The Smartest Passive Income Ideas in 2023 for Beginners

You know how they say tough times never last, but tough people do? On the face of it, the current global economic situation is seemingly making light work of this saying. The inflation rate is continuously growing, and finding well-remunerated opportunities seems harder than ever before. Lucky for you, we have some ideas on how you can prevail over this harsh global financial state. After all, we all deserve to get some extra earnings in our lives, no? 

Having passive income provides many benefits. It could be a fast way of building wealth while you’re still young and then help you retire early. It could also be your backup plan in case you lose or want to quit your job. Regardless of the goals you have in mind, having an extra source of revenue always proves in handy. Continue reading to learn more about the smartest passive income ideas you can utilize in 2023.

What Is Passive Income?

As the name suggests, it is the income generated through little or no effort. It comes from other sources other than formal or traditional employment. Passive income could come from side hustles where the one who makes money doesn’t have to be fully involved.

The Internal Revenue Service (IRS) also refers to passive income as unearned income and is the opposite of active income. Some passive revenue sources, however, may require you to invest your money and time initially for them to bloom, but after that, they take a life of their own.

What Passive Income Is Not

Passive income is different from active income, which refers to any activity in which you must be actively involved to make money. In other words, passive income is a money-making avenue that does not consume most of your time and resources once set up. Differentiating the two is crucial when filing taxes since loss and write-off laws govern how you categorize your earnings.

Non-passive income can include a number of pay avenues, such as money made during employment. Non-passive revenue is a crucial distinction when filing taxes. The proceeds describe specific types of income and affect the taxation process. Some non-passive income forms are as follows: 

• Active Income 

This revenue comprises salary, tips, commissions, wages, and active business management. It serves as a consistent source of revenue for an individual. As an outcome, their bank account receives a steady and continuous flow of funds. Furthermore, it acts as a basis for various other forms of income. It is the remuneration for actively executing a job. 

• Business Income 

Business income consists of earnings from the selling of goods or services. It also counts profits or losses generated from owning a business either fully or partially. While filing taxes, whether you own a sole proprietorship, a corporation, or a partnership, you must declare business revenue as non-passive income. The profit drive is the driving force behind most business income. 

• Active Management Income 

Active management is a stock investment strategy. It entails you, the investor, trying to compete with the market through active purchases and sales to optimize your return on investment. It differs from passive management or investing in index funds, which track the broader stock market and anticipate that your investment will eventually yield a profit with no additional scrutiny.

Best 20 Smart Passive Income Ideas

If you are employed, chances are the salary you get is not enough to cover all your needs. Fortunately, we’ve got some ideas you could try out to make that much-needed extra buck. 

In truth, passive income options are limitless and open to everyone. Here are some of the smart ways in which you can make money on the side and, hopefully, gain financial freedom.

1) Online Tutoring

Are you an expert in a particular field and looking to make a difference in the lives of those interested in your area of expertise? If yes, online tutoring may be a perfect fit for you. What’s more, you can make money imparting knowledge regardless of whether or not you’ve got tutoring experience. There is, as such, no reason to get cold feet. Armed with your qualifications, skill set, and experience (limited or otherwise), you are definitely good to go. The rule of thumb, nevertheless, is that you have to be honest with and confident in yourself before getting started.

You can expect to make good money via online tutoring depending on how you package and sell yourself as a competent expert. According to the Bureau of Labor Statistics, tutors in the United States earn an average of $17.72 per hour. This amount is, all the same, not cast in stone. Some make much more, especially those with a wealth of experience.

Did you know that you can venture into tutoring without a degree? While papers certainly give you an undeniable advantage, not having them should not discourage you from starting. As we have just mentioned, the one thing a tutor has to do best is be an expert in their field. In the contemporary world, one can become a self-taught expert and exploit their skillset to make money.

In truth, online tutoring is the gift that keeps on giving. Why, you ask? The more jobs you have, the more your reputation grows. Having a plethora of successfully tutored students pass their courses and exams will give you the word-of-mouth and online referrals you need to thrive in the business. Your students get to be invaluable product promotion tools. It’s certainly not a bad situation to find yourself in, is it?

