How To Passive Earning?
What is passive income?
Passive income (or unearned income, as it’s classified by the Internal Revenue Service) is defined as income that requires minimal work to generate and maintain, coming from somewhere other than a traditional employer.
Passive income streams can come from investing in mutual funds or real estate, selling products online, publishing online courses, or other side hustles in which the earner doesn't have to actively participate.
Unlike active income, passive income is often generated automatically, providing residual income with minimal time and effort. It can improve your personal finances and give you the freedom of time. Not having to trade your time for money can reduce stress and anxiety, and additional cash flow can make you feel more confident about your financial future.
Whether you’re a service provider trying to stop selling dollars for hours or a product business looking to add income sources that don’t involve the logistics of sending out physical products, consider the following passive income ideas.
10 passive income ideas to earn money
1. Start a dropshipping store
Upfront time investment: 🕒🕒
Upfront financial investment: 💸
Passive income potential: 💰💰💰
Dropshipping is one of the best passive income ideas to earn money from wherever you are, even if you don’t have a lot of cash flow to begin with. Some dropshippers report making upward of $100,000 per year. Dropshipping is not a get-rich-quick scheme, however, as it takes some upfront investment of time in order to generate income.
The dropshipping business model involves creating an ecommerce store where customers browse and buy products. What's interesting about dropshipping is that you don’t have to see or physically manage the products you sell.
With dropshipping, your supplier handles everything from manufacturing to packaging to fulfillment. And since you don’t need to send money to your supplier until your customers pay, this passive income business has limited cash risk.
Another risk you get to avoid is the one that comes with investing in a product that doesn’t have a market. You can use a platform like the DSers to find trending products in different niches to sell in your store.
Depending on the product you choose and your pricing, you can earn solid passive income and learn how to run an ecommerce business
2. Create a print-on-demand store
Upfront time investment (time): 🕒🕒🕒
Upfront financial investment (money): 💸
Passive income potential: 💰💰💰
If you’re an artist, designer, or entrepreneur, print on demand can be a profitable passive income stream and monetize your creativity. It involves working with suppliers to customize 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 fulfillment is taken care of by your supplier
- Once your store is set up, you can automate many marketing and sales processes
With a print-on-demand company like Printful, you can easily create products to sell in your Shopify store quickly. Overall, print on demand is a simple, low-risk passive income source you can get up and running fast.
Free Webinar:
How to quickly start a profitable print-on-demand store
In our free 40-minute video workshop, we’ll get you from product idea to setting up an online store to getting your first print-on-demand sale.
3. Sell digital products
Upfront time investment (time): 🕒🕒
Upfront financial investment (money): 💸💸
Passive income potential: 💰💰💰💰
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 sources because they have high profit margins. You only have to make the asset once, and you can sell it repeatedly via your online business. There’s no storage or inventory needed.
You can sell as many digital products as you want. Many creators scale passive income from digital assets by selling kits, printables, files, and other materials professionals can use. UX Kits, for example, sells personas, flowcharts, and wireframes to assist the design process.
The brand has sold its products to more than 10,000 customers in over 100 countries and continues to sell these lucrative products online today, demonstrating the potential of this passive income strategy.
4. Teach online courses
Upfront time investment (time): 🕒🕒🕒🕒
Upfront financial investment (money): 💸
Passive income potential: 💰💰💰
It’s easier than ever for educators to sell courses online. Whether it’s marketing, illustration, or entrepreneurship, you can create pre-recorded courses and start selling with few limitations. Similar to digital products, you can sell online courses repeatedly without holding any inventory or stock, generating passive income.
Teaching online requires some upfront investment in time. You’ll need to outline your course, record it, and create downloadable assets like templates for students to walk away with.
Take Yegi Saryan, founder of Yegi Beauty, for example. After creating an online beauty brand selling eyelash extension products, she created an educational branch called Yegi Academy. Her lash classes help entrepreneurs around the world jumpstart their beauty careers, offering both online and on-site training.
Because your online course is recorded ahead of time, you can shorten, lengthen, or edit it to apply to a broad range of class sizes and experience levels, expanding your passive income streams. You can create fully downloadable courses that students can finish at their own pace, or use software to automatically release lectures and materials at regular intervals.
Whichever way you look at it, teaching an online course is a great way to generate passive income at a low startup cost, other than investment of time.
5. Become a blogger
Upfront time investment (time): 🕒🕒🕒🕒
Upfront financial investment (money): 💸
Passive income potential: 💰💰💰
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 generate a significant income stream.
You could earn passive income from blogging by:
- Selling affiliate products
- Creating sponsored posts
- Selling your own products
- Running ads through Google AdSense
The best part? You don’t need any design or coding skills to start a blog. With a content management system and hosting service like Shopify, you can get a blog up and running in no time.
