13 Best Passive Income Ideas To Help You Make Money (2022)
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Are you thinking of having a passive income besides your active income? For me, having passive income help me rest assure that I still got an income to cover my expenditure when I can’t work or during my retirement. I personally love to create a business that can create passive income, such as this blog. Therefore, in this article, I will share 14 passive income ideas to help you create wealth.
What is passive income?
Before we go further on passive income ideas, let us dive deeper into the meaning of passive income. Passive income is the money we earn without having to continue putting all of our efforts into that. Basically, we do the work and invest some extra struggle (time and energy) in advance to create passive income.
For instance, when your blog makes money every month, you simply require to update the blog to ensure your blog is updated and the money keeps flowing.
Some people love passive income with the expectation of “make money while you sleep”.
We can generate different things such as (video, course, digital book, recordings) that produces cash in any situation, we are working or not. Plus, we can make passive income by investing in (property or stocks) that permit us to have cash passively.
How to make passive income?
We have complete control of how much passive income will generate. This is not, though, a get-rich-quick program. To build a passive income, you’ll have to invest in some time, energy, and resources at first.
An excellent thing is that you can lay quietly and reap the monetary advantages for the coming years if you do this stuff correctly.
You can start with less of $100 and work your way up.
13 Best Passive Income Ideas
#1. Establish a Dropshipping Business
Dropshipping is among the most lucrative online passive income idea. It is a perfect place to start a business with less capital. As a dropshipper, you set the products price and buy the products at a discount from the wholesaler or manufacturer.
You earn an income from the difference between the selling price and the initial cost of the item. In dropshipping, you didn’t involve in shipping the products. The manufacturer or the wholesaler will directly ship the product to the customer.
Therefore, you avoid the headache in packaging and shipping process. Your job is to find favourite items on the marketplace and sell them online to customers worldwide. From fashion to interior decoration to cosmetics, you can sell items in a range of dropshipping niche markets.
To start dropshipping, you need a website to promote the dropship items. The things you need to build a website is hosting and domain name. You can get them from Bluehost as low as $3.95 per month.
Otherwise, Shopify is another option with a much higher monthly payment. Still, you need your own domain name for your dropship store.
#2. Start a Blog
Another best passive income idea with low business startup cost is blogging. Affiliate marketing, selling a physical or digital product, sponsored post are ways to monetize the blog.
Writing a blog indeed time consuming and commitment. However, as a mom, you can write based on your free time. If you really want to make a blog as a business, you need to work on it like a real business.
Outsourcing the writing job to freelance writers if time is your concern. One of the platform to find freelance writers is iWriter.
The great thing about writing a blog is that you’ll earn money from it in various ways.
How To Make Money Blogging
Below are a few ways to make money blogging. The best way to start monetizing your blog is through an affiliate.
- Sponsored post
- Display Ads (e.g. Mediavine, Google Adsense, Ezoic)
- Sell physical product
- Write and sell an eBook
- Sell printables
- Offer course
- Offer service (SEO service, writing service, editing)
- Personal coaching
So, if you’re looking for a long term income generation, blogging is one of the best ways.
Incentive: You can use a free (or very low-cost) website like Blogger to create an audience and use your excellent content to expand it. The more distinctive your speech or field of interest, the more likely you will become “the” individual to follow. You’ll be able to locate sponsors after that.
Threat: You’ll need to build original and ongoing material, which might take a long time. You will have to be incredibly excited about the blog niche and willing to learn on the topic.
#3. Build an App
Mobile application getting more popular nowadays with the increase in smartphone users. Therefore, build an application is one of the best passive income idea. Consider an application that will help people’s lives or be enjoyable to use if you already have technical skills. Even simple apps have the potential to be popular.
It can be a mobile game or productivity apps that will help people manage daily activities.
For example, the success of Flappy Bird, a basic but entertaining game that went viral and according to Wikipedia, the game developer earned $50,000 daily in advertising and sales. This shows that you don’t need to create the most luxurious, complex apps to make money.
#4. Investment in Stock
This passive income idea is suitable if you have extra money to invest. When it comes to the world’s wealthiest persons, it’s fair to assume that stocks have played a significant role in plentiful their bank accounts. Stockholders hold on to this passive income idea with dividend-paying securities that earn profit from the corporation regularly.
Companies pay cash dividends out of their earnings, and all you have to do is own the stock. Dividends are charged per share of stock purchased, meaning the more you invest, the more dividends you’ll get.
Stocks investments will help you generate a passive income that is much greater than your salary at a 9 to 5 job. So, if you are interested in stocks then, consider this passive income idea as an option.
#5. Investment in Real Estate
Real estate can be a decent way to make a passive income, depending on the real estate location and type of properties you buy.
By purchasing under-construction properties, you will have capital gain once the assets appreciate value by the time it is completed. Thus, you can make money by selling the property for a profit once it is completed.
Besides that, rental property investing is another passive income ideas. However, it often necessitates more effort than expected.
You risk losing your money if you don’t try to learn how and when to succeed. 3 factors must be determined to gain passive income from rental properties:-
- Know what sort of return do you want on your investment?
- The overall costs and expenditures of the house.
- The financial challenges associated with homeownership.
If your aim is to raise $20,000 a year in rental income and the asset has a $4,000 monthly rent plus $700 for taxes and other expenditures, you’ll need to charge $4,833 in monthly rent to meet your target.
But, bear in mind that the rental rate also depends on the current market value. Thus, you need to calculate the rental amount, monthly instalment and other expenditure correctly before buying a house for rental investment to ensure monthly cash inflow.
