37 Passive Income Ideas You Should Know in 2023
Knowledge of passive income ideas can be a great way to help you set yourself up for the generation of a few extra cash flows to deal with the economic upheaval caused by several factors, including the COVID-19 crisis and others.
Passive Income Ideas
Passive income ideas give you avenues to embark on other money-spinning media, so you can still have money coming in even as you are focused on your primary job. Furthermore, a solid build-up of a stream of passive income can afford you the opportunity to kick back a little.
Either way, a passive income gives you extra security. There are several passive income ideas you should get yourself up to speed with.
Passive Income Ideas for You
Now braced with the fact that passive income ideas can be a great way to help you generate extra cash flow, whether you’re running a side hustle or just trying to get a little extra dough.
Passive income can help you earn more, in addition to being capable of sustaining you in the face of a layoff from work.
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List of Passive Income Ideas
1. Create a course
2. Write an e-book
3. Rental income
4. Affiliate marketing
5. Flip retail products
6. Sell photography online
7. Peer-to-peer lending
8. Dividend stocks
9. Create an app
10. REITs
11. A bond ladder
12. Sponsored posts on social media
13. Invest in a high-yield CD or savings account
14. Rent out your home short-term
15. Advertise on your car
16. Create a blog or YouTube channel
17. Rent out useful household items
18. Sell designs online
19. Start a dropshipping store
20. Create a print-on-demand store
21. Sell digital products
22. Teach online courses
23. Become a blogger
24. Sell handmade goods
25. Become an Instagram influencer
26. Buy a rental property
27. Invest in the stock market
28. Rent out your spare room
29. Earn while shopping online
30. Buy and sell websites
31. Stake cryptocurrencies
32. Pay Off or Reduce Debt
33. Invest in businesses
34. Sell NFTs
35. Create a job board
36. Create no-code apps
37. Write a digital guide
1. Create a Course
One of the most popular passive income ideas is creating an audio or video course, then kicking back while cash rolls in from the sale of your product.
Courses can be distributed and sold through sites such as Udemy, Skillshare, and Coursera.
Alternatively, you might consider a “freemium model” – building up a following with free content and then charging for more detailed information or for those who want to know more.
For example, language teachers and stock-picking advisors may use this model. The free content acts as a demonstration of your expertise and may attract those looking to go to the next level.
2. Write an E-Book
Writing an e-book can be a good opportunity to take advantage of the low cost of publishing and even leverage the worldwide distribution of Amazon to get your book seen by potentially millions of would-be buyers.
E-books can be relatively short, perhaps 30–50 pages, and can be relatively cheap to create, since they rely on your own expertise.
You’ll need to be an expert on a specific topic, but the topic could be a niche and use some special skills or abilities that very few offer but that many readers need.
3. Rental Income
Investing in rental properties is an effective way to earn passive income. But it often requires more work than people expect.
If you don’t take the time to learn how to make it a profitable venture, you could lose your investment; Says John H. Graves, an Accredited Investment Fiduciary (AIF) in the Los Angeles area, and author of “The 7% Solution: You Can Afford a Comfortable Retirement.”
4. Affiliate Marketing
With affiliate marketing, website owners, social media “influencers,” or bloggers promote a third party’s product by including a link to it on their site or social media account.
Amazon might be the best-known affiliate partner, but eBay, Awin, and ShareASale are among the larger names, too. In addition, Instagram and TikTok have become huge platforms for those looking to grow a following and promote products.
You could also consider growing an email list to draw attention to your blog or otherwise direct people to products and services that they might want.
5. Flip Retail Products
Take advantage of online sales platforms such as eBay or Amazon, and sell products that you find at cut-rate prices elsewhere.
You’ll arbitrage the difference in your purchase and sale prices, and may be able to build a following of individuals who track your deals.
6. Sell Photography Online
Selling photography online might not be the most obvious place to set up a passive business, but it could allow you to scale your efforts, especially if you can sell the same photos over and over again.
