Building passive income sounds very good: earning money without having to do anything for it. But is it really that simple in practice? We will show you what passive income means and what options there are for not having to work actively for your income all the time.
What does passive income mean?
Let’s first clarify what active income is to help you better understand the concept of passive income. This is (to put it simply) the normal way most people work. That means: You invest your work as an employee or self-employed in products or services and receive a financial return proportional to the effort. The more they work, the more money they make.
Passive income is understood as an alternative to active income (side hustle). This means you make money even if you don’t work for it. Your product or service works for itself, so to speak, and thus ensures that you can devote yourself to other tasks.
There is a permanent flow of money, which is often automated and does not require your intervention on an ongoing basis. You cannot generate passive income without prior work.
It’s just plain wrong to think that money will fall out of the sky. If you want to establish a passive source of income, you first have to invest a lot of time and sometimes money in the corresponding project.
51+ Ways To Make Passive Income
1. Rental Income
Do you own a property that you can rent out to other people? Perfect! Because the monthly rental income can be described as passive income.
2. Online course/ webinar
eLearning products are still on the rise. A course that you create once and that can be sold again and again, for example, in video form, is a great source of passive income.
3. Affiliate Marketing/Commissions
The principle behind the affiliate links is quickly explained: you recommend a product or service to your listeners/ readers/ viewers/ users and, in return, receive a commission for a completed purchase.
4. Workbook
Workbooks, which can be sold digitally and as a print version, also belong to the e-learning products and address a large target group (always depending on the topic, of course).
5. Stock Transactions
Stock trading is a complex topic you must familiarize yourself with first. If you finally have the perspective, a passive income is possible.
6. Crowd investing
With crowd investing, you earn from the interest you receive on your investments.
7. Books and eBooks
Anyone who writes a book or e-book first must invest a lot of time and creativity. But when the work is finished, it gives you a steady flow of money.
8. Niche Sites
If there’s a specific topic that you’re particularly knowledgeable about, you should create a niche page about it. Affiliate links, advertising, and paid cooperation ensure, among other things, a passive income.
9. Banner Ads
Whether you run your blog or a YouTube channel, it doesn’t matter – banner advertising is a very good way to earn extra money.
10. Stock photos
Are you a passionate photographer and think other people might like your pictures too? Then post them on stock photo platforms and receive a profit share per sale.
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11. T-shirt business
There are now several platforms that will help you build a t-shirt business. This means: You think of a cool design, and the platform takes care of the rest – from production to the online shop to the purchase process. Of course, the whole thing not only works with shirts but also with bags, mugs, sweaters, and other products.
12. Audio Files
Your book in the audiobook version, a guided meditation, or special sound effects – you can also generate passive income with audio files.
13. Computer software
Are your coding skills so good that you can develop your own software? Perfect! Because after a one-off effort, it can be sold infinitely often.
14. Sublet the apartment
If you have a room available or are traveling for a long time, you can earn money with your own apartment. But don’t forget: You must discuss this project with your landlord in advance.
15. Music
With your own music, you can build up a passive income differently. Either you go the commercial route and live off Gema fees, among other things, or you make your works available on special platforms where they can be downloaded, such as background music for YouTube videos.
16. Printables
Posters, postcards, calendars – print products offered to the buyer digitally and printed out themselves are all the rage right now.
17. Apps
You can still make good money with an app today – if you offer users real added value and maybe even find a niche that hasn’t been filled.
18. Affiliate shop
Here you program a website in the form of an online shop. In this, the visitor sees a selection of products linked to Amazon or other online shops.
19. Members Area
A member’s area is a great way to earn money with exclusive content. The principle behind it: Visitors can find initial information on the main page and receive further articles or videos in the fee-based member area.
20. WordPress Themes
WordPress is used by many site operators worldwide. Against this background, investing some time in developing your own theme is quite lucrative. You can then offer this for a fee on various portals.
21. Stock graphics
Graphics are a content element that hardly any website can do without. Take advantage of this development by creating stock graphics and selling them through portals.
22. VG Word
To earn money with VG Wort, your (online) texts must meet a few criteria. But don’t worry; these hurdles are not insurmountable. So you can earn a few hundred euros a year with this method – by the way.
23. Rent a car
Is your car sitting around unused most of the time? Then rent it out! More and more platforms are making private car-sharing possible such as Turo, Uber, & many more. This is not only a good option for passive income but also a valuable contribution to environmental protection.
