Passive income can work for you, regardless of if you have millions of dollars to invest and no time to spare, or $0, ample free time, and a spark of ingenuity.
Read this amazing compilation of passive income sources More specifically Dividend Growth Investing, Real Estate Investing and Website Investing.
1. Sell your own products on the internet
The possibilities here are endless you can sell just about any product or service that you like. It could be a product you have created and can manufacture on your own or it could be digital in nature (such as software, DVDs, or even instructional videos).
You can set up a dedicated website for this product or service, unless of course you have a website or blog already in place. Alternatively, you can also sell it on an affiliate basis, either by offering it direct to websites and blogs related to your product or service, or through a platform such as ClickBank.
2. Write an ebook
This can be a lot of work upfront, but once the ebook is created and marketed it can provide you with a passive revenue stream for years. You can either sell the ebook on your own website or offer it as an affiliate arrangement with other websites that provide content related to your ebook.
3. Invest in larger developments
Do you not want to be a landlord, but still want real estate exposure and income? Then consider being a limited partner in a large development. With these options, you can invest in multi-family or commercial properties. You get the income and tax treatment just like regular real estate ownership, but you don’t do any of the work!
Our favorite platform for this is RealtyMogul because you get the flexibility to invest as little as $1,000, but can also participate in REITs and private placements typically not offered to the public. Investors can fund real estate loans to gain passive income or buy an equity share in a property for potential appreciation. Their platform is open to both accredited and non-accredited investors.
4. Invest in a business
Another way to generate passive income is to invest and be a silent partner in a business. This is very risky, but with risk comes the potential for high returns. For example, several years ago both Lyft and Uber were looking for private investors to invest in their companies. Today, they are worth billions but you as an investor would only reap that benefit if they go public via an IPO, or get acquired. So, it’s risky.
But there are ways to reduce your risk. For example, you can invest small amounts in many companies through lending them money in small bonds.
5. Create an App
If you own a smartphone or tablet then it’s safe to assume you have several apps downloaded. But have you ever had an amazing idea for an app? If so, you could consider hiring a programmer to create your app for you. You could then sell it on the App store for residual income.
6. Design T-Shirts
Sites like Cafe Press allow users to custom design items like T-shirts. If your design becomes popular and makes sales you’ll be able to earn royalties.
Even Amazon has gotten into this business. Amazon has a new service called Amazon Merch, where you simply upload your designs and Amazon takes care of the rest (making it, packing it, and shipping it).
7. Rent out your car
Similar to listing your place for rent, you can also list your car for rent. This can be truly passive because once you list your car, it can earn you income when you’re not using it!
Our favorite partner to rent your car is Turo. Turo allows you to put your car out for rent, and when people rent it, Turo handles the rest!
The cool thing with Turo is that, depending on your location and what kind of car you have, you can make a decent passive income!
8. Rent your space
If you’re interested in making money in real estate but want more of a hands-on approach, renting out your vacation home, house, apartment, or even a single room can be a stellar way to earn passively.
Airbnb allows people to travel all around the world and to stay in accommodations that are a lot less expensive than traditional hotels. Their site breaks rentals into three categories: private room, shared room, and entire home.
Airbnb charges you 3% on every booking for their services, but you can set the nightly rate at whatever you want. People around the world are making impressive passive incomes through Airbnb.
9. Create an Online Course or Guide
Why not create an online course based on your passion? You can made an insane amount of money selling lessons.
One very simple way is to produce and share your course is Teachable.com. Teachable has over three million students and is a great way to get your content in front of others.
What do you put in your online course? Good question. You can add:
- video lessons
- checklists for completing steps you recommend in your video lessons
- small ebooks to supplement the lessons
- audio files for people listening while traveling
- informative interviews with like-minded experts
Pro Tip: Create several packages at different price points. Some people want everything, so you can include ‘the works’ for the highest price point and have two lower price points so you can receive the largest possible volume of orders.
If writing articles or creating videos isn’t your thing and you want to make money online, try creating an online guide. A good example of this income source comes from Pat Flynn’s website, SecurityGuardTrainingHQ.com. On the website, his map allows someone to click on any state to see the security guard requirements for that state.
By providing specific information in a guide-like format, you can make money through some of the means already addressed: Google AdSense, affiliates, and even memberships to your online guide.
It’s a fantastic idea!
10. Outsource Your Business
Outsourcing will free up your time so you can focus on other tasks that will result in more income. If you don’t want to hire employees, consider hiring freelancers who work as contract laborers. Look for freelancers with a strong work ethic who provide quality results.
As long as the main product or service isn’t something only you can do, you can transform your business into a passive moneymaker.
Here are the companies you can start with:
CloudPeeps: CloudPeeps does an excellent job matching business in need with skilled, vetted freelancers who can manage everything from PR and marketing to web development and administrative tasks.
Fiverr: Fiverr has it all. Much like CloudPeeps, it supplies hand-picked freelancers for all of your business needs.
Guru: Guru offers similar services to Fiverr and CloudPeeps but emphasizes their flexible payment options, like hourly pay, recurring payments, payment by milestones, and payment by the project.
PeoplePerHour: With an advanced AI system that matches your project needs to the perfect freelancer and features on Forbes, CNBC, and BBC, PeoplePerHour offers a legitimate pool of talented artists to outsource to.
Upwork: Like the other freelancing networks, Upwork pairs you with freelancers in several sectors and boasts hires by companies like Microsoft, with short-term, full time, and recurring options.
11. Buy a Blog
Thousands of blogs are abandoned by their owners every year. If you can buy blogs with a reasonable amount of web traffic and demonstrated cash flow, it could be a perfect passive income source.
Most blogs employ Google AdSense, which provides a monthly revenue stream based on ads that Google places on the site. There may also be affiliate programs generating additional revenue.
From a financial perspective, blogs usually sell for 24 times their monthly income. So if the site generates $250 a month in income, you can likely buy it for no more than $6,000. Translation: a $6,000 investment will buy you $3,000 per year in cash flow.
Some sites have good “evergreen content that will continue generating revenue even years after the site has gone silent, so a simple $5,000 investment can net you ongoing passive income.
Bonus tip: If you buy such a site then reinvigorate it with fresh content, you may be able to increase the monthly revenue and sell the site at a later date for substantially more than what you paid for it.
We recommend buying a blog on Flippa. Here are some quick facts on this awesome marketplace:
- Includes everything from small sites to ones that garner millions
- Currently has more than 2,000 web-based businesses for sale
- Based on a bidding system and fulfilled by Flippa Escrow program to ensure your money and business are safely secured.
12. Affiliatize your Blog
Whether you start your own blog or buy a pre-existing one, choosing to affiliatize it is a passive income technique that will serve you well. You can sign up to promote certain products or services on your site, for which you will be paid a flat fee or a percentage of the amount of the sale.
If you think affiliate marketing is too complicated for you, you’re selling yourself short. This strategy isn’t as hard to do as you might think.
You can find affiliate offers by contacting vendors directly or on dedicated websites such as ShopHerMedia.com. It’s always best if the product or service is one that you are either very interested in or one which is highly relevant to your website.
Making passive income is laudable. Though, the biggest thing about passive income is you work once on that one thing and reap from it hopefully forever.