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Looking to grow your income without working around the clock? Passive income is money you earn with minimal effort once the initial setup is done.
In this guide, we’ll explore 22 passive income ideas, comparing the pros, cons, and earning potential so you can find your best fit. Whether you want extra cash or long-term financial freedom, there’s a passive income stream here for you.
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What is passive income?
Passive income is money you earn from a source other than a direct employer or contract work. It’s income you generate without putting in much time, work, and effort after it’s set up. While you’ll still need to check in and maintain it occasionally, most of the process runs on autopilot.
Types of passive income
Passive income comes in many forms, each with its own mix of effort, risk, and reward. Some offer higher returns with higher risk, while others prioritize stability with minimal ongoing effort.
Knowing the main categories will help you choose the right strategy based on your financial goals, skills, and resources.
Most passive income ideas fall under one of these three types:
1. Investment-based income
This approach uses your own money to generate passive income. Common examples include stock dividends, bond funds, real estate investment trusts (REITs), and money market funds. While they often require a significant upfront investment, they can provide steady interest payments or monthly income with minimal maintenance – especially when interest rates rise.
2. Asset-building income
Here, you create a product or system once and continue earning from it over time. Think digital products, online courses, mobile apps, or royalties from intellectual property like eBooks or music. This model offers scalability and low ongoing costs, making it a strong choice for long-term growth.
3. Asset-sharing income
This involves renting or sharing assets you already own, such as a rental property, spare room, car, or even storage space. You could also advertise on your car or rent out vending machines. While it requires some management, it’s a practical way to earn passive income from physical resources.
Passive income vs active income: What’s the difference?
Active income is the salary you earn for performing a service or duty within a time frame. Active income is paid through tips, commissions, wages, fees, allowances, etc.
| Active income | Passive income |
| Tutoring or consulting others and charging by the hour | Selling a pre-made online course |
| Driving for Uber and similar services | Renting out your car |
| Freelance programming | Selling a self-made program |
| Freelance writing | Writing a book and selling it |
| Freelance photography | Selling stock photography and art online |
The key takeaway is that passive income ideas require some upfront investment and effort. Once set up, they can generate money passively over time, helping you reach your personal finance goals more efficiently.
22 Ways to generate passive income
Let’s look at 22 ways to make passive income. From an online business and affiliate marketing to real estate investing. Browse the list of pros and cons and pick the best passive income stream for you.
1. Open a print-on-demand store
- Investments: Time
- Passive income potential: Very high
- Risk: Zero
One of the best ways to make passive income is with POD. Open your online store, list custom products, and watch the orders roll in. The beauty of POD is that every order is printed, packaged, and shipped by the print provider – no hands-on work required.
With platforms like Printify, you get access to hundreds of customizable products, free design tools, and a quick, easy setup process – plus support and guidance along the way. Browse our success stories to see how others have turned POD into a thriving income stream.
Pros:
- No upfront investment.
- No physical inventory.
- No tech skills needed.
- Launch your online store without risk.
- Orders are fulfilled at the customer’s purchase price – leaving you with pure profit.
Cons:
- Limited control over the fulfillment process.
- You need to rely on your print partners for quality and timely delivery.
2. Create online courses
- Investments: Time and money to hire professionals if you don’t have the necessary skills and equipment.
- Passive income potential: Very high.
- Risk: Low.
Instead of spending endless hours on one-on-one consulting and tutoring, create an online course that can reach anyone interested in your topic. This category involves creating educational content and some upfront work from you – outlining, recording, and posting the material on platforms like Skillshare or Coursera, and creating downloadable resources for your students.
Once it’s live, your online course can become one of your passive income jobs, generating solid earnings while helping others along the way.
Pros:
- Generates passive income after initial setup.
- Lets you share your expertise with others.
Cons:
- Requires time and effort upfront.
- Must be clear, professional, and valuable.
3. Sell digital products
- Investments: A lot of time and some money for outsourcing and equipment.
- Passive income potential: High.
- Risk: Low.
Digital products can be anything from goods to printables, files, templates, plug-ins, audiobooks, kits, and more. Anything the customer can then download and use or print for their own needs. Create them once and sell digital products as many times as you want with a high-profit margin.
Pros:
- Low-cost and easy to start if you have the skills and equipment.
- Turns your creations into passive income.
Cons:
- Income may take time to grow.
- Platform fees can add extra costs.
