Best Passive Income Ideas to Create Wealth – Passive income is an unearned earnings that requires minimal work to earn and maintain. Passive income sources include investing in mutual funds, selling products online, teaching online courses on sites, or other side hustles where the earner doesn’t have to participate.
Passive income includes regular earnings from a source other than an employer or contractor.
According to The Internal Revenue Service (IRS), “Passive income can come from two sources: rental property or a business in which one does not actively participate, such as being paid book royalties or stock dividends.”
Passive income is not…
– Your job. Generally, passive income is not income that comes from something you’ve been materially involved in such as the wages you earn from a job.
– A second job. Getting a second job isn’t going to qualify as a passive income stream because you’ll still need to show up and do the work to get paid. Passive income is about creating a consistent stream of income without you having to do a lot of work to get it.
– Non-income producing assets. Investing can be a great way to generate passive income, but only if the assets you own pay dividends or interest. Non-dividend paying stocks or assets like cryptocurrencies may be exciting, but they won’t earn you passive income.
Here are best passive income ideas to create wealth
1. Create a course
One best way for passive income 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.
It’s easier than ever for educators to sell courses online. Whether it’s marketing, business, management, illustration, or entrepreneurship, you can create courses and start selling 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.
2. Buy and sell properties
This depends on where you are and when you buy. Real estate can be a good way to make passive income.
Real estate investing is 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.
In popular cities, housing prices are expected to rise yearly.
You may land some lower-cost properties that’ll increase in value by the time it’s finally built, allowing you to sell the property for a profit once it’s complete.
As with all investments, it can be risky, so it’s best to speak with a real estate agent if you’re new to the game to help you buy the right investment property.
3. Invest in stocks
When analysing the income sources of the world’s richest people, it’s pretty safe to say that stocks have played a big role in their deep, endless bank accounts.
While the act of investing in stocks is pretty passive, the research that goes into it is active. Warren Buffett reads 500 pages a day, but he’s not reading your average mystery book. Nope. He reads business’s annual reports. By doing this he better understands whether or not a business is performing well, which helps him improve his ability to invest in stocks.
Stock investments can help you earn passive income that stretches far beyond what your value at your 9-to-5 job is worth. So, consider this passive income idea if you’re up-to-date on various markets and industry movements.
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.
4. Create a print-on-demand store
Print on demand allows you to sell your custom graphics on products like t-shirts, clothing, mugs, canvases, phone cases, bags, and more. The best thing about this is that you can build your own branded products.
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 customise white label products like t-shirts, posters, backpacks, or books and selling them on a per-order basis.
Similar to dropshipping, 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:
– You can create products quickly and put them up for sale in minutes
– Shipping and fulfilment is taken care of by your supplier
– Once your store is set up, you can automate many marketing and sales processes
Print on demand is a low risk, simple business idea you can get up and running with fast.
5. Publish Facebook/Instagram sponsored posts
If you have followers on Facebook or Instagram, you might want to try your hand at creating sponsored content.
Facebook or Instagram sponsored posts are content pieces that endorse a specific product or service (usually owned by the sponsoring party). Sponsors compensate publishers for creating and distributing content that promotes their business.
The secret to getting sponsored is to get more Facebook or Instagram followers. You’ll also want to be super consistent with the type of content you post so sponsors know what to expect. And be sure to focus on just one niche—brands prefer creators who can publish quality content around a specific topic.
When it comes to your Facebook or Instagram bio, be sure to add your email address. As your account grows, you can hire virtual assistants to create sponsored posts on your behalf. The more sponsored post requests you get, the more passive income you will be able to generate.
6. Create an app
The fact that any novice can create a basic to 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 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:
– Pay to download
– A marketplace model
By now, you’ve probably noticed a trend: creating stuff tends to lead to passive income. This is even more true in the world of mobile software. If you’re a developer or programmer, you might want to try creating apps as a passive income stream.
You can go about it in two ways. First, you can charge a fee for people who want to buy your app. Second, you can make your app free and monetize with ads. My fiance did this a few years ago and still makes a side income from his app to this day.
7. Rent out your spare room
If you have an extra room in your apartment, you can rent it to someone for a specific duration.
Platforms like Airbnb and others will connect you with people who are looking for their next gateway.
Airbnb connects homeowners with people who are looking for their next getaway.
If you want to make even more income from Airbnb, you can buy apartments for the sole purpose of renting them out. You should note, though, that renting your space out often requires work upfront. You might have to furnish or renovate your free room before putting it up for rent.
Airbnbs are preferred because they’re usually cheaper than hotels, meaning you can make a higher passive income by listing your free space on Airbnb.
It’s worth noting that becoming an Airbnb host requires work upfront. You might have to renovate or furnish your room before listing it on the marketplace. To make it truly passive, you can hire a part-time property manager to create listings and look after your properties. Keep in mind, though, that they’ll charge a monthly fee between 8% and 10% of the monthly rent collected.
8. Become an affiliate marketer
Affiliate marketing is one of the best passive income opportunities available today. The upside to it is that almost every big brand has an affiliate program, so you can sell some pretty popular products and rake in the dough.