You’ll need to invest time into creating an SEO marketing strategy and producing and promoting the content, but know that your efforts will be rewarded: the return on these passive income investments can be upward of $30,000 per month, depending on how you monetize your blog.
Resources:
6. Sell handmade goods
Upfront time investment (time): 🕒🕒🕒
Upfront financial investment (money): 💸💸💸
Passive income potential: 💰💰💰💰
There's never been a better time to sell stuff online. With over 4.6 billion people connected to the internet, the opportunity to build and scale an online business is massive.
There are hundreds of online sites you can sell on. Some have specific niches, like video games or handcrafted goods, while others let you sell whatever you want.
Some popular online selling sites include:
- Your own online store
- Handshake
- Amazon
- eBay
- Ruby Lane
- AliExpress
The upfront investment is two-fold. You’ll need to invest in materials and time to make and sell DIY goods like pottery or clothing. You’ll also want to create an online store to house your products.
According to our research, the top 10 products consumers plan to buy post-pandemic include the following:
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 grow an audience and connect with more customers. It’ll help you sell more over time and make money online.
Resources:
- How 4 Handmade Goods Store Owners Turned Their Passions into Profit
- How I Build and Sell Handmade Products in My Spare Time
- Growing a Handmade Brand: One Family’s Journey From Etsy to Shopify
7. Run an affiliate marketing business
Upfront time investment (time): 🕒🕒🕒🕒
Upfront financial investment (money): 💸
Passive income potential: 💰💰💰
Affiliate marketing involves recommending 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.
It’s also a growing industry. Statista estimates that the affiliate marketing industry will reach $8.2 billion by 2022. Online entrepreneurs become affiliate marketers for a few key reasons:
- It’s easy to execute. You just handle the marketing side of things. The brand will develop products and fulfill orders.
- It’s low risk. There’s no cost to join an affiliate program. You can sell established profits without any upfront financial investment. You’ll have to invest time in creating traffic sources so more people click on your links. Once that’s set up, you can earn relatively passive income through commissions.
- It’s scalable. Affiliate marketers typically don’t hire extra help. You can introduce new products to an audience and create campaigns while your past work makes money in the background.
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 hours are invested, you can reap the rewards continually.
Resources:
8. Sell stock photos online
Upfront time investment (time): 🕒🕒🕒🕒
Upfront financial investment (money): 💸💸💸
Passive income potential: 💰💰
Unlike many of the other passive income ideas on this list, photography is a service-based business, which typically means you get paid for your time. You must be at an event or photoshoot to make money with photography, which, even if you’re making a killing, can be tiring after a while.
However, if you’re a full-time photographer or own a good camera, you can generate passive income from photography by selling photos online. Stock photo sites like Pexels, Shutterstock, and other online media houses will pay for high-quality photos and videos.
There’s no inventory to keep around the house besides your camera and laptop. These websites do the marketing for you, so once you load your photos onto the platform, getting your work out there and selling it is done for you.
If you run your photography business on Shopify, you can also easily tie in digital products like prints or print-on-demand products like shirts and hats, giving you even more passive income streams so you can work less and make more.
Resources:
- How to Sell Photos Online: For Both Amateur and Pro Photographers
- The Best Free Stock Photo Websites for Finding Creative Images in 2022
9. Become an Instagram influencer
Upfront time investment (time): 🕒🕒🕒🕒
Upfront financial investment (money): 💸
Passive income potential: 💰💰💰
One million dollars: That’s how much Dwayne “The Rock” Johnson makes per Instagram post. While you may not have chiseled abs or over 200 million social media followers, you can still earn a monthly income on Instagram as an influencer.
To become an Instagram influencer—someone who can sway another person’s buying decisions—you’ll need to build a community of people who enjoy similar topics.
Are you a comics fan? You can create an Instagram account and start posting consistently about the latest Marvel and DC shows. The same applies if your interest is in sports, scuba diving, home décor, or even general culture.
Some influencers like Alex Lange run sponsored posts for brands like Tinder.
If you have an engaged audience, you use that engagement to support a variety of passive income ideas. For instance, you can partner with large and small businesses to promote their products to your followers. Or you can make money through selling your own merch.
10. Buy a rental property
Upfront time investment (time): 🕒🕒🕒
Upfront financial investment (money): 💸💸💸💸
Passive income potential: 💰💰💰
Real estate investing is one of the oldest ways to build long-term wealth in general, and passive income in particular.
If you have enough money, you can buy apartment buildings or some other form of real estate and lease them out for rental income. But since the job of being a landlord is pretty active, you can hire property managers to manage tenants, maintain properties, and collect monthly payments or rent.
As a bonus, your properties will appreciate as the housing market rises, increasing your profits in the event of a future sale.
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