Many people successfully generating passive income ideas every day and living their life like rich.
Here you will find 26 best passive income ideas that will surely save your time in search for creating ideas.
Rich personalities work same hours compare to what normal person does, but still rich earns in millions, this is because they know what to do and how to do it right.
I will share with you the most effective ways of making money while you sleep or out for a vacation.
If you are thinking of making passive money, it means you have taken a first step to become rich and independent.
I always advise my audience to think of yourself rather than thinking for your boss.
Usually people save money or invest money in a long term scheme that promises you to make you rich in next 30 years. But they don’t tell you that in next 30 years, you will be at your 60’s,
Wasting your entire life for getting rich in your 60’s! It’s better if you start your own side business and work for yourself.
You can become rich at any age, if you know the money making strategies.
What is Passive Income?
You decided to generate passive Income to make money while you sleep, or out for a vacation.
If you ask me, I would say it’s a best way of earning money that will make you rich every day.
You just need to plant a money tree (referring to passive income ideas) and you will see the money falling into your bank account every day.
Yes, it is happening with many people and they are becoming rich every day.
I always show the reality and never advise my audience to earn money in a wrong way, when you have many options of earning money smartly.
This is the reason, I named my blog a twomillionways.
I always believe there are million ways for doing anything in a smart way.
The only thing you need to do is, think and believe. This is the concept what most billionaires follows.
What you should do before you start working on generating passive income?
You should think about your qualities, capabilities and interest you have in the area where you can perform best. The area can be a lifestyle, sports, marketing, finance, business etc.
Once you decide the area you are going to play with, the next step will be selecting the platform or channel where you do the part time business. The platform can be online or offline.
Passive and residual income is one and the same, as both gives the idea of generating business strategy and eventually gives you money even after your job is done. You can also call this a home business or a side Income business.
Below, you will see the money making ideas where you will find various options to make passive income.
1. Create a Blog – Make Money Online
I have selected a blog to be the first option for my audience. This is because, it is the cheapest way to make money online and is also one of the best way to earn passive income.
You can start your own blog which cost you a very little.
Do you know a blogger earns more money than a YouTuber with having a same number of traffic? Traffic means the audience visiting your site.
The more you write, the more audiences you will attract, and the more income you will generate.
Suppose, you have written five blogs, then this five blogs will become a source of passive income for you, even though you are not active on your blog for weeks, your five blogs keep generating passive income for you.
I always share the ideas of blogging, whenever I advise my audience to make money online.
This is why I have created a passive Income Ideas that will make you earn every second, every hour, every month and every year.
This is the easy way to earn money and help you to live your life without having income issues.
Whenever you write a blog, make sure you have provided a valuable content to your audience, so that they will take your blog seriously.
Once your blog is ready to publish you need to monetize your blog page with affiliate links.
As soon as your audience click on the affiliate link and make purchase, you will earn a good commission.
You can get the affiliate links directly by visiting the home page of the company. If not, then you need to contact their customer service agent.
Learn Affiliate Marketing to Generate Income Faster.
To save your time, you can sign up with below affiliate companies / affiliate networks where you will get the hundreds of affiliate links on a single platform.
- Commission Junction
These are the well-known affiliate marketing websites that will make your work easier and save time.
You can also get the affiliate links from amazon affiliate programs and earn commission.
Tips: If you don’t know how to work with above affiliate companies, watch YouTube videos and learn.
There are some affiliate companies who first see the amount of traffic your website generates, the types of platform you use to make Income and then allows you to do affiliate business with them.
3. Paribus – Get Your Extra Payment Back
You will get excess amount refunded, if you have paid extra when you purchase anything online.
Paribus automatically detect the extra amount that you paid and get refund for you.
Let me make it simpler; you bought any item online and after your purchase price falls. Now paribus will send you the notification and get your difference amount back.
You do not need to do anything. Paribus will do everything for you.
Yes, it’s free. Enjoy your refunds
4. Earn From Google AdSense
Traffic in your blogs also help you to earn money from AdSense. Google AdSense is a platform that gives opportunity to place google ads in your blog page.
So, the question is, how to place google ads on your blog page?
I would say first you have at least 20 to 25 blog post of at least 500 words and then create an AdSense account. Make sure you publish a good quality content.
Once you get the approval from google, you can start using google ads on your blog page.
Keep in mind that you are not disturbing your audience by placing too many ads.
There are two ways to earn money from AdSense. Every 1000 page views will lead you to earn money and clicks on display ads by the visitors.
Create sitemap for your blog, so that google will find your blog page easily.
