36 Passive Income Ideas To Make Money in 2025

Passive income is a great way to supplement your salary and build wealth over time without much ongoing work. It can be generated from sources like investments, rentals, or selling digital products, offering you more flexibility and freedom. Some popular passive income ideas include dropshipping, affiliate marketing, renting properties, and selling stock photos. The key takeaway is that whether you start with little or no money, there are diverse options to fit your lifestyle and help you achieve financial goals with minimal effort.

Passive income may not make you a millionaire overnight, but it can supplement your salary and help you build consistent 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. That means more freedom, flexibility, and cash for you.

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

36 passive income ideas

1. Investment funds
2. Startup investments
3. Dividend stocks
4. Bonds
5. Buy a website
6. Buy a local business
7. High-yield savings accounts
8. Peer-to-peer lending
9. Crypto staking
10. Rental properties
11. Unused space rentals
12. Short-term rentals
13. Roommates
14. Vending machines
15. REIT investments
16. Digital products
17. Handmade goods
18. Stock photos
19. Job boards
20. Mobile apps
21. Spreadsheet templates
22. Shopping rewards
23. Car rentals
24. Vehicle ads
25. Parking space rentals
26. Dropshipping
27. Print on demand
28. Social media influencer
29. Affiliate marketing
30. Ebooks
31. Online courses
32. Blogging
33. Digital designs
34. Royalties
35. Audiobook narration
36. YouTube channel

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 streams typically require an initial effort to set up but need little daily involvement to maintain.

Types of passive income

Passive income typically falls into four categories:

• Investment income. This type of passive income comes from investing your money in financial markets. Investments don’t need daily management and can grow over time through interest. Examples include stocks, bonds, and savings.
• Real estate income. Real estate is a passive income tool offering the possibility to invest third-party funds (like mortgages). Example income methods include property rentals and roommates. 
• Business income. This category involves creating a product or service that generates income over time. Examples include app development and affiliate marketing.
• Creative income. Artists can generate passive income from their creations. Examples include royalties, direct sales, and ad revenue.

Investment-based passive income ideas

Here are some ideas for generating passive income by investing your funds in assets and financial markets.

1. Investment funds

Investing in funds can be a smart way to build lasting wealth while minimizing risk. Products like mutual funds, index funds, and exchange-traded funds (ETFs) allow you to pool your money with other investors to buy a portfolio of stocks. This diversification helps reduce the risk associated with individual stock investments.

Index funds like the S&P 500 track specific market indices, providing exposure to a broad range of companies. Mutual funds are managed by professionals who select the underlying investments, while ETFs trade on stock exchanges in the same way as individual stocks, often with lower fees.

How to start: Open a brokerage account with a registered financial institution. Research different funds to understand their strategies and performance, and consider consulting a financial adviser.

How much does it pay? Over the past 20 years, the average annual rate of return of the S&P 500 index is 8.43%.

2. Startup investments

Investing in small and medium-sized businesses has become more accessible through online platforms. With a low initial investment, you can fund the next unicorn founder.

Potential returns range widely based on a business’s performance and broader market conditions. It’s important to remember that all investments carry risks, including the possibility of losing your initial investment.

Before putting your money into a business or other type of investment, ask yourself these questions about the products and people you’re planning to fund.

How to start: Funding platforms like StartEngine, Crowdcube, and Fundable have vetting processes to evaluate businesses before they become available for investment. Conduct your own research of vetted funding proposals to make a well-informed decision.

How much does it pay? Earnings from startup investments vary widely, with many providing no returns at all.

3. Dividend stocks

Investing in dividend stocks is a traditional way to earn passive income. These are shares in companies that pay a percentage of earnings, typically quarterly. This means you can generate income from a company’s profits, as well as the stock appreciation.

How to start: Research and select reliable companies with a history of paying dividends, then open a brokerage account to start purchasing shares.

How much does it pay? Dividend yields vary by industry. For example, average yield for oil and lumber stocks is 4.92%, while tech stock dividend yields average 3.2%.

4. Bonds

Bonds are another investment strategy for generating passive income. When you buy a bond, you're essentially lending money to the government in exchange for interest payments. Bonds are lower risk compared to stocks and can provide a steady income over time.

How to start: Investigate types of bonds available to you, such as municipal or corporate bonds, and consider purchasing through a brokerage.

How much does it pay? Bonds generally offer returns between 2% to 5% annually.

