21 Best Passive Income Ideas To Make You Money

In this blog post, we will talk about the different ways you can make money using the best passive income ideas. 

This is the blog post that I wish I would have had when I started my financial independence journey. Let’s go for it.

All right, so, when I say passive income,

There is no way to make money without doing anything at all. By passive income, I mean money that is not directly tied to our time.

Let’s say you were to write a book. If you write a book and you publish a book. That book is now on bookshelves. You’ve done the work once to write and publish the book. But now, anytime the book sells, you make money or commissions from royalties; that is passive income.

You could be making money while you sleep because you’ve created this thing, which is out in the world and which is generating income for you.

The other thing with passive income is that it may take a very long time to get going. If you see any ads on Youtube talking about how you can get rich quickly by whatever scheme, or saying, “Oh my God, here’s how you can get rich quick with crypto, WhatsApp my number.” That is all a scam; it’s not going to work.

There is no way to get rich quickly. It is not a thing. If you’re looking for a get-rich-quick scheme, those things do exist, but they just don’t work. You might as well not even try.

The way I think of this is that eventually, money is just a medium for exchanging value. The only way to make money online is to provide value. And the only way to make passive income is to provide value in a way that is not directly tied to your time.

Please, do not try to join any get-rich-quick scheme. I’ve had tons of messages over the years from people who have tried signing up to a get-rich-quick scheme or a gambling scheme. 

None of these things ever work. People always end up losing money. The best way to make money is by providing value.

What Are The Best Passive Income Ideas?

Let’s talk about the different ways that you could provide value if you wanted to.

1. Investing in stocks and shares.

invest in stocks and shares

The way that we provide value in stocks and shares is by offering up our money. Giving money and investing in a service is a way of providing value. When we give our money to a company by buying their stocks, it makes sense that we would get some return for that investment.

Investing in stocks is one of the easiest ways to generate any kind of passive income. If you have any savings and they’re sitting in a savings account, earning 0.01% interest, they’re not doing very much for you.

On the other hand, if you had those savings and put them in stocks, you could potentially be earning passive income from the money that could be just sitting there.

The thing that I recommend for most beginners is a non-financial advisor, and this is not financial advice, purely for entertainment purposes only. 

I invest a lot of money in stocks and shares and mostly in index funds. An index fund is something like the Standard & Poor’s 500 Index (S&P 500). And when you invest, let’s say $1,000 in the S&P 500, that means that your $1,000 is distributed amongst the top 500 biggest companies in the US.

They are weighted by how big they are. For example, 2% of it would be in Apple, 2% in Google, 2% in Facebook, 2% in Microsoft. You probably won’t have heard of the 600th company on the list, but basically, you will be investing in all the big US companies a little bit at a time.

If you want to get started with that, you need to sign up as a stockbroker. If you’re in the US, you can use a Webull; if you’re in the UK, you can use Freetrade or Vanguard.

Whatever country you’re in, just search the phrase, best stock broker platform plus your country name, and you’ll find something that works for you.

Then it will be straightforward to be able to invest in an index fund. It’s effortless to get started with stocks.

How hard is it to make $1000 a month by investing in stocks and shares?

Well, this kind of it depends on the stock market’s overall performance.

From 2020 to 2021, the S&P 500 has increased by about 50%. If in April 2020, you had invested $2,400 in the S&P 500, the fact that it’s gone up by 50% means you would’ve made $100 a month.

But, this is not the way to look at it because things can change, and the stock market has different performance levels depending on what period you’re looking at.

But if we average out the last ten years, the S&P 500 has had a roughly 10 percent return.

This means every year, on average, it goes up by around 10% over the long term. This is not inflation-adjusted. And if we do some back of the envelope calculations, if we want to earn $100 a month, passively, through stocks and shares, we would need around about $12,000 invested in the S&P 500, to make that 10%, $1,200 a year, which is $100 a month.

