Passive income may not make you a millionaire overnight, but it can supplement your salary and help you build wealth over time.

Through investments, royalties, rentals, and revenue, passive income is money you earn without the need for ongoing work. It’s not linked to a regular job and doesn’t require your constant attention. This means more freedom, flexibility, and cash for you.

Explore these straightforward passive income ideas to strengthen your financial portfolio.

29 passive income ideas

What is passive income?

Passive income is money earned with minimal effort. Common sources of passive income include earnings from investments, like rental property, dividends, interest on savings, or leasing equipment.

Another source of passive income is ongoing earnings from something you’ve previously created. It could be sales of a digital product, like a pre-recorded online course, or commission produced by affiliate marketing content, such as a YouTube video.

Passive income ideas

1. Dropshipping

Dropshipping is a great way to earn passive income, even if you’re starting with a small budget.

In a dropshipping business, you set up an online store where customers browse and buy products. When you receive an order, you forward it to your dropshipping supplier, who ships the product.

2. Print on demand

If you’re an artist, designer, or entrepreneur, print-on-demand is a passive way to monetize your creativity. This passive income stream involves customizing white-label products like t-shirts, posters, and backpacks, and then selling them on a per-order basis.

3. Digital products

Digital products are assets, tools, and pieces of media that consumers can’t physically touch. These include downloadable or streamable files like ebooks, templates and PDFs.

How to start: Use an app to give customers access to your digital products.

4. Online courses

It’s easier than ever for educators to create an online course. Whether it’s marketing, illustration, or entrepreneurship, you can create pre-recorded courses and start selling with few limitations. 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.

5. Blogging

Starting a blog can be a challenging venture, but blogging businesses have shown stability as a passive income model over multiple decades.

Earn a passive income from blogging by using your posts to:

1. Promote affiliate products

2. Create sponsored posts

3. Sell products

4. Run ads through Google AdSense

The best part? With a content management system, you don’t need any advanced tech skills to start a blog. Once you are up and running, you can sign up for a relevant affiliate program to add monetized links to your blog content.

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6. Handmade goods

There are hundreds of websites for selling crafts and homemade products, offering the chance to turn a weekend side hustle into an official income stream. Some have specific niches, like video games or handcrafted goods, while others let you sell whatever you want. Popular marketplaces include:

1. Faire

2. Amazon

3. eBay

4. Ruby Lane

5. AliExpress

The upfront investment needed to sell handmade goods is twofold. 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.

7. Affiliate marketing

Affiliate marketing is a passive income model that 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.

Online entrepreneurs become affiliate marketers for a few key reasons:

1. It’s easy to execute: You handle the marketing side of things while partner brands develop products and fulfill orders.

2. It’s low risk: There’s no cost to join an affiliate program. You can sell established profits without upfront financial investment.

3. It’s scalable: Introduce new products to your audience while your past work makes money in the background.

8. Stock photos

Unlike many passive income ideas on this list, photography is a service-based business, which typically means you get paid for your time. Generally, photographers make money by securing bookings for events and photoshoots.

Alongside this business, you can also 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.

9. Social media influencer

To become a social media influencer—someone who can affect another person’s buying decisions—you’ll need to build a community of people who enjoy similar topics.

Are you a comics fan? 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 something more niche.

10. Rental properties

Real estate investing is one of the oldest ways to build long-term passive wealth.

If you have the capital available, you can invest in apartments, land, or renovation projects, and benefit from the appreciating value.

11. Stock market investments

Although the stock market might have a steep learning curve and can be confusing, it’s a great way to build lasting wealth. A common mistake most people make with investment funds is thinking short-term instead of playing the long game to reach financial goals.

S&P 500 index.

How to start: Open a brokerage account at a registered financial institution. It’s recommended that you also speak with a financial adviser to help plan and hit your passive income goals.

12. Spare room rentals

Maybe you don’t have the startup capital to invest in rental properties. But, do you have an extra room in your apartment? Or are you going on a three-week road trip and don’t want to leave your house empty? You can partner with a rental company like Airbnb to rent your free space.

Airbnb connects homeowners with people who are looking for their next getaway. People prefer Airbnb because they’re sometimes cheaper and often more convenient than hotels, meaning a high demand for your free space as an Airbnb host.

13. Car rentals

Your home is not the only thing you can rent to earn passive income. You can also rent your car with a service like Turo. If you use your car to work for ride-sharing companies like Uber, sign up with platforms like Carvertise or Wrapify to earn extra money by selling advertising space on your vehicle.