And because we are all about passive income, online tutoring does not have to take up all your time. With the multiple online tools available, you can make course-length videos, short FAQs clips, or eBooks; you name them. Through your guidance, your students can follow your laid-out outline, and before they know it, they’re grasping concepts they thought were akin to rocket science.

Likewise, you’ll need to avail multiple and convenient communication channels for those under your hands to reach out when they require your input. And since it’s not a full-time job, you can limit the communication to a time frame of your convenience. For example, you could let your students know you are only available to answer questions three days a week. Specify these days and a period when they can send their questions in, say from 4 to 6 PM.

Admittedly, tutoring is a rewarding job, whether you do it online or on a face-to-face basis. You get to keep your mind active, learn more, and change the lives of thousands across the globe. What better way to traverse country borders than by sharing knowledge? Such possibilities are what genuinely make the world a global village.

2) Start a Blog

Blogging has grown by leaps and bounds in recent years, its roots coming back from the mid-1990s. First described as online diaries, these interactive pages have evolved into one of the hallmarks of modern internet use. Thanks to this rapid evolution, netizens have devised ingenious ways of monetizing their blogs. For most bloggers, though, earning through their entries is but a welcome bonus.

Bloggers are individuals looking to explore ideas on things they are passionate about, hone their writing skills, and create an online presence. And if you can make money doing what you love, why not go full throttle with it? Truthfully, starting a blog may seem daunting at first. If you start second-guessing yourself, have faith in the fact that you’re getting into something you’re passionate about, so your chances of failure are somewhat slim.

As you very well know, one cannot put up a blog and start earning from it the next minute. Some effort needs to go towards developing an audience within your chosen niche. Once you do this, you’ll be a stepping stone away from earning from your blog. You can make money blogging by offering paid subscriptions, advertising your content, selling merchandise, posting sponsored content, doing affiliate marketing, and providing consulting services.

Paid subscriptions ensure a continuous flow of cash from your most enthusiastic audience members, especially if they unlock access to exclusive content. Truthfully, the idea of having both free and subscription-based content on your blog is genius. It provides a choice to your audience, and when faced with two possibilities, each side will have its share of representation. There are millions willing to support content creators, and if you consistently put out engaging material, your audience will certainly appreciate you.

Advertisement is also another reliable revenue stream. An option that generates significant traffic is arable ad space since the blogger earns a specified amount with each click. Known as cost-per-click (CPC) ads, they need to promote products or services that your audience relates to, or else it will be a waste of the blog’s real estate. Google AdSense is an excellent place to set you in the right direction when it comes to this.

You also have the option of CPM ads, an acronym that spells out “cost per thousand impressions.” Here, the blogger earns from views instead of ad clicks. But as it says in its name, the ad has to reach a thousand views to generate income. With millions of daily visitors, an established blogger should expect to make good money from their page.

As your blog continues to generate some buzz and gain a following, you can approach companies and recognizable brands for partnerships on sponsored content. If you have an already established blog, make it easy for interested brands to reach you should they be interested in working with you. Regardless of how the partnership comes to being, these businesses will compensate you handsomely for posting articles that promote them as well as their products and services. And while “good pay” may be relative, you’ll need to have an established rate card that ensures you don’t get short-changed.

If you have noticed, there has been an “outbreak” of influencer merchandise in recent years. Pardon the choice of adjective; we don’t mean merch is a disease. Hardly. What we mean is that almost every established name out there has a product or line of products for their audience to buy and associate with them. So why not jump on that bandwagon as well? By the time you attract a significant following, you’ll have unlocked celebrity status, and your audience will want to associate with you.

Depending on your field of interest, merchandise can be anything. Cutlery and crockery, home decor, clothes, shoes, accessories, you name it. All your audience will ask of you is that you price these items reasonably. Making it affordable will work towards reaching an even larger audience once your products penetrate the market. If they are convenient enough, you’ll find them attracting individuals who are not necessarily part of your audience. What could be a bigger plus than that?

Next up is using affiliate marketing in your blogging endeavors. This money-making avenue is as reliable as it comes, especially for the established site you aim to have, right? With affiliate marketing, a blogger directs their audience to a company’s products and services via a link that recognizes them (the blogger) as the source of said traffic.