5. Buy a website

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

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

How to start: Browse website marketplaces like BizBuySell and Flippa to get an idea of availability and pricing. Also, consider how you will negotiate a sale price when you find a website you’d like to buy.

How much does it pay? While many factors contribute to a website’s profitability, a generally accepted rule says websites are bought for two or three times their annual profit. This means you should expect to see a return on investment within a few years.

6. Buy a local business

If you're interested in entrepreneurship but want a hands-off approach, buying a share in a local business can be a path to passive income. Whether it’s a small café, laundromat, or local ad agency, once purchased, you earn passive income from the profits without being involved in everyday management.

Depending on the type of business, you may also be able to contribute your skills and experience as an active owner.

How to start: Look for local businesses for sale in your area and conduct thorough due diligence to understand their financial health and market potential.

How much does it pay? Earnings from buying a local business depend on your share in the business, its operating costs and liabilities, and the business’s overall profitability.

Interest-based passive income ideas

These passive income ideas work by generating interest on an asset you already own.

7. 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).

Interest accumulates as your savings grow, compounding your return. Although returns may be lower than other investments, high-yield savings accounts are a low-risk option for beginners to start building wealth.

How to start: Check current interest rates for savings accounts with banks in your location. Look for special offers available to first-time customers.

How much does it pay? High-yield savings accounts typically offer interest rates based on central bank base rates. If you invested $10,000 in a savings account with a 4% interest rate, you would earn $400 in the first year.

8. Peer-to-peer lending

Have extra cash lying unused in a bank account? Try peer-to-peer (P2P) lending as a passive side hustle. Peer-to-peer lending involves lending money to borrowers or small businesses.

Interest rates for peer-to-peer loans are usually based on the borrower’s history. The return on these loans is typically around 6%. The more you lend, the higher your cash flow will be.

How to start: Sign up with a loans website like LendingClub, Prosper (for individuals), or Worthy (for businesses) that connects borrowers with lenders.

How much does it pay? Typical returns for P2P investors per year average about 5% to 10%.

9. Crypto staking

Crypto staking means using your cryptocurrency holdings to support the network on which your crypto is recorded. By contributing to the upkeep of a blockchain, you can earn rewards.

Staking typically involves freezing a portion of your assets for use in administrative tasks, such as validating transactions. In exchange, you’ll generate interest on your staked amount according to the terms laid out by an individual cryptocurrency or staking service. It’s a popular option in the growing world of decentralized finance.

How to start: Choose a cryptocurrency that supports staking, create a digital wallet, and find a staking platform to begin earning rewards.

How much does it pay? Staked crypto generally yields between 3% and 10% returns, depending on the cryptocurrency you stake and the platform you use. You can find current annual percentage yields here.

Property-based passive income ideas

If you own property, use it to generate passive income via these methods.

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 leverage a mortgage to invest in apartments, land, or renovation projects, and benefit from the appreciating value.

You could also lease your property for rental income. However, since the job of being a landlord is typically active, you may need to hire property managers to handle tenants and maintenance to keep your income passive.

How to start: Check local laws and regulations for information about how to invest in properties in your area.

How much does it pay? In 2024, landlords in the United States reported an average annual income of $60,107, though actual income varied widely by property and location.

11. 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.

Using storage rental platforms is a great way to avoid liability issues, as they provide safe payment options, contracts, and storage provider and client information.

How to start: Create a local classified ad or use a storage rental platform like Neighbor, Peerspace, or StoreAtMyHouse.

How much does it pay? Renting out unused space like a garage can generate hundreds of dollars per month, depending on location and demand.

12. Short-term 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 it because rentals are sometimes cheaper and often more convenient than hotels, meaning a high demand for your free space as an Airbnb host.

While renting one spare room to earn passive income is great, renting 10 is better. If you want even more income from Airbnb, you can (depending on local laws) buy apartments for the sole purpose of renting them out. You should note, though, that renting your space out often requires work upfront. You might have to furnish or renovate your space before putting it up for rent.

How to start: Check short-term rental listings in your local area to gauge nightly prices.

How much does it pay? Hosting guests in a spare room or property can bring in hundreds to thousands of dollars per month. The average annual earnings for an Airbnb host in the US is around $14,000.

13. Roommates

If renting your apartment or garage isn’t feasible, why not post your spare room on rental boards? Receiving rent from a roommate is one way to offset your living costs. Set clear expectations with your roommate around shared expenses such as utilities and groceries, so you don’t encounter extra costs. Having a roommate not only helps financially but can also foster community and companionship.