24. Amazon FBA
The “fulfillment by amazon” service is exciting because of its high degree of automation. All you have to do is send your goods to Amazon’s warehouse, and the e-commerce giant will take care of the rest – for a small fee, of course.
If you’re delivering quality content to your visitors month after month, it’s perfectly legitimate to prominently place a donate button on your site. With the help of services like Steady or Paypal, you can easily collect money – this is also a form of passive income.
26. Guide
Individualism is the big trend in the travel industry – and at the same time, your chance to make money in this area. If you know some really good insider tips for a city, a region, or a country, then wrap them up in a cool and alternative travel guide.
27. YouTube
With your own videos, you can continuously earn money through the advertisements on YouTube once the video is uploaded.
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28. Private Credit
There are various platforms on the internet where private individuals can get loans from other private individuals. For you as a lender, these deals offer attractive interest rates.
29. Study papers
Even if it’s been a few moons since your studies, it’s still worth digging out your old term papers and theses. Because on the right platforms, you can turn them into cash. There is a small commission for each download.
30. Rent Equipment
Do you own quite a lot of camera equipment? Got a whole basement full of party decorations? Don’t know what to do with all your technical gadgets? Then rent out these items and generate passive income!
31. Creation of content or info products
Another way you can generate passive income is by creating content or info products. If you are an expert in any subject or have something to share with the rest of society, don’t wait any longer to start on a social network and transmit your knowledge. This is an excellent way to create passive income, for example, through monetizing a YouTube channel, podcast, or sale of books or info products. Once you’ve spent the time making the piece of content, it will passively generate revenue for as long as people continue to consume it. You can generate income through visits, selling your info products, or even through affiliate marketing.
32. Investments in Cryptocurrencies
Another alternative with which you can generate passive income can be to invest in cryptocurrencies. Investment in cryptocurrencies can be much riskier, depending on the case, than investments in the stock market due to the high volatility that currently occurs in these markets; however, it is also thanks to this volatility that we can find great returns.
33. Investment in Fintech
Finally, another way to generate a passive income that we bring you this time is investing in fintech. As financial systems are transformed, there are more and more investment opportunities thanks to fintech.
Fintechs are companies that link modern technology with finance to offer greater opportunities to investors and people who require financing. Among the various types of fintech that exist, those that invest in factoring or confirming stand out, helping companies to obtain financing, and those that focus more on personal loans or peer-to-peer lending.
34. Give loans
Loans are a good idea when you want to generate passive income, much more so if you charge a large percentage of interest. However, this practice can be a bit complex if you do not apply some legal measures. It is convenient that you go to a notary and carry out a legal procedure, which justifies and guarantees the repayment of the loan with interest.
35. Buy actions
The purchase of shares also passively involves a fixed entry of money; this is an economic practice that undoubtedly leaves excellent results. To do this, you must locate and study a brand or company that allows the sale of a percentage of its shares. You can get many companies through the internet, including well-known ones like iPhone or Amazon. However, before entering this world, you must train yourself, especially in the monthly percentage you will receive.
36. Being a business partner
Being a partner in a business also allows you to earn passive income every month and without constant monitoring. To do this, you must make an investment and what will happen is that the money will double depending on the company’s profitability. You do not need to make efforts so that the company can work; you can do this with an entrepreneur who needs resources to start his business.
37. Create websites and monetize them
Creating a website and monetizing through it is a passive source of income, which can be quite profitable in the short and long term. If you have programming knowledge or want to acquire it, this is your opportunity to make your talent profitable. But what if I don’t have programming knowledge? There are also many pages that allow you to create websites without knowing programming languages in depth.
38. Start a podcast
Another option to generate passive income is to create a podcast. It’s about creating audio content that your audience can stream or download. You can generate podcast revenue by selling advertising, charging for premium content, or offering products and services related to your show.
39. Audio tracks, sheet music, and jingles
Those with the talent to compose and produce audio and video formats have this alternative. For an initial investment, you will have a product that will continue to generate royalties in the long term. There are many platforms where you can upload this type of material. Chip music, SoundCloud, Audio Socket, and AudioJungle, are some options. For each sale, you will receive a percentage of the total since the page keeps a commission.
It is ideal when you do not have much experience; you will need a minimum investment of about 200 euros. To carry it out, you copy the movements of the professionals, which allows you to have greater security. Check the profiles available on the specialized pages to select the most suitable and choose instrument you prefer. The actions are carried out automatically when selecting your traders. With this type of investment, you will not become a millionaire but will have a constant income. Some reliable social trading platforms are Ayondo and eToro.