If you do not have 20-25 post, don’t worry! you can still earn from affiliate marketing by the time you reach 25 blog post, you can apply for google AdSense. Does it make sense? Of course.
If your website is more of affiliate marketing, then try to use less number of google ads.
Ads divert the readers mind hence; it will affect your affiliate marketing business.
If your blog/website have a less affiliate links, you should use Google ads more to generate more income from Google AdSense.
5. Write an ebook
Publishing the eBook online becomes the most effective and popular way of creating best passive income business. To write an eBook, you are required to put some extra effort, but it’s only for one time.
You need to be very specific and should sound genuine.
There are millions of people who loves to read books online, and you have the opportunity to present your eBook online and sell them.
The most successful ways of selling eBook online are YouTube, blogs Facebook page, amazon and Kindle.
PDF format make the eBook reader easy to read. You can put affiliate link or your blog link to promote. This is the advantage many eBook writers take and earn unlimited money.
Tips: You must read few eBooks and learn from them, how they write eBook and what techniques they are implementing.
Make a reputation of your blog, youtube channel etc. This is because, a reputation creates a value to the business. Hence, will help you to sell ebook fast.
6. Invest in stock market
Investing in stock market is one of the trending way to earn passive income, and now a days it became easier to buy or sell the stocks in few clicks.
Before you buy a stocks, you must know about the company and its scope of growth.
The one company that I recommend anybody to join is Acrons. You can mention your financial goal. Acrons will recommend what should be your investment portfolio and guide you at each and every steps.
You will also get money for free in to your investment account, when you pay through Acrons.
Smart Investors first learn how to invest in stock market and then start investing money in the stock.
It is not easy to find a good stocks, but once you find the quality company, then you need to wait for the right time to buy stocks.
When you become professional in stock market, you can start investing in small and midsized companies, this is because these companies has a huge scope for growth.
Always see the stock market as a business. The stock price increases when the company performs.
If a company is making a huge profit, you will see the share price increasing. This is the reality and you have to accept it. Don’t ever think of gambling.
You can easily start investing money in shares with an amount of little money. It is also advisable to start with small money, if you are entering in the stock market for the first time.
Must check the brokerage charges before you join broker. Many Brokers charge heavy brokerage that will lower you profit.
Warren Buffett is well known for a long term investor. He spends more time in reading and researching the companies. This helps him to find the opportunity to buy the stock at a right time. And we should follow his style.
He buy the company when he see the stock price is cheap and it’s fundamentals is strong. He sells the company when he finds the stock price become expensive.
If you want to learn how to invest in stock market, I would suggest you to read below most important books:
* The Intelligent Investor. By Benjamin Graham – Revised edition with new commentary by Jason Zweig.
* The Warren Buffett way. By Robert G. Hagstrom.
* One up on Wall Street. By Peter Lynch.
7. Dividend Income
A reputed companies that pays dividend to their shareholders consistently, because of their good performance. There are many companies who is in the categories of best dividend paying stocks all over the world.
The more company earns, the more dividend per share are distributed within the shareholders.
Here is the catch, invest in those companies who pays normal dividend.
High dividend paying stock companies face challenges to grow faster, because they are distributing the huge portion of their profit to their shareholders, hence less money left for growth.
If they grow faster, your share price also increase faster, hence you will earning via two ways. One from share price increase and other from dividend.
There are many mutual fund schemes who offers the combination of top dividend paying stock to the investors.
If you are a new in the stock market, you should go for mutual funds and then spend time to learn stock market.
Acrons is the right platform to invest in dividend paying stocks. They also add money to your account when you do shopping through Acrons.
I also invest in stocks, and a huge fan of Warren Buffett. I have learnt many things by reading a books on Warren Buffett. His ideas changed my views on stock market investments.
Tips: Invest for a long term, if you want dividend plus share price increase. Do not invest blindly on tips from any source.
Find any company that you know whose product is trending or having a monopoly or an ability to give a competition for a long run.
Ask yourself, will this company have the ability to run for next 25 years successfully? If your answer is yes, then you are very close to find 1 company for your investments.
8. Make YouTube Videos and Earn
People either watch videos or read things on google. You can easily make YouTube videos and generate a YouTube income online.
Start your own YouTube channel and create a videos on anything you like.
The video should be meaningful and ability to grab the audience attention each second. This will help you to gain subscriber quickly.
You can sign up with google AdSense to earn money from YouTube. Google AdSense will place advertisement on your videos.
As soon as the viewer clicks on advertisement, you will earn money from AdSense.
How to monetize YouTube videos?
