Do you want to make money while you sleep? Are you looking for some passive income ideas? If so, you’re in luck! In this blog post, we will discuss the best ways to earn money without much effort. We’ll go over the pros and cons of each idea so that you can decide which one is best for you. Keep reading to learn more!
What Is Passive Income?
Passive income is best described as money that you earn without actively working for it. Some passive income suggestions include investing in real estate, renting out your car on Turo, or creating an online store.
8 Cool Online Ideas for Passive Income
We live in a digital era, and with metaverse just round the corner, some of the best passive income business ideas are related to the laptop in front of you. Here is what you can do.
Create an Online Savings Account
You can pay a visit to your bank to check out what savings rates they have to offer. In the US, the best rates for a savings account are offered by online banks. For example, if you have $100,000 saved in a savings account, you will earn $1000 in interest each year.
Pros:
- You can access your money at any time without penalty (but make sure to check this before applying)
- You can access your savings account from anywhere in the world with an internet connection.
- Compound interest: your money will grow at a compounding rate, meaning you’ll earn interest on your interest.
Cons:
- Your funds may be tied up if you decide to withdraw them early.
- Requires discipline in order to make the most of a savings
Create and Sell NFTs
Passive income ideas for 2022 come in the form of NFTs. What is NFT? NFT stands for the non-fungible token, which are digital tokens that represent something unique. For example, you could create an NFT of a piece of art and then sell it online through your own website or on websites like OpenSea. An NFT can be pretty much anything: a piece of art, an album, a video game character, or even your best selfies.
The best NFT ideas are those that can be sold multiple times and offer unique benefits to their buyers. With Metaverse real estate sales soaring to $500 million, there is no telling what new types of NFTs will emerge in the near future.
Pros:
- You can create and sell anything you want as an NFT.
- There is a large potential market for NFTs online.
Cons:
- You’ll need to be familiar with blockchain technology in order to create an NFT.
- The NFT market is still fairly new and not yet regulated by any authority.
Create and Sell a Course Online
If you have some knowledge that others would like, creating and selling an online course are top passive income ideas for someone like you. Provide your expertise via a digital guide, and wait for the downloads to fill your bank account.
Pros:
- You have complete control over the size and scope of your project (as well as how it’s priced).
- Easy to start: all you need is an internet connection and a computer.
Cons:
- A lot of work: you’ll need to create the course content, record and edit videos or podcasts, and design accompanying materials.
- It may take time to generate a significant income.
Creating an Online Store
A list of online passive income ideas is incomplete without mentioning Shopify. Setting up an online store is another great way to generate passive income. With Shopify, you can create a custom store for free, and there are a variety of payment processors that you can use.
You can also choose to dropship your products, which means you don’t have to keep any inventory on hand.
Pros:
- Shopify will take care of all the logistics.
- Low costs: there are a variety of free and low-cost options for setting up an online store.
- Unlimited potential.
Cons:
- Requires technical skills
- Limited availability: there are only so many products you can sell, and only so much traffic that will come through your site each day.
- High upfront cost: setting up an online store can be expensive, so you need to have a lot of cash saved up. The average Shopify cost is between $29 and $299 per month.
Affiliate Marketing
You’ve probably heard of this idea before. Affiliate marketing is when you promote other people’s products and earn a commission for every sale that you make. All you need to do is create a website or blog and start promoting products. Little wonder affiliate marketing was one of the most profitable passive income ideas in 2021.
Pros:
- Once your website is up and running, the sales will start rolling in
- Low costs: there are a variety of free and low-cost options for setting up a website.
- Unlimited potential: there’s no limit to how much you can earn with affiliate marketing.
Cons:
- Technical skills required: you’ll need to be familiar with HTML, CSS, and WordPress in order to create a custom site.
- Limited availability: there are only so many products you can promote, and only so much traffic that will come through your site each day.
- Competition: it can be tough to stand out from the competition in today’s saturated market.
Create an App
If you’re a programmer, creating an app is a great way to generate passive income. You can create the app and then sell it on an online marketplace or through your own website. Smart passive income ideas for all programmers out there come in the form of what they are probably already doing at work. Just in this case, you’d get all the money.
Pros:
- You retain all ownership and control over your app while the money keeps pouring in.
Cons:
- You’ll need to be a skilled programmer in order to create an app.
License Your Content on Stock Sites
Passive income ideas with little money include uploading photos and videos on stock sites. If you have a knack for photography or video editing, there are plenty of stock sites where you can sell your work as stock photos and videos. People are always looking for high-quality, royalty-free content to use in their projects.
Pros:
- Relatively easy to set.
- You can set your own prices and keep all the profits.
Cons:
- There are only so many photos that will be downloaded each day.
- It will take some time until you are recognized.
- You may have to offer discounts or freebies to get your first customers.
Investing in Domains
Smart passive income ideas that can bring lots of cash with little effort do exist. How does this one work?