If you invested $7,500 in the S&P 500 and you left it there for five years, then you would be making roughly $100 a month.

Again, assuming the 10% average.

This is cash that you shouldn’t need to touch in the next five to 10 years.

How hard is it to maintain your income once you’ve set it up?

It is easy to maintain because once you’ve got the money in, you just like to set it and forget it, and it’s not that hard to maintain.

2. Start a YouTube channel.


How hard is it to start your YouTube channel?

Well, it’s very, very easy to start a YouTube channel. You just go on youtube.com, click to create a channel, and you can upload videos straightaway by just filming with your phone and uploading them.

In reality, it’s a lot harder to make stunning videos. Making stunning videos is how you grow on YouTube. But getting started on YouTube is straightforward.

The real question is how hard is it to make real money from YouTube?

For example, we want to make $100 a month in passive income.

What does that look like? Well, firstly, for your YouTube channel to be eligible for monetization, you need one thousand subscribers and 4,000 hours of watch time.

If we look at the averages, it takes on average 90 something videos to get to 1,000 subscribers.

That’s quite hard if you’re thinking of starting a YouTube channel. But it’s doable.

Once you hit one thousand subscribers and your 4,000 hours of watch time. How hard is it to make $100 a month uploading videos on YouTube?

On average, the revenue per thousand views on YouTube is roundabout $3. This varies massively but lets you get about $2 per thousand views.

Let’s say you want to make $100 a month; you need about 50,000 video views on YouTube.

Let’s assume you make one video per week, and you’re not getting any traffic on your older videos. This means every video you make needs to get around 12,500 views. And very roughly, the average YouTube channel can expect about 20% of their subscribers to equal the average view count for each video.

If you had 62,000 subscribers on YouTube, you could expect to get roughly 20% video views, i.e., 12,500 views on each video. And assuming you have no evergreen content for the long term, you would need to run about 60,000 subscribers to be making $100 a month.

In reality, you make $100 a month earlier before hitting 60,000 subscribers.

When it comes to assessing how hard it is to do, we will give this a four out of five stars. It’s tough to make compelling YouTube videos. It’s straightforward to get started, but it’s a lot hard to do well.

Being a Youtuber is worth it; it’s a great skill set, and it’s also fun. You get to meet people across the internet. You get to learn how to film, how to talk to a camera, and video editing. It’s great, but it’s tough to make money from YouTube.

Finally, in terms of effort to maintain. Getting that first one thousand subscriber is a lot harder than keeping your channel growing. Once you’ve got a thousand subscribers and your channel is growing, it simply means you’ve landed on a formula that works. Maintaining it is easier than starting from scratch.

There are other ways of monetizing YouTube, like brand deals, selling merch, and just all other sorts of stuff.

3. Start a podcast.


This is another passive income stream. Podcasting is a lot easier than starting a YouTube channel. Although growing a podcast is a lot harder than growing a YouTube channel. This is because podcasts themselves don’t have an algorithm that’s helping them to grow.

Many podcasts grow by promoting them on a YouTube channel, which is kind of weird.

How hard is it to start a podcast?

It’s very, very easy to start a podcast. Go on anchor.fm, and you can use your phone to record, and you could pass your phone around between you and your friends, and you can start a podcast.

You can use a website called riverside.fm that makes it very easy to record remote podcast interviews.

It’s simple to start a podcast, but how hard is it to make $100 per month in passive income from podcasting?

Well, The way podcasters make money is by relying on sponsorship. There is no YouTube AdSense for podcasts. You need a brand deal to make any money for your podcast.

Evidently, you can expect to make around $18 for a 30-second ad in your podcast. You can also earn $25 per thousand views or a thousand listens for a 60-second ad.

If you want to make $100 a month and assume you have a stream of sponsorships giving you that level of a sponsorship deal based on your download numbers, you could need around 1,000 downloads per episode, and that is if you have a weekly podcast. You’d have 4,000 downloads a month.