For YouTube monetization, Simply go to my channel, click on video manager link, then click on channel again and choose enable monetization.
Now, YouTube will place ads on your videos and you will earn.
YouTube Affiliate marketing.
Affiliate marketing can be done easily by leaving affiliate links in the YouTube video descriptions. Done!
Sell the product which is related to the video, so that you will generate leads quickly.
Tips: always add keywords and tags which is connected to your video. This will help you to reach the audience fast.
Discover your own style of presenting the video and it needs to be short and should not bore the audience.
Talk something about the product that you are marketing.
Do not say too much about the product. It will create a question in the mind of audiences and may be they will skip the video.
9. Earn from Ecommerce – Sell Online
If you have an idea to sell items online, then you may earn a huge amount of money through online selling sites like Amazon, eBay and many more.
You can become a seller by signing up with the online selling site that I have mentioned in the above paragraph.
My advice for you to make an online sell with best ecommerce websites. This will help you to sell items online fast and hence, you will make money fast.
Many people sell the product by drop shipping. When order is placed, it purchases the product from the manufacturer and shipped it directly to the customer.
One more idea of selling items online is to create your own ecommerce website and sell your product online. Now a days it’s easy to create ecommerce website.
Woo commerce is one of the cheapest way to create ecommerce website. You just need to buy a good hosting to handle the customer traffic on your website.
Shopify is the another way that helps you to sell the items online. It has the readymade template that facilitates you to build an online store.
This is one of the favorite options for drop shipper to make money online.
Dropshipping is one of the famous technique to sell products online without touching product.
Dropshipper takes the order from the customer – He/she contact manufacturer to ship the product directly to the customer.
In this process, you (drop shipper) didn’t touched the product nor packed, but made profits by connecting customer and Manufacturer.
10. Airbnb – Rent Your House
If you have a house space, then it’s best to rent your house on Airbnb. It made a lot easier for the travelers to live in a vacant house.
This concept is becoming very popular day by day.
Earning on Airbnb is also depend upon the locations. House in the costly cities and holiday traveling places will give you a high rental income.
Tips: make sure your house looks good in condition. This will make a great impression on travelers and that makes them to choose your house.
when you are ready to advertise, you must upload a good quality picture of your house.
11. Create a Coupon Website
Did you ever tried to search for a coupons to get exciting discounts? May be yes.
The coupon websites attract more customer than the normal sites, this is because such websites helps audiences to save their money by providing discount promo code.
People always hunt for discounts, and they know that the discount coupon sites is the easiest way to get things discounted.
Once you started your website, get coupon code from FlexOffer and stick in your website.
Coupon site attracts huge audience and your site should be capable of handling such audience.
Siteground is the best company who provides a fast & secured WebHosting. This enables you to give a smoothest website experience to your customer.
The second important thing you need is, domain name(blog/website name). You can buy it from Namecheap. Both offers domain name at a very less price.
12. Create a Facebook Page and Advertise your Business
Facebook gives a platform to bring your ideas in front of the audience. Now, anybody can promote their product or service through Facebook ads.
Once you created your Facebook business page, you need audience to see and like your page, at the same time, you also need to generate sales through Facebook.
Facebook ads manager will help you to promote your business on facebook. You can find ads manager on the Facebook pages itself.
Before doing Facebook marketing, you should know your budget. Facebook advertisement is the platform where you can advertise your business at low cost.
You need to make sure that your Facebook marketing strategy should grab the customers. You also need to be specific in location, age, gender, days and time of promotion to gain the genuine audience.
13. Become a Silent Partner
You want to start business, but can’t afford time or you have the job, then to become a silent partner will be the best option for you to earn passive income.
There are millions of companies who offers people to become a silent partner. Many billionaires in the world invested in other’s business and enjoying the fruits.
You just need to invest in a good business. It may be a well-known business or some new startups.
Before becoming a silent business partner, you must do a good research about a company.
The quickest and a cheapest way to become a silent investor is by investing in a company stock. This allows investors to invest even though you have less money.
Tip: Before investing in any companies, check the reliability of the company. How much sales a company is generating from their net worth and the percentage of profits.
Check life of business from your angle.
14. Write a Book
Writing a book requires a little extra effort than writing an eBook. But once your book is published, you won’t imagine how much you will earn.
Many famous authors still making passive income and became a billionaire by publishing a book.
Yes, it takes little more time, because your content need to be very specific and eye catchy while you write a book.
If you plan writing certain amount of words every day then believe me, it will become a lot easier for you to write your first book.
You can sell your book to a publisher and gain royalties on each sale. The more your book get sold, the more you will earn. It can be for months or for years.