Domain flipping is the process of buying and selling domains for profit. You can buy a domain that’s already taken, but with a different extension (ie: .net instead of .com) or one that has expired. Then you sell it at market prices to an interested buyer who wants the best deal possible on their next domain name purchase. For instance, you buy for $500 a domain name and then sell it for $5000.
It’s best to buy domain names with keyword-rich content so they’ll rank higher on search engines like Google and Bing.
Pros:
- You can make thousands of dollars from a single sale in one day or less
Cons:
- Finding suitable domains to buy is not easy, especially if you have no prior experience in this field.
Invest in Dividend Stocks
Wanna try one of lucrative passive income investment ideas? Here’s the process.
First, you need to find a company that pays dividends and then purchase shares of their stock. Once you’ve purchased the stock, the dividends will be paid out to you automatically. The best dividends to invest in are those that pay out regularly. For example, if you buy 100 shares of a company that pays out $0.01 per share, then your total dividend payment will be $100. As for the most expensive shares at the moment, you can only imagine the profits.
Pros:
- Easy to start: all you need to do is find a company that pays dividends and purchase their stock. You don’t have to worry about managing your investment or dealing with customers.
- Automatic payments.
- There are a variety of free and low-cost options for purchasing dividend stocks online or through an investment firm.
Cons:
- Not everyone has easy access to a company that pays dividends.
3 Great Passive Income Ideas That Work Offline Too
You needn’t find an extra online source of income if you are fed up with the digital world or lack the skills. You can earn passive income while shopping for groceries! Here’s how you get to do that.
Put an Advertisement on Your Vehicle
Why not earn money while you’re commuting, or simply driving around to get your errands done? Advertisers are looking for creative ways to reach their target audience, and a vehicle is a great way to do it. You can sign up with an advertising company or place your own ads.
Pros:
- You get paid for doing something you’re already doing (driving).
- You can choose the type of ads you want to display on your car.
Cons:
- You have to have a newer car that is in good condition (and not too dirty)
- You may be limited to the types of companies you can advertise in your area, like local businesses or franchises.
Investing in Real Estate
Investing in real estate is one of the best passive income ideas out there. Not only does it provide a steady stream of income, but it’s also a great way to build wealth over time. When done correctly, investing in real estate can be extremely profitable. However, there are some risks involved such as market volatility and potential for loss.
Pros:
- You don’t have to do anything once you’ve bought the property, except collect your rent checks every month!
- Tax breaks: you can write off a variety of expenses related to your investment property, such as mortgage interest, repairs, and property taxes.
- Appreciation: over time, real estate tends to appreciate in value, which can lead to even more passive income down the road.
Cons:
- High upfront costs: buying a property can be expensive, so you need to have a lot of cash saved up.
- Management requirements: you’ll need to manage your property yourself or hire a property manager, which can be costly.
- If the real estate market crashes, you could lose money on your investment.
Renting Out Your Car on Turo
Easy passive income ideas such as this one are perfectly possible when you have your own four-wheeler. Turo is a website that allows people to rent out their cars to others. All you need to do is create a listing for your car, and Turo will take care of the rest. You can set your own price, and Turo takes a commission from each rental.
Pros:
- Once you’ve listed your car on Turo, you can sit back and relax! You’ll earn money every time someone rents it.
- Low effort: Turo takes care of all the logistics, so you don’t have to worry about anything.
- No maintenance required: unlike renting out a property, you don’t need to worry about maintaining your car. Turo has you covered.
Cons:
- Limited availability: not everyone lives in a city with lots of Turo renters.
- Low-income potential: You won’t make a lot of money renting out your car on Turo, but it’s a great way to make some extra cash.
Conclusion
Passive income business ideas such as these allow you to put in the work once and then continue to reap the benefits long after. Whether you’re creating and selling a course online, licensing your content to stock sites, or investing in domain names, there are plenty of opportunities for generating passive income. Just find the one that best suits your skills and interests, then start earning!
FAQs
What is the highest paying passive income?
Essentially, the highest paying passive income depends largely on your skills, knowledge, or the money you are ready to invest. The best ideas are those that allow you to put in the work once and then continue to reap the benefits long after. Whether you’re creating and selling a course online, licensing your content to stock sites, or investing in domain names, there are plenty of opportunities for generating passive income.
What are some good passive income ideas?
Good ideas for generating passive income include: blogging, affiliate marketing, writing eBooks, creating online courses and webinars (both paid or free), selling your photos on stock sites like Shutterstock or iStockPhoto.com…and many more!
What are the 7 sources of income?
The seven sources of income would be the following: business income, earned income, interest income, capital gains, rental income, dividend income, and royalties.
How can I make $1000 a month in passive income?
There are several ways to do so. For instance, you could be renting one of your properties, or perhaps invest in affiliate marketing for a specific niche. Creating your own app that will make people’s lives easier is another one of the popular passive income ideas for the digital era.