If you’re putting a 60-second ad in there for $25 per thousand views, that will make you about $100 a month. This is by having a thousand downloads per episode and four episodes per month.

This brings the question of how hard is it to get a thousand episode downloads per month?

Well, it’s challenging to get a thousand episode downloads per month than it is to get a thousand YouTube views per month.

This is because YouTube has many distribution built-in it, and it’s very different from podcasts. Also, there are more people on YouTube than on podcasts. But if we look at the stats, then it’s the top 20% of podcasts in the world that get on average more than a thousand downloads per episode.

To use a friend of mine as an example, my friend started a podcast around five months ago, and on average, her podcast gets roundabout 400 to 500 downloads per episode.

This is not bad at all, especially considering she started five months ago and had zero audiences when she started.

Making $100 a month from her podcast is a bit hard, but not as hard as maybe monetizing on YouTube where you have this minimum threshold.

Once you’ve stumbled on a formula that works, and once you know how to be a podcaster, it’s easier to continue.

4. Become an affiliate marketer.

Affiliate Marketing

Affiliate marketing means that you are selling other people’s products, and in return, you’re getting a percentage of the sales from those products. Now, 48% of affiliate marketers globally earn $20,000 a year, which is $1,660 a month. This is not bad at all.

Many people are doing very well with affiliate marketing overall. 

How hard is it to get started with affiliate marketing as a beginner?

Well, I’m going to give this a two out of five stars. You can quickly sign up for an affiliate program like Amazon Associates.

Amazon has its affiliate program, which I think is probably the biggest in the world. And then, once you have your unique links, you can post those on your website, Twitter, and social media.

And if people buy the product through your link, you’ll get some commissions. It is pretty easy to get started with affiliate marketing, but how hard is it to make $100 a month?

Well, this is kind of hard.

Let’s say you had a product that was $50 that you were trying to sell, and you were getting a 5% commission on it. That’d be pretty good. Amazon doesn’t offer nearly as much as 5%. It provides about two or 3%, something like that.

And let’s say your average conversion rate is 1% – i.e., people visiting the product page versus people buying the product. This is pretty reasonable for the conversion rate.

You would need about 8,000 visits to your website to make $100 a month. It’s pretty hard to get 8,000 visits per month to your website and then to a specific product page.

Generally, doing well in affiliate marketing requires lots of upfront effort in terms of either building an audience or building such domain authority in whatever niche you’re in.

Now, I’m part of a few other affiliate programs other than Amazon.

One of them is Skillshare, and they have an exciting affiliate program where if you refer someone to sign up for a free trial of Skillshare, you can get $7 in affiliate commission.

If you wanted to make $100 a month from Skillshare affiliates, you would need 15 people to sign up for Skillshare with your affiliate link monthly. 

How hard is it to get 15 people to sign up with your affiliate link a month?

Well, it’s not that hard if you have an audience or if you have your classes on Skillshare.  

How hard is it to make $100 a month?

It is not complicated. In fact, affiliate marketing is the best way to make money online as a beginner. 

You build an audience by creating helpful content, putting it for free on the internet, and doing this again and again. If you just follow those three steps, I guarantee you’ll have an audience, and you’ll be able to make a lot of money through this passive income stream.

Once you start making money from affiliates, it’s pretty easy to maintain, mainly if you publish evergreen content. Content that isn’t relying on current affairs or the latest news. Content that people might search for over a long period. This becomes relatively reasonable passive income.

5. Selling digital products.


Now, these are products that you create once. For example, an ebook, a download, an app, or something like that.

You create it once, and then you can sell it multiple times because selling digital products doesn’t usually have any costs associated with it.

One perfect example is this guy called Traf, who made an iOS 14 icon set and sold it for like $30 a pop a few months ago and ended up making about $300,000 in the course of a few weeks, just because many people around the world wanted to buy his icon pack.