#6. Affiliate marketing
Affiliate is one of the best passive income ideas if doing the right way. By inserting an affiliate link to the products on your websites content or social media, you can expect earnings from the clicks.
You can earn from the clicks once someone makes a purchase. However, some affiliate vendor gives commission when someone sign-up to their program. This is because you bring the lead to their website, and they can promote their product to them by follow-up via email.
Amazon is perhaps the most prominent affiliate partner. However, the broader names include eBay, Awin, Clickbank and ShareASale.
Affiliate commission is different between the vendors, and usually, the commission is higher for digital products than physical products.
#7. Passive Income Software
Installing passive income applications on your mobile and performing a few acts to raise money is how they work. The acts can range from simple things like watching videos to converting a small financial investment into a steady income stream.
Many applications can generate passive income available to help you make better use of your smartphone. Some are:-
Fundrise – With a $1,000 minimum deposit, you can invest in real estate ventures. It has the option of paying quarterly dividends, which can be used as a source of passive income.
InboxDollars – InboxDollars gives you cashback for doing things you’d do anyway, like shopping, watching TV, and surfing the web. Your passive income comes from the cashback and the $5 incentive for signing up.
Dosh – You can link your debit and credit cards to your profile with Dosh. You gain passive income for the rest of the cash back when you use these cards to pay for stuff.
#8. REITs (Real Estate Investment Trust):
A real estate investment trust, or REIT, is a modern name for a business that controls and operates the property. REITs have a unique legal arrangement that allows them to pay little to no corporate income tax if they distribute most of their profits to their investors.
REITs like dividend stock can be bought on the stock exchange. You will benefit from such a dividend. The best REITs will raise their dividend annually so that a growing flow of dividends will be possible over time.
A mutual fund offers instant diversification and is generally better than purchasing individual stocks — and you’ll still get a decent return.
Just as shares, you will have to choose the right REITs. Hence, you will have to evaluate the company before you buy.
#9. Create custom Print-on-Demand product
Another passive income idea is print on demand. You can offer your custom graphics items like T-shirts, clothes, bags, toys, fabric boxes, phone boxes, pouches, backpacks, etc. The best part is that you can create your own custom-branded items.
The only drawback of this passive income idea is that you must be experienced in graphic design because the margins are always too small to affordably outsource the job. However, if you can come up with the one-of-a-kind winning idea, your sales would skyrocket.
#10. Sell photos
Photographers are paid for more than just taking pictures. You can market the photo. This passive income idea can make you a fortune if are a professional photographer.
Stock picture sites, magazines and customer canvas printing are some of how you can make money with photography. To get started, all you need is a good camera.
However, you can now use their mobile phones to take pictures and sell them to start earning passive income. All you need to do is joining a photography course if you are a beginner, a smartphone, and some ideas to get started.
What kind of pictures sells the best? Who is buying stock pictures?
Bloggers and small to medium-sized website operators are the primary buyers of stock images.
What sorts of pictures do they buy the most?
People from every nation and culture — youngsters, adults, and everything in between.
Persons at work — These photos are particularly common with companies. People are working on tablets, blogging, presenting at a conference, and so on. But don’t make them so bland that they transform into a meme.
Food — Various varieties of tasty ingredients, as well as bare, unwashed dishes.
Tools — Gears, hammers, nuts, bolts, and screws will communicate a lot to
Cities — City-scapes, buildings, and commuters.
#11. Create your own YouTube channel
Youtube channel is another lucrative passive income ideas. When you sign up for the YouTube Partner Program, you’ll be able to make money off of YouTube. You must be at least 18 years old or have an elderly legal representative who can manage your AdSense payments. You must produce content that adheres to their advertiser-friendly guidelines.
Before being admitted into the YouTube Partner Network, Google will check your channel. They also track your channel daily to ensure that you adhere to all of their policies and guidelines.
Even your YouTube channel does not have millions of viewers, it can be monetized. Besides Adsense, you can monetize your channel with an affiliate link or sell your own products or services.
Famous YouTubers acquire millions of followers before releasing their own line of merchandise. They also work with various brands aimed at particular audiences.
Brands now invest for publicity budgets on influencers who have already earned their audience loyalty. This gives you as a creator a huge chance to strike the best deals.
Few ways to generate passive income on YouTube
Revenue from publicity: Get view, overlay, or screen advertisements for ad revenue.
Channel memberships: In return for the extra benefits you give, your participants make regular payments.
Affiliate: Insert affiliate link in the video description.
Sell product or services: Share your website link in the description, and those interested will click the link and make a purchase.
#12. Creating a course
Selling Online courses is a standout amongst other easy passive income idea.
That is because we’re actually observing enormous growth and development for course makers. You can choose whether to sell a course on your own site or on a platform like Udemy or Teachable.
If you decide to sell on your own website, you can control how much revenue you want to make. This is different if you sell in Udemy as they have a discounted price for the course during specific periods. And of course, this will affect your revenue.
#13. Write book or eBook
If you have writing skill, writing a book is another passive income idea you can make. Choose a topic that has a lot of readers, such as a kids storybook. Amazon Kindle Publishing is a place where you can sell your book.
By selling your book on Amazon, you don’t need to worry about traffic. Your job is to research on-demand book, write and make the best design cover.
Lack of writing ideas?
Don’t worry! Sqribble can help you create a professional book in a few click.
Passive income not only helps to earn extra money but can replace your full-time income. You can choose one of the passive income ideas in the list.
Take your action to generate passive income now. If you choose to blog, you can start thinking about expanding your business by creating another blog and outsourcing the writing jobs once you see the result.