Determined by the program terms and the business or businesses you affiliate with, you get earnings either by directing traffic to an organization’s e-commerce page or when visitors purchase via your link. If this sounds easy, it’s because it is, especially for bloggers who hold a lot of sway over their audience. Again, remember to promote genuine products to retain authenticity.

Where consulting services are concerned, the premise is that you’ve gained invaluable knowledge and experience in your niche through your growth curve as a blogger. With this, clients can either approach you for tailor-made services, or you can take it upon yourself to start in your area of choice and attract interested parties. If, for example, you run a nutrition blog, you can market yourself as a nutrition coach. Sooner rather than later, you will have clients lining up once this information is out there. And guess what? You’ll source these clients right from your audience pool. Still, as a nutrition blogger, you can custom-make diet plans and support your clientele’s goal of healthy living. It’s all about multiple revenue streams, provided you are a competent consultant.

3) Start a Podcast

If you haven’t been living under a rock over the past decade, you know that podcasts have become remarkably popular. However, despite their proliferation, experts believe these episodic series still have substantial untapped financial potential. Isn’t this music to your ears? The best part about podcasts is that you don’t need much to begin. With a recording device and a hosting space, you are good to go. This fact means that your living room or bedroom and your laptop or PC are all you need to start your podcasting journey.

As is the case with a blog, most podcasts focus on a specific theme, with others going as far as sticking to one particular topic. You have interview, educational, and conversational podcasts, plus more! Needless to say, you have to choose a niche that interests you. Believe it or not, the contemporary online audience will easily discern if you are punching above your weight, and in the era of cancel culture, you don’t want to be in their bad graces.

Sure, you may be on the fence about whether this move is really one you want to make. How about we tell you what makes podcasting exciting? Of course, there’s the fact that you can easily monetize your content, which is the premise of this write-up in the first place. But isn’t it everyone’s dream to make money doing exciting stuff?

For one, audio content is very convenient for your potential audience. As you’ll agree, a lot of people across the globe commute to and from work. The average commute time in the United States is 55 minutes. And while these people cannot read when driving, the one thing that they can do is listen — listen to the content you churn out on a regular schedule. How’s that for untapped potential? Moreover, once a person is hooked during their daily commute, they’ll find themselves listening to an episode when doing other activities, such as making breakfast, laundry, general cleaning, or even yard work.

Another thing that makes podcasts an interesting venture is their discoverability has greatly improved. If you didn’t already know, poor visibility has historically been one of podcasting’s biggest drawbacks. Fortunately, this narrative has quickly changed as podcast popularity continues to skyrocket, especially with the involvement of tech giants like Apple, Google, and Spotify.

The days when podcast content was notoriously difficult to find are long gone, and eventually, that hasn’t gone unnoticed in the world of product promotion. Because of the much-improved discoverability, advertisers have been flocking to podcasts as a medium to get the word out on their goods and services, much to their benefit. In 2018, podcasts generated ad revenue of $600 million in the US alone, and you can be sure that the figure has been on a steady rise since then. You don’t want to miss a piece of this pie, do you?

Before starting, you’ll need to develop a concept for your podcast. In addition to thinking of a goal for why you are choosing to venture into podcasting, it will involve selecting a niche while having your intended audience in mind. Is it intended for a gang of friends, or do you wish to attract as large an audience as possible? Do you want to educate your listeners or make them laugh? Answering these questions early enough prevents them from being a headache later on when your content gets a life of its own.

And once you get the ball rolling and have a sizeable listener base, you’ll need to monetize your podcast to keep it rolling. Sponsorships and advertisements are among the popular ways you can make money while podcasting. As the podcast host, brands will pay you to promote their products and services. An important note here is that you shouldn’t include more than two ads per episode, as that may paint you as greedy and have your audience turning on you.

All the same, there are several ways in which to incorporate an ad into your episode. You could simply talk about the product or service yourself or use the brand’s pre-recorded audio. There’s also the question of where in the episode to place the ad, which directly affects how much the business will pay for the product or service promotion.

