50 Best Passive Income Ideas that Deliver

What are passive streams of income? “Passive income” refers to work that you can do part-time or ways to earn money quickly without doing much work. Let’s look at 50 great ways to achieve financial independence by earning passive revenue streams.

1. Write an EBook

The best way to get started with this is by studying what other people are doing. Visit Amazon and take a look at what’s popular. You may also want to invest in courses that show you how to create and sell eBooks.

Pros:
The biggest advantage of writing an eBook is that you only have to do it once. After that, you can sell the digital files an infinite amount of times. This type of business also runs 24/7 and is easily automated.

Cons:
One problem with eBooks is that you need a certain amount of skill to write a book. This includes knowledge of the topic and the ability to write (that being said, you can outsource the writing.) You also need to market and promote your book, which is difficult to do effectively.

2. Sell Stock Photos

There are dozens of websites that buy stock photography (two of the best stock photo sites are Shutterstock and iStock). What’s great about this method is that you don’t even need a camera. iPhones work just as well.

Pros:
Once you take a picture, you can sell it multiple times. This is also a fun job if you enjoy photography.

Cons:
Taking pictures is actually a lot of work. You may have to invest large amounts of money into equipment. There’s also the risk that your pictures may not sell.

3. Buy Vending Machines

Did you know that the vending machine industry makes $9 billion a year? With a reasonably small investment, you can get a slice of this pie. If this idea appeals to you, the best thing to do is take an online course. These courses will teach you the ins and outs of the industry and also give specific advice for getting started. iKrave Vending has some great online courses.

Pros:
What’s also great about these machines is that they make you money 24/7. If you don’t want to invest in vending machines, private ATM machines are another option.

Cons:
This idea may take a large upfront investment. It can also be difficult to place your machines and maintain them. Another risk is that people may not buy from your vending machines.

4. Record Audio Books

Imagine making money by simply sitting at home and talking into a microphone. You can make this dream a reality by becoming a professional audiobook recorder.

eBook authors are always looking for people to record their books. For example, Amazon’s ACX has a signup page for narrators. You can also check out freelancer platforms like Fiverr or Upwork.

Pros:
With the rise of self-publishing, there is almost unlimited work available. Depending on how in-demand your services are, you may only have to work a few hours a day to reach your target earnings.

Cons:
You’ll need an attractive speaking voice to qualify for this job. It can also be an exhausting task. Recording an 80,000-word novel isn’t easy and may take weeks.

5. Start a Blog

With social media becoming unpopular among some demographics, people are returning to blogs. Creating a blog is actually easier than most people think. Nowadays, you don’t even need your own website to do it. For example, there are dozens of platforms that let you start a blog for free, like Wix and Weebly.

Pros:
Bloggers can earn money by selling advertising and by promoting digital products through affiliate links. A successful blog can also be used to launch an online course. With blogging, you are your own boss, and you can do it anytime and anywhere.

Cons:
You’ll need good writing ability to create blog posts, or the ability to know what good writing is so you can hire writers. You will need to understand digital marketing concepts, such as search engine optimization, which you can learn about by listening to The Blogging Millionaire podcast.

6. Make Craft Goods

This works best if you’re already good at some type of craft. Etsy is an online marketplace created for handmade items and is probably your best bet if you’re interested in this type of stuff.

Pros:
There are dozens of online platforms where you can make money from your talents. Depending on how you price your products, you could make thousands in passive income.

Cons:
One problem with this idea is that you’ll need to invest money in materials. You’ll also need basic business skills to pull this off. Creating handmade crafts is extremely time-consuming and may take the fun out of your hobby.

7. Start an Airbnb

Airbnb is more popular than ever and a fantastic idea for people who have a rental home or apartment. Even renting your spare room can bring in passive income.

Platforms like Airbnb, Share My Space, and Neighbor make this easy. If you’re interested in renting out your living quarters, take a look a look at these websites.

Pros:
You can use space that you already own.

Cons:
This idea can take a lot more effort than it seems. For example, you have to clean, furnish, and maintain your rental space. You also have to deal with guests (including potential legal issues) and pay AirBnB a cut of your profits.