How to start: Advertise your available space on rental platforms or local classifieds, and interview potential roommates to find a good fit.

How much does it pay? Earnings from renting a spare room are dependent on your local rental market, and can range from less than $500 to more than $1500 per month.

14. Vending machines

Ever wonder who takes care of all those vending machines around your town? The owner of those machines is earning (semi) passive income from your snack and soda cravings.

Starting a passive source of income through vending machines requires an upfront investment of time and money. You’ll need to secure areas where you can install your machines, rent or buy the machines themselves, and organize stock replenishment.

How to start: Marketplaces like Craigslist, eBay, and BizBuySell can help you gauge the upfront investment you’ll need to buy your first set of machines (as well as how many you can afford to start).

How much does it pay? Earnings from vending machines need to be offset against rental or ownership costs, as well as the cost of stocking and maintaining your machines.

15. 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.

Besides upfront capital, getting started with REITs also requires some in-depth research.

How to start: Choose a popular REIT like Fundrise.

How much does it pay? Real estate investment trusts typically yield between 4% and 10% in dividends. As a result, investing $10,000 in a REIT could generate $400 to $1,000 annually in passive income.

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Product creation passive income ideas

If you can create a product to sell online, you unlock the opportunity to create passive income from ongoing sales. Here are some products that lend themselves to passive income generation.

16. Digital products

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

Digital products can be a source of passive income because the work is front loaded and profit margins are high. You only have to make the digital product once; then you can sell it repeatedly via your online business. There’s no storage, inventory, or additional production needed.

You can sell as many digital products as you want. Many creators scale passive income from digital assets by selling kits, printables, files, and other materials professionals can use.

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

How much does it pay? Based on more than 1,300 listings on entrepreneur marketplace Whop, it’s possible to earn more than $2,000 a month selling digital products.

17. 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:

• Faire
• Amazon
• eBay
• Ruby Lane
• 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.

Selling from your own store reduces the fees you pay on each sale, plus you can create a brand for yourself. The benefits of building a brand compound over time as you grow an audience and connect with more customers. It’ll help you sell more over time and make money online.

How to start: Browse popular products on major online selling sites to understand what makes handmade goods successful.

How much does it pay? On the handmade crafts platform Etsy, the average active seller reportedly earns around $45,000 per year in gross sales.

18. 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.

If you run your photography business on Shopify, you can also offer digital products like prints or print-on-demand shirts and hats, increasing your passive income streams.

How to start: Understand the image requirements for major stock photo libraries and devices. Also, consider which stock image subjects you might specialize in.

How much does it pay? Photographer Peter Orsel shares that during his first year selling stock photos, his average revenue per stock file was around 5¢ per month.

19. 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.

Even if you don’t want to design a job board from scratch, you can buy a job board theme and start generating passive income right away. Now, building the website is the easy part. Creating awareness of your job board is where the bulk of the work is.

Once you get the flywheel going and your job board becomes established with returning customers, you can count on a large part of your income to be passive.

How to start: Check out sites like ProBlogger, Dribble, or Construction Jobs for inspiration.

How much does it pay? Most job boards make money by charging a fee for posting a vacancy or receiving applications.

20. 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:

• Subscriptions
• Ads
• Pay to download
• A marketplace model

How to start: If you aren’t sure what problem your app should address, here’s a list of research tools to help you get started.

How much does it pay? Mobile apps generate income based on monetization strategies. Even free apps can earn money via ads and in-app purchases.

21. 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 business owners don’t want to create from scratch.

How to start: Connect a digital downloads app to a Shopify store to give customers a place to buy and download your spreadsheet templates.

How much does it pay? Etsy seller Emily McDermott claims to have made more than $200,000 in less than two years by selling Excel and Google Sheet templates on the marketplace.

22. 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.

A note of caution: Don’t exceed your monthly spending budget in an attempt to earn more rewards.

How to start: Set up profiles on cashback reward sites like Swagbucks, MyPoint, and Rakuten.

How much does it pay? Cashback rewards sites can deliver small ongoing earnings, often in the hundreds of dollars per year, with some avid users earning over $1,000.

Car-related passive income ideas

By providing your vehicle or parking space for use by others, you can put your possessions to work creating passive income.

23. Car rentals

Your home is not the only thing you can rent to earn passive income. You can also rent out your car with a service like Turo. Potential customers include tourists, commuters, and people who need a vehicle to work for a ride-sharing service like Uber or Lyft. So instead of actively driving in your free time, you can pull up a Netflix show while your car works for you.