He put the work at the beginning by creating the pack, and now he’s selling it for lots of cash.

How hard is it to get started making digital products?

It’s not hard because anyone can write an ebook and sell it.

Make sure you provide enough value to compensate for the price you’re selling it for.

How hard is it to make $100 a month from selling digital products?

Well, it’s straightforward to create an ebook, but it’s a whole different ballgame trying to get people to buy your ebook, icon set, app, or buy your website themes.

And because the market around this stuff is so competitive, you have to be genuinely good to get people to buy your property.

If you want people to pay you money for something that identifies a problem that they have, you solve that problem, and then you charge money for it.

And if you can do those three things, it’s very doable to make $100 a month.

Genuinely you have to have something that solves a pain point that other people are willing to pay for.

Another thing is you do have to maintain your product a little bit, but it’s often easier to do. It’s much easier to maintain a product than to create a product in the first place.

6. Create an online course.

online course

Now online courses are similar to digital products, but generally, online courses are in video format.

In terms of getting started, it’s not that hard to make an online course. But generally, you do need to know how to do videos.

You actually could film an online course on your phone, whatever phone you’re using. Stick your phone on the side, talk to the phone, teach something.

Your course needs to be good. This will make people pay for it.

The best way to make $100 a month from a course is to charge $100 for a course. Find the best course websites to host your course, register, and create your course.

If you do that, you only need one sale every month.

Another way is to host your course on an online learning platform or a course marketplace. The benefit of learning platforms over course platforms is leveraging these websites to reach a new audience. But on the other side is that, you won’t earn as much money per sale, and there is stiffer competition in the market. 

How hard is it to get a single person a month to buy your course?

The world of online education is exploding every year. More and more money’s being spent on online education, especially with the whole pandemic stuff.

If you have a valuable skill that you can teach, then courses are one of the best ways of making passive income.

It’s fun to create a course, teach stuff, and don’t need that many technical skills. For instance, making a website or anything like that.

The nice thing is that once you’ve made the course, maintaining it is pretty easy. You don’t need to keep updating the course that often. This is done once in a while. The most important thing is to make sure you’re getting a reasonable amount of traffic to it. And hopefully, that traffic will grow over time.

7. Build a membership community.

membership community

This is generally not a bad idea, especially if you have an existing audience, which we keep coming back to.

Everything becomes easier when you have an existing audience. And this is done by creating valuable content over a long period, very consistently.

That audience knows and trusts you. When you say, “Hey guys, sign up to my Patreon,” then some people are likely to do that thing.

The other way of doing a membership is by creating a value proposition that is compelling that people would be willing to pay for a membership community for this.

If we use Patreon as an example, If you have around 600 Patreons, and if you look at your Patreon stats, which are public, you could be making somewhere between $3,000 and $7,000 per month in passive income from this audience.

You need a big audience to make a significant amount of money for Patreon. Again, this depends on how much you’re charging them and precisely what value you provide.

Another example of a paid membership community is starting a membership website and charging people for your content.

You will need to write excellent blog posts before launching a membership.

How easy is it to start a membership program?

Well, it’s straightforward. You just make an account on some kind of membership platform like Patreon.

8. Sells Goods or Services

Sells Goods or Services

Create a business to sell goods and then automate or delegate aspects of that business so that the income you generate is reasonably passive.

This is the stuff that Tim Ferris talks a lot about in “The 4-Hour Workweek”, where there are a lot of businesses that you could make where you’re selling a good or selling a service. Then you can delegate, outsource, automate and make other passive income sources.

For example, you can start a Shopify store. It will take a lot of work to set up, but you can find other people to help manage the business. And you will spend proportionally less time running that business.

Equally, if you’re going down the service route, I’ve got a friend who runs an Instagram and Facebook ads marketing agency, where he has clients who pay him a few hundred dollars per month to manage their Facebook and Instagram ads.

