6 Ways to Make Passive Income

Who wouldn’t want to earn a little extra moolah every month? Well, there are many different sources of passive income. The ones I discuss below are very popular, very possible, and have the potential to be very lucrative. Admittedly, some of these businesses require a substantial amount of work up front, and even some amount of maintenance on an ongoing basis. Wait a minute, why is the income from them considered passive? Well, the thing is, they all offer the opportunity to provide with you with a certain amount of revenue, even when you’re not working, so you put in the work in the beginning, and reap the rewards later.  We’ll take a look at each type in future posts but for now, let’s jump right into this overview!

1. Start a Blogging Business

I’m starting with this one because I wanted to address it with a disclaimer. A blog can be a source of residual income but it is not really passive. They require a lot of time and work, especially upfront. Sure, a blog can produce income should you choose to monetize it with ads or sell products or services through the blog but it is not likely to earn money on its own.

If you want to monetize your blog with ads or affiliate marketing you can realize income when you’re not working, but you will have to maintain the blog to a certain extent and you will have to market them.  Affiliate marketing is another way for you to earn money passively with your blog as well. Once you place your affiliate links within your blog (see below) there isn’t much more to do, bringing in truly passive income.  

2. How to Make Passive Income With Print on Demand

Print on demand is one of the easiest ways to earn passive income. Simply, it consists of a seller (you!) offering items to potential buyers without having any inventory and without any (or relatively few) upfront costs. For example, let’s say I own a print on demand sock shop. I can offer my customers any socks they choose from my catalog.

Once the customer pays me, I will pay the print on demand company their base price and shipping cost, and the print on demand company will then handle the printing and shipping of the socks for me. So I never have to have inventory and I only pay for the socks to be made when the customer pays me. Their custom socks don’t even really exist until I place the order. This is great for anyone not wanting a spare room or basement full of inventory that may or not sell.

There are so many ways to operated a print on demand business now that the print on demand world is your oyster! You can start with a print on demand company like Redbubble or Spreadshirt, where you sell designs you create with a tool like Photoshop or Affinity Designer.

The print on demand company puts your designs on whatever product they offer and when a customer buys something, you do nothing but collect your commission. Different print on demand companies pay different commissions so check each one for details. For information on Redbubble read my seller’s review. Spoiler: I love selling with Redbubble and Spreadshirt because of the ease of uploading designs. It takes 5 minutes to upload one design and both Spreadshirt and Redbubble give you the opportunity to offer a ton of products from t-shirts to tapestries, all with your design. 

3. Make Money With Apps

Building an app may require work in the beginning but if you can create an app that can be purchased by smartphone users via an App Store, you will receive residual income for that app for as long as it’s in the store and there is a demand for it. If you don’t have the skills to build an app but you have a winning idea, you could have a developer create one for you. If you’re able to do that, you’ll realize true passive income.

Imagine if you were the one who created an app that would allow you to have food delivered from fast food restaurants? You’d be a very happy camper right now! If you can think of a need that’s not already being met, or you can improve on what’s already out there, consider hiring someone to create it for you. 

4. Publish a Book on Amazon

Writing and selling a book has never been easier. Paperback books can be uploaded and sold on the Kindle Direct Publishing platform with ease. Maybe the best part is your book would be made available for sale on Amazon with Prime shipping. If you are a writer this is a great time to pen that new bestseller. If you are not a particularly good writer you can hire a ghost writer for you. Less work but more money up front. It could be worth it if the book sells.

If you’re not an author but want to publish a low content book or a no content book, why not create a journal or planner of some sort? If you can find a niche to tap into you can create an almost blank book and sell that on Amazon KDP also.

Similar to print on demand you will receive royalties for each book that is sold. Sell under your own name or a pen name, list with descriptions and titles that will get your book found, and make money.

Competition for blank and low content books has become more fierce because of the low bar of entry, so if you can create a journal or planner with more content, like prompts, you will stand out from the crowd a little more.

Design your interior pages with software like Canva or hire someone on fiverr or Upwork to create one for you. The same goes for the book cover. KDP gives you the proper dimensions so you can properly format your low content book. Be sure to share them with your designer.

5. Sell a Course Online

This may seem like a lofty goal but really it isn’t. We all have a skill or know something that someone else does not. If you can pinpoint that and are comfortable conveying that information to others, why not create a course? There are so many platforms online where people are willing to pay for courses. In any subject on every level. What’s better is you can record the course and upload it so people can take the course whenever they like. A great way to earn money while you sleep!

Try looking at platforms like Udemy to see what’s already out there. Look to see which areas are saturated and try to find an angle that hasn’t been covered. Could you write a basic course for beginners? You don’t have to be an expert, you just have to be able to get someone the results they want. Sometimes that’s just getting someone from point A to B, not A to Z.  

6. Affiliate Marketing for Small Business

What is affiliate marketing? Affiliate marketing is a commission-based model where you receive a commission for referring potential buyers to someone else’s products or services. When you sign up to partner with a company as an affiliate they will assign you a unique link. This link is tied to you only and is used to track the clicks and sales attributed to you. You will share this link with your people and when they click or make a purchase, you will get a piece of the pie.

Some companies will pay you one time while others will pay you a recurring fee. For example, if you are an affiliate marketer for ABC Corp. and one of your referrals buys an ABC software package from ABC Corp., you could receive residual passive income each time that customer renews their license or upgrades with ABC. Corp, This can be lucrative if you are able to drive customers to those offers.

This type of business is easier if you have some kind of audience already. That audience can be readers of your blog, Youtube subscribers, people on your email list, etc. If you don’t have an audience you can share your links on social media  (some restrict what you can share so check your favorite platform before doing this) and on platforms like Tumblr.

Be creative and share it wherever you can. Be careful not to spam anyone and share it with people who are looking for the thing you’re offering.  It also helps to provide a little value before offering the link, so people are more open to what you have to share. So if you’ve ever asked “what is affiliate marketing? this just may be the business for you.

BONUS: Vacations Rentals

You don’t have to own a mansion to rent out your home to vacationing strangers. You can list your home online with companies like Airbnb and earn extra money. If you have a vacation home this is great, but even if you don’t, you could rent out your home for short stints while you’re away yourself.

But are vacation rentals profitable? You have to do your due diligence to make sure you attract great guests, but a great way to earn a little extra cash.

What do you think about earning passive or residual income? Comment below if you are thinking about starting a passive income-driven business.

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This post contains affiliate links. If you purchase from a company on this website I may receive a small commission that funds this blog, at no cost to you. Read the full disclosure.