To do that, you might work with an organization such as Getty Images, Shutterstock, or Alamy.
To get started, you’ll have to be approved by the platform, and then you will license your photos to be used by whoever downloads them. The platform then pays you every time someone uses your photo.
7. Peer-To-Peer Lending
A peer-to-peer (P2P) loan is a personal loan made between you and a borrower, facilitated through a third-party intermediary such as Prosper or LendingClub.
Other players include Funding Circle, which targets businesses and has higher borrowing limits, and Payoff, which targets better credit risks.
8. Dividend Stocks
Shareholders in companies with dividend-yielding stocks receive a payment at regular intervals from the company.
Companies pay cash dividends on a quarterly basis out of their profits, and all you need to do is own the stock. Dividends are paid per share of stock, so the more shares you own, the higher your payout.
9. Create an App
Creating an app is one of the best passive income ideas out there. It affords you a way to make that upfront investment of time and then reap the reward over the long haul.
Your app might be a game or one that helps mobile users perform some hard-to-do functions. Once your app is public, users download it and you can generate income.
10. REITs
A REIT is a Real Estate Investment Trust, which is a fancy name for a company that owns and manages real estate.
REITs have a special legal structure so that they pay little or no corporate income tax if they pass along most of their income to shareholders.
11. A Bond Ladder
A bond ladder is a series of bonds that mature at different times over a period of years.
The staggered maturities allow you to decrease reinvestment risk, which is the risk of reinvesting your money when bonds offer too-low interest payments.
12. Sponsored Posts on Social Media
Do you have a strong following on social media such as Instagram or TikTok? Get growing consumer brands to pay you to post about their product or otherwise feature it in your feed.
You will need to keep filling your profile with content that draws in your audience, though. And that means continuing to create posts that grow your reach and engage your followers on social media.
13. Invest in a High-Yield CD or Savings Account
Investing in a high-yield certificate of deposit (CD) or savings account at an online bank can allow you to generate a passive income and also get one of the highest interest rates in the country.
You won’t even have to leave your house to make money.
14. Rent Out Your Home Short-Term
This straightforward strategy takes advantage of space that you’re not using anyway and turns it into a money-making opportunity.
If you’re going away for the summer or have to be out of town for a while, or maybe even just want to travel, consider renting out your current space while you’re gone.
15. Advertise On Your Car
You may be able to earn some extra money by simply driving your car around town. Contact a specialized advertising agency, which will evaluate your driving habits, including where you drive and how many miles you log.
If you are a match with one of their advertisers, the agency will “wrap” your car with the ads at no cost to you. Agencies are looking for newer cars, and drivers should have a clean driving record.
16. Create a Blog or YouTube Channel
Take your passion for a subject and turn it into a blog or a YouTube channel, using ads or sponsors to generate income. Find a popular subject, even a small niche, and become an expert in it.
At first, you will have to build out a suite of content and draw an audience, but it can create a steady income stream over time, as you become known for your engaging content.
17. Rent Out Useful Household Items
Renting out useful household items is one of the best passive income ideas around. Start even smaller with other household items that people may need. That may be collecting dust in your garage, on lawnmowers, power tools, mechanic tools, tents, or large coolers.
Look for high-value items that people need for a short period of time and where it might not make sense for someone to own the item. Then put together a way for clients to discover your inventory and a way for them to pay for it.
18. Sell Designs Online
If you have good design skills, you may be able to make money with them by selling items with your printed designs on them.
Businesses such as CafePress and Zazzle allow you to sell items such as T-shirts, hats, mugs, and more with your own designs.
19. Start a Dropshipping Store
Dropshipping is one of the best ways to start earning from wherever you are, even if you don’t have plenty of cash flow.
Some dropshippers report making upward of 100,000 USD per year. Dropshipping is not a get-rich-quick scheme, however, it does require some upfront investment of time.