The pre-roll falls at the beginning of the podcast, while a post-roll comes at the end of the episode. Pre and post-rolls are typically 15-30 seconds long and cost the advertiser less than the mid-roll, an ad placed at the central portion of the episode. Midrolls are usually about 60 seconds long. Depending on your agreement, some advertisers may pay a flat fee regardless of where their ad falls. Others may choose a CPM model (cost per a million listens), while some may go for a CPA (cost per acquisition) approach. CPA targets the number of listeners who sign up for the brand via your content.

Another way to monetize your podcast is by becoming an affiliate. Like blogging, you can use your podcasting platform to direct your audience to a brand’s e-commerce page and earn a commission for every purchase they make. The beauty here is that these commissions are infinite as long as your listeners keep making these purchases. An episode you release today could keep paying you indefinitely as new listeners continue to discover your content as the years go by. We dare say that this, right here, is the beauty of passive income.

4) Rent Out Your Car

Research has it that owning a car today can be very expensive, especially if it is for personal use. Fueling it, insurance services, and servicing the vehicle are all part of the package that comes with owning a car, but they collectively cost a dime. In fact, research says that the annual cost of maintaining a new car is up to $9,282, and that’s not a small sum of money. In these seemingly endless tough economic times, these costs can be a bit overwhelming to car owners, especially if they do not have a reliable source of income to sustain both them and their vehicle.

Thankfully, it doesn’t have to be all dull and gloom. Armed with the proper information, you could turn your car into a revenue stream that sustains itself while making you some money on the side as well. There’s no harm in renting out your car to others who need it, is there? The proceeds you generate this way can cover maintenance costs and gas.

The car renting market is, however, not limited to those looking to have their vehicles sustain themselves. If you happen to own multiple vehicles and don’t mind sharing them with the general public, then this market space is also for you. Why would you have these cars lying in the garage when you could rent them out and make a buck or two?

In truth, there are always people looking to rent out cars, making this a market you ought to venture into. An example is people in a foreign city or country on vacation who prefer driving themselves around. Another example would be car hire companies, or ride-hailing apps like Uber, Getaround, Lyft, etc., that offer ride services to customers.

There are several reputable car-sharing companies via which you can rent out your car. As one would expect of a company worth its salt, they all have eligibility requirements the owner and their vehicle must meet. These should, however, not put you off since they are relatively straightforward. Once you satisfy all prerequisites with them, you’re good to go!

Truthfully, though, renting out your car can be a bit risky, especially because it will not be you behind the wheel. You, therefore, have no control over what happens to it and have no way of confirming that the individual riding through the streets is as competent a driver as you are. Nevertheless, renting your car out is, as all business ventures are, a risk one chooses to take. On account of those who have done it successfully, it is worth it as it can bring in some good cash.

Moreover, having your car on the road instead of sitting on your driveway saves the machine from a myriad of problems. A vehicle that has been stationary for a long time is likely to suffer from a dead battery, flat tires, rust, and cracked hoses. The repairs could cost you a small fortune. Then, why not have that budget readily available in advance by renting out your car?

Largely dependent on your chosen company, some car-sharing organizations offer bonuses for mileage driven. Others offer extra bucks for renting out your machine for an extended period. Cash earned here offsets the wear and tear your car suffers on account of this business partnership.

5) Start a YouTube Channel

If you live in a country where YouTube is allowed, this could be your chance to sign up, start producing videos, and make money. YouTube pays you according to your number of subscribers, views, and watch hours. What’s more, what starts as a source of passive income could evolve into a full-time job, albeit a flexible one.

Some of the many ways you can make money via YouTube is by joining the YouTube Partner Program to earn via ads, introduce memberships to your channel, sell merch, as well as securing a brand deal and create sponsored content for them.

There’s a catch, though. YouTube requires you to invest a lot of work and time in the beginning to gain an audience and necessary watch hours. That’s how passive income works, though, right? More work in the beginning, and then you can make money even in your sleep.

6) Consider Investing in Dividend Stocks

Investing in dividend stocks is among the earliest forms of generating passive income. The practice dates back to the 1600s, courtesy of the Dutch East India Company. Having stood the test of time, you can be sure this is an investment worth getting into.

As a shareholder, you are entitled to a share of the earnings from the business you invest in. What’s more, most businesses pay out these dividends regularly, mostly quarterly, guaranteeing a steady flow of that extra buck all year round. Depending on the company you invest in, you may find that your payouts increase over time.

