Last Updated on July 15, 2023
Passive income is something we hear about often, but have you really thought about awesome it would be to consistently make money while you sleep??
This is seriously a dream that so many of us want to experience. And that’s why I wanted to share these 20 passive income business ideas. Are you ready to start waking up to a higher bank balance? Continue reading to learn more.
*Post may contain affiliate links. Disclosure can be viewed here.
20 Passive Income Ideas
1. Monetize a Blog
Blogging continues to grow in popularity and it can definitely be a fantastic way to make some extra money while you snooze the night away. This can be done in a couple of different ways.
- Affiliate marketing- You can check out this guide on how to get started with affiliate marketing. But basically, you can set up your blog to promote other people’s products in exchange for a commission. This is one of my favorite ways to monetize my blog because once I have my systems in place, I just make money on autopilot. Again, I recommend checking out the guide I linked above to get started.
- Selling ad space- You can allow companies to share ad banners on your website and earn money from the click-throughs and/or purchases made through those ads.
If you want to get your blog up and running quickly and start making money from it, you may want to consider checking out this blogging course to get started.
2. Start a Dropshipping Business
I highly recommend you check out this blog post if you are new to dropshipping. In that particular guide, I walk you through the process of setting up your dropshipping business by working with sellers on Fiverr. This is honestly one of the easiest ways to get everything set up and running smoothly without requiring a ton of knowledge and expertise upfront.
3. Cashback Apps
This one will always make the list — take advantage of those cash back apps! I cannot stress this enough. If you’re going to be spending money on products anyway, you might as well earn some money while you shop.
4. Create an Online Course
Turn your expertise into another stream of income by creating an online course.
Using a course creation platform is the easiest way to build an online course, especially if you don’t have a ton of technical knowledge. Platforms such as Thinkific make it so easy to get everything up and running seamlessly so you can start earning that much-desired passive income.
5. Stock Dividends
Buying stocks that pay out dividends is another way to earn money in your sleep. But please note that investing in the stock market is risky and you should do a great deal of research before you dive in.
6. Start a Print on Demand Store
You can use a website like Printful to create some high-quality mockups and connect them to your website, Etsy shop, or Shopify store for customers to place their orders. With this setup, the order is automatically sent to Printful (or whatever printer you choose to work with) and they’ll take it from there. They will print, pack, and ship the order on your behalf.
With this model, literally, all you do is create, upload, and publish the designs and make sure it is connected to your site to start collecting orders. You will also want to study different marketing tactics and SEO for the best results.
7. Sell Items on Etsy
You can open an Etsy store and sell products either using the print-on-demand method we mentioned earlier or selling your own products. Etsy is a great place to sell your handcrafted products and even digital products which we’ll discuss in more detail later.
8. Sell Items You No Longer Use
De-clutter and make some extra money by selling products you no longer use on Facebook Marketplace or using other selling platforms. You may be surprised by how many sales you actually make overnight.
9. Sell Digital Products
We touched on this concept a little bit earlier when discussing Etsy shops, but you can sell your digital products on other platforms (or even your own website) as well. Here are some ideas on the types of digital products you may choose to create:
- Checklists and other printables
10. Turn Your Car Into a Moving Ad
You can literally turn your car into a moving ad using companies such as Carvertise and Market Your Car.
11. Invest in Real Estate
Investing in real estate is not without risks. However, there are different ways to do so that can create a stream of passive income for you. Here are just a couple of ideas to give you a better idea.
- Investing in a Real Estate Investment Trust (REIT)
- Rent out a property
Sharing your referral code is an underrated practice. This is similar to affiliate marketing, but you don’t need to sign up for any affiliate accounts to pull this one off. If you’re using an app or product that offers referral rewards, do not hesitate to share your link with your network – especially if it’s something you believe they could benefit from.
13. Rewards Credit Cards
We discussed using cashback apps earlier, but you can also take advantage of rewards credit cards to earn money back on everyday purchases. If you’re in the process of building credit, you may want to start with a card like the Capital One Platinum Card to start building or improving your credit history. And even if you’re not yet in the position to apply for some of the higher-end reward cards, trust that you can work your way up to that.
14. Sell Stock Photos
If you have photography skills under your belt, you may want to look into selling stock photos to pull in some extra coins while you rest at night.
15. Rent Out a Spare Room
Airbnbs are a great way to boost your bank account while you sleep. There are also other ways to earn money from your spare room. I recommend checking out this step-by-step guide to renting out your spare room legally for more details.
16. Rent Out Storage Space
Similar to renting out a spare bedroom, you can also rent out free storage space whether it be a garage, shed, or other space in or around your home.
17. Monetize a YouTube channel
Monetizing a YouTube channel can be a bit challenging and time-consuming, especially if you’re trying to join YouTube’s Partner Program. However, I am including it in this list because you can definitely earn passive income from ads on your YouTube channel. You can also use YouTube as part of your affiliate marketing strategy.
18. Create an App
If you have the technical knowledge to do so, you can create an app and rake in the coins from any purchases.
19. Buy Bonds
You can buy bonds from the government, through a broker, or through an exchange-traded fund (ETF). If you’re just getting your feet wet, you can utilize apps such as Acorns to start building your bonds portfolio.
All this talk about stocks and bonds, and you’re probably wondering if you can even afford to invest your money this way. The good news is, it is now easier than ever to buy smaller shares of stocks and there are many apps designed for beginners that can help you get some experience in this area. You can look into Stockpile for stocks and platforms such as Coinbase for cryptocurrency.