8. Buy a Storage Unit

Believe it or not, this could still be a profitable investment. Start by seeing what’s available. Are people selling their units, and for how much? Call all the local storage companies and ask if they have space. Doing this helps you understand the supply and demand in your area.

If local companies have a large number of empty units, it indicates that the market is bad right now for this type of investment. On the other hand, many occupied units are a good sign that people are actively looking for storage space.

Pros:
What’s great about this idea is that there’s almost no work required. Other than finding renters and maintaining the unit, there’s very little to do.

Cons:
This idea requires a large up-front investment. There’s the risk that no one actually rents your unit. You may have to deal with a Storage Wars scenario where the renter abandons the unit and ceases payment.

9. Invest in Domains

Domain investing is essentially a business where you buy domain names and sell them for a profit. To get into this business, you’ll have to learn about search engine optimization. This will help you understand how domain names work and which ones are worth investing in.

Pros:
Many domains are highly valuable and sell for thousands of dollars. This is also a relatively easy way to make money (assuming you have the knowledge) and doesn’t take much work.

Cons:
It is a risky method of making passive income. Just because you own a certain domain doesn’t necessarily mean that someone will buy it. Just like purchasing stocks, you’ll need knowledge and skill to pick profitable winners.

10. Sell Vintage Clothing Online

Online fashion marketplaces are thriving. Every day, sellers from around the world make thousands of dollars selling new and used clothing. The best way to do this is with online marketplaces such as eBay and Facebook Marketplace. You could also set up a Shopify store.

This is a great choice for people who know about fashion. You can cheaply purchase clothes from second-hand stores and sell them online for thousands of dollars. For example, entrepreneur Sophia Amoruso is famous for making millions with this method.

Pros:
For those who like fashion, the work involved can be both interesting and enjoyable.

Cons:
It takes time to find clothes and sell them. You will need to invest money into buying clothing. After you purchase your inventory, there’s no guarantee that you’ll sell enough to get your money back or make money.

11. Sell Products Through Print on Demand

You’ve probably noticed that popular influencers sell merchandise like t-shirts and hoodies. They do this using something called “print on demand.” This is basically where a third-party company prints items you’ve designed. To get started, visit Café Press, Amazon Merch, or Teespring.

Pros:
The biggest advantage of this method is that you only pay for products after you sell them.

Cons:
The success of this idea will depend on your ability to promote products. It will also depend on the appeal of your designs.

12. Create an Online Course

Are you a teacher or skilled in some way? For example, maybe you’re a personal finance expert or a yoga instructor. It’s possible to monetize these skills with online courses.

With digital tools, building an online course is easier than ever. There are now dozens of platforms for doing this, like Thinkific, Learnworlds, and Kajabi.

Pros:
You can use sought-after skills that you already have.

Cons:
You will have to create the course material, promote your classes, and recruit students. Doing these things with excellence will be time-consuming and may feel like a full-time job.

13. Start an Affiliate Marketing Business

The easiest way to explain this concept is that you’re essentially a digital salesman. For example, Amazon has an affiliate program where you’re paid a commission on every product you sell for them. Clickbank, Share Sale, and CJ Affiliate are other platforms that use a similar business model.

Pros:
Depending on what you’re selling, this business is extremely lucrative. More good news is that these types of businesses are easily automated and make you money around the clock.

Cons:
Getting started in this business is tough. You’ll be competing against more experienced and established people. You’ll also have to invest money in things like purchasing online ads, setting up websites, etc.

14. Start a YouTube Channel

YouTube is bigger than ever. The best way to start a successful YouTube channel is simply by copying what’s popular. Another easy way is by making videos based on pop culture. For example, you could make videos reviewing movies, TV shows, or video games.

Pros:
You don’t need special skills or money to invest in inventory or tools, and the videos on your channel could be short. There is very little risk in starting a channel, and creating videos won’t necessarily take much time. For these reasons, this is one of the easiest ways to make passive income streams.

Cons:
The problem with YouTube is that it’s oversaturated, so you will have to stand out from the crowd. It’s not enough to sit in front of your webcam and talk. You need an original concept backed by high-quality videos with slick production values. It may also take years to build your audience.