Needless to say, the company you go with greatly affects how much you earn from this investment. If you are unsure, the rule of thumb is to go for a company with at least a 25-year history of regular payouts. While we’re not saying relatively new companies are not profitable, dividend aristocrats guarantee stable income for new investors. The more shares one owns, the more they earn in payouts. To boost future earnings further, you can choose to reinvest part or all of the earnings back into the business.

7) Create and Sell Design Templates

If you’re a good designer, you can profit from the ever-expanding sector of online entrepreneurship by selling various design templates. Non-designers are constantly looking for ready-made templates that capture the “vibe” of their company. Since contracting a designer to have one made from scratch could prove expensive, many non-designers prefer this approach to suit themselves. 

Every designer has a plethora of unused design files taking up space on their device. What if we informed you that selling these for a profit was possible? Even if you don’t already have them, creating simple design templates isn’t hard. Consider the following templates that individuals frequently require: 

• Presentation templates
• Resumes
• Sample website layouts
• Business cards 

With these and many more options, you can make money selling them on the various online marketplaces available. You will earn royalties whenever a client buys one of your designs. The perpetuity in this venture is what makes it all the more interesting.

8) Exploit Your Social Media Following

Are you a social media butterfly and wondering how to use the influence you have on your audience to your advantage? If you have a massive following on platforms like Instagram, Facebook, and TikTok, you have a community that believes in you and relates to your post.

You can use this privilege to partner with businesses and offer to promote their products but at a fee. Even better, you can sell your own products there, too! You just have to know what your followers like and then lead them in that direction.

Brands compensate top influencers with hundreds of dollars per sponsored post. But remember that getting to the top of this pyramid takes time. There’s an element of talent involved, but you also have to work smart to succeed. It is achievable, but if you choose this path, ensure you manage your expectations accordingly.

9) Sell Your Photos Online

You didn’t see this one coming, did you? Well, we do agree that selling photos isn’t the most obvious source of passive income, but if done effectively, it could become as successful as any other venture. The earning potential is undoubtedly present; one just needs the right skill set to exploit it. The fact that one can sell the same photo multiple times tells of this tremendous potential, right? And in a world where smartphone cameras are just as good as professional lenses, you could start this venture with just your phone and no capital.

To sell your photos online, you’ll need to partner with a reputable visual media company which is but a quick search engine visit away. Once you find the ones you’d like to work with, sign up on their platforms and await approval. Once done, you’ll have to license your photos to allow anyone who downloads them to use them. The company will then pay you each time someone downloads and uses your images.

With photography, the options are limitless. Different kinds of pictures appeal to different types of audiences. You can choose to be an all-rounder or stick to a specific niche. Either way, you’ll make money if you deliver high-quality photos.

10) Own a Rental Property

Investing in rental properties is one of the smartest long-term ways to earn passive income. Sure, it can be a bit expensive initially, but hear us out. Its ability to generate lots of money with little effort is the reason why people invest in rental properties. It all boils down to establishing the correct investment plan and acquiring the right property in a prime location.

You can hire a property manager to manage everything if you want to make money without being directly involved. From rent collection, inspections, and making reports, their efforts free you from having to personally manage this strategy so that you can focus on other money-making endeavors. 

In truth, both land and property appreciate as time goes on. Therefore, all you need is a little renovation every now and then, and it becomes your set-and-forget revenue stream. Rental properties are a lifetime source of income and can last for generations. You can buy already established homes and polish them up or build your own and rent them out. Owning or renting property can be a good retirement plan and a way of building generational wealth. Ideally, this is the perfect investment plan if you are a real estate enthusiast.

11) Invest in Real Estate Investment Trusts

A real estate investment trust (REIT) is a company that invests in income-producing properties. It is most similar to a mutual fund in that it will pool the capital of numerous individuals and invest them in real estate. REITs are one of the most affordable ways to invest in real estate, as their cost is nothing like having to fully acquire a property.

A REIT will handle the property’s renting, purchasing, and maintenance; all you have to do is invest. Because most REITs are stock-like and publicly traded, you can cash out considerably faster than if you bought an apartment. The company you choose will take a percentage of your earnings, but it won’t be an amount that would render your investment worthless.

