Having more than one source of income is a great way to financial security. If one of your sources of income dries up, you’ll still have others to fall back on. And if you’re really lucky, one or more of your passive income sources will take off and bring in more money than you ever could have imagined.
There are several ways to generate passive income. Some people invest in real estate, while others create digital products that can be sold over and over again. And then there are those who find ways to combine their talents and skills to create a steady stream of passive income.
If you’re looking for some ideas on how to start generating passive income, here are 16 ideas you can try.
Table of Contents
- 1. Invest in Real Estate
- 2. Sell Digital Products
- 3. Create an Online Course
- 4. Invest in Dividend-paying stocks
- 5. Join Affiliate Programs
- 6. Run Adsense or Ezoic on Your Website
- 7. Open a High Yield Savings Account
- 8. Invest in Index Funds
- 9. Start a YouTube Channel
- 10. Create a Mobile App
- 11. Create a Podcast
- 12. Rent Out Your Home Short-Term
- 13. Sell Stock Photos
- 14. Advertise on Your Car
- 15. Domain Name Investing
- 16. Start a Vending Machine Business
1. Invest in Real Estate
Investing in rental properties is a great way to generate passive income. Not only will you get monthly payments from your tenants, but you’ll also benefit from appreciation over time as the value of your property goes up. It is recommended to buy real estate in the central place of a city because it will be more perspective for increasing the value.
2. Sell Digital Products
If you have a talent for creating products, then you can create a digital product and sell it online. This could be anything from an eBook to a software program. Once you’ve created your product, it can be sold over and over again, bringing in a steady stream of passive income.
3. Create an Online Course
Do you have a skill or knowledge that others would be willing to pay to learn? If so, you can create an online course that you’re professional in that niche. Your online course should help solve the problems of your target audience. You need to make a difference that combines with your advantage, which can make your business go smooth at the beginning.
4. Invest in Dividend-paying stocks
If you’re looking for a more traditional way to generate passive income, then you may want to consider investing in dividend-paying stocks. This is when you purchase stocks in a company that pays dividends to its shareholders. The dividend payments are usually made quarterly or yearly, and you can reinvest them back into the stock market to generate even more passive income.
5. Join Affiliate Programs
Affiliate programs are a great way to generate passive income. You can promote products and services on your website or blog, and when someone clicks on one of your affiliate links and makes a purchase, you’ll earn a commission. There are many different types of affiliate programs, so be sure to do your research before joining one. The common one is Amazon Associates.
6. Run Adsense or Ezoic on Your Website
If you have a website or blog, you can run ads and make money from them. Adsense is a program run by Google that allows you to place ads on your website. When someone clicks on one of the ads, you’ll earn money. Ezoic is another program that allows you to place ads on your website. Adsense and Ezoic are two basic but good ways to make money from ads on your website.
7. Open a High Yield Savings Account
A high yield savings account is a great way to generate passive income. This is because you’ll earn interest on your deposited money. The interest rates on high yield savings accounts are usually higher than the interest rates on regular savings accounts. This means that you’ll earn more money in interest over time, and your passive income will grow.
8. Invest in Index Funds
Index funds are a type of mutual fund that tracks a specific market index, such as the S&P 500. When you invest in an index fund, you’re effectively investing in all of the companies that make up that index. This means that you will be diversified and have a very low risk of losing money.
The best way to make money from investing in index funds is to invest for the long term. This means that you should not try to time the market and should instead invest for at least 5 years. This will allow you to ride out any short-term fluctuations in the stock market and will give you the best chance of making a profit.
Another great way to make money from investing in index funds is to reinvest your dividends. Dividends are the payments that companies make to their shareholders. By reinvesting your dividends, you will be able to compound your returns and make even more money.
9. Start a YouTube Channel
If you enjoy making videos, then you can start a YouTube channel and make money by running ads. You’ll need to create videos that are entertaining and/or informative, and you’ll need to grow your channel to a large enough audience to make money from ads. Once you have a large number of subscribers, you’ll be able to start earning money from advertisers.
10. Create a Mobile App
If you have a great idea for a mobile app, you can develop it and sell it on the app store. Once your app is available for download, you’ll start generating passive income.
11. Create a Podcast
Podcasts are becoming increasingly popular, and you can make money from them by selling advertising or sponsorships. Alternatively, you can create a paid subscription podcast, which listeners can pay to access.
12. Rent Out Your Home Short-Term
If you have a spare room or an entire home, you can rent it out short-term on websites like Airbnb. This is a great way to generate passive income, but it does require some work upfront. You’ll need to list your property, manage guests, and clean up after them.
13. Sell Stock Photos
If you enjoy taking photos, you can sell your stock photos online. There are many websites that allow you to upload and sell your photos, and you’ll earn a commission on each sale. This is a great way to make money from your hobby.
14. Advertise on Your Car
If you have a car, you can sign up to advertise on it. You’ll need to apply for a program like Wrapify or Carvertise, and then you’ll be paid to drive around with ads on your car.
15. Domain Name Investing
Domain name investing is another way to generate passive income. You need to judge which domain names are likely to increase in value, and then buy them. You can then sell them for a profit later.
16. Start a Vending Machine Business
If you have the capital, you can start a vending machine business. You’ll need to buy or lease machines, and then stock them with products. Once your machines are up and running, you’ll be able to sit back and collect the profits.