To earn extra Income, you need to be focused on marking your book. It’s just a marketing nothing else, because you already have a readymade product in the form of book.
Printing book wouldn’t take much time, so don’t worry.
You can list your book on many famous online store like Amazon, eBay etc,.
Tip: Always make your content interesting, so that the reader would complete reading the book and appreciate it online.
The audience will read the appreciation and buy the book. This will eventually boost the sales.
15. Create a Price Comparison Website
Whatever you buy online or offline, first you do a price comparison. Right?
The whole idea to create a price comparison website is to make people aware about the product pros and cons. Wait! You will also earn by monetizing the website with affiliate links of Amazon, eBay etc.
The buyer see your comparison, do the price check, make a buying decision and finally reach the product by clicking the affiliate link through your website.
The buyer will purchase the item through your unique referral link and you will earn commission.
16. Buy a Blog
To grow your passive income, you much check how to buy an existing blog. A readymade blog with a traffic and an options to make money will boost your passive income for sure.
The blogger usually sell their blog for many reasons, may be they don’t have time or they want to make money.
The blog owner may be earning from different ways through that blog. It may be an eBook, affiliate marketing, Google AdSense, selling its own product, partnership etc.
Godaddy is the website where you can buy an existing blog as per your budget range and start making passive income.
You can have an agreement with blog seller for taking over all its business associated with blog.
You should keep in mind that the blog must have good number of organic traffic and an opportunity to grow Income by introducing new marketing strategies.
17. Sell Photos Online
If you are a good at taking pictures, then you should sell photos online. A good photograph will help you to earn money regularly and even make you rich.
Shutterstock is the website where you can sell your photos online at a fixed price or get paid by royalties for each downloads. The more people will download, the more you will get paid. Of course even while you are sleeping too.
You can earn money when you are out for a holiday. You just need to take eye catching pictures and send it to shutterstock for approval.
This is one of the cheapest way of earning passive income online just by selling photos.
18. Read Well Known Money Making Books and Apply that in Your Life
Your life will become a much simpler when you start reading books on money making or a book which evolve your thought process.
You won’t find money problem in your life if you read these 2 books.
It’s a must read books for you and your family. These books will give you an idea of how to make passive income and will also teach you how to manage your money smartly.
If you are not a book lover then believe there are thousands of books on money making, but I am advising you to read only two books atleast.
These books will change the whole idea of thinking for money in your life and make you money genius. You will come to know why people get bankrupt every month when they have opportunity of becoming rich.
19. Buy and Sell Domain
You can buy a domain name that has a strong keyword. This is one of the most popular way to earn money online.
You just need to invest small amount of money to buy domain name and sell it with for 100’s or 1000’s of dollars.
The best way to sell domain name is through auction. Godaddy is the place where you can sell or list your domain name in the auction.
To buy a domain at a very low price, I would advise you to buy it from namecheap. It will also become easier for you in buying and selling domain names.
You can also sell domain name from your own blog or website.
20. Earn from mobile app
Think about creating a mobile app that will make people’s life more easier. There are millions of people who uses smartphones every day. Come up with the good idea and create an app.
If your app is really helpful to the people, then believe me, people will run through your app.
Now a days, it become a lot easier to create an app. You just need to visit app maker website or give the task to mobile app developer.
You can earn through advertisement, sponsorship, subscriptions, affiliate marketing, selling your service for certain amount of money and many more ways.
You may get offers from many companies to sell your mobile app.
There are less competition in earning through app, but eventually, your idea will win the game and create a passive income for you.
Once you create your app, the next step will be marketing. You need to promote your app to reach the audience and make them aware about your app.
21. Create an online courses
Nowadays people prefer to take online courses, instead of attending classes. This is because they can do their online course in their spare time, most probably at night.
The whole ideas is, you need to create an online course and sell it to as much people as you can.
Teachable is the best online course platform where you can upload the course video and set price level you want to sell your video. This is one of the simple and effective way of making passive income.
If you are salaried person, still you can earn extra money, just take 2 – 3 hours from your daily routine. It is manageable!
The more videos you make on Teachable, the more you will earn.
Tip: create a videos on the topic you are passionate about. This is because, you already know many things on that topic.
It will also make you to learn more things, so that you could sell more online courses.
Use a good quality camera and mike before you start making online courses. This looks professional and hence, people will show the interest in your teaching.
22. Outsource business
The right time to outsource the business is, when you want to grow more, or your current business is consuming your time.
Many businessman uses this strategy that enables them to focus on a new business and its growth.