15. Start an Instagram Account

Instagram is one of the biggest websites in the world. This platform is a good fit for people who are young and attractive. It also helps if you have a unique skill or artistic ability.

Pros:
Top influencers are highly sought after for advertising deals and sponsorships. For example, The Rock reportedly earns millions on this platform.

Cons:
Building a social media account is one of the hardest ways to make money online. Unless you have a large audience and can engage them, you’ll never get anywhere.

16. Purchase Rental Property

Making money off of rental properties has been around for a very long time and is still one of the best passive income ideas that there is. Get started by looking through the various real estate listings in your area. This should give you an idea of the average property prices and what’s available. There are online articles and local real estate investment clubs that will help you get educated on this type of investment strategy.

Pros:
With rental property, you can make passive income month after month. If you do it right, your tenants will be paying off your mortgage. In other words, the tenants will buy the property for you.

Cons:
Rental properties can actually be a lot of work. This includes things like finding good tenants who pay on time and performing maintenance. You’ll need to be sufficiently creditworthy to get a loan to buy the property (plus have the downpayment) or have enough money to buy it for cash.

17. Invest in REITs and Property Crowd-Funding

A real estate investment trust allows you to invest in real estate indirectly. It is a simple way to invest in real estate with very little work. The internet also allows you to do this via crowd-funding. If you’re interested in this, take a look at platforms like Realty Share, Fund Rise, and Realty Mogul.

Pros:
As your investments appreciate, you’ll earn dividends. Real estate investing only takes a couple of hundred dollars to get started.

Cons:
Because you’re investing, it may take a while before you see worthwhile returns. You’ll need to invest serious amounts of money if you want to see decent results. You will have to pay fees to the trust, and your capital gains may be taxed at a higher rate.

18. Invest in the Stock Market

Stock trading is one of the greatest passive income sources. Smart traders can make millions from dividend stocks. The best way to start with trading is by doing something called paper trading. This is basically a practice where you make simulated trades so you can practice trading without risking real money.

Pros:
Smart (and lucky) traders can make millions overnight. This is also a job you can do from home.

Cons:
Stock investments are risky. There’s a steep learning curve, and you may lose money. That being said, certain financial products, like mutual funds and index funds, are safer than individual stocks. You can ask a financial advisor for help. In addition to all this, you’ll also need money to make your initial investment in the stock market.

19. Make Money with Your Car

This is a great way to make extra money fast. There are dozens of ways to do this. If you need ideas, take a look at platforms like Uber, Turo, Get Around, Hyre Car, Lyft, Door Dash, and Insta-Cart.

Pros:
There’s no work upfront. Just get in your car and go.

Cons:
This method risks damage to your car, which could be a serious risk if you need that car to get to work or to take kids to school. Downsides also include additional wear and tear, having to buy gas, and personal safety both on the road and from passengers.

20. Lend Money to People

Peer lending (also known as p2p lending) is a method where you earn money by making short-term loans. You can do this with platforms like The Lending Club, Peerform, Prosper Marketplace, and Upstart.

Pros:
With this method, you can earn a return of up to 7%.

Cons:
You’ll need money to get started. There’s also the chance that the person may default on their monthly payments.

21. Get Paid to Shop

There are now online shopping sites that actually pay you to shop. Top Cash Back is probably the best platform for this. Some credit cards also have lucrative rewards programs, which you can take advantage of.

Pros:
For some, there is no more enjoyable way to make money.

Cons:
You will have to spend enormous amounts of money to earn anything. You will very rarely get money back and will usually have to spend your rewards on buying more products. Having to shop at certain sites can also be a hassle.

22. Buy a Website

Did you know there are online platforms where you can buy money-making websites? This is a great source of passive income and is almost like owning a small business. Two platforms to check out are Flippa and Shopify’s Exchange Marketplace.

Pros:
Buying a website can be done quickly, and you can buy one with very little money and work your way up to better and more expensive websites as your skills develop.

Cons:
Just like being a business owner, this method comes with many risks. It’s easy to get ripped off or buy a website that doesn’t make money. You’ll also have to maintain the website, which requires certain skills.

