Hardly any of the 9 to 5 jobs generate passive income. This list of passive income ideas will help you to retire early. According to the investment, there are several ways to make passive income. It is better to have multiple sources of income than just depend on your full-time job
What is Passive Income?
Passive income is the money that generates without having to work every day. To generate passive income, you need to invest an amount initially. It will then make money for the years to come. You can start investing from now and have multiple income sources that might help you in the future.
Benefits Of Passive Income:
- Initially, you need to work. But once your revenue stream is set up, it won’t matter how long you work in a day.
- You don’t have to work every day. You can spend more time with your family.
Here is the list of passive income ideas:
Disclosure: This post may contain affiliate links. Please read our disclosure policy for more information.
1. Flip Domain names
We all know about real-estate flipping. But, did you know that you can flip websites too?
Domain flipping is the process of buying a domain at a lower cost and selling it at a higher price. This is a great way to make extra money on the side without putting in much effort.
People prefer to buy a short domain name that is easy to remember. Good domain names are hard to get and hence people are willing to pay millions of dollars for the perfect domain name for their business. For example, the domain Voice.com was sold for $30 million in 2019.
What domain name should you buy?
See what is trending. Enter the keyword and check which domain names are available.
Where should you purchase your domain name?
Namecheap is one of the best platforms to purchase your domain. Type the domain you want to purchase and check if it is available or not.
2. Invest in Dividend Stocks:
Investing in dividend stocks is one of the best ways to earn passive income.
Dividends are the cash paid by a company to its shareholders. Companies pay out dividends on a regular basis.
When you buy a share of the company, you become the part-owner of it. If you are a shareholder of a company, you will receive payment from the company at a certain interval.
But, you need to do research to find out the right dividend stocks for investing. Dividends are not guaranteed. If the company is not generating enough revenue, it may suspend its dividend.
For investing in dividend stocks, you need to open your own Demat account and register with a stockbroker. Investing in dividend stocks generates passive income.
M1 Finance is one of my favorite investing platforms that allows us to build a portfolio and invest for FREE!
3. Acorns:
Acorns allow you to invest spare change with automatic round-ups. Your money will be automatically invested into a portfolio of selected ETFs.
Acorn round-ups are geared towards people who find it very difficult to save money.
When you make a purchase, with your linked card, Acorns rounds up the transaction to the nearest dollar and invests the change into your investment account portfolio.
For example, if you have a transaction of $19.75, Acorns will round that to $20 and invest 25 cents into acorns investment account.
You will get a $5 bonus if you sign up using my link.
4. WealthSimple
WealthSimple is beneficial for anyone who wants to invest on autopilot.
They offer a variety of different accounts ranging from TFSA, RRSP, Joint and other variety of trading accounts that are available to the consumer.
When you create your account on WealthSimple, you will be asked to fill out a user profile form, which is used to create a portfolio that is in line with the user’s risk tolerance and goals.
They also allow you to invest your spare change.
5. Invest in Cryptocurrency with Coinsmart:
You can start buying and selling crypto with Coinsmart. It is absolutely beginner-friendly and easy to use. You can sell bitcoin and other digital currencies easily.
Here are some digital currencies that you can trade: Bitcoin, Etherum, Litecoin, Bitcoin Cash, ADA, Stellar Lumens, EOS etc.
Pros
- Instant account verifications
- All cash withdrawals will be processed within 5 business days.
6. High Yield Savings Account:
Having a high-yield savings account is a great way to generate passive income.
However, most banks across the world offer very low rates for a savings account.
CIT Bank is a banking application that offers high savings interest rates. Plus, there are no account opening or maintenance fees.
You need to deposit a minimum of $100 to open an account.
If you are getting started with saving money and generating passive income, CIT Bank would be the best option for you.
7. Rent Your Car:
Just like your home, you can rent your car too.
HyreCar is one of the world’s largest car-sharing marketplaces.
All you have to do is to create an account and list your car. Based on how beautiful and smooth your car is, you can charge around $35 to $400 per day.
8. Try Investing In Real Estate:
Real Estate is another finest way to generate passive income. Buy property in a well-known area near offices or college-specific areas. This might provide you with passive income for years to come. Many of the people shift to a new state for college or even a new country for their job. Those people stay in rent for many years. Hence it is very profitable.
For example, if your property is near a village area, there is less scope for giving the property on rent. Whereas, if it is near a busy city with offices and colleges near the property, there will be a much higher demand for rent.
RealtyMogul is an online platform for investing in real estate.
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9. Make money on Pinterest (without a blog)
You don’t even need a blog to get paid to pin on Pinterest. Here is how you can do so:
Affiliate marketing:
Upload the image of the product and link it back to the website using your affiliate link. Whenever someone clicks on the link and purchases the product, you will get the commission. Unlike blogging, this process requires zero investment!
Sell your own products:
Do you have your own products? Or, do you have a store on eBay or Etsy?
Simply pin the images of the products and link them to your online store so that people can buy them.
If you don’t have your own products (clothes, jewelry etc), you can still make money by selling digital products on Etsy. Planners, games bundles and coloring pages sell like hotcakes on Etsy.
10. Rent your home on Airbnb
Airbnb is a home-sharing website and it is used by over 150 million people to book vacation stays.
It allows people to rent their homes or a part of their home which is left unused and can be utilized by the guests. Once someone books your house through the platform Airbnb, you get paid.