You can outsource your business to other business who is specialized in managing outsourcing business. The other option is to hire a freelancer.
Outsourcing will help you to reduce the expenses & employee cost and turn your active business into passive. But anyways, you have to be vigilant enough to see that your business functioning smoothly.
23. Rent Your Car
You have a car which is not in use, why don’t you make a money from it. Just rent a car. simple!
People will buy your car on rent and you will generate income from them.
You can rent a car on Getaround app and earn side income regularly.If you do not have a time to drive a car. You can earn money by this way as well.
if you want yourself to drive a car then, you can join Lyft. It is an online cab service who will offers you a business by providing the people who are looking for travel.
They charge a small commission and bring the customer to your cab.
24. Advertise on Car
You must have seen an advertisement on car, busses, rental cars etc., they all are paid ads. You can also earn money by placing ads on your car.
Just contact Carvertise, an advertisement company who will give you a banner to stick on your car and will pay you as per their terms and conditions.
You can see the opportunity to earn everywhere, you just need to think how you can make money from the resource you have. It can be anything. Just think!
25. Earn from Vending Machine
You know the automatic machine that looks like a video game usually in the shopping mall or theatre. You insert the money & select the thing you want to buy and magic happens.
A Vending machine is an automatic machine shop. It handles more customer than a normal shop without any man interference.
Think you are sleeping and your vending machine is working 24 hours a day nonstop.
Tip: Search for the populated location where you can find a good number of customers for your Vending machine business.
26. Start Your Own ATM Business
You have a space on the road side where crowd passes. This is also the opportunity to earn money.
Contact the bank who doesn’t have its ATM machine nearby your location. The bank will give you a fixed amount of money or a commission on per transaction.
You may earn a huge amount of money, if you are offering a place who has a good number of population around.
Most important lessons on money
People save money to invest in fixed deposits, bonds etc to get rich until they reach their 60’s. I would say a big no to these ideas of getting rich by sacrificing your life.
If you have selected the slow way of becoming reach, believe me, you are wasting your time and age, you are killing freedom.
You can make money even though you are in 18, 30’s, 40’s, 50’s.
If you are thinking that it’s too late to follow my style of becoming rich, then I would say age is just a number, but make sure you are not late.
It doesn’t matter whether you are on your 60’s or passed in school with less grade or got an MBA from top university or a celebrity or a famous billionaire.
My style is just a gate towards unlocking the idea of making passive money.
After going through my blog, one thing is sure, you will be having a secret to play with money and numbers which will lead you to generate passive income.
We always see a billionaire and imagine how did they become rich so quickly. This is because they cracked the code of money with numbers.
Many gurus suggest you to gain a good grade in the school & colleges, get a good job, save some percent from your salary, invest those savings in life insurance, fixed deposits and one day you will become rich. Blah! Blah! Blah!
That one day will cost you 30 to 40 years of your life. This is crazy! Sacrificing your whole life for becoming rich in your 60’s. No Never.
Never let thirst for a wealth to clouds our vision.
You will not see a young guy got millionaire investing in bonds or kept money in fixed deposit in the bank.
Investment gurus usually advice to invest for next 20 to 25 years to make you millionaire. But they don’t tell you the reality.
The value of your investments will not be the same in next 25 years. Oh! Let me make this simple. What you can buy today for $100 will not be bought in next 25 years for the same price.
The financial institutions will use your invested money and become rich.
It doesn’t matter how much money you earn, if your money management is poor, you will end up using this formula;
Your wealth = Income + Debt
Are you happy with this formula that is unknowingly created by yourself and you don’t even know?
So, why such things happens!
This is because, your total money outflow (ex: fixed expenses, loan, EMI, etc.) is 110 percent of your actual money inflow (Income 100 percent).
When you start earning money in your life, you will surely somehow get attracted towards debt, because you need more for you luxurious lifestyle.
So, in the end you are losing your hard earned money by paying EMI’s for months and months.
If you ask people the meaning of rich, they will say having a Lamborghini, some will say having a royal bungalow.
Many people buy an expensive car on loan to look rich even though it’s above than their limit, still they buy it. This way you may look rich, but you won’t be rich in reality.
You are killing your freedom in other way. In short, you are working for money lenders, if not, soon the time will come.
There is no wrong to buy expensive cars or bungalow or watches unless you can truly afford it. Not affecting your pocket that much.
The choice is yours, whether you want to live rich young or live poor.
“Money never buy a happiness when it is misused.”
Please comment and share your views below in the comment section.
Founder of twomillionways.com
MBA – London
I am here to share my ideas and experience on how to make real money.