23. Invest in Crypto-Currencies

Crypto-currencies are hotter than hot. People are making millions with these coins, and you may have the same kind of luck.

Pros:
You will need to read a lot and learn everything you can about this business before you invest a penny.

Cons:
Part of the problem with crypto-currencies is the insane amount of hype surrounding them. It’s difficult to know which coins to invest in and if they will pay off. For every story of overnight riches, there’s another where investors have lost everything.

24. Sell Graphic Designs

It’s now possible to sell your own designs online. If you’re a graphic designer with talent, this is a terrific side hustle. Places to do this include 99 Designs, Theme Forest, and Creative Market.

Pros:
The biggest benefit is that you can be your own boss and make an income selling your work. Working flexible hours from home is another advantage.

Cons:
The key word here is talent. Unless you’re actually good, people are not going to buy your work. Even if you are good, if you do not effectively market your designs, people will not find you.

25. Rent out Your Garage

If you’re not using your garage, then this is one of the best ways to make extra cash. You can also do this with extra space in your home. It’s even possible to make money renting your driveway or parking space. Take a look at Neighbor if you’re interested in doing this.

Pros:
The best part about this method is that there’s very little work involved. This makes it a great method for people who don’t have much time on their hands.

Cons:
There are problems like finding renters and collecting your rental income. You’ll also have to deal with people coming in and out.

26. Create NFTs

NFTs, or Non Fungible Tokens, are basically digital collectibles. They work using blockchain technology are now a billion-dollar industry. For example, a company calling themselves Bored Ape Yacht club created 10,000 NFTs, some of which are now worth $200,000. To learn more about this, visit Open Sea.

Pros:
This is a relatively easy way to make millions overnight.

Cons:
This business is mostly built on hype and trends. That means you’re highly unlikely to have the same kind of success that others have had.

27. Build a Job Board

There are dozens of software platforms for making job boards. Some of these include Smart Job Board and Nice Board. If you want to try this idea, then niche down as small as possible. It’s a lot better to start a board for your town or city instead of trying to go nationwide.

Pros:
You can make a healthy income without much work. Also, once the board is set up, there’s very little effort required.

Cons:
Getting started is difficult, mostly due to market oversaturation. You’ll also need technical skills to set up the board.

28. Start a Classifieds Website

As with job boards, there are dozens of software platforms for classifieds sites. Some of the most notable include Market Grabber and Oxy Classifieds.

Pros:
A successful classifieds site can make you money with minimal effort.

Cons:
The market for this is completely saturated. Getting your website off the ground will be difficult, and you’ll need technical skills to run it.

29. Build No-Code Apps

Ever wanted to build apps for mobile devices? Modern software tools allow you to do this without having to code. If you’re interested, take a look at platforms like Click Up, Appy Pie, and Air Table.

Pros:
Using these platforms is simple, even for a total beginner. If you have a great idea for an app, this could be your path to financial freedom.

Cons:
You’ll need a certain level of design skills to build quality mobile apps. You’ll also need to create an app that people actually want to use.

30. Invent Something

Inventors still exist, believe it or not. Consider searching the official website of the US patent and trademark office to check if your idea has already been patented or has a patent application pending.

Pros:
Inventors can earn millions through royalties. Even if you create something simple, it’s still possible to earn a lot of money. Perhaps even more attractive, if your invention is important to society, you will earn your place in history.

Cons:
There are several notable hurdles when you are trying to make money off an invention. Beyond inventing something, you will need to develop a prototype and successfully market your idea. Though not necessary, you will want to file for a patent or the relevant legal protection (such as copyright or trademark) for your idea so that someone else doesn’t copy your idea and take it to market.

31. Sell Spreadsheets

Are you good with spreadsheets? There’s a high demand for this skill. Visit Spread Sheet Nut for more information.

Pros:
This is a great way to get extra mileage out of your spreadsheet skills.

Cons:
The types of spreadsheets people buy are usually highly complex, meaning this method isn’t suited for beginners.

32. Sell Retail Products Online

Selling products online, or “flipping” as it’s also known, is a simple way to increase your cash flow. The principle is simple: buy physical products at low prices sell them for higher prices online. The most well-known places to do this are Facebook Marketplace and eBay.