And for him, it’s a small amount of work initially to set up the Facebook and Instagram ads, and he’s got a team around it.

He is using things like Zapier to automate that business so that each month he has to do a minimal amount of work to keep it ticking along.

These are different online passive income ideas to earn money from selling goods or services.

The nice thing is that maintenance is a little bit easier once you get started.

9. Build an App 

Build an App

You can also build a software product that you can offer either a one-off or subscription service. Second, you can also make your app free and monetize with ads. And there’s a whole category of this called SAAS _ software as a service.

Designing stuff tends to lead to passive income. If you’re a programmer or developer, you might want to try creating apps as a passive income stream. 

Now, if you look at the website indiehackers.com, hundreds of people have built software businesses or SAAS companies making passive income.

They share their revenue numbers, tell you how they got started, and give you their tips.

You can monetize your app in several ways, including running in-app ads, charging for premium features, and offering paywalled content.

Making an app it’s pretty hard, and it requires a lot of work. You have to know how to code; for the most part, you have to offer something compelling and build it, which takes a lot of work.

Once you’ve made it, maintaining it is a lot easier.

10. Rental Properties

Rental Properties

Real estate can be an excellent way to generate passive income depending on where and when you buy. In popular cities, there has been a steady increase in property value.  

A cash-flowing rental property is a fantastic way to generate a monthly income. To make this passive, you can outsource the running of the properties to a management company.

The internet has made investing in rental properties more accessible than ever before. There are many ways you can invest in rental properties, depending on your goals. You can buy homes and be a landlord or be a limited partner in large residential properties – all online! 

By buying rental properties, you may find some lower-cost properties that’ll increase in value by the time it’s finally built, allowing you to sell the property once it’s complete for a profit.  

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.

An investment property can be one of the best passive income generators out there. If you break even, the renters will still be paying your mortgage and building equity for you as the property’s value appreciates over time.

11. Selling Stock Photos Online

If you are a photographer, graphic designer, or plastic artist, you can sell your works through Internet portals or websites dedicated to distributing them. Millions of advertisers, bloggers, YouTubers, and editors, among others, need photos and images for our trade.

If you want to make some extra cash for your photos, you could consider selling your photos as stock photos. The easiest way to make your images available for sale as stock images are to use a third-party website, such as Adobe Stock, Shutterstock, Alamy, etc.

Stock photos can be a lucrative passive income source if you love to take tons of pictures. You can get paid to sell photos online through stock photography websites, or you can design your website and sell them from there.

The photos can be from any niche you like to cover, such as travel, food, sports, etc. You can put your images for sale as an independent photographer on various stock photography websites mentioned above.

12. Dropshipping


The concept behind the dropshipping business model is that you operate an online store, leaving logistics, distribution, and customer service issues to the manufacturers.

The dropshipping system allows you to generate income with an eCommerce store without making shipments or managing stocks. Thus it becomes a passive method.

The idea is to create a website that acts as an online store to attract customers, collect orders, and partner with a manufacturer or wholesaler to take care of shipments.

There are software programs that send the order data to the manufacturer in real-time. This way, you can get the product to the customer without your intervention.

The profit margin of dropshipping can be as high as 50%. The main disadvantage is that you are not in control of the delivery and the merchandise status.

That means that if the shipment does not arrive or a return has to be attended to, the customers will complain to you, and you will have to resolve the incident with the manufacturer.

And that can be a real headache.

For this reason, it is crucial to work with severe and trustworthy manufacturers who allow you to synchronize their stock with your product catalog.

Fortunately, some platforms put you in contact with manufacturers that work with dropshipping. Some of the best known are:

  • Aliexpress – This is a huge Chinese platform with thousands of suppliers and manufacturers.
  • DHgate – Another Chinese giant specializing in electronics.
  • Oberlo: This is an American website where you will only find products that are sold through dropshipping

Amazon also offers a model similar to dropshipping, called FBA (Fulfillment By Amazon). FBA goods are products of external sellers where the distribution and after-sales are in charge of Amazon. You will recognize them because the seller’s brand appears next to a “Fulfilled by Amazon.”