4. Invest in dividends and mutual funds
- Investments: Large money investment and time researching the stock market.
- Passive income potential: High.
- Risk: High.
Buy dividend stocks to earn passive income from regular company payouts – no ongoing effort required. While this is an easy passive income strategy, dividend investing comes with risks and complexity. Consult a tax professional to understand how your dividends may be taxed based on your situation.
Pros:
- Earn regular dividends and potential long-term gains.
- Minimal ongoing involvement after purchase.
Cons:
- Requires significant upfront capital.
- Dividend-paying stocks come with a high risk.
- High risk if the company underperforms or goes bankrupt.
5. Rent out property
- Investments: Your property, time, and other resources.
- Passive income potential: High.
- Risk: Medium.
Another easy way to generate passive income is through rental property, one of the best passive income investments. Whether it’s an entire apartment, house, building, or just a single room, rental income can provide a steady monthly cash flow.
Pros:
- Flexible options: long-term or short-term rentals.
- You set the rules and contracts.
- It can be a highly profitable passive income investment.
Cons:
- Property issues are your responsibility.
- Risk of difficult tenants or legal challenges in some regions.
6. Rent out transportation
- Investments: Your car (plus insurance, maintenance, etc.).
- Passive income potential: Average.
- Risk: Medium.
Similar to real estate, it’s worth considering other passive income opportunities that involve leasing, for example, your vehicle. Rent it out to locals or travelers who need a convenient, safe, and affordable way to get around.
Pros:
- Earn passive income by renting out your vehicle instead of driving yourself.
- List your car on platforms like Turo and set your own terms.
- Sit back while your car generates income.
Cons:
- Responsible for maintenance, insurance, and wear and tear.
- Insurance may restrict sharing your vehicle.
- Accidents can leave you temporarily without your car and create extra hassle.
7. Do peer-to-peer lending
Investments: Money as an upfront investment.
Passive income potential: High.
Risk: High.
If you’re looking to invest in passive income streams with direct money, try peer-to-peer (P2P) lending. Lend money to small and local businesses or borrowers, and chime in on residual income from interest payments.
Review borrower profiles, credit history, and financial statements before committing.
Cons:
- Risk of scams or borrower defaults.
- Potential total loss of your investment.
8. Invest in domain names
Investments: Money and time.
Passive income potential: High.
Risk: Average.
Flipping domain names is like trading stocks: buy them for cheap with the goal of eventually selling them for a lot higher. Every business and brand needs an online presence, so invest in short, catchy, and memorable names that are easy to sell.
Pros:
- Start cheap – domain names can cost around $10.
- Low effort beyond researching and choosing the right names.
Cons:
- Risk of not selling a domain, losing your investment.
- Watch out for annual renewal fees.
9. Sell spreadsheets
Investments: Time.
Passive income potential: High.
Risk: Zero.
If you’re a natural tech-savvy wizard in Excel or Google Sheets, this might be one of the best passive income sources for you. Create spreadsheets for tracking, budgeting, invoicing, and more, then sell them online to those who need ready-made solutions.
Cons:
- Need to attract buyers to your product.
- Building a social media presence can help; Excel influencers are on the rise.
10. License your music, art, and photos
- Investments: Time.
- Passive income potential: Medium to high.
- Risk: Low.
Curious about how to make money as an artist? This might be the answer. If you’re passionate about painting, making music, or photography but don’t want to be in the public eye, licensing your work is a great passive income idea. How to sell art online? Partner with sites like Getty Images and Shutterstock and sell your images virtually. Or license your music and get paid every time someone uses it for different projects – ads, YouTube channels, movies, trailers, etc.
Pros:
- Build your reputation as an artist.
- Create passive income doing something you love.
Cons:
- Income may take time to grow.
- Requires consistent uploading of photos or music for best results.
11. Try affiliate marketing
- Investments: A lot of time.
- Passive income potential: High.
- Risk: Zero.
Becoming an affiliate marketer is one of the easiest ways to generate passive income. That is – if you already have a potential fan base/following for promotions. Sign up for an affiliate program, promote products on your chosen channel or platform, and earn commissions from clicks and sales your links generate.
Pros:
- Free to join affiliate programs.
- Earn commissions by promoting products online.
- Grow traffic and audience while generating income.
Cons:
- Building an audience takes time.
- Requires creativity and marketing skills.
- Staying relevant on social media can be challenging.