14. Peer-to-peer lending

Have extra cash that’s not working for you? Try peer-to-peer lending as a passive side hustle. Peer-to-peer lending involves lending money to borrowers or small businesses.

15. Shopping rewards

Cashback reward sites allow you to generate passive income when you shop online. After signing up, you don’t have to do anything aside from shop to make money from these sites. The more you shop online, the more points you gain, and the more passive income you can make.

16. Buy an existing website

Websites on almost any topic are often put up for sale. The best part? A lot of them make a healthy income through affiliate links, ads, memberships, or products.

Buying an existing site is a great way to own a business that already has sales and traffic coming in. Once you complete your purchase, you also get access to seller support and negotiate hand-over terms with the seller to ensure you’re able to maintain the website.

17. YouTube channel

It’s not too late to start a YouTube channel. A whopping 2.7 billion people worldwide use YouTube every month. That’s a lot of eyeballs to capture for passive income. The catch? It’s a lot of upfront work for little to no return at first.

18. REIT investments

What if you don’t have money to buy entire apartment buildings? You can still earn rental income.

With a minimum investment of $500, you can use a real estate investment trust (REIT) platform to invest in a variety of real estate assets—and earn more passive income as the assets appreciate. A REIT is a company that owns and manages profitable real estate. It’s a great way for smaller investors to pool their money for investments they wouldn’t be able to afford by themselves.

19. Digital designs

Design marketplaces like 99designs, ThemeForest, or Creative Market are great places to generate a passive income stream by selling digital designs online. Whether you use a website builder to build website themes, logos, branding resources, templates, illustrations, or even fonts, these platforms offer a built-in market that is already looking for design resources.

20. Startup investments

Investing in small and medium-sized businesses has become more accessible through online platforms. With a low initial investment, you can fund startups without needing to actively manage your investments.

21. Unused space rentals

Have a basement or garage you aren’t using? Rent it out as storage space!

The storage industry is expected to grow 5.9% annually until 2030. In other words, this income idea isn’t going away anytime soon. You can offer storage for a variety of items, including cars, boats, RVs, or even business inventory.

22. Job boards

Creating a job board platform or marketplace for a niche industry is a great way to earn passive income as an online entrepreneur. Employers use these websites to advertise vacancies to job seekers.

Job seekers can seek new job opportunities online or in person. You can charge employers to post on your job board and offer premium features like sponsored jobs or unlimited access to your candidate database.

23. Mobile apps

The fact that any novice can create a mobile app with today’s no-code tools is beautiful. Platforms like Appy Pie, Adalo, or Bubble make it possible.

To start, you’ll have to decide whether you want to create a website or mobile app. Besides the concept of the app (what niche it will serve and what problem it will solve), there’s also monetization to think about.

You can generate passive income with a mobile app using:

1. Subscriptions

2. Ads

3. Pay to download

4. A marketplace model

24. Royalties

Inventors aren’t a thing of the past. You can make passive income through your unique inventions. Though this isn’t a passive income route that’s talked about often, it’s a real one.

Starting is probably one of the hardest parts of the inventor’s journey. You want to make sure you have a worthy invention that’s useful and solves a problem.

25. Audiobook narration

Audiobooks have to be read and recorded by someone. Why can’t that someone be you? Once you break into the industry, it’s possible to create passive income in the form of royalties—which is how most audiobook narrators get paid.

To successfully make income from audiobooks, there are a few things you need to master first. These include learning:

1. How to audition

2. Proper narration technique

3. What niche you’ll work in

4. Some editing skills

26. Vending machines

Ever wonder who takes care of all those vending machines that are always stocked? The owner of those machines is earning (semi) passive income from your snacks and soda cravings.

27. Spreadsheet templates

Some of us are natural-born spreadsheet masters. If that’s you, it’s possible to put your spreadsheet skills to work to earn passive income.

Whether you create spreadsheets with Excel or Google Sheets, there’s a market that will pay for you to create spreadsheets for all kinds of purposes: budgeting, profit projections, habit tracking, or even P&L spreadsheets that business owners don’t want to create from scratch.

28. High-yield savings accounts

A high-yield savings account generates passive income by offering a higher interest rate than traditional savings accounts. By depositing money into this account, you earn interest over time without any additional effort. Some high-yield savings accounts and certificates of deposits (CIDs) offer more than 4% annual percentage yield (APY).