41. Cryptocurrency lending
This is also a way to generate passive income with cryptocurrencies. You lend your cryptocurrencies to other people and recover them with similar interests. However, it is important to do good research here because the risk of loss is greater with cryptocurrency lending than with staking.
42. Buy NFTs
A better alternative to acquiring money with cryptocurrencies could be NFTs. NFT stands for “Non-fungible Token,” a digital, exclusive, and non-reproducible work. Most importantly, NFTs revolutionized art marketing in 2021. There are now an extremely high number of NFT collections of digital artworks that you can, sell, buy, and trade on platforms like OpenSea.
With a little initial effort, you could create your unique NFTs and then put them up for sale on NFT platforms. The mentioned platforms are suitable for doing so. Rarible is designed as an artist-focused NFT platform. Meanwhile, individual NFTs have already brought in six-figure amounts.
43. Metaverse and the Play2Earn
The metaverse was the big topic of cryptocurrency marketing in Q4. It describes a virtual space in which individuals can exchange ideas and interact with each other. There are currently numerous metaverses created on the blockchain. In these metaverses, remuneration in the form of cryptocurrencies or NFTs can be earned using the principle of playing to win. Some of the most popular examples are Axie Infinity, where you can breed and even battle digital creatures (Axies), and Decentraland, where you can purchase digital land and real estate. Digital lands, in particular, can guarantee you some passive tickets in the future.
44. Create a dropshipping store
Dropshipping is a B2C business model where people sell products through an online store with a third-party vendor processing and fulfilling the order. It’s an easier alternative to running a standard eCommerce store, as a dropshipping store doesn’t involve the hassle of dealing with inventory and shipping.
45. Be a virtual assistant
If you’re great at planning and organization, becoming a virtual assistant might work. A virtual assistant could be responsible for a wide range of tasks. For example, you could do general accounting, data entry, email management, research, and more.
Becoming a virtual assistant can be a great way to increase your income and network with important people. Not only that but the market and demand for virtual assistants are experiencing rapid growth. Many business owners are turning to virtual assistants rather than hiring a full-time staff member.
46. Resell web hosting
Reselling hosting or web hosting is another excellent way to earn money online.
47. Create a subscription job posting
Job boards can be a lucrative way to make a living from your website. The process is simple. People looking to hire someone in a specific niche will post a job listing on your site, and your visitors will apply for the job.
48. Electronic books
Books are important. They convey transformative information. The introduction of e-books has further popularized and increased book reading. Writing books has always been rewarding and rewarding. How? Because your readers gain new insight that can transform their lives, and you get paid. Also, books never get old and are created once and sold to thousands of people. Depending on the subject area you choose to write about, you can employ different methods of marketing your book. You can easily create your eBook using your phone, laptop, or desktop. There are online web applications that help you convert your book to pdf, where you can lock and serve it.
49. Digital files
Digital files are one of the greatest assets to help you earn passive income as a student. These digital files can include courses, sales copies, newsletters, and more. The more investment you make to ensure its viability, the more reward you will get. However, you must ensure that you package your files in such a way that it solves a particular problem and addresses the market’s needs. As much as it is necessary to get a digital file, you must have the right approach for your market.
50. Network Marketing
Network Marketing is one of the largest investment portfolios out there right now. You simply sign up and get other people to sign up for your network. They immediately sign up; you earn on every sign-up made by your downlines. Most network marketing platforms require you to purchase products, while others require a one-time purchase. Before deciding on a network marketing chain to adopt, do your proper research and prepare.
51. Create effective sales funnels
A funnel, or sales funnel, is another great strategy for generating residual income today. These have revolutionized the Digital Marketing industry because they allow you to capture leads –potential clients or consumers- for a certain product or service. In this sense, the big brands, companies, and ventures, or all those people who want to sell online, rely on this service to boost their sales.
Wrapping Up
It’s a great idea not to have to work anymore and still earn money – but unfortunately, it’s just an idea and not reality. If you are interested in passive income, you should be clear from the start: It will not work without any personal contribution.
The possibilities we have presented to you in this article are suitable for building a serious source of income, but “passive” in all cases means that you still have to take action at the beginning. Compare it to gardening: here, you also have to dig up, weed, sow, and water often before you can harvest the fruits of your labor. Be creative! Look around in your immediate environment, where and how you can earn money passively, or ask friends and acquaintances if they have any tips for you.