thank you for writing this article and to everyone that shared their ideas and experiences. God bless you all.
With two babies, and deserted by my husband, I had no choice but to work for myself. At the beginning it was hard. However, I soon realized that this was the best thing to have ever happened to me. I struggled with EVERYTHING to begin with, but as I mastered new skills I began making a good living without even leaving the comfort of my own home. Now I wouldn’t change my lifestyle for the world.
That’s great! How wonderful to raise your kids and earn money to support them at the same time.
Hi,
What a fantastic post! This is so chock full of useful information. I can’t wait to dig deep and start utilizing the resources you have given me.
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.
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.
Thanks for the list of great information. I really appreciate it.
You’re very welcome!
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!
I’m glad you are having luck with your e-store. Thanks for your comments!
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.
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.
Thank you. I’m glad you like it!
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!
Thanks for posting your opinions and advice for other readers to consider. We appreciate your comments!
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.
We’re glad you found it helpful. Thanks for your feedback.
This is an excellent article! Not only does it list the idea, but the reference website to get started on each one. Thank you.
Your welcome! I hope it helps you out.
#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.
That sounds rather interesting. I’m sure it carries some risks as well as rewards. Thanks for sharing this idea.
David Bauer,
Could you provide more info or a website for renting out credit scores?
Thanks
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.
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.
That’s another possibility.
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.
🙂
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?
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.
That’s awesome!
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.
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.
Deacon, I like your crowdfunding idea. I think I will give it a try.
Thanks for sharing. TJ Mitch at passiveincomewiz
Let us know how it goes!
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.
It depends on how hands-on you decide to be. It is possible to hire people to handle all of the details for you.
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. 🙂
I really appreciate the info and ideas. I love your blog!
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.
This is an awesome list! Thanks for putting this together!
I’m definitely jumping on 3 or 4 of those right now! Hopefully I can give a good and profitable update soon!
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. 🙂
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.
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.
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. 🙂
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!
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.
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!
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!
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!
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?
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!
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.
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.
Hi. Can anyone recommend a really good and affordable app builder?
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!! 🙂
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!
I used care.com and all I got were scammers.
That is interesting as I have never heard that before. What were you looking to do, babysitting or pet sitting?
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!
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!
Hi Amina,
Do you have anything published on your herbal treatments or a page?
Thanks. I’m glad you found it helpful!
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
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.
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.
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
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!
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!
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!
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!
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.
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.
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.
Thanks, Chella! Yes, writing has been lucrative for me and I’ve enjoyed being able to work at home and still bring in income.
These are great ideas…I will try to experience some of these.
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!
Hey, Laura! That is awesome that you are planning on writing an eBook. What are you thinking the book will be about?
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!
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.
That’s great, Laura! You definitely have tons of great info to share with how well you and Dontae have done.
You’re always so encouraging, Laurie. I really appreciate that. Perhaps I’ll get started on that sooner than I thought. 🙂
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!
Thanks, Niomi!! I’m glad you are finding the post helpful!
Looking at all these people that are so called “Affiliate Marketing Experts”, it seems the way they actually make money is to sell you a course on how to affiliate market rather than affiliate marketing. Sell 50 of those courses a month worldwide and that’s an impressive income. Some people are selling courses for $1000!!!
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!
It is amazing how much more money we had coming in every month to work with when we paid off our debt. Although it is not “technically” passive income, it is a great way to increase your cash flow.
I call it, “mirrored passive income”.
That’s a good description.
This is a great list. I have a friend who is researching the batting cage idea.
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.
Yeah, I have been looking into a batting cage for a while now, and I’m really considering trying my hand at it!