How to start: Read through Uber’s eligible vehicles list to see if your car qualifies.

How much does it pay? A Reddit discussion among Turo users reveals it’s possible to make several hundred dollars per month on the platform, as long as you manage your vehicle finances well and select the right car for your local market.

24. Vehicle ads

If you're looking to monetize your vehicle, consider wrapping it with ads. Car advertising companies pay you to display ads on your car, so they’re visible to passersby as you drive around town. Once the wrap is installed, you simply drive as you normally would, earning money while going about your day-to-day activities.

How to start: Sign up with car advertising platforms like Carvertise or Wrapify, and wait for an offer based on your driving habits and location.

How much does it pay? Earnings are determined by the number of miles you drive and how extensive the ad wrapping is. On Wrapify, drivers can make up to $450 per month.

25. 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 empty space.

Renters seeking convenient parking will pay a fee, creating a steady stream of revenue with low maintenance, while you enjoy the financial benefits.

How to start: Check out Spacer and other parking space marketplaces. Or, write an ad for general local marketplaces such as Craigslist.

How much does it pay? In urban areas, such as New York, some rented parking spaces earn more than $300 per month.

Marketing-based passive income ideas

If you have branding, sales, or content skills, you may be able to start a side hustle using one of these marketing-based passive income ideas.

26. 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.

Dropshipping’s passive income potential comes from the supplier-seller relationship. Dropshipping suppliers handle everything from manufacturing to packaging to fulfillment, so once your store is up and running, there are minimal ongoing tasks.

How to start: Use Shopify to start a dropshipping business and sell products from your online store.

How much does it pay? According to a survey by Ziprecruiter, the average dropshipper earns around $41,000 per year. A Reddit thread on the topic highlights how dropshipping income can vary by month, following consumer trends.

27. 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, then selling them on a per-order basis.

Similar to dropshipping, a third-party service will handle production and shipping, and you pay only for a print-on-demand product after you sell it.

How to start: Choose a print-on-demand company and start experimenting with designs to customize your products.

How much does it pay? Successful print-on-demand sellers can earn between $1,500 and $10,000 monthly, according to popular print-on-demand company Gelato.

28. 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.

If you have an engaged audience, leverage the engagement to support a variety of passive income ideas. For instance, you could partner with large and small businesses to promote products to your followers. Or, make money by selling your own merch.

How to start: Find brands to fit your socials using Shopify Collabs, then build affiliate relationships to get paid for what you sell.

How much does it pay? A generally accepted influencer earnings rate is an estimated $100 per 10,000 followers.

29. 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:

• It’s easy to execute. You handle the marketing side of things while partner brands develop products and fulfill orders.
• It’s low risk. There’s no cost to join an affiliate program. You can sell established profits without upfront financial investment.
• It’s scalable. Introduce new products to your audience while your past work makes money in the background.

Earning money with affiliate marketing can be a rewarding way to add passive revenue streams to your business. Once the hours are invested, you can reap the rewards continually.

How to start: Become a Shopify affiliate or find another affiliate program that fits your area of expertise.

How much does it pay? Affiliate marketers earn different amounts depending on their niche and the commission deals they negotiate with partners. On average, Shopify affiliates earn $58 for every user who signs up for a paid plan.

Passive income ideas for creatives

Finally, consider flexing your creative skills to make some passive income by writing, coding, or crafting a piece of online media.

30. Ebooks

If you have expertise or a passion for a particular topic, writing an ebook can generate passive income over time. Once the writing, editing, and formatting are complete, you can sell your ebook on your website and in online bookstores. This income source can continue to pay off as more readers download your book, all without the need for ongoing effort after the initial product is created.

How to start: Choose a topic you’re knowledgeable about, create your ebook, and publish it online to reach potential readers.

How much does it pay? When a reporter for the magazine Vice decided to see how much money they could make by writing an ebook, they earned a few dollars per day.

31. 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.

How to start: Create a mini-course with a few hours of content to test demand for your lessons. Then, research online course platforms like Teachable or Courses Plus.

How much does it pay? According to Teachable’s research, the average online course earns about $3,000 per course, with the top earners maximizing their income by selling a mix of courses, coaching, and digital products.

32. Blogging

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

It takes time to build a blog. But if you create quality content and promote it through platforms like social media, you’ll grow an audience big enough to generate a significant income stream.