In affiliate marketing, you recommend a product or service to an audience. It’s a great source of passive income because you earn a commission whenever someone uses your referral link to buy the recommended product or service.
Earning money with affiliate marketing can be a rewarding way to add new revenue streams to your business. All it costs is your time. Once the time and skill are invested, you can reap the rewards continually.
9. Sell your videos
You can take quality videos of situations, events or things and sell to interested buyers. It can sell to bloggers, companies or individuals.
If you always find yourself in the midst of drama and excitement, you might want to pull out your phone and hit Record. Doing that can help you make some passive income.
The latest video marketing stats indicate that people are obsessed with video content, so you should be able to find an audience for your films.
10. Sell your photography
While being a photographer may seem like an active income business, it’s actually not. Photographers don’t only make money from taking photographs. They sell them too. Stock image sites, magazines, and canvas printing for your clients are some of the ways you can make big bucks in the photography space.
If you’re a full-time photographer or own a good camera, you can create an extra revenue stream by selling photos online. Stock photo sites like Pexels, Shutterstock, and other online media houses will pay for high-quality photos and videos.
All you need to get started is a great camera. But these days, you can even use your smartphone to capture amazing images. Consider taking high-quality photos and listing them on stock photography sites to earn income in the form of royalties.
11. Buy and sell websites
Do you have experience of creating websites?
If yes, you could make passive income building and selling websites.
You’ll likely need to generate some revenue (to prove that your store has potential).
But if you’ve got great design skills and can put up some content on your website, you could sell it to someone looking to purchase a pre-built ecommerce store.
12. Create and sell digital products
Digital products are assets or pieces of media consumers can’t touch physically. These include downloadable or streamable files such as Kindle books, templates, plug-ins, or PDFs.
Digital products are great passive income streams 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.
Digital products have high profit margins because no inventory or storage costs are incurred. You only have to make the asset once and you can sell it repeatedly. There’s no limit on the number of copies you can sell.
13. Write an ebook
Ebooks became so popular around 2010 and are still a hugely popular content medium. Anyone with expert knowledge in a particular subject can write an ebook to share their thoughts with the world. You don’t have to go at it alone.
Platforms like Fiverr, Upwork, etc make it easy to find book writers and editors who can help with the process.
You’ll need to publish your manuscript through Amazon Kindle to make it available for your audience. Some marketing is also required to get the word out to as many people as possible. Once you break into the ebook space, it’s possible to create passive income through page reads and Kindle sales, which is how most ebook writers make money.
14. Create a job board
A job board is a website used by employers to promote job vacancies to people. People can apply for vacant roles remotely with a few clicks. You can charge companies to post on your board, and upsell features like unlimited access to your talent pool to increase your earnings.
You can either design a job board from scratch or buy a premade theme and start there. The bulk of your effort should be devoted to creating awareness for your job board. You can write a press release, post on social media, and run paid ads to get traction early.
Once you build a solid clientele of regular, trustworthy customers, you can expect a large part of your income to be passive.
15. Record audiobooks
You can earn passive income by creating audiobooks.
Audiobooks have to be created by someone. Why can’t that someone be you?
Once you get into the industry, it’s possible to create passive income in the form of royalties—which is how most audiobook narrators get paid.
To successfully make passive income from audiobooks, there are a few things you need to master first. These include learning:
– How to audition.
– Proper narration technique.
– What niche you’ll work in.
– Some editing skills.
– How to earn from it.
16. Start a blog
Become a blogger. Start blogging.
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:
– Selling affiliate products
– Creating sponsored posts
– Selling your own products
– Running ads through Google AdSense
17. Rent out your car
Your free house, land or space is not the only thing you can use to earn passive income. You can also offer your car up for rent with a service like other car rent companies.
Instead of actively driving around in your free time, you can pull up an interesting show while your car works for you.
18. Sell designs online
You can create and sell your designs on design websites like 99designs, ThemeForest, or Creative Market.
These websites can be great places to sell digital designs online. Whether you use a website builder to build website themes, logos, branding resources, templates, illustrations, or even fonts, these platforms offer a built-in market that is already looking for design resources.
19. Start YouTube channel
YouTube is popular and a great place to showcase your business and digital products. With over one billion hours watched daily, YouTube is one of the most visited websites and biggest search engine after Google. There is so much to gain by sharing your videos with the world on YouTube.
Here’s is a list of tips on how to start a YouTube channel for beginners to help you get started:
– Discover your channel’s purpose
– Create your YouTube channel
– Verify your account
– Create a banner
– Know your niche
– Just start recording
– Don’t forget SEO
– Get to know YouTube analytics
– Don’t worry too much about your camera
– Do worry about audio
20. Sell handmade goods
There are many handmade goods to sell online and earn passive income.
There are over hundreds of online sites you can sell on. Some have specific niches, like fashion, video games or handcrafted goods, while others let you sell whatever you want.
Some popular online selling sites include:
– Your own online store
Selling from your own store reduces the amount of fees you pay on each sale, plus, you can create a brand for yourself. The benefits of building a brand compound over time as you build an audience and connect with more customers. It’ll help you sell more over time and make money online.