This business model involves creating an e-commerce store where customers browse and buy products. What’s interesting about dropshipping is that you don’t have to see the products you sell physically.
20. Create a Print-On-Demand Store
If you’re an artist, designer, or entrepreneur, print on demand can be a profitable passive income idea and monetize your creativity.
It involves working with suppliers to customize white-label products like t-shirts, posters, backpacks, or books and selling them on a per-order basis.
Similar to drop shipping, you only pay for the product after you sell it. There’s no buying in bulk or inventory needed. Print-on-demand stores are a good passive income stream because:
1. You can create products quickly and put them up for sale in minutes
2. Shipping and fulfillment are taken care of by your supplier
3. Once your store is set up, you can automate many marketing and sales processes
21. Sell Digital Products
Digital products are assets or pieces of media that consumers can’t touch physically. These include downloadable or streamable files such as Kindle books, templates, plug-ins, or PDFs.
Selling digital products is one of the best passive income ideas, because they have high-profit margins. You only have to make the asset once, and you can sell it repeatedly online. There’s no storage or inventory needed.
You can sell as many digital products as you want. Many creators scale their passive income by selling kits, printables, files, and other assets professionals can use.
UX Kits, for example, sell personas, flowcharts, and wireframes to assist the design process.
22. Teach Online Courses
It’s easier than ever for educators to sell courses online. Whether it’s marketing, illustration, or entrepreneurship, you can create courses and start selling them with few limitations.
Similar to digital products, you can sell online courses repeatedly without holding any inventory or stock.
Teaching online requires some upfront investment in time. You’ll need to outline your course, record it, and make downloadable assets like templates for students to walk away with.
23. Become a Blogger
Starting a blog can be a challenging venture, but the blogging business model is only becoming more successful as a passive income stream.
You don’t need to be an internet celebrity anymore to earn money online. All you have to do is find your people on one or two platforms, then send them to your website.
It takes a little bit of time to build a blog. But if you create quality content and promote it through your platforms, you’ll build an audience big enough to monetize.
You could earn passive income from blogging by:
1. Selling affiliate products
2. Creating sponsored posts
3. Selling your own products
4. Running ads through Google AdSense
24. Sell Handmade Goods
There’s never been a better time to sell stuff online. With over 4.6 billion people connected to the internet, the opportunity to build and scale an online business is massive.
There are hundreds of online sites you can sell on. Some have specific niches, like video games or handcrafted goods, while others let you sell whatever you want.
Some popular online selling sites include:
1. Your own online store
2. Handshake
3. Amazon
4. eBay
5. Ruby Lane
6. AliExpress
25. Become an Instagram Influencer
To become an Instagram influencer—someone who can sway another person’s buying decisions—you will need to build a community of people who enjoy similar topics.
Are you a comics fan? You can create an Instagram account and start posting consistently about the latest Marvel and DC shows. The same applies if your interest is in sports, scuba diving, home decor, or even general culture.
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26. Buy a Rental Property
Investing in real estate is one of the best passive income ideas, and one of the oldest ways to build long-term wealth. If you have enough money, you can buy and rent out apartment buildings or some other form of real estate.
But since the job of being a landlord is pretty active, you can hire property managers to manage tenants and collect monthly payments or rent.
27. Invest In the Stock Market
Although the stock market might have a steep learning curve and can be confusing, it’s a great way to build lasting wealth.
A common mistake most people make with stock investments is thinking short-term instead of playing the long game to reach financial goals.
The goal of investing in stocks is to diversify your portfolio and reduce risk. You can do this by investing in exchange-traded funds (ETFs) and high-dividend stocks that earn you income slowly over time.
To start investing in the stock market, you need to open a brokerage account and fund it.
28. Rent Out Your Spare Room
Do you have an extra room in your apartment? Or are you going on a few weeks’ road trips and don’t want to leave your house empty? You can partner with a rental company like Airbnb to put your free space up for rent.