Pros:
This is a good idea for people who don’t have the skills for some of the other income ideas or have much free time.

Cons:
The big issue here is finding cheap products which you can sell online at a higher margin. This is tough, and you may struggle to make an income.

33. Put Ads on Your Car

Did you know there are companies that pay to place advertising on your car? This way, you can earn extra income by simply driving around. Two companies that do this are Carvertise and Wrapify.

Pros:
If you drive for Uber, Lyft, or Door Dash, then this will fit you perfectly. It’s also one of the easiest types of passive income.

Cons:
Some companies have hoops you have to jump through. For example, you’re often required to drive a certain amount of miles per day / month / week.

34. Rent Valuable Items

Do you own things like machinery or power tools? You can make easy money by renting them. Start by going through your things and making an assessment. Decide what you can and cannot rent. Check out local classified sites to see what other people are renting or looking to rent.

Pros:
This is a great way of putting unused items to work.

Cons:
You’ll need to own something that people actually want to rent. There’s also the risk of non-payment, theft, and damage to your items.

35. Extreme Couponing

“Extreme couponing” is when you use coupons to buy in bulk. These items are then sold at a higher price. YouTube has hundreds of videos on this topic. You can also check out the TV show called “Extreme Couponing” for inspiration.

Pros:
There is very little competition in this business which makes it great for beginners.

Cons:
Making money this way is hard work. You’ll have to find the coupons and drive to buy the products. The margins in this business are extremely slim.

36. Open up a High Yield Savings Account

This is a special kind of bank account that has a higher than average interest rate. With online banks, you can easily open one of these accounts and start earning passive income. Discover Bank Online Savings and American Express National Bank are reported to be two good ones. Alliant Credit Union is supposed to be another great service provider.

Pros:
With this method, you can make passive income without lifting a finger and take advantage of the power of compound interest.

Cons:
Though these accounts are fantastic passive income investments, you’ll need a large upfront investment to make it worthwhile.

37. Invest in a Business or Startup

Many businesses are struggling and desperately looking for investors. A good way to invest in a business or startup is by joining an angel investors group. Together with the other investors in the group, you can look for and evaluate businesses that need capital. The Angel Capital Association provides information on finding these groups.

Pros:
Invest wisely, and you could continue to make money without ever working again.

Cons:
Finding the right business is harder than it seems. You’ll also need money to invest and are not guaranteed a return.

38. License or Sell Your Music

Licensing or selling your music is a great idea for musicians for want to make a side income. You can license or sell your music for ads, movies, TV, and video games to media companies. The internet makes this easier than ever. Check out Marmoset, Pond5, and PremiumBeat.

Pros:
It takes very little effort to do this and earn a residual income.

Cons:
Finding people who want to license your music is difficult. You also earn very little money, making this a tough way to earn a substantial income.

39. Buy and Sell Baseball Cards

Everyone knows that baseball cards are valuable. With effort, you can get into this market. Modern Baseball Card Investor by Jeff Hwang, and Mr. Mint’s Insider’s Guide to Investing in Baseball by Allen Rosen, are two great books on this topic.

Pros:
If you’re a baseball fanatic, this is a fun way to earn extra money.

Cons:
This is a difficult business to get into. You’ll need money to invest and may struggle if you don’t know much about baseball. It can also take a long time for certain cards to appreciate in value.

40. Volunteer for Clinical Trials

Did you know you can earn $3,000 on average by signing up for medical studies? You can also make money by donating your blood. Take a look at ClinicalTrials.gov if you want to get involved. RedCrossBlood.org will tell you where to donate your blood.

Pros:
You can earn money and do something good for society at the same time.

Cons:
This might sound like a good idea, but there is a risk of damaging your health. Many clinical trials are also difficult and take months to finish.

41. Complete Online Surveys

Can you really make $1000s by taking online surveys? Probably not, but there are many legitimate opportunities online. Swagbucks and Inbox Dollars are some of the better-known platforms.

Pros:
Assuming you’re successful, this is an almost effortless way to make money and takes very little skill.