29. Parking space rentals

Renting out unused parking spaces can generate passive income, requiring minimal effort. By listing your available spot on a parking-sharing platform or through local ads, you can monetize the space.

How to choose a passive income idea

Finding a passive income stream that fits your lifestyle will give you the best chance of success. Use these criteria to judge how much time, money, and effort you want to invest—and how much you can expect to trust online earning sites.

1. Assess your skills: Take an objective look at your skills and interests. For example, if you’re good with cameras and photography, selling stock photos online could be an ideal way to monetize existing efforts.

2. Assess your resources: The more assets you have to invest, the more “passive” your income streams can be. Making passive income with no money means initially relying on your skills and time to generate capital.

3. Evaluate your financial goals: Define what you want to achieve financially. Are you looking to just cover a small hobby expense, or are you trying to replace your full-time income? Your goals will greatly influence which passive income streams you pursue.

4. Consider time commitments: Some passive income ideas require a considerable amount of time to set up, such as starting a YouTube channel. Others, such as high-yield savings accounts, can be started in minutes.

Passive income ideas to start without money

Ideal for beginners, these passive income ideas leverage your existing skills and free time to generate income without upfront costs:

1. Dropshipping: Sell products online without handling inventory or shipping.

2. Print-on-demand: Sell custom products that are printed when ordered.

3. Digital products: Sell downloadable items such as ebooks, music, or software.

4. Digital designs: Sell graphic designs, website themes, or templates.

5. Online courses: Develop educational courses.

6. Blogging: Generate income through ads, affiliate marketing, and sponsored posts.

7. Affiliate marketing: Earn commissions by promoting products on your website or social media.

8. Stock photos: Sell photographs to stock photo websites.

9. Social media influencer: Monetize your social media profiles by partnering with brands.

10. Job board developer: Create a niche job board and charge employers to post listings.

11. Mobile app developer: Develop and monetize mobile apps using ad revenue or in-app purchases.

12. Royalties: Earn ongoing payments from licensing your intellectual property.

13. Audiobook narration: Provide voice-over services for audiobooks.

14. Spreadsheet templates: Design and sell customizable spreadsheet templates.

Get more tips on how to start a business without money.

Passive income ideas to start with money

Other passive income ideas need an initial investment to get started but may offer higher returns. These options are great for those ready to use their capital to build passive income streams:

1. Rental properties: Purchase real estate to rent out for monthly income.

2. Stock market investments: Invest in stocks, bonds, or mutual funds for potential dividends and capital gains.

3. Spare room rentals: Rent out extra space in your home.

4. Car rentals: Offer your vehicle for rent.

5. Peer-to-peer lending: Lend money to individuals or small businesses to earn interest.

Find the right passive income idea for you

There is only so much time in a day, and finding ways to make a lot of money more efficiently can give you flexibility in your finances to hit the next level. That level might be taking a nice vacation or buying that awesome pair of shoes, but whatever it is, adding passive income streams with different underlying economics can give you the freedom to explore it.

Frequently Asked Questions (FAQ)

Which passive income source is the best?

Ans: The best passive income source depends on the amount of time and money you can invest. For those with minimal funds, creating affiliate marketing content and running an online store are good choices, as they require little to upfront costs. If you have capital to invest, rental properties or dividend stocks might be more suitable, offering potentially higher returns.

How many income streams should you have?

Ans: Having multiple income streams can enhance financial security. Starting with two passive income projects can be manageable. As you grow more comfortable, you might consider exploring additional options.

How can I make $1,000 a month in passive income?

Ans: To make $1,000 a month in passive income, diversification is key. You can invest in dividend-paying stocks, peer-to-peer lending platforms, or rental properties. These investments generate regular income without requiring your active involvement.

How can I passively make $2,000 a month?

Ans: To passively make $2,000 a month, create your assets, like a dropshipping business or a YouTube channel to have more control over your income.

What is the easiest form of passive income?

Ans: The easiest form of passive income is likely investing in index funds or dividend stocks. These options require minimal management, and you can start with a small initial investment while reaping the benefits of compound interest over time.

How can I make passive income with no money?

To make passive income with no money, you can leverage your skills or knowledge by creating digital products, like ebooks or online courses, and selling them through self-publishing platforms. Once created, these products can generate income with minimal ongoing effort.