12) Rent Out Your Space

You don’t have to own multiple houses or big spaces to earn from renting. See that extra room or unused space in your home? That is potentially a source of passive income. You can list the extra space on Airbnb or rent out a spare room to a person looking for a place to live if you are okay with having roommates. Creativity is all that matters for those that take this route, as the possibilities are limitless. Some of the spaces in which one can rent out are: 

• Your detached garage can be a good idea to rent out as a workshop, a store, or even a recording studio for artists. 
• People could use a beautiful living room to host baby showers, birthday parties, gender reveal parties, Christmas parties, etc.
• You can also rent out your backyard as a parking space for RVs if it’s big enough, as some people live in vans and may need a safe place to park them. 
• If you own an office, you could rent out your office address for mail. Potential audiences for this could be people with virtual businesses sending out parcels.  

13) Start a Vending Business

Vending machines have quickly become a popular side gig, with individuals reporting six and seven-figure earnings in annual sales. Having said that, generating passive income from a vending business is not as straightforward as one may think. It is also not overly complicated, provided you have the correct information and a clear-cut strategy.

Naturally, vending machines are somewhat easier for an entrepreneur looking to maximize the earning potential of an existing business. They already have a location, and the process gets even better if it’s a high-traffic area. For an individual going into business for the first time, choosing a place will be the first step towards making or breaking their venture. Some high-traffic locations one can opt for include schools, hospitals, office buildings, and airports.

Once you find a suitable location and sign a contract with the responsible party for permission to install the machine, ensure you stock it with products you believe will attract your target market. Of course, some in-depth market research and your business acumen will inform this decision.

In this modern age, ensure that the machine you choose accepts cashless payments to not drive potential customers away. You’ll also need to maintain it and restock products regularly. Be keen on product expiry dates to avoid getting a bad rep on your machine. Once you’ve done this routinely enough, you’ll find vending to be an almost foolproof source of passive income requiring minimal effort.

14) Create an App and Sell It

Do you have coding experience or know someone who is a champion at the skill? Worry not, for this could be a perfect opportunity for you to make money from it. If you are reading this, you probably have a smartphone or a computer, right? You have to download apps and sometimes even pay to use the app.

Here’s the best part, you can also create your own. You can sell your app to potential clients depending on what the app is about, or you can keep it and look for people with influence to invest in it. Alternatively, you can pay someone to create an app of your choice for you, and then you can sell it.

Consider one of the most popular app successes of all time, Flappy Bird, whose profits totaled millions of dollars. Flappy Bird is a basic game, so simple that its creator set it up in just two weeks. Sure, Flappy Bird has grown less popular over the years, and more advanced games have come out since, but it made lots of money when it was popular.

Don’t become too attached to your first successful software unless it is TikTok-level successful; in this case, you can sell it reasonably quickly. Apps come and go, as is the nature of the market. Any money spent on additional marketing and improvements after a month or two could go to fund your future app. If you want to generate a substantial amount of passive income, quantity is just as vital as quality. In addition, most apps provide declining returns in terms of upgrades and advertising.

15) Advertise on Your Car

Based on an earlier discussion, you now know all about making money renting out your car, but did you know that vehicle could also open up another revenue stream? This business idea is perfect if you are open to turning your machine into a moving billboard. Advertising agencies are always looking out for ways to diversify their portfolio, and wrapping advertisements around vehicles is one clever move.

Advertisers get to promote products and services across varied geographical locations because cars are always on the move. In contrast, you get to make money by driving your vehicle, an operation you ordinarily do for free. The amount you make is subject to your daily commute and the advertising space your car allows. The larger the vehicle, the more the ad real estate, and, of course, the more you can make. You are, however, only eligible for this venture if your driving record is clean and you have a roadworthy vehicle.

16) Rent Out Shelves to Business Owners

This one is for you if you have offices and struggle to occupy most of them. You can advertise your vacant office online, targeting virtual businesses and those that need a physical location to drop off their products for customer pick up.

Since there is no harm in having multiple businesses under the same roof, you can have interested parties rent out one or several shelves inside your office space. This way, they pay you for precisely what they need instead of renting out the whole office. The method reduces operation costs for business owners while churning out extra income for you. We see this as a win-win situation, wouldn’t you agree?