Check out the Printify Affiliate Program and earn 5% commissions in monthly payments via PayPal.
12. Become a video content creator
- Investments: Time and research.
- Passive income potential: Very high.
- Risk: Low.
If you know how to create fun, engaging videos, this could be a strong passive income source. Platforms like TikTok and YouTube offer huge potential. Just pick your niche and target audience, and create click-worthy content. Use online editors to customize your videos with different tools and add music to videos online, so you can create eye-catching content and grow your audience.
Pros:
- Multiple income streams: ads, sponsorships, affiliate programs, etc.
- The only real investment is your time.
Cons:
- Time and effort may not guarantee success.
- Need to consistently post content to grow your audience.
13. Start a podcast
Investments: Time and money for equipment.
Passive income potential: High.
Risk: Low.
One of the most popular passive income business ideas nowadays is podcasting. Speak directly to your audience about topics important to you, and earn money at the same time. If you love to express yourself and your opinion, podcasting is for you.
Pros:
- No need for expensive equipment – a simple headset works.
- Many niches to explore.
- Can record from home for convenience.
Cons:
- Risk of getting no listeners or revenue.
- Finding the right audience is challenging.
- It may take time and effort to generate income.
14. Sell NFTs
- Investments: Time, research, and money for listing fees.
- Passive income potential: High.
- Risk: Average.
NFTs are fraud-proof tokens that prove your ownership of a one-of-a-kind digital file. It can be anything from digital art to a song, painting, tweet, or whatever else lives on the digital platform. Just like with digital goods, you can create an NFT once and sell it again and again, rent it out, collect royalties, and enjoy the beauty of passive income.
Pros:
- Use platforms like OpenSea to create and sell NFTs.
- Great way to build your reputation as an artist.
- Plenty of niches to explore.
Cons:
- Risk of listing NFTs that don’t sell.
- May require creating many NFTs before finding success.
- Time and money investment may not pay off immediately.
15. Invest in a high yield savings account
Investments: Money.
Passive income potential: High.
Risk: Average.
Some passive income ideas require almost no time or effort. Opening a high-yield bank account is one of them. All you need is a bit of money to start, and your balance will grow automatically through interest. If you have some spare cash, placing it in a high-yield account can earn you a better rate than a standard savings account, helping your money grow faster.
Pros:
- This business model is simple and low-effort – just open an account and deposit money.
- Earnings grow over time with compounding interest.
- FDIC-backed accounts offer security and better returns than traditional savings.
Cons:
- Earnings can be affected by inflation, economic downturns, or crises.
- Interest rates may fluctuate, impacting returns.
16. Advertise on your car
Investments: Your car.
Passive income potential: High.
Risk: Average.
Another great way to earn passive income is by simply taking your car out for a ride or doing your daily rounds. Partner with a car advertising company like Carvertise, Nickelytics, and Wrapify, and turn your vehicle into a billboard on wheels.
Pros:
- Earn passive income while driving your usual routes.
- Some programs pay per mile.
Cons:
- Risk of scams in the industry.
- Must display ads, so choose brands that align with your values.
17. Write an e-book
Investments: A lot of time, skills, and research.
Passive income potential: High.
Risk: Low.
Writing an eBook is simple, easy, and accessible to almost everyone with low publishing costs. eBooks don’t need to be long and can cover any topic of your choice and expertise. Writing one will take up a lot of your time, but later on, you can use the power of Amazon to reach millions of potential customers.
Pros:
- Low publishing and production costs.
- It can be both entertaining and educational.
Cons:
- Poor reception from readers can nullify your efforts.
18. Record audiobooks
Investments: A lot of time and some money for equipment or outsourcing skills.
Passive income potential: High.
Risk: Low.
Speaking of books, recording an audiobook for those who prefer to listen to your stories, lectures, or guides is a great way to generate income. If writing isn’t really for you, recording a book is the next best thing. Record it once and collect passive income when it’s sold repeatedly.
Pros:
- Requires minimal material resources.
- Many niches to explore.
- Can self-publish or use sites like ACX to earn royalties.
Cons:
- Need to find the right niche and audience.
- Risk of investing time, effort, and money without returns.
19. Create an app
Investments: A lot of time and money for software.
Passive income potential: Very high.
Risk: Average.