In this case, you will have to send an initial stock to Amazon to save it and make the shipments. Then, you will use a program like Woocommerce to integrate your online store with Amazon FBA and make the shipments from there.

13. Peer to peer lending

Peer to peer lending

Peer to Peer lending (or P2P lending ) are platforms that seek to simulate the function of banks.

In the beginning, banks collected money from savers to later deliver it to borrowers at a higher rate. This difference, called “spread,” was the primary source of profitability of the first banks.

Today’s banks are much more complex and have many more sources of income and large structures with thousands of employees, offices, technology platforms, among others.

Peer to Peer lending platforms work under the following premise: By having a VERY light structure, not having branches, and employing very few workers, their costs will be much lower than those of traditional banks.

As the costs are lower, they can give higher interest to savers and charge lower interest to borrowers. Therefore, in principle, the idea is good!

Some platforms use artificial intelligence and data analysis from social networks, among others, to estimate each applicant’s risk for credit and assign an interest rate according to their risk profile.

If you invest in Peer to Peer lending platforms, you can decide the level of risk you are willing to take to earn a certain level of profitability.

Some Peer to Peer lending platforms Advantage:

It is possible to choose the profitability according to the risk that the investor is willing to run.

It is possible to find double-digit returns.

14. Start a blog

build a website from scratch

A blog is a perfect way to turn your passion into wealth. Regardless of what interests you or what you have to say, an audience will be eager to read about it. 

In the short term, a blog is an excellent place to share your thoughts and ideas about just about anything, and over time, the attention and traffic you get to your blog can become a way to earn additional income. 

Whether you run ads, add affiliate links, or attach an online store, your blog can generate passive income in several ways. 

The first thing to do is start a breathtaking website/blog, then write staggering blog posts/articles and finally learn how to monetize it fast.  

The benefits of running a monetized blog

  • You can cover any topic regardless of what interests you. A blog is a place to turn your dream topic into cash flow.
  • You can generate continuous traffic. Once your blog is up and running and has a reliable traffic source, it’s easy to support itself. 
  • You don’t need to partner with anyone else to build your blog. It is one of the passive income sources that you can completely control. 

15. High Yield Savings Account

A high Yield Account is a form of savings bank account insured by the federal government and offers much higher interest rates than the average bank account. 

While a standard account can currently generate around 0.07% per year on the amount you have in your bank, a high-yield account can reach 1.5%.

This is the perfect form of passive income if you already have a starting capital amount and don’t currently have any other great ideas about what to do with it. 

Over an extended period, high-yield accounts represent a reliable form of income. 

Pros of a High Yield Savings Account

  • They are a reliable source of income since the federal government guarantees these types of savings accounts. They are also one of the safest places to store your money. 
  • They are long-term savings accounts. This is an excellent option if you hope to save money over a long period. 
  • There is no job required. Since this style of saving only requires you to put some money into a savings account, it is one of the most passive forms of income. 

The Cons of a High Yield Savings Account

  • There are no big commissions. Around 1.5% per year for average interest rates, this form of savings only pays if you have a large amount of capital to start with. 
  • There are no short-term gains. You will probably have to wait a few years with your money in the bank before you start to see decent returns on your investments. 
  • Tie capital. Although your money is invested in a high-yield account, you will not be able to access it or face penalties.

16. Rent on Airbnb


Do you have a spare room? Put it on the Airbnb vacation rental site. 

Rental properties in the best locations can bring tons of money every night, which means that even if you only have a single room for free and rent it for only a few nights a month, you can still make a decent amount of income from the platform.

The great thing about renting your free space on Airbnb is that you can decide when you are happy to have people stay and when you prefer to have space to yourself.

