Most people love the idea of escaping the ‘rat race’ and finding time to relax and enjoy their lives. However, most people can’t afford to stop working and retire early, so passive income ideas are in high demand. You earn money without working with passive income, leaving you free to spend your time any way you want. Here are some of the best passive income ideas.
Best Passive Income Ideas
Flipping a domain is a lot like flipping a house. You buy a domain name that will likely increase in value and hold it until you find a buyer and sell it for more than you paid for it. While researching domains and identifying good bargains can take some time, purchasing domains is fast and easy.
Once you have the domain, you can hold it and wait for a buyer (for example, a new business, a startup, or an existing business with a related domain), put it up in a domain auction, or seek out buyers who may be interested.
Alternatively, you can identify valuable domains, wait for the registration to expire, and try to purchase it before it’s renewed (called domain ‘drop catching’).
Domain flipping is a specialized skill but can be a great way to make income with little time or money invested up front. For example, the most expensive domain ever sold was cars.com for $872 million.
If you have a powerful computer and are willing to invest in higher electricity costs, crypto mining remains a viable way to earn completely passive income. All you have to do is install crypto mining software and allow it to run.
Generally speaking, the newer and more powerful your graphics card, the more money you can earn in a day.
Crypto mining on the scale of a home computer isn’t incredibly profitable because it depends on the cash value of the cryptocurrency, which can fluctuate over time. However, it’s an entirely passive, zero-effort way to earn cryptocurrency that can be saved or converted into cash.
Peer-to-Peer lending is a way of borrowing or investing money directly in other individuals or small businesses when you can’t borrow from a traditional bank. With peer-to-peer lending, you invest money directly with another individual seeking financing and earn interest or profit as they repay the loan.
Peer-to-peer lending usually has lower borrowing amounts and faster repayment terms than a traditional bank or lender, so investors have less risk and are paid back more quickly.
While it may sound risky, there are several peer-to-peer lending platforms that connect investors with borrowers, and many of them have services that help reduce risk.
For example, some peer-to-peer lending platforms combine investment funds so that no single investor is at the greatest risk; some platforms pre-screen borrowers; some focus on small business or real-estate investments, etc. Peer-to-peer lending allows you to simply choose the right investment, loan out your money, and get your returns.
Selling Stock Photos
If you’ve always been interested in photography, it’s straightforward to license your photos to a stock photo site and earn money when your image is used. Sites like Shutterstock, Getty, Adobe Stock, and more will allow you to upload your photos, video footage, illustrations, etc.
When those images are licensed by a customer, you get income from the sale.
Of course, most stock footage sites have guidelines about your image formats and resolutions, and there are other agreements you need to comply with. Still, if you have a drive full of great photos or are in the habit of taking pictures while you are out and about, you may as well earn some passive income from your photography habit.
Hosting Short-Term Rentals
If you have extra space in your home, consider converting it into a short-term rental. Platforms like Airbnb, Tripping.com, HouseTrip, and more, allow you to rent out your extra space to visitors and travelers.
You may need to invest in making your space more friendly for visitors and visually appealing for your online ad and will need to clean the space between guests. Still, people worldwide make extra money every month from simply renting out the extra space in their homes.
Selling Ad Space on Your Car
Depending on where you live, you may be able to make passive income by simply placing advertisements on your car. In most cases, you need to have a clean driving record, own your vehicle, and maintain auto insurance.
Companies pay more for car advertising in high-traffic, urban areas and when you frequently drive your car so it can be seen on the road. Large trucks and trailers are also more valuable because they have more ad space.
Various online platforms will pay for advertising space on your car, and they may have their own criteria, so read the terms carefully. Most of these companies will want access to your GPS system so they can verify how much exposure their ads are getting.
If you like to drive and are often out and about, you can make an extra $300-$600 per month simply by placing ads on your vehicle.
Investing Your Money
The time-honored way of making passive income is to invest your money in stocks or bonds. However, several investment apps will allow you to invest in other assets, like real estate debt, gold and precious metals, cryptocurrency, and other asset types.
While many of these investments are risky, you can also choose a very safe investment strategy that protects your capital and allows you to earn money over time with no effort at all.
Best Residual Income Ideas
Residual income isn’t entirely passive because you need to spend some time and/or money to create the initial asset(s). However, simply creating one popular e-book, video, or blog can earn you residual income for years.
These passive income ideas require a little effort upfront but can pay off passively for a long time. Here are some great ways to generate residual income
Selling Informational Products
If you have a compelling story or subject matter expertise, self-publishing an e-book or creating an online course is a great way to generate long-term income. There are a variety of websites where you can sell or promote your products and many online educational platforms that will host your course materials and send you the income from the students.
It can take a lot of work to research and create these things and then promote them and gain an audience, but you can earn passive income from your materials for years.
Creating YouTube Videos
Popular YouTube videos can earn money for years, and YouTube’s algorithm may continue to promote your video and get you more exposure long after you have created it. Making a video on a current subject or event is a great way to gain immediate visibility and income, decreasing over time.
Making longer-lived videos like explainers, how-tos, and tutorials can earn smaller amounts initially but create steady income over time. Suppose you have some experience or expertise that can be demonstrated in a video and the technical ability to record and edit your video. In that case, you may be able to earn residual income off of YouTube.
Starting a Print-on-Demand Store
Print-on-demand stores are a great way to create and sell unique products without creating or managing a physical inventory. With a print-on-demand store, you partner with a printing platform that will print your designs onto products and then fulfill orders by shipping products directly to your customers.
Small businesses and entrepreneurs, content creators and influencers, and even global brands use print-on-demand services to promote their brands, and it’s a simple way to start your own online business.
The biggest challenge with print on demand is finding your niche and promoting your products to the right markets. You may make money quickly by creating products with popular memes, catchphrases, and topical themes or focusing on residual income by marketing products with long-term interest and value.
For example, you can partner with artists to create custom designs, focus on printing shirts for local sports teams or special interest groups, or design fashion accessories or home décor items for a specific target market.
Residual income from print-on-demand stores depends on the popularity of your products and the effectiveness of your marketing strategy. Still, after you set everything up, your print-on-demand partner does all the work and sends you the profits.
There are dozens of ways to make passive income online and suitable opportunities for people of all ages, interests, ability levels, and capital to invest. Over time, you can build up several passive income streams that provide ongoing revenue and allow you to live the life of your dreams.