65% of self-made millionaires have 3 sources of income. But how do you go about diversifying your income when the 1 job you do have is sucking up most of your time? The answer lies in passive income ideas.
Passive income can mean the difference between living paycheck to paycheck and being debt free. But that makes for passive income and what are the best means of achieving it?
Here are 10 passive income ideas you can start implementing right now.
But first, a quick primer.
What is Passive Income?
Passive income is money made without any active involvement on your part. Which isn’t to say it’s without effort!
Passive income streams often require a lot of effort to set up. You’ll buckle down for months writing an e-book or slave away over your paints creating a print on demand artwork catalog.
Once you do have the groundwork laid, then the act of making money off it practically drives itself. You can sit back and let one project make you money months or even years after you’ve completed the hard work.
The hardest part of developing passive income ideas is finding the time or money to invest in the projects. Having capital to invest can give you a jump start in the passive income game. But the same effect can be achieved with good old blood, sweat, and tears.
Sell Stock Photography
Both quality and quantity are key if you want to be successful in the stock photography game. That said, don’t think you need to rush out and buy a DSLR to get your foot in the door.
There are a number of platforms that specialize in selling stock photography taken on a phone. If you’ve got a good eye for lighting and composition, even if the only camera on hand is your iPhone, then getting started selling stock photography is entirely within reach.
The best thing about selling stock photos is that once they’re up, your job is done. They can be bought, again and again, racking up commissions as they go with no further effort on your part.
Sell Your Art on Print-On-Demand Platforms
You simply upload your own artwork as a digital file, set it up on their available products, and hit submit. Customers then buy those products from the print-on-demand platforms and you earn an artist commission for each product sold.
As passive income ideas go, this is one of the most hands-off. Once your art is up the products can sell over and over, netting you a commission each time. That said, being successful as a print-on-demand artist does require time and effort up front.
You want a healthy catalog of art on each platform. You’ll also need to put in some effort marketing yourself and your products if you’re just starting out as an artist.
Sell Digital Products On Etsy
Etsy is an online seller platform known as THE resource for selling handmade goods. But did you know “handmade” can also include digital works?
If you’re an artist looking to diversify your income then Etsy is a great platform. You can sell digital prints, PDF coloring pages, and more.
An Etsy store also requires very little setup. Your store can be up and running in a matter of hours.
You will have to put initial effort into creating your digital products and marketing your listings. However, once you have a catalog of listings, the income made will be entirely passive.
Make YouTube Videos
Close to 5 billion videos are watched on YouTube every day. With numbers like that, becoming a YouTube content creator can make for an awesome source of passive income.
The only downside is that your success won’t come without a lot of up-front time and effort. If you’ve never used video editing software then the learning curve might also be a hurdle.
YouTube creators monetize their videos through advertising, so your success is also as much about quantity as it is quality. You’ll need to work hard to establish a back catalog of videos. Once you have that catalog, though, it’ll continue earning you money for as long as people are watching them.
Make Online Courses
Everyone’s an expert on something. One of the best ways to monetize your expertise is through online courses.
There are many ways you can produce and host your own courses but platforms like SkillShare and Udemy are probably the best for those wanting the most hands-off approach. Online course platforms provide the infrastructure and built-in audience, so all you have to do is produce the course itself.
Your course can literally be on anything. Web development, graphic design, vector art, are always in demand. You can even create an online course on how to create an online course. It’s one of the more meta passive income ideas but a lucrative one.
Once your course is live, there’s often some extra legwork to market yourself and your content, but otherwise, your course can continue earning you passive income for months or even years into the future.
Write a Blog
Becoming a successful blogger is a lot of work and anyone that tells you otherwise is selling something!
Blogging makes it onto this list though, because once you’ve put in the blood, sweat, tears, and SEO, your blog will generate passive income for as long as your domain stays renewed.
A successful blog is a combination of quality writing, knowing one’s niche, and savvy online marketing. It’s the work of years to build up a successful back catalog of blog posts, but once you do, they can earn you money for as long as they stay relevant.
Blog posts that stay relevant forever are called evergreen posts. Evergreen posts are some of the best sources of continuous passive income.
Blogging is also one of the more lucrative passive income ideas. A successful authority blog can earn you hundreds of thousands of dollars per month. With that much to gain, the effort is well worth it.
Publishing e-Books through Amazon’s Kindle marketplace is an excellent way to earn passive income. It does, however, require some up-front effort.
The work of writing a novel isn’t to be understated. The upside of e-publishing through platforms like Kindle is that your stories don’t necessarily have to be novel-length.
Kindle allows authors to self-publish short stories, novellas, or anthologies the same way you’d publish a full-length novel. Their price points are lower but the potential passive income revenue is massive.
If fiction isn’t your style, then self-publishing self-help guides or how-to guides is also one of the better passive income ideas.
Become an Affiliate Marketer
Affiliate marketing is best suited to those who have active blogs, websites, or particularly large presences on social media. In essence, it’s a way to further monetize other passive income ideas.
Affiliate marketing is the act of promoting certain products or services and then receiving a cut of the completed sale. It’s often set up using affiliate IDs that can tag links from your own platform back to the sellers.
How successful your affiliate marketing is will depend on how successful your content is. On the upside, once your content is published and your affiliate links in place, they can continue earning for months if not years.
Make Niche Websites
A niche is, by definition, something that appeals to a small, specialized subset of the population. Niche websites are sites that exist to solve very specific problems.
They’re often monetized through affiliate marketing. Advertising revenue can also come into play.
The backbone of a good niche website is SEO. You want your niche site to target a very specific set of low-competition keywords. A healthy search engine rank is key to the success of a niche website.
Once your site is ranking, however, the passive income earning potential is enormous.
Become a Content Curator
Content curation is the act of organizing and collating information. Websites like Buzzfeed and Upworthy are great examples of content curation on the large scale. Your own website or social media presence needn’t be as massive, just so long as your posts appeal to an audience.
As far as passive income ideas go, content curation is along a similar vein to blogging. The only difference is you needn’t be an authority or expert in the content you’re producing.
Others have already done the expert work for you, you’re simply researching, collecting, and collating that content in a way that’s easily digestible and that will fetch you traffic.
Passive Income Ideas That Don’t Suck
Passive income is one of the best ways to gain your financial freedom. Any 1 of these ideas could be the strategy that pulls your budget up by its bootstraps and keeps your financial future looking sweet.
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