You can list your entire property or just a room in your property.
The people who list their property are known as “hosts”. Hosting your room on Airbnb will allow you to make money passively from the property that you already own.
Here are some steps to get started:
- Sign up on Airbnb.
- Create your listing: Put some eye-catching pictures of your home and mention the cost per night.
- Post your listing: After you have filled up all the information, post your listing. Airbnb will send your payout about 24 hours after a guest checks into your place.
11. Peer to Peer Lending:
Peer-to-peer lending is the act of lending money to people.
Basically, you will be offering loans to those people who do not qualify for bank loans.
You can lend it through an intermediary platform like LendingClub. And when you get your amount back (with interest), you can reinvest in other loans.
12. Sell stock photos
Selling stock photos is one of the easiest ways to earn passive income without doing much work. Bloggers and businesses need high-quality stock photos for their websites.
You don’t need a DSLR to get started! Nowadays, most smartphones are provided with cameras that are capable of capturing high-quality images.
Think about what images bloggers are looking for or do research on what kind of images sells the best. List those images on stock photography sites like Shutterstock. Every time someone buys those images, you will be getting the commission.
13. Create a Mobile Application:
Smartphones are incomplete without apps. If you know how to code you can create an app. Even if you don’t know to code but have an idea of an app that could help people, you can hire someone on Fiverr to build the app for you. You can earn passive income from your app.
The app could be about anything- Gaming, Health, Beauty, Social media, Chatting app, Dating app, etc. You need to do research on your competitors and previous apps in your field. This will help you to understand the audience better. Find out what is missing (from other apps) but the audience highly demands it. You can include those extra features on your app. In this way, your app will stand out from the rest.
14. Use Cashback Apps:
Almost all of us spend money on online shopping. What about getting some money back in your wallet after you are done shopping?! Basically, you are getting paid to shop online!
Some of my favorite cash back apps are:
Rakuten: Rakuten gives you cashback when you shop online. You will also get a free $10 welcome bonus when you sign up. Select the store you want to shop from and you will be able to see how much cash back you receive for each item on the list.
Swagbucks: Again, when you sign up, you will receive a free $5 welcome bonus. It has over 1500 shops including your favorite Starbucks, Amazon, and Target. When you shop from Swagbucks, you will earn points. You can then convert these points into free gift cards or you can also get paid by cash via PayPal.
15. Sell Online Course:
The online course can be video-oriented or just an Ebook. If you have knowledge on a particular topic, write about it, and compile it into an Ebook. The topic could be anything like- SEO, Design, Coding, Cooking, etc. But make sure, it provides value to your readers. You can sell your online course on a reputable platform like Teachable.
There are many other platforms for selling online courses like Skillshare or Udemy.
Related post: How To Create And Sell Online Courses
16. Do Affiliate Marketing:
Affiliate Marketing is one of the best ways of generating passive income. Affiliate Marketing is the act of promoting other people’s products through affiliate links.
For example, you purchased a product and you liked it. Now, that you like it, you can promote the product to other people so that they can benefit from the same. If they like the review of the product and click on your affiliate link to purchase it, you receive a commission from the company.
For affiliate marketing, you generally need a blog or a YouTube channel. However, you can also promote affiliate links on your social media like Instagram or Facebook.
Some of the Affiliate networks that you can join are:
- Amazon associates
- ShareASale
- Clickbank
- Awin
17. YouTube Channel:
In 2022, it takes A LOT of effort to make passive income from a YouTube channel.
You need 4000 watch hours and 1000 subscribers in the last 12 months to monetize your YouTube channel.
The content of your channel can be anything like- education, technology, cooking, dancing, or just your personal vlogs! The best thing about starting a YouTube channel is you get to speak about what you love.
But, how do YouTubers make money? They make money by placing ads on their videos, by affiliate marketing, and also through sponsored posts.
18. Earn a passive income from your blog
You must have come across some eye-popping blog income reports of the established bloggers.
If you haven’t, here are a few:
- Adam from Adamenfroy.com has made over $200,000 in June 2021
- Ling from Finsavvypanda.com made over $27,000 in March 2021
- Sayan from Prosmartrepreneur.com made over $7000 in September 2021
- Alexis from Fitnancials.com has made over $5000 in August 2017
If you don’t know how to start a blog, here is a step-by-step guide to starting a blog in 15 minutes.
The best part is that anyone can start a blog with no prior experience and still make over $10,000 per month. Many bloggers were able to quit their full-time jobs and dedicate more time to their families.
How to earn passive income from your blog?
There are numerous ways to earn money from your blog. Display ads, affiliate marketing, sponsored posts, selling your own products and what not?!
You must create genuine content for your readers and that is how you can increase your trust score.
How much does it cost to start a blog?
It does not require huge investments. With just $3.95 a month, you can start your blog with Bluehost and earn money online. Trust me when I say, it has the potential to replace your full-time jobs.
19. Rent your Stuff:
You can earn passive income by renting your stuff like drones, electronics, musical instruments, electric scooters, DSLR etc.
Fat Llama is one such website where you can rent your belongings to people in your area and earn money passively.
Sign up on the website, list your item and set the price per day. The interested people will contact you and pay you for renting your stuff.
Final Thoughts
So, these were some of the ways on passive income ideas how you can make money while sleeping.
I hope you found some passive income ideas for you.