Airbnb connects homeowners with people who are looking for their next getaway. People prefer Airbnb because they’re usually cheaper than hotels, meaning there’s likely to be a high demand for your free space as an Airbnb host.
29. Earn While Shopping Online
Cashback reward sites like Swagbucks, MyPoint, and Rakuten allow you to earn money when you shop online.
After signing up, you don’t have to do anything extra, aside from shopping, to make money from these sites. The more you shop online, the more points you gain. And the more money you can make.
30. Buy and Sell Websites
Websites abound on just about any topic you can think of. A lot of them make a healthy income through the likes of affiliates, ads, memberships, or products—and they’re often put up for sale.
Sites like Exchange Marketplace make it easy to buy and sell online stores securely once you open and verify an account.
31. Stake Cryptocurrencies
Investing in several cryptocurrencies, or “staking crypto,” can be a great way to earn anywhere from 5% to 10% when done passively. You can think of it as earning interest on your savings, except with higher returns.
How do you get started? First, educate yourself on proof-of-stake cryptocurrencies and how you can get access to a crypto wallet.
Then you will want to learn about the different coins you can choose from to make an educated decision on which to invest in. Once you’re ready, crypto exchanges like Kraken or Coinbase can be great places to buy crypto.
32. Pay Off or Reduce Debt
Along the same lines as refinancing your mortgage, if you can pay off or reduce your debt, you’re making huge progress in building income.
But just like other things on this topic – it takes a monetary investment to make that happen.
The great thing about paying off debt is that it’s a straight return. If you have a credit card at 10% interest, paying it off is a 10% return on your money.
33. Invest In Businesses
Today, getting started investing in historically inaccessible business opportunities is absolutely possible. Platforms like Mainvest.com make it easy to invest passively with a $100 initial investment without any investor fees.
Mainvest aims to earn you anywhere from 10% to 25%. You don’t even have to vet the businesses yourself. Mainvest takes care of the vetting process for you. You simply invest the capital to get started.
34. Sell NFTs
Non-fungible tokens, or NFTs, are unique assets that are stored on a digital ledger. The beauty of NFTs is that the asset you store can be valuable.
You can create NFTs for anything including digital designs, photography, music, games, GIFs, and even video.
Creating an NFT is easy. You can use platforms like OpenSea to create an account and follow the step-by-step minting process (which involves some additional gas fees).
35. Create a Job Board
A job board is a great way to earn passive income as an online entrepreneur. These websites are used by employers to promote job openings to job searchers. Job seekers can look for new job opportunities online or in person.
You can charge employers to post on your job board and offer premium features like sponsored jobs or unlimited access to your candidate database.
Even if you don’t want to design a job board from scratch, you can buy a job board theme and start there. Now, building the website is the easy part.
36. Create No-Code Apps
The fact that any novice can create a basic or advanced app with today’s no-code tools is beautiful.
Platforms like Appy Pie, Adalo, or Bubble make it possible to get started in an industry that got 218 billion downloads in 2020 alone.
To start, you’ll have to decide whether you want to create a website or a mobile app. Besides the concept of the app (what niche it will serve and what problem it will solve), there’s also monetization to think about.
You can monetize apps through:
1. Subscriptions
2. Ads
3. Pay to download
4. A marketplace model
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37. Write a Digital Guide
Chances are, you have deep knowledge about a topic that other people are more than willing to pay for. Try using that knowledge to write digital guides.
There’s little barrier to entry to get started, and in a lot of cases, there’s no need to invest money upfront; what you will need to invest is time.
Take the time to research what people are searching for. Google suggestions can be a great place to start. Tools like Ubbersuggest can give you insight into what keywords have high search volumes.
Frequently Asked Questions
Popular questions and answers hovering over passive income ideas are elicited below.
Your financial life is in for a very huge boost with these passive income ideas. You do not have to depend on just your salary to cater for needs. Try these passive income ideas today and knock back any financial problems.
CSN Team