You can even rent your home when you go on vacation, which means you can cover part of the cost of your holiday with someone else’s.

What’s impressive is that you don’t need to buy a new property to make Airbnb passive income. 

Also, Airbnb has recently expanded into “Airbnb Experiences.” This allows you to host events, meetups, and tours in your city.

The advantages of renting on Airbnb

  • You can monetization of the extra space. With Airbnb, you can start earning money as passive income from an otherwise empty room. 
  • Not (necessarily) taxed. In most cases, you don’t need to pay taxes on the income you earn from Airbnb, just service fees.  
  • There is no experience. In this way, anyone can make money from a rental property without specific skills. 

17. Rent Your Car

Got a car that you don’t use all the time? You can probably rent it out! Just like renting out a real estate property, this will require some maintenance and work, but you can earn some good money.

Set a minimum amount of rental days to ensure you make more money for your time. You can offer a slight discount to increase your car’s demand.

If you want to rent out your car while you are on holiday or not using it, here are a few websites to look at. 

These websites let you rent your car and allow car owners to connect to people who need to rent a vehicle. With Turo, your car is covered against theft and physical damage, and you’re protected with $1 million in liability insurance. Your vehicle has to be from 2005 or newer and have less than 130,000 miles on it.

Getaround has similar requirements. Every trip includes $1,000,000 insurance and 24/7 roadside assistance. They also install a device that lets people get into your car without the key. Getaround says the average car owner makes about $1,000 per year.

Not too bad for minimal effort!

Note that you can monetize many things by renting and not just a car. Depending on where you live, you can also rent out your parking space for the money.

This is one of the most passive ways you can make an extra income online at the moment if you own a car.

18. Real Estate Crowdfunding

Real Estate Crowdfunding

Among the relatively new passive income ideas is real estate crowdfunding. Real estate crowdfunding is a group of investors pooling their money to invest in real estate assets. 

I am not suggesting using crowdfunding instead of applying for a mortgage. Instead, I’m suggesting you loan money to other real estate investors through crowdfunding sites.

What is the main benefit of this passive income approach? You can vet each investor’s project individually, but you won’t be dealing with individual investors.

This eliminates high-pressure sales from investment groups and the emotional appeal of aiding a friend who wants to buy a house. 

Using this method, you get a higher interest rate than you would if it sat in a money market account.

Sites like RealtyShares and FundRise allow people to contribute fairly small sums of money into a pool of funds that investors borrow to flip houses or buy rental properties. The investors will pay the loans with interest, and that’s where you make money.

The crowdfunding platform takes a portion of every loan issued. But on the other hand, they also administer the loan payments. If someone doesn’t make the payment, you don’t have to call them demanding payment. Instead, the crowdfunding website will pressure the person to pay up.

Lending money through crowdfunding platforms eliminates the need to have a detailed contract with the borrower or have an equity stake in the property itself.

Furthermore, those seeking passive income ideas will acknowledge the low cost of entry. For example, you could join a crowdfunded real estate project for just a few hundred dollars.

19. Vending Machine Business or ATM


Vending machines are another excellent low-maintenance small business idea, and they are often underestimated passive income ideas. But it is a great way to make money, especially if you have found the right place to place your vending machine.

The first thing to consider is the number of people going in and out of that place. You will stand a big profit if you have placed the machine in a lucrative area. A well-placed vending machine can potentially earn hundreds of dollars per day.

If you buy or rent an ATM, you can place it in a location you own or negotiate to share profits with someone who has property in a more lucrative area. You profit from ATM fees charged each time someone uses the machine.

You’re responsible for keeping the machine stocked with cash, but you can turn this into a passive stream source by outsourcing this work to a trusted third party.

Like any business, most states require vending route operators to obtain their regional directive’s proper permits and licenses. When starting a vending machine business, it’s essential to check your regional directive.