Most of the time, virtually operating is the cheaper option for businesses. But at the same time, a company’s consumer base may need a physical location to determine the authenticity of its operations. By providing business owners with this space, you are expanding the earning potential of all parties involved.

17) Drop Shipping

Drop shipping is yet another option via which to generate extra income. A drop shipping firm is any business that allows you to market their goods and then pass the profit on to them. They afterward pay you a percentage (usually more than ordinary affiliate commission for digital products as they essentially function as wholesalers, meaning 50/50) and will take care of everything from packaging to fulfillment to any customer complaints.

What’s the best part? Many drop shipping firms are delighted to be “white label.” This approach implies they act as silent partners, never marketing their company’s name to your end-user. Thus, you can sell your product online while appearing to be a genuine online store. The company will deliver the merchandise on your behalf, but it will appear to be from you.

More importantly, some of these businesses will even allow you to modify or customize the product. That means you can employ your logo or even develop something fresh from scratch. Selling a supplement is an excellent example of this: the drop shipping firm will allow you to determine the formulation and add your personalized branding on the pot.

After that, you can provide the product to your target demographic, with your wholesaling partner sending it directly to them every time you make a sale. They’ll never suspect you didn’t make it at your own plant! In a nutshell, this is the ideal method of getting your cake and eating it too! You can find drop shipping companies on sites like Alibaba.com or search Google for “white label drop shipping” in your sector.

18) Become an Affiliate

Affiliate marketing is a straightforward approach that many people are familiar with nowadays. The concept is that you sell existing products and earn a commission as a result. Do you remember those door-to-door salesmen selling television subscriptions? They made money on every successful sale. Affiliate marketing is pretty much the same, although you don’t have to move door-to-door simply because the internet allows you to reach the whole world from the comfort of your desk! 

Another distinction between affiliate marketing and traditional commission is the amount of cash you will receive. As an affiliate marketer, you may expect to earn anywhere from 50% to 90% commission. Because the creator has no costs, they may give enormous rates to their marketers. They’re glad to do so because the more marketers they can draw in, the faster they can scale their business without directly missing out on the sales. 

Marketing a digital product, such as an e-book, is an excellent idea so long as you select the correct niche, particularly one with a strong value proposition and broad appeal. Try to sell books that promise to improve people’s life, whether it means getting them healthier or offering them ways to make more money. You can then construct a vision of a life where your audience is wealthier and healthier than ever!

Another advantage of making product sales as an affiliate is that you can typically check whether or not those items are selling prior to deciding which one you’d like to market yourself. You may choose something with a proven track record and be confident that you will profit handsomely from it. Brands will give you an affiliate link, and every sale you make through this link will be deposited to your account and then paid to you. It’s that easy!

19) Design Merchandise for Content Creators

There are more and more content creators out there today, with millions more ready to join their ranks as the days go by. YouTubers are scoring boxing matches, and Instagram stars are opening fashion houses. Now, what do all of these influencers have in common regarding a significant part of their income? You guessed that right — merchandise. Sure, some influencers will design their own merch, but most will opt to work with a designer instead.

Therefore, the question that springs to mind is, what makes working with influencers such a great source of passive income? Most rarely change their merch designs, and you could charge up to 10-20% of all sales in commissions. We could be talking some serious money here if said influencer goes viral later on.

We suggest you approach small-medium influencers, as the already-established ones won’t give you a significant percentage of their income. Once you find one or more willing to work with you, sign contracts that span five to ten years, and you’re on your way. It would be best to spread your efforts out, as even one of the several you are working with going viral could result in your profits skyrocketing.

20) Lend Out Money to Peers

P2P lending is the practice of lending money to a growing firm with the help of a group of other individuals. This strategy is one of the earliest forms of business crowdfunding. It’s a method for businesses to acquire financing without going to a bank, and it’s a way for you to make revenue by investing in promising enterprises. However, keep in mind that this is similar to playing the lottery if not done right.

Instead of going at it haphazardly, we recommend learning about investing and then putting your money in companies you believe in. With this approach, the average investor will get a 7-12% return on their investment, which is several times higher than putting their money in a savings account. That said, this can be a very slow way of making money. Most investors specify a time frame of 3-5 years to recoup their investment, then make profits from there on out.