If you have the skills and resources, consider developing and selling apps. Alternatively, use AI app builders to create useful apps for users to download and engage with repeatedly, generating ongoing passive income. Apps range from games to fitness, music, calculations, and more. The more unique and valuable the app, the greater your earning potential.
Pros:
- Multiple income streams: downloads, in-app ads, and more.
- Broad appeal for education, finance, or entertainment purposes.
Cons:
- Risk of low demand or no downloads.
- Apps must be unique, useful, and engaging to succeed.
20. Invest in REITs
Investments: Money and time for research.
Passive income potential: Very high.
Risk: Average.
Invest in real estate assets without actually purchasing a whole building. Real estate investment trusts (REITs) are basically companies that own, manage, and finance income-producing properties. Invest your money in real estate investment trusts via sites like Fundrise, and earn passive income in dividends.
Pros:
- Buy REITs with as little as $10.
- No need to purchase physical real estate.
Cons:
- Requires research to identify good REITs.
- Risk of losing money if you invest without knowledge.
21. Invest in index funds and ETFs
- Investments: Money.
- Passive income potential: High.
- Risk: Low to medium.
Index funds and ETFs offer a simple way to earn passive income through diversified exposure to the financial markets. These investment funds track a broad market index and pay dividends while growing in value over time.
Pros:
- Low fees and minimal effort.
- Steady long-term growth potential.
- Reinvest dividends through a dividend reinvestment plan for compounding returns
Cons:
- Returns are affected by market fluctuations.
- Past performance doesn’t guarantee future results.
22. Run vending machines
- Investments: Equipment, setup time, and restocking.
- Passive income potential: Medium to high.
- Risk: Medium.
Running vending machines is a physical passive income stream where machines generate regular income from snacks, drinks, or other small goods. After the initial setup, it requires minimal ongoing effort aside from maintenance and refills.
Pros:
- Steady income from high-traffic locations.
- Full control over products and business.
Cons:
- High initial setup costs.
- Machines need maintenance and restocking.
- Location scouting required.
Start earning passive income with Printify
Printify makes it easy to create a passive income stream by selling custom products online. There’s no need for inventory, shipping, or initial investment. Just design, list, and profit.
Why choose Printify?
- Free
- No inventory or shipping hassles
- Beginner-friendly tools
- Over 1,300 customizable products
- Global fulfillment and fast delivery
How to make passive income with Printify:
- Create a free Printify account.
- Design your product using the built-in Product Creator.
- Connect your store on platforms like Shopify, Etsy, or TikTok Shop.
- List your products online and set your prices.
- Promote your store to attract customers.
- Earn passive income while Printify handles printing and shipping.
FAQ: Passive income ideas
Generate $1,000 a month in passive income by combining a few income streams, like dividend stocks, real estate investment trusts, or a print-on-demand store. It may require a large upfront investment or significant time, but once built, a solid passive income stream can bring in steady cash flow monthly.
The easiest passive income ideas include high-yield savings accounts, selling digital products, or joining affiliate programs. These require minimal ongoing effort and low upfront costs, making them great starting points for beginners looking to earn passive income.
The least risky passive income sources are high-yield savings accounts, money market funds, and government bond funds. These offer steady income with low volatility, making them ideal for anyone seeking low-risk passive income strategies.
Start with types of passive income that require only your time. Open a print-on-demand store, sell digital products, or join affiliate programs. These methods let you generate passive income without needing money upfront – just creativity, consistency, and smart promotion.
Whether you’re building one or wondering how many income streams you need, you can earn anything from zero to tens, hundreds, or even thousands.
How much money you earn from passive income depends on many factors. How original is your idea? How high is the competition? How big is your investment, and what is your potential? If you grab the right idea at the right time and present it to the right market, your potential income will be sky-high.
All of the ideas listed above have the potential to generate large amounts of passive income. Some of the best-earning ones are real estate related and selling goods and services online – from courses and books to merchandise, spreadsheets, and just about anything.
As a beginner, browse the previously mentioned ideas and see which ones require the least investment and have the lowest risk. You might want to start with ones that only require your time. Like opening a POD store, creating an online course, etc.
Wrapping up
Adding passive income streams to your life can help you earn extra money for fun spending, pay off student loans or your mortgage, and stabilize your overall financial situation.
From investment funds to income-producing real estate, rental property, and creative options like affiliate marketing, podcasting, and more, there are plenty of opportunities for you to generate passive income.
Explore your options, make an informed decision, and get creative.