Cons:
Finding these opportunities is extremely difficult. In addition to this, you won’t make much money per survey.

42. Start a Drop Shipping Store

Dropshipping is a business model where customers buy products from a middleman. When someone makes an order, it is then up to the manufacturer to deliver the products. If you’re looking for suppliers who do this, check out Oberlo, CJDropshipping, and SupplyMeDirect.

Pros:
You don’t need to spend money on inventory for your business.

Cons:
With this technique, you face the usual difficulties that come with running an online business, including maintaining an online store and bringing in customers.

43. Start a Podcast

Podcasts are still enormously popular. If you’re successful, it’s possible to earn money through advertising, sponsorships, and Patreon subscriptions. Podcast Insights has a free course for people who want to learn about how to start a podcast.

Pros:
This is great for people with interesting things to say. The best part is that you’ll only have to work a few hours per week.

Cons:
With 100’s of podcasts available, competition is extremely stiff. Building your audience may also take years. You’ll have to put in the effort needed to record, produce, and upload your podcast.

44. Sell Videos

News companies are constantly on the lookout for footage. If you’re lucky enough to capture an accident, violent crime, or natural disaster, you can easily sell this footage. Sports games, animals, and funny videos are also popular. Two sites that buy videos are Newsflare and Rumble.

Pros:
There isn’t much work involved in selling videos. News stations and other media could end up paying tens of thousands for your video.

Cons:
The biggest drawback is that you have to capture something unique or exciting. This either means getting lucky or spending hours looking for footage.

45. Become a Referral Marketer

Some businesses will pay you for referring customers. For example, local real estate agents and lawyers often do this. The best way to start is by asking them if they have a referral program and how much they pay.

Pros:
People with natural sales skills will find this easy to do and can make good money doing it.

Cons:
Being a referral marketer may require large amounts of work because it might be difficult to find potential customers. Even after you find a potential customer and make the referral, you will likely only be paid if the person buys something.

46. Wash Clothing

You can put your washing machine to use by taking in extra laundry. Customers drop their clothes off at your home, and you deliver freshly laundered clothing. If this sounds like something you’d like to do, then Facebook Marketplace is a great place to promote yourself.

Pros:
This is a good choice for people who work from home with a flexible schedule that allows them to get up and change out loads.

Cons:
This isn’t the most glamorous way of making money, but it will pay the bills.

47. Cook for People

If you enjoy cooking or baking, why not start a catering business, or deliver home-cooked meals? Facebook Market place is probably the best place to advertise these services.

Pros:
This is a relatively easy way to earn a living and a good fit for people who do not have professional skills but love to cook and do it well.

Cons:
Cooking, baking, and delivering, not to mention cleaning up afterward, is time-consuming, with extremely thin profit margins.

48. House Hacking

This is essentially a concept where you buy a house and then use the rent payments from your roommates to cancel out your mortgage payments. Alternatively, you could rent a house and do the same thing. The House Hacking Strategy by Craig Curelop explains this idea in detail.

Pros:
Everyone needs a place to live, so this income-earning strategy can be done in addition to others and takes no time once you have the roommates.

Cons:
You may struggle to find roommates or have difficulties with them. If you own the house, you’ll also have to maintain the property.

49. Housesitting

If you’re interested in this, check out Trusted Housesitters. In addition to housesitting, you can also babysit or look after people’s pets.

Pros:
This method is great because it gives you time to do other things, like working on your online business.

Cons:
Housesitting is an enormous responsibility. If anything goes wrong, you could be in serious trouble.

50. Online Jobs and Market Places

If you’re looking for a work-from-home opportunity, there are a number of things you can do. Some of these include transcribing audio files, doing data entry, or even simple copy and paste jobs. Check out Fiverr and Upwork for more ideas.

Pros:
These jobs allow you to work from home or part-time. Though you have clients, you don’t have a boss and can choose who you want to work for with each contract.

Cons:
Finding consistent work is difficult. The amount of money earned will vary, and you could find it hard to make enough income.

Conclusion

With these ideas, you can earn money in your free time and also do it without much effort. You can then use that money to achieve financial security, pay bills, and even pay off student loans.