At the same time, keeping abreast of some of the risks involved with P2P lending is important. Businesses may default, the peer-to-peer lending site could close down, and the money you make here is subject to taxation. The positive, however, is that P2P lending does not require a large sum of money. In fact, whether or not you’re a recognized investor, you may start P2P lending with as little as $25. You can stake this much for sizeable returns later down the road, right?

Which Passive Income Source Is the Best?

This multi-faceted question could have various answers depending on your needs, skills, and circumstances. Which passive income source is the best depends, for example, on these key following factors: 

• The amount of money you want to invest
• The amount of time you can put into setting up the stream
• The opportunity’s potential
• Your abilities
• The size of the opportunity 

Like everything else, the easier it is to venture into a certain field, the more crowded it is and the fewer chances of succeeding in that specific niche.

After having read all this, the ball is now in your court. You can decide, weigh these factors, and see what works for you. It is helpful to have knowledge and ability in whatever field you want to venture into so that it will be easy to keep going when things get tough.

How Can I Make Passive Income With No Money?

You can definitely make passive income with no money! In return, you must invest a lot of time and effort until you can generate sizeable earnings. In case you are wondering how you can set up your revenue stream with no money, take advantage of the following: 

• If you are an expert in a particular area, you can use the expertise to make a source of income out of it. An example of such skills is coding, designing, and tutoring.
• You can discover a heavy work-intensive opportunity that requires you to put in a lot of work in order to start earning. An example of this is influencing.  

In other words, you are putting in work to solve your financial problems until you can obtain sufficient capital to broaden your selection of chances.

How Can I Make Passive Income With Money?

As discussed earlier, we acknowledged that you could make passive income with little to no money. Now, imagine the scenario where you have money! The options are limitless. You can invest in the following easy options that require little effort and more capital:  

• Dividends
• REITs
• Bonds  

These methods involve putting in money to make more, with minimal or no effort on your part. You could have numerous passive income sources this way when you put in both money and time.

How Many Income Streams Should One Have?

There is not a specific number of passive income sources you should have, as it all depends on your financial position at the time and your financial goals. Having a few is a good way to start as long as it does not affect your main income streams or make you lose focus. Do notice that you’ll have to balance the effort and time you put into all your sources of income while growing them.

Passive Income Ideas for Beginners

Some great passive income ideas for beginners include:  

• High-yield savings accounts as they are a fantastic and easy way to start where you’d generate more than by using a standard savings account.
• Real estate investment trusts as you don’t have to worry about all the effort that comes with managing properties.
• Certificates of deposit, although your money would be a bit held up than saving in a high-yield savings account.

Minimize Your Taxes on Passive Income

A passive income source can be a terrific approach to making extra money. However, you’ll also incur tax obligations. By establishing yourself as a business and opening a retirement account, you may lessen the tax burden while still planning for the future. However, you cannot use this method for all of these passive approaches, and to be eligible, your company must be legal. Still, this is how to go about it: 

• Get a tax identification number for your company by registering with the IRS.
• Next, get in touch with a broker who can start a retirement account for independent contractors.
• Choose the retirement account type that would suit your needs the best.

Conclusion

With everything we’ve discussed herein, you have plenty of alternatives for developing any number of methods that will generate passive revenue for you. The real difficulty is, where do you even begin? The solution is to consider what you are enthusiastic and overly thrilled about. In truth, this decision could be the difference between success and epic failure. 

Which of these models and industries would you be willing to invest the most time and effort in? You have to be as honest as possible with yourself here and reach an answer with utmost conviction. Simultaneously, determine which projects will likely generate the highest return in the least amount of time, but don’t go into it with greed.

When you first start, try to avoid large initiatives and instead focus on swiftly establishing simple business models you know will succeed. These revenue streams will gradually mount up, and you’ll be able to earn a lot of money while sailing around, sleeping comfortably in bed, or concentrating on the things you actually care about.

In matters of passive income, slow but sure wins the race. If you are vigilant and do it right, you could be well on your way to financial freedom before you know it. And what more could anyone ask for?

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