We all need more than one income source, but there are only so many hours in a day to work. Here are 15 passive income ideas to make money while you sleep.
I’ve spent 100s of hours thinking about all sorts of crazy ideas for making passive income online…
During this time the one thing I wanted more than anything else, was a big fat epic list of ALL the possible passive income streams there were.
Everything in one place so You could compare them and work out what is best for you.
What is Passive Income?
There is a lot of chatter in the personal finance world about passive income, why you need it and how great it is. But what is it and why is it such a topic of conversation?
Passive income means merely money that you earn without doing much to make it. Some passive income ideas take a degree of upfront work to earn, like writing an e-book and some don’t take any effort at all.
Active income is money earned when you perform a service. This is money you make from a job and includes salary, tips, and commission.
Residual income is when you continue to get paid after the work is done. This includes royalties from books, movies, or songs and also revenue that comes from real estate or business investments where you don’t have to be present to earn it.
15 Passive Income Ideas:
1.Start A Blog
The most important method for generating passive income is to start a blog. Blogs can generate a tremendous amount of income, but not quickly. If you plan to start a blog, understand that it’s going to take a vast amount of work and time to succeed.
Regardless of your niche, as long as you have a clear understanding of things like searching engine optimization, social media marketing and the ability to write high-value content, then you will succeed with a blog.
Once your blog becomes popular, it provides you with the platform and audience to generate multiple streams of revenue by marketing relevant products and services to your visitors.
This guide will show How to start a Blog in 10 minutes
2. Selling Stock Photos
Do you like photography? If you do, you may be able to convert it into a passive income source. Photography websites such as Shutterstock and iStockphoto can provide you with platforms to sell your photos. They may offer either a percentage or a flat fee of each photo that is sold to a site client.
In this way, a single photo could represent a residual income opportunity, since it can be sold again and again. You simply need to create your photo portfolio, put it on one or more photo platforms, and then the activity becomes completely passive.
Your favorite websites, blogs, and sometimes even magazines get their photos from stock photo websites.
Everyday regular people like you and me are making money on YouTube. Each time someone watches one of your videos, ads can appear. When viewers click on those ads, you will earn money from AdSense.
The keys to becoming successful with YouTube is to create compelling videos, to promote those videos on social media websites, and to create enough of them that your income will be coming from multiple sources.
This 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.
This can be a lot of work upfront, but once the ebook is created and the book goes into the sales stage, it becomes a completely passive venture.
You can either sell the ebook on your own website or self-publish your book on Amazon.
Self Publishing is a mainstream today. Self-publishing is very easy. To self-publish a book you’ll first need to write and edit it, create a cover, and then upload to a program such as Amazon’s Kindle Direct Publishing. Don’t expect instant success though. There will need to be a lot of upfront marketing before you can turn this into a passive income stream.
Once your book is available on a site like Amazon, you could receive a check each month for doing absolutely nothing. Obviously, the more time you spend marketing your books, the more money you’ll make.
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. There are millions of people using Airbnb to find a place to stay instead of staying at a hotel, sometimes even for months at a time.
By participating in Airbnb, you can use your residence to accommodate guests and earn extra money just for renting out space in your home.
How much you will make will depend upon the size and condition of your home and your location. Naturally, if your home is located in a high cost city, or close to a popular resort, your income will be much higher. It’s a way of earning money on space in your home that might just be sitting empty otherwise.
Affiliate marketing is likely one of the most powerful ways that you can produce multiple passive income streams. This is a passive income technique that is better suited to people who have blogs and active websites.
To succeed at affiliate marketing, you need a large following of users. In other words, you need a big platform and audience. When you don’t have a platform or audience, you need to run ads, which can get costly.
Affiliate marketing can be a great way to make passive income because when people click on the affiliate links on your site, you receive a commission at no additional cost to them when they purchase a product or service.
You can sign up to promote certain products or services on your site, for which you will be paid either a flat fee or a percentage of the amount of the sale completed.
This isn’t as hard to do as you might think, since there are thousands of companies in the world who want to sell their products in as many places as they can.
Related : 11 ways to make money online from home
Dividend income is dividends 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. This guide will show you Warren Buffett’s 8 Important Lessons About Investing
You will have to do plenty of research to find good stocks and invest a significant amount of money to receive large dividend checks. However, if you consistently invest money into dividend stocks you can amass a nice residual income over time.
8. Buy and Sell Domain Names
Internet domain names can be valuable! That’s why famous people rush to trademark their children’s names
Domain trading is another high profit business you can do online. But here you need some investment for buying the domain.
You can buy domains from GoDaddy or other domain registrar for less than $10 & sell in future to the needy person for hundreds of dollars.
Your skill here is to identify great domains that are not booked yet & companies in future can try to buy that domain.
When companies don’t find the domain of their choice, they contact the domain owner for the deal & it’s in your control to fix the price.
You can even put your domains on auction so that people can buy directly at your desired price.
9. Create an App
Apps make people’s lives easier. Whether it’s an app that helps people put together nice pictures for their blog or an app that keeps track of tasks, there are helpful apps out there for everyone.
There is a lot of competition in this industry, only creative ideas can survive. If you can come up with something unique, you can make quite a bit of money. Simple – yet unique – apps can be pretty passive.
Ohh .. You don’t know how to code? No problem. First, you can learn.
Second, you can hire a developer to build your app based on your idea. This could end up being an expensive option, although it will probably yield a professional-looking app.
The end result is an app that has the potential to make you some relatively passive income.
Network marketing, or multi-level marketing, seems to be on the rise. Companies such as
All are multi-level marketing companies. You can earn passive income through network marketing by building a team underneath you (often referred to as a down line.) Once you have a large team you can earn commissions off of their sales without having to do much.
This probably falls more in the category of semi-passive income, since an investment in real estate is always at least a little bit of an active venture. Still, once you have an investment property that is established and fully rented, it’s mostly a matter of managing the property and keeping it performing well.
Additionally, there are professional property managers who can manage your property for you, usually for around 10% of the monthly rent. This professional management can make the investment much more passive, but will take a bite out of your cash flow.
Another benefit of investing in rental properties is the loan pay down. If you obtain a loan to buy the property, each month your tenants are paying off part of the loan. Once the mortgage on the property has been paid off, your cash flow will increase dramatically, allowing your mediocre investment to skyrocket into a full-fledged retirement program.
Realted : 6 Ways To Make Money In Real Estate
12.Make an online guide
If writing articles or creating videos isn’t your thing, and you want to make money online, try creating 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.
This 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.
Udemy is an online platform that lets its user take video courses on a wide array of subjects.
Once you create an online course, it can work for you while you sleep!
13. Licensing Music
Just like stock photos you can license and earn a royalty off of your music when someone chooses to use it. Music is often licensed for YouTube Videos, commercials, and more.
That means that in exchange for the right to use my music in a project, people and companies give me money.
This guide will show How To Make Money With Music Licensing
14.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, orders a product, and 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.
The less money you’re paying in interest to creditors, the more money you have in your pocket each month.
Talk about a simple form of passive income. Get out of debt quickly can increase your income even more because you’re no longer paying interest to creditors each month.
Reducing a fixed expense is the financial equivalent of creating passive income.
This is certainly true when it comes to credit cards. Let’s say that you owe $10,000 on a credit card, on which there is a monthly payment equal to 2% of the balance, or $200 per month.
By paying the card off, you’ll be free up $2,400 per year in cash flow that would’ve gone to the monthly payments.
That’s like getting a guaranteed 24% return on a $10,000 investment. Good deal?