Earn passive income from blogging by using your posts to:

• Promote affiliate products
• Create sponsored posts
• Sell products
• 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’re up and running, you can sign up for a relevant affiliate program to add monetized links to your blog content.

How to start: Find your niche and start planning how you want to monetize your blog.

How much does it pay? Established blog websites can generate upward of $30,000 per month. 

33. 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.

If you wanted to start selling designs on Creative Market, you’d first need to apply and wait for approval. From there, you get your own storefront, where you can start selling your branded designs.

How to start: If you’re not a graphic design pro, try starting with an intuitive design tool like Canva.

How much does it pay? Top sellers on marketplaces like Creative Market reportedly earn six figures annually through sales of their digital assets.

34. 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.

If you want to outright sell your invention, sites like Invention City can help you get started. Depending on the deal you strike, you can passively earn a percentage or payouts from the income generated through your idea once it’s on the market.

How to start: Start by checking out the US patent website to make sure your idea hasn’t already been created.

How much does it pay? For books, royalties are typically 7.5% to 12.5% of the sale price, while music royalties can be as high as 25%. Other types of royalty payments, such as trademark and patent royalties, tend to be a lower percentage.

35. Audiobook narration

Audiobooks have to be read and recorded by someone. Why can’t it 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, including learning the following:

• How to audition
• Proper narration technique
• What niche you’ll work in
• Some editing skills

How to start: Audiobook platforms make it easy to get started and land your first gigs. Check out sites like ACX to learn what you need to make it in the industry. Also, learn more about what you need to become a narrator for audiobook platforms like Audible.

How much does it pay? Narrators for Audible reportedly earn between $10 and $500 per finished recorded hour, depending on experience level. 

36. 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.

Yet, if you’re a long-term thinker and don’t mind frontloading your efforts, the income potential of a successful YouTube channel is high. Affiliate sales, sponsorships, branded integrations, and ad income can all add up passively as you accumulate content, clicks, and views and grow your audience. You can even easily spin off into starting a podcast and earn more money through sponsorships.

How to start: As you create your first videos, read up on how to optimize your content to make money with YouTube.

How much does it pay? YouTube creators earn revenue from ads displayed during their videos. Most estimates put the average earnings per ad view at 1¢ to 3¢, but videos with higher engagement may attract higher payouts.

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 earn in return.

• 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.
• 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.
• 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.
• 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.
• Start small: Don’t overwhelm yourself by starting too many passive income streams at once. Begin with a single idea, then consider exploring additional streams once you’ve had some initial success.
• Monitor and adjust: Once your passive income streams are up and running, monitor their performance. Use data insights to tweak and improve your streams or consider diverting your efforts to more lucrative options.

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:

• Dropshipping: Sell products online without handling inventory or shipping.
• Print on demand: Sell custom products that are printed when ordered.
• Digital products: Sell downloadable items such as ebooks, music, or software.
• Digital designs: Sell graphic designs, website themes, or templates.
• Online courses: Develop educational courses.
• Blogging: Generate income through ads, affiliate marketing, and sponsored posts.
• Affiliate marketing: Earn commissions by promoting products on your website or social media.
• Stock photos: Sell photographs to stock photo websites.
• Social media influencer: Monetize your social media profiles by partnering with brands.
• Job board developer: Create a niche job board and charge employers to post listings.
• Mobile app developer: Develop and monetize mobile apps using ad revenue or in-app purchases.
• Royalties: Earn ongoing payments from licensing your intellectual property.
• Audiobook narration: Provide voice-over services for audiobooks.
• 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:

• Rental properties: Purchase real estate to rent out for monthly income.
• Stock market investments: Invest in stocks, bonds, or mutual funds for potential dividends and capital gains.
• Spare room rentals: Rent out extra space in your home.
• Car rentals: Offer your vehicle for rent.
• Peer-to-peer lending: Lend money to individuals or small businesses to earn interest.
• Website sales: Buy and sell existing websites.
• YouTube channel: Create video content that generates ad revenue.
• REIT investments: Purchase shares in real estate investment trusts to earn dividends.
• Startup investments: Fund startups alongside other investors.
• Unused space rentals: Rent out unused portions of your property.
• Vending machines: Purchase and stock vending machines.
• High-yield savings accounts: Deposit funds into high-yield accounts to earn interest.
• Parking space rentals: Own and rent out parking spaces in high-demand areas.

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 personal finance to hit the next level. That might be taking a nice vacation or buying an awesome pair of shoes, but whatever it is, adding passive income streams with different underlying economics can give you the freedom to explore it.

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