20. Certificates of deposit (CD)

Certificates of deposit

A certificate of deposit (CD) is almost similar to a high-yield savings account. Financial institutions will offer you a premium interest rate. Still, you need to leave a lump sum untouched for a certain period—banks issue certificates of deposit for terms ranging from a few months to 20 years.

Most banks offer CD terms in multiples of six months. This means you can open one for six months, 12 months, 18 months, etc. Usually, the longer you agree to leave your money, the higher the interest rate you can get.

At the end of the fixed term, you will get your money back, plus your earned interest. Investing in a certificate of deposit is a great-low risk strategy to acquire interest risk-free.

Try to buy your CD with an FDIC-insured financial institution, and make sure to get the best CD rates. 

CDs are great if you have money that you know you won’t be using for some time, but you want to maximize your return without any risk.

When looking for a CD that suits your needs, always check any penalty fees you might have to pay if you need to withdraw your money before the end of your term. Some financial institutions offer no-penalty CDs that allow you to access your money after the first six days of deposit.

The downside is that most banks have a penalty for pulling out your money before the end of the entire term; only use the money you know you won’t need to rely on shortly. 

21. Automobile advertising

Got a car? Great, you can earn a passive income a month if you’re willing to turn your car into an advertisement. 

Car wrapping or advertising involves having your vehicle printed with advertisements for a specific company. As you drive, people will see the ads because your car will be a moving billboard. 

By working with companies like  Wrapify‘s  Carvertise, which pairs drivers with major companies like Pepsi and Google, you can get pretty much any vehicle they’ve wrapped up with ads. As long as you have a clean license and are actively driving, you are good to go. 

Some of these huge companies can pay big bucks to turn cars into moving billboards. No upfront investment is required, and your vehicle won’t be harmed –as long as you don’t have prior damage. Wrapify estimates that full coverage can earn you approximately $264 to $452 a month.

This is a distinctive, low-volume advertising method that can put a little extra money in your pocket.  

The advantages of car advertising

  • Your cost of driving is compensated. Cars are usually just an expense; in this way, they become a way to bring in money. 
  • You choose an advertiser. Unlike a large amount of online advertising, you can select between advertisers. 
  • Earn money offline. If you are looking for a method to earn passive income without resorting to the internet, this is a simple solution. 


What is Passive Income?

Passive income requires little effort or minimal labor to earn and maintain. It is called progressive passive income when the earner uses little effort to grow the income. Examples of passive income include any business activities in which the earner does not materially participate. 

Active Income vs. Passive Income

Active income is the money generated from all those efforts or work you’re currently making. It would help if you kept working to continue earning an active income. If you quit, you don’t get paid. Your time equals money.

Then you have passive income. An income that doesn’t require you to work passionately. But the money continues to flow in for years. If you’re looking to have a financially free dream life, it might be better for you to focus on passive income streams.

Making passive income comparable to active income requires a good amount of work upfront.


If you’re looking to replace your 9 to 5 salary so that you can quit your job, the passive income ideas in this article can help you do that.

Passive income can help boost your earnings and fill in the gaps that your 9 to 5 job can’t fill on its own. And it’s okay if you like your full-time job too. 

Sometimes it can take a couple of years of hustling to start bringing in a significant amount of passive income each month. 

Passive income always requires much work, time, or money upfront. 

If earning money passively was easy, everyone would be doing it, But with enough discernment, determination, and creativity, you can set your future self up for a life of sitting back while the money rolls in.

Remember, if you want to achieve financial freedom and quit your job, you need to start thinking about making passive income today! 

The most important thing to do is to get started. 

Aurora Lane

Aurora Lane

Aurora Lane is a full-time blogger and affiliate marketing expert. Join Aurora on AimWorldGroup.com to learn how to scale your influence online fast. This is the corner from where she shares content on strategies, techniques, tactics, and proven tools to help you build the perfect digital business. She also reviews the best software to run your online business.

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